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How To Get a Freezone Licence in Dubai?

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What Is Dubai Free Zone Licence?

Have you ever thought of revolutionising your business practices throughout Dubai? Well, many business owners think of this aspect as the UAE is known to be a powerful commercial hub. So, it is easy for investors to establish their potential in the UAE with the help of a Freezone licence in Dubai.

There are around forty free zones available in the UAE, and out of them, Dubai has the highest number. Here, all the free zones have the power to discover prominent types of business activities and value a wide range of benefits. These free zones have a direct foreign investment of around 200,000 organisations, and the bar is still rising continuously.

A free zone licence will allow a business to streamline its organisational functionalities within and outside of the UAE. Moreover, it also permits business holders to safeguard their banking services, leverage government support, build global infrastructure, and much more. However, each of these zones has its own interest in business demands and includes a wide array of organisation formation prices, paperwork requirements, etc. So, if you are dreaming of expanding your business routes to global platforms, this licence can be your ultimate ticket.

What Are The Types of Free Zone licences Available in Dubai?

It is evident that business owners should seek great knowledge about their objectives and goals. This will help them understand How to Get a Free Zone licence in Dubai. There are different ranges of free zone licences available in Dubai, and investors have to choose them according to their business preferences. For your reference, we have enlisted the types here:

Trading licence

With the help of this licence, investors can easily trade with all kinds of products in Dubai. With the trade licence the company can easily execute the import and export services that are incorporated outside of the UAE. 

Commercial licence

This type is generally known as Free Zone Trade licence Dubai. It allows operations for commercial, industrial, and consulting firms. However, the authorisation will be approachable for a limited period. 

Service licence

This type of licence is necessary for accounting, law, and business organisations to operate effectively without any constraints in the market.

Manufacturing licence

If you are a business owner who wants to manufacture new products in the UAE market, you need to acquire this type of free zone licence.

Industrial licence

As an investor, this type of free zone licence will allow you to import raw materials, execute the manufacturing of goods, and export refined products all over the world. 

Warehouse licence

This licence type will help a company to use the facilities of a warehouse for the packaging, storage, and distribution of goods. This way, manufacturers can easily maintain their productivity without any restrictions.

Freelancer licence

There is also an option for a freelancer license where the owner can easily balance their lifestyle and can work as per their preferred schedule. The following licence is also available at an affordable price. 

Documents Required to Get A Freezone Licence in Dubai

To complete the application process for a Freezone licence in Dubai, you have to provide some of your essential documents to the authorities. For your convenience, we have listed all the valuable documents here:

Present the passport copies of the following organisation’s directors, shareholders, and other prominent members. 

You need a registration certificate for your company if you are already an established firm.

Business objective or plan

Memorandum of Association

No Objection Certificate

Recent passport-size photos

Fund proof to elevate the operational qualities of your organisation. 

These are some of the basic document necessities you need to present. However, the specific requirements will differ as per the type of free zone licence you prefer.

How to obtain a Freezone licence in Dubai?

As mentioned earlier, Dubai has a fascinating free zone structure as compared to the whole world. Out of all the free zones, IFZA is considered to be extremely famous due to its reliability for small-scale enterprises. Other than this, free zones like JAFZA are an ideal pick for firms that are seeking to execute international trade. However, you need to be authentic about Dubai Freezone licence Costs and how to obtain them precisely.

1. Understand Your Business Structure

There is a vast range of business activities available in Dubai. Apart from this, free zone firms can easily pick several activities through their individual licence. However, the price value will differ depending on the number of commercial operations you are choosing. So, understand your business structure and value the type of free zone licence accordingly.

2. Be Sure About Your Trade Name

There are multiple regulations that are valid in Dubai when it comes to giving a certain name to a company. You cannot choose the names that are majorly offensive or give any religious references. So, make sure you abide by a reliable and optimistic trade name.

3. Submission of your application

Setting up your business in the free zones of Dubai is extremely easy. There will be a hassle-free document verification process where you have to give some standard documents such as a duly filled form, contact data, passport-size photos, etc. However, you also need to be ready with your business plan. Handover all these valuable documents to complete the registration process in an error-free manner.

4. Account Formation

Once you are done with the pre-approval step your business can easily acquire a Dubai Free Zone licence. With your licence and corporate documents, you can easily approach the corporate accounts and initiate business operations. The UAE residency visa will also be under your name.

Cost of Obtaining a Freezone licence in Dubai

A Free Zone licence Cost in Dubai can range from AED 10,000 to AED 30,000 as per the services you have preferred. Moreover, the price range also differs depending on the size of your functionalities and how many employees are working with you.

If you are choosing a 2-year free zone Dubai visa, the price range will start from AED 16,900 per year, and this will also involve the service licence. However, the price range will fluctuate as per various specifications.
Free Zone licence Cost In Dubai
Free Zone licence Price AED 10,000 to AED 30,000
2 year free zone Dubai Visa AED 16,900
Free zone licence renewal cost AED 8,000 to AED 15,000

Benefits of Dubai Free Zone licence

There are numerous profitable measures to enrich your business foundation in the UAE. The following free zone licence in Dubai is extremely affordable and comes with a lot of benefits, as mentioned here:

Complete repatriation of profits and capital

100% guaranteed foreign ownership in business

No worries about taxes 

Flexible office complex options available 

Free transaction of funds 

No hiding charges for importing and exporting services

Valuable and hassle-free licensing procedure

Access unique industry infrastructure

Easy visa processing and sponsorship

Liberal legal framework and authorities.

Difference between Free Zone and Mainland licence

One of the major and efficient Differences Between Free Zone and Mainland licence is that a free zone delivers 100% foreign ownership to business investors. On the other hand, the Mainland licence demands a local sponsor to hold around 51% of ownership. Moreover, there are other differences, as listed below:

Business operations

When it comes to free zone licence, it allows multiple activities such as manufacturing, trading, consultancy, and much more. However, a mainland licence allows a business to operate within. 

Taxes

A free zone Dubai licence doesn’t allow import and export taxes. On the other hand, mainland businesses have to incorporate different taxes as per their ownership laws. 

Location

With a free zone licence you can operate over the free zones and can get permission to operate in other places. However, a Mainland licence will permit you to locate over the onshore regions of the UAE. 

These are some of the major differences between Freezone and Mainland licence. 

List Of Popular Free Zones in Dubai

Go through this table to learn some of the best Free Zones in Dubai for which you have to get your Free Zone licence in Dubai.
Famous Free Zones in Dubai
Jebel Ali Free Zone Authority (JAFZA)
  • Ideal for import export service Flagship zone
  • E-commerce licence available for entrepreneurs
International Free Zone Authority (IFZA)
  • Delivers e-commerce licence
  • Economical zone
  • No need for a physical office
Dubai Multi Commodities Centre (DMCC)
  • Here, a single licence can regulate 6 activities
  • Delivers dual licence
  • Permits crypto-commodities trading
Fujairah Creative City Free Zone
  • Fastest networking media-free zones
  • Can set up your virtual office
  • 20 visas available under 1 licence

Frequently Asked Questions on Freezone licence in Dubai

It takes around 5 to 30 days to acquire a fully compelling free zone licence in Dubai. However, the dates can vary depending on the specific zones and the complexity of your service. 

Yes, you are free to do your business outside the free zone region with a free zone licence in the UAE. However, there are some legal restrictions you have to follow.

Yes, you can convert the licence, but have to give a payable amount for transferring your business operations to the Mainland from the free zone. The fee will fluctuate as per the licence type and the region of the Mainland. 

Legal requirements to maintain a free zone licence include documents like passport-size photos, copies of passports, business plans, Emirates ID, MOA, and much more. 

Penalties for being non-compliant with free zone regulations include fines, prison time, disrupted business operations, reputation damage, and legal proceedings. 

Yes, there are several tax benefits including eliminated or minimised taxes, duty-free export and import, etc. 

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