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If you want to set up a business in the United Arab Emirates, establishing a company in a free zone could be a great option. Free zones offer many advantages and cost-effective solutions for those who want to enter the UAE market without taking a big risk with their capital. These zones provide businesses with a great deal of control and freedom, allowing them to operate with minimal restrictions.

Fact #1: UAE has over 50 Free Zones.

Fact #2: Each Free Zone in Dubai provides a special set of regulations and services tailored to different kinds of businesses. For instance, Dubai Internet City is dedicated to tech-related services like IT, software, and the Internet. Similarly, Dubai Design District covers the fashion and design industry.

Fact #3: JAFZA is located at Jebel Ali Port – the biggest man-made harbor in the world, which is connected to 140 ports globally and the most bustling port in the Middle East. It was established in 1985, making it the first Free Zone in the United Arab Emirates (UAE). It is now the largest Free Zone in the world.

Fact #4: A UAE Free Zone company grants you the ability to own and manage a business in the UAE without the need for a local partner. This means that you can have full control over the business and keep 100% of the profits.

Fact #5: The UAE Free Zones provide a tax-free environment without requiring personal or corporate income taxes. Companies based in these areas can benefit from a 0% tax rate.

Fact #6: If you want to start a Trading business within a Free Zone, you must be able to import and export goods to other countries. However, goods cannot pass through the UAE mainland unless they have been processed by a Limited Liability Company (Trading) or a logistics company. This ensures that the goods are properly cleared before entering the country.

Fact #7: A Free Zone company is not allowed to directly sell goods to customers in the local market. However, they can work with a local distributor to do so. This would involve the Free Zone company supplying the goods to the local distributor, who then sells them to the local market. Exceptions exist in certain free zones, such as Dubai Design District (D3), which allows for retail shops, showrooms, beauty salons, and restaurants.

Fact #8: Registering a business in a Free Trade Zone allows you to set up a new company, subsidiary, or branch office with access to the benefits associated with being in the designated area. This includes tax exemptions, simplified bureaucracy, and a range of other advantages.

Fact #9: A Branch Company that is registered in a UAE Free Zone must have the same name and activity as its Parent Company as long as that activity is allowed within the Free Zone. Subsidiary Companies with corporate shareholders, on the other hand, have the freedom to choose their own activity and name.

Fact #10: As an investor, if you own a company located within a Free Zone in the United Arab Emirates, you can receive a Residence Visa. This Visa will allow you to stay in the UAE for up to two years, and you can also use it to provide residency for your family members and staff members, such as domestic helpers.


By considering the information above, you can decide which UAE Free Zone would be the most beneficial for your business. Of course, getting experts to help you with your free zone company setup would be best.

At Startup Zone, we are passionate about helping entrepreneurs and small businesses in the UAE reach their goals. We provide a range of services, from coaching and mentorship to funding and networking, giving entrepreneurs the resources and guidance they need to make their businesses a success. Our team of professionals has a deep understanding of the local market and the unique challenges and opportunities it presents, allowing us to provide tailored advice and support to entrepreneurs looking to start a business in Dubai. Contact us to know more!