There are over 27 Free Zones where you can establish a company in Dubai, with more free zones being developed. There are many restrictions and things to consider while establishing a company in Dubai. Things like set-up costs, business activities, facilities options, capital available and target consumers are all factors you would need to consider.
You are also able to establish a company in Dubai Mainland, i.e. in areas outside of assigned free zones.
What makes free zones attractive over mainland?
While both options have their distinct strengths and weaknesses, the primary factor driving organizations to establish a free zone entity is the less stringent conditions and greater regulatory flexibility, which vary from case to case.
An example of this is that free zone entities have no foreign ownership restrictions, allowing you to own 100% of your company. This contrasts with establishing a company on the mainland, where certain activities require one partner to be a foreign national (non-GCC national).
Further factors such as a lack of currency restrictions, wide variety of licensable activities, inexpensive energy and logistic efficiencies due to a cluster effect make free zones an attractive place to establish a company.
What are the various free zones and why choose different ones?
The UAE regulates the permitted activities within each free zone. To obtain a license in a specific free zone, your business must engage in the activities allowed there.
The names of the free zones typically indicate the types of activities permitted within them.
Some of the popular free zones in Dubai are-
1) Dubai Multi Commodities Centre (DMCC)- It is located in the Jumeirah Lake Towers district of Dubai. The DMCC deals in four main sectors: precious commodities; energy; steel and metals and agricultural commodities .
2) Jebel Ali Free Zone (JAFZA)- This is located in the Jebel Ali district of Dubai. This free zone is prominent due to the presence of the Jebel Ali Port. It is central to the UAE’s success and eminence as a commerce hub. It is one of the most flexible in terms of permitted activities in Dubai. It caters to trading, general trading, service, logistics and industrial related activities.
3) Dubai International Financial Centre (DIFC)- It is a 110 110 ha (272 acres) space, established in 2004 aimed at focussing all finance related activities. It is the region’s leading financial hub. In this free zone, activities related to banking, financial and legal services are permitted.
4) Dubai World Central (DWC)- It is popularly known as Dubai South. This is a newly established free zone part of a bigger project which will act as the centre to 6 other free zones. In this free zone, there is an airport “Al Maktoum International Airport”, with plans of expanding and becoming the world’s largest airport by 2030. Aviation, logistics, light industry and ancillary services related activities are permitted here.
5) Dubai Knowledge Park (DKP)- It is the world’s only free zone dedicated to human resource management and learning. DKP allows for Professional and Management Development Training, Computer Training, Language Training, Fine Arts Training, Child Skills Development Training, Tutoring Services, Technical & Occupations Skills, Human Resources Consultancy, Research & Development, Content Development, Assessment and Testing, Executive Search, Freelancers and Association (Non-Profit) related activities.
6) Dubai Internet City (DIC)- It is a hub for innovation and technology in Dubai. As the name suggests permitted activities within this free zone is are internet, communications and technology related services.
7) Dubai Media City (DMC)- This hub houses the largest global and local media brands. Only media related activities are permitted within it.
8) Dubai Silicon Oasis (DSO)- This is one of the pre-eminent free zones in the UAE. It caters to activities related to IT, telecommunication, electronics and engineering.
9) Dubai Healthcare City (DHCC)- The core focus of this free zone lies in healthcare, education, medical education, research pharmaceuticals and medical equipment. People interested in venturing into this niche are inclined to open their establishments in this free zone.
Some other free zones are-
1) Dubai CommerCity (DCC)- E-commerce related activities.
2) Dubai World Trade Centre (DWTC)- Events, entertainment.
3) Dubai Design District (d3)- Design, fashion, art, clothing.
4) Dubai Science Park- Pharma, health, wellness and life.
5) International Humanitarian City (IHC)- Humanitarian, non-profit.
6) Dubai Outsource City (DOC)- Outsourcing and shared service businesses.
7) Meydan Free Zone (MFZ)- Relatively flexible free zone offering over 2,500 activities.
8) Dubai International Academic City (DIAC)- Education, higher education, research.
9) Dubai Production City (DPC)- Marketing, import & export, printing (digital, commercial and industrial), publishing and electronic content.
10) Dubai Studio City (DSC)- Broadcasting and streaming related services, animation, production, music and entertainment, amusement and recreation.
11) Dubai Airport Free Zone (DAFZ) – Trading, import & export, re-export, storage.
12) Dubai Gold & Diamond Park (DGDP)- trading related to precious metals and stones, manufacturing of ornaments, wholesale retail.
13) Dubai Auto Zone (DAZ)- Insurance, architecture, space and aircraft, transport, investment, travel agencies.
14) Expo City Dubai- services, logistics, holdings, general trading and commercial trading.
Documents required to form a Free Zone Company-
You can opt for two types of FZ companies- a FZE (free zone establishment) or an FZC (free zone company). The difference is that the former has only one shareholder, whereas the latter would have two or more.
These are by default a limited liability type model and are not monitored by the UAE Commercial Companies Law. They are instead governed by the respective free zone authorities.
In order to proceed smoothly with the establishment of your free zone company, we would need the following:
1) Certified Passport Copy and UAE Visa/UAE entry stamp (if non-resident).
2) 2 copies of proof of address (dated within 3 months).
3) Bank or a professional reference letter.
4) Curriculum Vitae (summary of professional history).
5) Detailed business plan depending on the business activity and chosen free zone.
6) Company application form (which we will provide).
What LexResolvo can do for you?
We are registered channel partners with free zones all over the United Arab Emirates. What this means is that we are privy to exclusive discounts and bundle deals offered by the various free zones. Moreover, we would utilise our expertise to take into consideration the whole picture. From your available budget, business needs to space requirements and even visa for your dependents.
Our specialised team at LexResolvo would guide you through the full process and update you regularly to keep you thoroughly informed on progress.
For a seamless and efficient setting up of a free zone company, fill in the form below or reach out to us through any platform. Our professionals will get in touch with you shortly.