Registering a Free Zone Company in the UAE
What a Free Zone is and how to register: regulation, office options, operating scope, capital, zone types, step-by-step process.
Overview
A Free Zone is an economic territory, a special economic zone with its own rules that do not apply to businesses outside the zone.
Registration Procedure
Simplified compared to Mainland.
Beneficiary Information
Not available for public view.
Regulation
Independent, separate from federal law, and in some Free Zones English law applies.
Office Rental
Not required in most cases. A Free Zone provides a shared workspace (similar to a legal address). A real office can be rented directly from the Free Zone administration—but only within the Free Zone where the company is registered.
Business Activity
By default, activity can only be carried out within the Free Zone or with foreign companies. However, it is not prohibited to provide services to both Mainland and other Free Zone companies in the UAE.
Share Capital
When setting up a company, Free Zones typically require share capital to be paid. However, in some Free Zones it is enough to simply declare the share capital without depositing it.
“Free Zone companies sell goods and services under special taxation and foreign ownership laws. These zones were created to attract foreign investors and entrepreneurs, offering advantages that make doing business more profitable and convenient.”
Artur Faniev
Counsel – Corporate Structuring & Incorporation, Accounting Support
Types of Free Zones
There are about 50 Free Zones in the UAE, each with its own specifics. They can be roughly divided into two types:
Universal
Offer a wide range of business activities. This allows companies from different industries to register. Examples: Meydan Free Zone and International Free Zone Authority (IFZA).
Specialized
Usually focus on specific business activities. For example, twofour54 specializes in the gaming industry, while Dubai International Financial Centre (DIFC) works with financial companies.
Free Zone Company Registration Process
Submit an Application | Prepare and file the registration form along with the required documents. |
Reserve Company Name & Pass KYC | The registering authority reserves the company name and initiates a security check and KYC of the shareholder and director. KYC can usually be completed online via video call. |
Obtain License & Certificate of Incorporation | Upon successful review of documents and KYC, the authority issues a business license and a certificate of incorporation. |
After obtaining the license | The process of issuing Emirates ID for shareholders and the director begins. Only after the General Manager (GM) receives an Emirates ID can a corporate bank account be opened |