How to Start a Free Zone LLC in Dubai

Imagine starting a Free Zone LLC in Dubai in just 3–10 working days with 100% foreign ownership and 0% personal income tax. Dubai’s 30+ free zones process 15,000+ new firms yearly. Setup costs are realistic, AED 18k-35k in 2026. Profits repatriate tax-free worldwide.

This guide covers the cost of a free zone LLC in Dubai, free zone company setup Dubai, Dubai free zone company registration, and the best free zone in Dubai for startups.

What Is Free Zone Company Formation in Dubai?  

Dubai free zone company formation means registering an LLC under a free zone authority (not mainland DED). You get 100% ownership, 0% personal tax, 9% corporate tax only over AED 375k, full profit repatriation, and global trade access. Ideal for startups, e-commerce, IT, and traders. The 2026 rules keep it faster than the mainland.   

Who Should Choose It?  

• Startups needing 100% foreign ownership  

• E-commerce targeting GCC  

• IT/consulting going global  

• trading in commodities, tech, logistics  

Avoid if you need mainland tenders or a UAE-wide client base.  

Understanding Dubai Free Zones  

What Is a Dubai Free Zone?  

Dubai freezone company formation takes place within an economic zone governed by the Dubai Department of Economy and Tourism (DET). Federal Law 45/1995 shapes them. The free zone authority (like JAFZA) handles licensing, while the mainland DED handles UAE-wide business.   

How Many Free Zones Are There in Dubai?  

Dubai has 30+ free zones; 45+ across the UAE. Key ones: Jebel Ali Free Zone (JAFZA), Dubai Multi Commodities Centre (DMCC). Dubai Airport Freezone (DAFZA) for logistics. Dubai Economic Agenda D33: tech clusters at Dubai Internet City (DIC).   

Free Zone vs Mainland vs Offshore 

Best for: Free zone—trading, IT, startups; Mainland—construction, FZCO company Dubai. 

Benefits of Dubai Free Zone Company Formation  

• 100% foreign ownership Dubai – no local partner needed.  

• 0% personal income tax for owners and employees.  

• 9% corporate tax only on profits above AED 375,000.  

• Full profit repatriation outside the UAE with no currency restrictions.  

• No customs duty on imports and exports within the free zone.  

• Fast setup: 3–10 working days for Dubai free zone company registration.  

• Flexible office options (flexi desk, shared office, or warehouse).  

• Suitable for international trading, e‑commerce, IT, and startup activities.  

• Access to a Dubai free zone license with global banking and a tax‑friendly environment.  

• Ideal for Free Zone LLC in Dubai and FZCO company Dubai structures.   

Who Should Start One?  

• Who Should Start a Dubai Free Zone Company?  

• A Dubai free zone company formation is ideal for:

• Startups that want fast setup, 100% foreign ownership, and low‑cost entry.

• E‑commerce businesses and online stores are selling globally from Dubai.

• IT companies, software developers, and AI consultants are looking for tech‑focused hubs (for example, Dubai Internet City).

• Trading and import‑export companies that need duty‑free warehousing and logistics access.

• Digital marketing, media, and content creators operating from Dubai Media City or similar zones.

• Consultants and freelancers who want a UAE‑based professional license with repatriation of 100% of profits.

• International investors forming a Free Zone LLC in Dubai or an FZCO company Dubai to hold investments or manage overseas operations.  

Types of Free Zone Business Licenses  

In Dubai free zones, you can typically choose from these main license types:  

• Commercial License – for trading, import‑export, wholesale, retail, and e‑commerce of goods.  

• Service License – for consulting, marketing, IT, education, training, and professional services.  

• Industrial License – for manufacturing, packaging, assembly, and production of physical products.  

• E‑commerce License – for online‑only product sales and drop shipping.  

• Holding License – for owning shares or assets in other companies, not for active trading.  

• Media / Education / Freelancer Licenses – niche options for content creation, training, or individual professionals in some zones.  

Legal Structures in Dubai Free Zones  

• FZE (Free Zone Establishment) – a single‑shareholder company; ideal for one owner who wants full control and 100% foreign ownership Dubai.  

• FZCO / FZ‑LLC (Free Zone Company / Free Zone Limited Liability Company) – multiple shareholders (2–50), best for partners or investors looking for a Free Zone LLC in Dubai or an FZCO company Dubai.  

• Branch of a Foreign Company – extension of an overseas parent, good for international expansion without a separate local entity.  

• Branch of a UAE Company – when a mainland UAE company opens a presence inside a free zone.   

Step-by-Step Dubai Free Zone Company Formation Process  

Here is a simple, step‑by‑step overview of how to form a free zone LLC in Dubai or a similar free zone company in 2026.  

Step 1: Choose a business activity  

Select from information technology, consulting, e-commerce, trading, or logistics. Verify that the license type (holding, e-commerce, commercial, service, or industrial) corresponds to the right one. Your application for a license to operate in the Dubai Free Zone includes this.   

Step 2: Select the Authority for the Free Zone   

Choose the right free zone for your business, like:   

• Trade and logistics are conducted at the Jebel Ali Free Zone (JAFZA).   

• A resource for related commodities and services is the Dubai Multi Commodities Centre (DMCC).   

• The Meydan Free Zone, also known as IFZA, is ideal for low-cost setups and startups.   

• IT, AI, and tech companies congregate in Dubai Internet City (DIC).   

Every free zone under the Dubai Department of Economy and Tourism has its own set of rules and fees.  

Step 3: Set a Trade Name Reservation   

Send the free zone authority two or three suggested firm names. Names must adhere to UAE regulations (no derogatory language, no misunderstandings by the government). Typically, approval takes one to two business days.   

Step 4: Request First Approval   

Complete the application and send it in:   

copy of each director’s and shareholder’s passport.  

A picture ID.   

Business plan draft (in some zones).   

After verifying your activities and structure (FZE, FZCO, branch, etc.), the free zone grants first clearance.   

Step 5: Select the Legal Framework   

Select:   

• FZE stands for a single shareholder.  

• Branch of a foreign company or branch of a UAE company.

This affects 100% foreign ownership Dubai and the visa quota.  

Step 6: Lease Office or Flexi Space  

Choose where you want to operate:  

• Flexi desk – low cost, virtual presence.  

• Dedicated office – full office.  

• Warehouse – for trading and logistics.  

Sign the lease and get the Ejari/office‑use agreement.  

Step 7: Prepare MOA and Legal Documents  

The free zone authority prepares or approves your Memorandum of Association (MOA) and company documents. For a free zone limited liability company (FZCO), this shows ownership shares and management structure.  

These documents might need to be signed in front of the free zone representative or a notary.   

Step 8: Pay fees and issue a license   

Restitution:   

• Fees for registration and licensing.   

• Setup and processing costs.   

• Initial payment, which is determined by the free zone.  

Your business license and certificate of incorporation are issued as soon as the payment is verified, completing the Dubai Free Zone company registration process.  

Step 9: Get an Establishment Card  

Apply for an establishment card from the Ministry of Human Resources and Emiratisation (MOHRE) or through the free zone “one‑stop shop.” This is used for visa processing and local compliance.  

Step 10: Submit a Visa Application   

Apply for the following with your License:   

• Visa for investors and shareholders.   

• Depending on office size, the number of employee visas ranges from 2 to 4.   

• Family members’ sponsorship (spouse and children under 25).   

• Visa processing is managed by the General Directorate of Residency and Foreigners Affairs (GDRFA).   

Step 11: Open a bank account for your business   

As soon as your License is ready, open a business bank account in a free zone in the UAE. Most banks require:   

• license and MOA.  

• Passport copies of shareholders.  

• Business plan.  

• Original lease agreement.  

Meeting bank KYC/AML checks can take 7–21 working days.  

Step 12: Start Operations  

You can now trade, invoice, and operate in accordance with your License. Keep:  

• VAT records if turnover exceeds AED 375,000.  

• Corporate tax documentation if you are a qualifying free zone person.  

• Regular compliance with your free zone’s annual renewal and ESR (Economic Substance Regulation) requirements. 

Cost of Free Zone Company Formation in Dubai 2026 

Corporate Tax & VAT in Free Zones  

Corporate Tax Applicability  

9% UAE corporate tax if profits >AED 375k. A qualifying free zone person gets 0% if they meet the substance (local office, staff, 55% exports). VAT 5% applies to UAE sales over AED 375k.   

Compliance  

Substance: 2-5 local staff. Audit mandatory. ESR 0.5% salaries. Penalties 20k+.  

Visa & Immigration Benefits  

How Many Visas?  

Free zone company setup Dubai gets 2-4 visas based on office size. 1 investor + 1 employee. Family sponsorship (spouse/kids <25). The General Directorate of Residency handles processing.   

Opening a Corporate Bank Account  

Bank Process  

Required: License, MOA, passports, Ejari (if physical). Interview for KYC. Rejections: high-risk industries (crypto without DMCC), weak funds proof. Emirates NBD, Mashreq common (AED 50k-100k min). 7-21 days.   

Dubai’s Top Free Zones by Industry   

Exchange   

Dubai Multi Commodities Center (DMCC): establishment costs AED 25,000+, takes 5-7 days, and requires a warehouse. Dubai’s best free zone for traders and startups. JAFZA: 7–10 days, logistics hub, AED 30k+.   

Technology   

AED 22,000+, five days, flex desks at Dubai Internet City (DIC). concentration on AI and IT.   

Spending limit  

IFZA: 3-5 days, flexi, AED 18k+. Meydan: 4 days, events, AED 20,000+.  

Free Zone Company Renewal & Compliance  

Renew annually: License (AED 8k-15k), visas, audit, VAT quarterly, corporate tax yearly, ESR 0.5% salaries. Penalties 20k+ for late.   

Our top professional Business setup experts in Dubai can help you in the process. They are licensed business setup consultants in Dubai with 12+ years of experience in streamlining Business setup in Dubai.  

FAQs   

Q1: In the Dubai Free Zone, what is an LLC corporation?   

A Dubai Free Zone LLC (FZ-LLC or FZCO) is a limited liability company that is registered with a specific free zone authority in Dubai. It functions in accordance with the rules of that free zone and permits 100% foreign ownership.   

Q2: What is the price of forming an LLC in the Free Zone of Dubai?   

The office space, license type, free zone, and visa quota all affect the cost, which typically ranges from AED 12,000 to AED 35,000. Possible additional costs include Emirates ID, medical exams, visa fees, and annual renewal fees.   

Q3: Does forming a Free Zone LLC in Dubai require a local sponsor?   

No, a national sponsor from the United Arab Emirates is not necessary for a Dubai Free Zone LLC. Foreign investors could own all of the company’s shares.  

 Q4: How much time does it take to create an LLC in the Dubai Free Zone?   

Following the submission of all necessary paperwork, company registration typically takes three to ten working days. Opening a bank account and getting a visa could take longer.   

Q5: Can an LLC base in Dubai Free Zone conduct business on the UAE mainland?   

Without establishing a local distributor or branch, a Free Zone LLC is unable to conduct direct business on the mainland. Nonetheless, it is unrestricted in its ability to trade both globally and within other free zones.    

Conclusion  

Free Zone LLC in Dubai offers 100% foreign ownership, 0% personal tax, 9% corporate tax threshold, global repatriation, and 3-10 day setup. With the cost of a free zone LLC in Dubai at AED 18k-35k, it dominates the startup scene.  

Pick your free zone (DMCC, IFZA, DIC) and contact the business setup pros in Dubai free zones. Start your Dubai free zone company registration today in Dubai’s D33 global ecosystem.  

Contact Business setup experts in Dubai for more help!