Opening Company In Dubai Free Zone in the Emirates of Rak, Fujairah, Sharjah vs. One in Dubai : Which One to Choose?

Free trade zones abound in the UAE, a place of thriving industries and trade relations that makes it easy for investors from across the world to do business there. Foreign investors may take advantage of special economic zones established for them. The foreign investors profit from tax-free and customs-duty-free zones. Investors are Opening Company In Dubai Free Zone because of this.

Dubai, Sharjah, Abu Dhabi, Ajman, Fujairah, Um Al Qwain, and Ras Al Khaimah are among the United Arab Emirates’ free zones. These Dubai Freezone Company Setup fall into three categories: mainland, airport, or seaport. Investors interested in establishing a company in the United Arab Emirates may choose from various free zones, each of which is tailored to a particular industry or service.

It is important to note that each free zone operates autonomously and rigorously conforms to its own set of laws and regulations. Depending on the sort of firm or sector, the rules might vary. This means that only businesses or industries that fall within the free zones’ parameters are allowed to work there. The Free Zone Authority of the United Arab Emirates governs the UAE’s free zones (FZA).

The company formation in UAE is a haven of opportunity for international investors, but they’re not without their drawbacks.

There are both advantages and disadvantages to free zones in the United Arab Emirates.

The Advantages

The Company Is Owned Entirely by Foreigners

If you’re an expat considering establishing a company in the United Arab Emirates, look no further. Unlike a limited liability corporation, a firm in a freezone business setup Dubai has no such limitation on the percentage of ownership held by investors. On a free site, foreign investors are granted the full license of the companies they invest in.

Exemption From Paying Taxes

Export and import tariffs and corporation tax exemptions for enterprises formed in a free zone have existed for roughly 50 years.

A Cutting-Edge System of Reception

The infrastructure in free zones is up to snuff and serves as a solid foundation for a wide range of enterprises to build and flourish.

Company formation in UAE is aided in recruiting foreign workers and other services such as sponsorship and lodging.

The Drawbacks

Only a Few Things Can Be Done

Free zone enterprises cannot expand into other parts of the United Arab Emirates. If you want to do so, you’ll need to re-register your firm as a private corporation.

Restrictions on Your Choice of Business

Only a limited number of businesses are authorized to operate in a designated free zone.

More and more investors flock to freezone business setup Dubai to take advantage of fresh business prospects, despite these minor issues.

Choosing a Free Zone

There are a few commonalities among all of the free zones. It is possible to have 100% foreign ownership. The United Arab Emirates does not impose income tax on businesses or their employees.

However, import/export corporations are subject to import tariffs, and since 2018, most businesses have been required to levy a 5% VAT. Prices and what you can do with a particular firm also vary if you want to open Company In Dubai Free Zone.

To determine which free zone is ideal for you, we always ask our customers the following three questions:

  • Do you plan to do business in the United Arab Emirates?
  • What is the company’s primary focus?
  • Which type of UAE “presence” do you need for yourself and your firm?
  • What is the significance of these inquiries?

Some companies have clientele outside of the United Arab Emirates when it comes to doing business.

What Is Your Company’s Primary Focus?

UAE Free Zones provide Trade Permits. This kind of company registration differs from a regular business registration like an LLC or a Limited Liability Company (LLC). A license for financial consulting is required. You can’t just start selling milk if you have a furniture trading license.

As a result of Set Up Business In Dubai Free Zone, businesses of a similar kind may cooperate more effectively. Hence the media-free zone, the creative area, and the commodity trade-free zone.

Several free zones in the area provide:

  • Zero percent corporate and personal tax or exemptions from trade and currency limitations.
  • Providing enterprises and organizations of all sizes, stages.
  • Verticals with unprecedented regulatory advantages.

Finding the Best Free Zone for Your Company in the UAE

It might be difficult, given the country’s many free zones (over 40). In this section, we’ll go over some of the most important things to keep in mind while Set Up Business In Dubai Free Zone:

General Purpose Zones or Industry-Specific Zones

As the name suggests, industry-specific free zones concentrate on a specific business category such as financial services or healthcare.

Among the benefits are the following: Incentives to collaborate, liaise, and outsource tasks amongst organizations in comparable sectors create synergy. Building a company’s reputation using the free zone’s branding and marketing advantages. Dubai Freezone Company Setup authorities have developed trade exhibitions and other activities that encourage economic development to benefit businesses in the free zones.

General-purpose zones are a good option if your company has a broader scope and needs a more comprehensive strategy; nevertheless, you must weigh the pros and downsides of each before making a decision.

It’s All About Where You Are

Each free zone’s features are heavily influenced by its location, beginning with stakeholders like prospective investors and already established firms in the area. Additionally, several free zones will provide access to specific target markets (e.g., Asian or African) through land, sea, and air connections. Import and export enterprises, in particular, must consider this. The distance from the essential stock markets or critical transportation networks might also be an issue.


Opening Company In Dubai Free Zone – Each free zone has a very varied set of amenities. Large warehouses and production facilities are needed by manufacturing enterprises, whereas start-ups may need low-cost office space.

Certain free zones need a physical office location to begin operations, while others don’t.


Opening Company In Dubai Free Zone – Getting a license may be a long and confusing process, so it’s a good idea to work with a professional consultant familiar with the ins and outs of the licensing process.

There are specific laws and permits for each kind of Dubai Freezone Company Setup permitted in a free zone. The more activities you pick, the more money you’ll have to spend on a license, and in certain circumstances, a single firm may need several permits.

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