How to create a company in the free zones of Dubai?

Incorporating a company in the Dubai Free Zones is easier than starting a company on the mainland. Investors just have to follow the rules and regulations established by the respective authorities of the free zones. However, there are certain aspects that every investor should know before setting up his company in Dubai free zones, such as the types of legal structures and licenses, etc.

Types of companies that can be established in Dubai free zones

The types of companies that can be registered in Dubai-free zones depend on the number of shareholders.

Below are the main types of legal arrangements that can be formed in Dubai Free Zones.

Establishment of the Free Zone

A rak free zone business consultant establishment (FZE) can be established with a single shareholder. Reputed Dubai business formation consultants assist investors by providing the documentation to set up an FZE in Dubai Free Zones.

Free Zone Company

Investors can form a free zone company in Dubai free zones with 2-50 shareholders. Consult Dubai's best business formation consultants to register a free zone company without hassle.

Branch of an existing company

There are mainly two types of branch formation in Dubai free zones: "local company branch" and "foreign company branch." A foreign company outside the UAE can expand its global presence by opening a branch in a free zone in Dubai. Similarly, a company operating in the UAE can establish its branch within the free zones.

Types of licenses in Dubai free zones

Investors can obtain various licenses in Dubai-free zones, mainly in the industrial, commercial, and professional categories. However, free zone licenses may appear under different names in different free zones. 

Below are the main types of free zone licenses available in Dubai:

  1. general business license
  2. Service/Consulting License
  3. Business/Business License
  4. e-commerce license
  5. education license
  6. industrial license
  7. Permits for freelancers
  8. manufacturing license


Regulatory compliance requirements for setting up companies in Dubai free zones

The UAE is an open economy that welcomes foreign investors with open hearts to incorporate their businesses. However, the country has introduced certain regulations to make the economy more transparent and aligned with global standards. The investment community has welcomed these regulations as they prefer company formation in Dubai's transparent economy. Investors are required to abide by the following rules.

Regulations on economic substances in Dubai free zones

The UAE Government has enacted the Economic Substance Regulation (ESR) to curb harmful tax practices and end its previous tax haven label. As a result, ifza international free zone authority dubai, offshore, and mainland companies in Dubai and the UAE must demonstrate adequate economic substance in the relevant activities they conduct in the UAE. The relevant activities are banking, insurance, investment fund management, shipping business, financial leasing, distribution and service center business, headquarters business, intellectual property business, and partnership business. Briefcase.

UAE National Economic Register

The UAE National Economic Register (NER) is an integrated online platform that enables the integration and sharing of company data at the national level. Through the UAE NER, any interested party can check the details of business licenses and economic activities of companies existing in the UAE. With the introduction of the NER, banks, government, entrepreneurs, and researchers can easily access comprehensive and accurate information on UAE companies. The NER laid the foundation for a more transparent environment for company formation in Dubai, ending the secret haven label.

Compliance with anti-money laundering regulations in Dubai


The UAE introduced Anti-Money Laundering (AML) and Anti-Terrorist Financing (CTF) regulations to combat the illicit flow of money that has proven to threaten the global financial system. The UAE implemented AML/CFT regulations to comply with global standards set by the Financial Action Task Force (FATF).

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