Why UAE Free Zones Are Ideal for Entrepreneurs

Enjoy full ownership, tax benefits, and easy setup in UAE Free Zones.

Free Zone Company Formation in the UAE

Free Zones are designated economic areas that offer businesses preferential tax, customs, and regulatory benefits. Established to attract international investment and promote economic diversification, they provide a business-friendly environment, including full foreign ownership and streamlined setup procedures. The UAE is home to over 50 Free Zones—some cater to all industries, while others are sector-specific. 

Key Advantages of Free Zone Companies

100% Foreign Ownership

No NOC Required From the Current Employer

No Minimum Share Capital Requirement

Option to Incorporate Under Common Law (in Select Free Zones)

Physical Office not Mandatory

0% Corporate and Personal Income Tax

Remote Company Incorporation Available

Flexibility to Operate in Jurisdictions without Mandatory Employee Health Insurance

License Types and Business Activities

UAE Free Zones offer over 3,000 approved business activities across diverse sectors. Selecting the appropriate license type is crucial to align with your business objectives. Our company set-up consultants are available to provide tailored advice and end-to-end support.

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Commercial License

Required for businesses engaged in trading, import/export, or distribution of goods. Common activities include: 

  • Computer software trading 
  • Food and beverage trading 
  • Plastic bags and containers trading 
  • Medical gas, acids, and alkaline trading 
  • Agricultural pesticides, perfumes, and cosmetics trading 
  • Wooden products, pipes, and fittings trading 
  • Audio-visual and recording equipment trading 
Industrial License

Issued to companies involved in manufacturing, production, or industrial processing activities. Examples include: 

  • Garments, carpets, and uniforms manufacturing 
  • Pastry and sweets production 
  • Fabrics and textile embroidery 
  • Mineral water bottling 
  • Plastic bottles and containers manufacturing 
Professional License

Designed for individuals and entities offering specialized services based on their expertise or qualifications. Typical activities include: 

  • Electronic and mechanical engineering consultancies 
  • Science and technology consultancy 
  • Immigration and educational consultancies 
  • Health awareness and project management consultancy 
  • Marketing research, media consultancy, and corporate service provision 

These licenses offer flexibility and scalability, empowering businesses to operate efficiently within their chosen sectors. 

Use Cases

Consulting

E-Commerce

Startups

Freelancers

SMEs

Free Zone Company Formation

Incorporate within one of Dubai or UAE’s free zones to benefit from 0% corporate tax, simplified compliance, and 100% repatriation of profits.

Required Documents for Free Zone Company Registration

To complete your Free Zone company registration, here’s what you need:

JurisTax MENA handles the full process, from document preparation to submission. Our team ensures everything is legally compliant and submitted on time. Your Free Zone company setup is in expert hands.

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What our clients say about us

Any questions?
We got you.

Starting a business, getting a visa, or opening a bank account in the UAE? Explore our FAQs for clear insights on company setup, taxation, and compliance. Learn how to navigate regulations smoothly, maximize your benefits, and connect with our experts anytime for tailored guidance and support.

1. Can free zone companies serve mainland clients?

Yes, through distributors or dual licensing arrangements.

Yes. Shareholders and employees can apply for UAE residence visas. Process includes:

  • Entry permit
  • Medical test
  • Emirates ID registration
  • Visa stamping
  • Passport copy of shareholder(s) and manager(s)
  • UAE visa copy (if applicable)
  • Proof of address (utility bill or bank statement)
  • Passport-sized photo
  • Business plan or activity summary
  • Mainland Company: Licensed by the Department of Economic Development (DED), allows operation anywhere in the UAE and internationally.
  • Free Zone Company: Offers tax incentives and 100% foreign ownership. Business activity is limited to inside the Free Zone and international markets (not Mainland UAE unless a local distributor is appointed).
  • Offshore Company: Not licensed for business inside the UAE. Ideal for international structuring, asset holding, or IP ownership. Cannot lease offices, hire employees, or issue visas.

Corporate Tax: 9% on net profit exceeding AED 375,000. Companies earning below this threshold are exempt. Qualifying Free Zone Persons may benefit from a 0% rate if they meet specific activity and compliance conditions.

VAT: Standard rate is 5% on most goods and services.

  • Mandatory VAT registration is required for businesses with taxable supplies and imports exceeding AED 375,000 annually.
  • Voluntary VAT registration is available if supplies or taxable expenses exceed AED 187,500 annually
  • VAT-registered businesses can reclaim input tax on eligible business purchases and expenses.

Reach Our Expert Team

Get in touch with our expert team for fast, reliable business support and personalized guidance.

(+971) 04 557 3100

hello@juristax.com

Office No. 31, 27th Floor, Al Saqar Business Tower, Sheikh Zayed Road, Dubai

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