What is a Dubai Free Zone Company?
A Dubai Free Zone Company is a business entity registered in one of the UAE's special economic zones. These zones are designed to attract foreign investment by offering 100% ownership, tax exemptions, and simplified customs procedures.
Each Free Zone is governed by its own authority (e.g., DMCC, JAFZA, IFZA) and is tailored to specific industries like media, technology, commodities, or logistics.
Benefits for Indian Entrepreneurs
- 100% Foreign Ownership: No need for a local Emirati sponsor. You retain full control.
- Tax Advantages: 0% corporate tax (subject to meeting qualifying conditions) and 0% personal income tax.
- Full Repatriation: Freedom to transfer 100% of capital and profits back to India.
- Strategic Location: Access to markets in the Middle East, Africa, and Europe.
- Easy Setup: Streamlined digital processes for licensing and visas.
Free Zone vs. Mainland Company
| Feature | Free Zone | Mainland |
|---|---|---|
| Ownership | 100% Foreign | 100% Foreign (most sectors) |
| Scope of Business | Within Free Zone & International | Anywhere in UAE & International |
| Office Requirement | Virtual/Flexi-desk allowed | Physical office mandatory |
| Visa Allocation | Limited by office size | Flexible, based on space |
Registration Process
- Choose Activity & Name: Define your business activity and select a unique trade name.
- Select Free Zone: Choose the zone that best fits your industry (e.g., DMCC for commodities, DIC for tech).
- Submit Application: Provide passport copies and application forms to the Free Zone Authority.
- License & Office: Pay the fees, sign the lease (flexi-desk or office), and receive your Trade License.
- Visa Processing: Apply for the establishment card and then your residency visa and Emirates ID.
- Bank Account: Open a corporate bank account with your new license and visa.
Documents Required
For Individual Shareholders
- Passport copy (valid for min. 6 months).
- Passport-sized photograph (white background).
- Entry stamp or Visa copy (if already in UAE).
- Proof of residential address (utility bill).
For Corporate Shareholders
- Certificate of Incorporation.
- Memorandum & Articles of Association (MOA/AOA).
- Board Resolution.
- Note: Corporate documents must be attested.
Fees & Costs
The cost of setting up a Free Zone company varies by zone and package:
- License Fee: Approx. AED 10,000 - AED 20,000 per year.
- Visa Fee: Approx. AED 3,000 - AED 5,000 per person (valid for 2-3 years).
- Office/Flexi-desk: Often included in packages or starts from AED 5,000.
- Total Estimated Cost: Starts from AED 12,500 (approx. ₹2.8 Lakhs) for a basic package.
