Business Setup in the UAE Free Zone

CorpLex handles legal structure, licensing, visas, and banking so you can launch and scale with confidence: expert guidance, end-to-end compliance, and tailored packages for investors, founders, and SMEs.

40+ Free Zones

We help you choose the perfect location for your business.

UAE Free Zone – Everything You Need to Know About Business Setup

Setting up your business in the UAE free zones helps you get many incentives, like tax-free exemptions, no duty obligations, 100% foreign ownership, and simplified administrative processes in designated economic areas in the UAE.

The benefits are incredible; you can regulate your business under your own rules while getting economic benefits, growth, high-end infrastructure, and foreign investment.

Now the question arises, which industries can set up their businesses in the UAE free zones? And surprisingly, almost all industries can get this benefit over any other country.

If you are a seasoned investor or a first timer, we at CorpLex can help you set up a hassle-free business of your requirements in the UAE.
Need a complete consultation? Call us now or look at the following procedure we follow.
Or look at the following procedure we follow.

What is a UAE Free Zone?

A UAE Free Zone is a designated economic area where businesses enjoy special incentives and regulations designed to attract foreign investment. Companies established in free zones can benefit from 100% foreign ownership, tax exemptions, quick licensing, and straight customs procedures.

Each free zone is designed for specific industries, such as trade, logistics, media, or finance, and provides modern infrastructure, office spaces, banking facilities, and visa flexibility, making it easier for entrepreneurs and investors to set up and operate in the UAE.

Why Free Zones Are Popular Among Foreign Investors?

Free zones in the UAE are popular among foreign investors because they offer higher financial benefits, including 100% ownership, tax exemptions, easy repatriation of profits, and fast company setup in the UAE compared to many other jurisdictions.

These zones also provide modern infrastructure, visa support, and simplified regulations for banking or office leasing, making them a top choice for global entrepreneurs seeking growth in the Middle East.

Difference Between Mainland, Offshore, and Free Zone Companies

Mainland

Mainland companies are licensed to operate anywhere in the UAE and can trade directly with the local market, but often require a local partner.

Offshore

Offshore companies are mainly used for holding assets or international trading; they cannot conduct business within the UAE market.

Free zone

Free zone companies offer 100% foreign ownership, tax benefits, and sector-specific facilities but are limited to operating within their zone or internationally unless they partner with a mainland distributor.

Benefits of Setting Up a Business in a UAE Free Zone

Free Zone Company Structure in the UAE

When setting up in a UAE free zone, businesses can choose from three main structures depending on the number of shareholders and the nature of the business. Each structure offers different levels of ownership, liability, and operational flexibility.

Comparison of structures:
liability, ownership, flexibility

FZE and FZC offer limited liability and 100% foreign ownership, giving investors strong protection and independence. Branches, while flexible for expansion, do not provide liability separation since the parent company remains responsible.

Free Zone Establishment
(FZE–Single Shareholder)

An FZE is a limited liability company with a single shareholder, either an individual or a corporate entity. It offers full foreign ownership and limited liability protection, making it ideal for solo investors.

Free Zone Company
(FZC/FZ-LLC–Multiple Shareholders)

An FZC or FZ-LLC allows two or more shareholders, either individuals or companies. This structure is suitable for partnerships and provides the same limited liability protection as an FZE.

Branch of a Local or Foreign Company

A branch enables an existing UAE or overseas company to establish a presence in a free zone without creating a separate legal entity. It operates under the parent company’s name and bears full liability for its activities.

Types of Licenses in UAE Free Zones

UAE free zones issue different types of licenses based on the nature of business activity. Choosing the right license ensures legal compliance and smooth operations.

Commercial / Trading License

Allows businesses to import, export, distribute, and trade goods.

Service / Professional License

Issued to companies providing services such as consultancy, IT, or education.

E-commerce License

Designed for online trading, digital marketplaces, and electronic services.

Sector-specific licenses (media, fintech, healthcare, etc.)

Tailored for specialized industries operating within dedicated free zones.

Industrial / Manufacturing License

Permits light or heavy manufacturing, processing, and packaging activities.

Top Free Zones in the UAE

Dubai Free Zones

Benefits:

Other Emirates

How to Choose the Right UAE Free Zone for Your Business

Now you have finally decided to set up your business in the UAE, but wait, have you chosen the right UAE free zones, or need a complete guide on how to choose a UAE free zone for your business? Let’s understand the details at a glance.

At CorpLex, we help you navigate the UAE’s free zones to set up your businesses with easy market access, facilities, banking, and visa options.

Need further details? Call us now.

Here is how we proceed while setting up your business in the UAE free zones.

Step-by-Step Process to Set Up a UAE Free Zone Company

Fine the Right Zone

The first step towards setting up your business in a UAE free zone is to find the right zone, based on your activity.

Legal Structure

Decide on the appropriate legal structure for your company.

Register the Trade Name

Once decided, register your company’s trade name with supporting documents like passport copies.

Complete Licensing, Fees, and Visas

After approval, you can get your business license, pay for the initial fee, complete the visa and Emirates ID process.

Lease an Office Space

Secure a physical or flexi-desk office space as required by the free zone regulations.

Office Spaces, Facilities, and Visa Quotas

Free zones offer a range of workspace options tailored to the scale of operations and visa needs:

Workspace types:
Visa quotas and planning:

Most free zones link visa quotas to the type/size of the office. Plan your hiring and contractor strategy: investor visas come first, followed by key staff and then operational hires. CorpLex will estimate visa counts, prepare documentation, and manage the application process to minimize delays.

Other facility considerations:

Confirm on-site customs clearance (for logistics), access to freight and ports, and proximity to banks and service providers. If you require specialized facilities (labs, cold storage, large workshops), we help identify zones with the necessary infrastructure.

UAE Free Zone Costs and Considerations

Costs vary by free zone, activity, and office choice.

Key cost categories to budget for:
Practical advice

If you’d like, CorpLex can prepare a tailored cost estimate based on your activity, headcount plan, and preferred office type.

Free Zone Business Setup Services We Offer

Commercial / Trading License

MOA Drafting & Legal Notarization

Local Service Agent
(if required)

Office Space Assistance

Visa Applications
(Investor & Staff)

Emirates ID & Medical

Corporate Bank Account Setup

Free Zone to Mainland
License Transfer

Why Choose Us for Free Zone Setup

Legal-first approach

We prioritize compliance and regulatory clarity so your company is protected from day one.

From trade name to bank account, visas, and post-setup compliance.

We match your business model to the best zones, office types, and licensing options.

Established relationships with free zone authorities and service partners reduce delays.

We prepare KYC-ready documentation and introduce you to suitable banks.

Accounting, VAT advisory, and annual renewal management so you can focus on growth.

Set Up Your Business In the UAE Free Zone with CorpLex

Ready to turn your business idea into a reality in the UAE? With over 40 free zones offering tax benefits, full foreign ownership, and sector-specific opportunities, now is the time to act.

At CorpLex, we don’t just process paperwork; we secure your business with legal clarity and compliance from day one. Whether you’re expanding internationally or launching your first venture, we guide you at every step. Start your free zone journey today with a team that protects your investment.

Frequently Asked Questions

1. What is a UAE free zone?

A free zone is a designated economic area with its own licensing and regulatory regime designed to attract foreign investment, typically offering tax incentives, customs benefits, and 100% foreign ownership for business activities.

Free zone companies generally need a local distributor or a mainland license to trade directly to mainland customers. There are structured mechanisms (trade license conversion or establishing a mainland branch) to access mainland markets.

Setup times vary by free zone and readiness of documents; typical timelines range from a few days for simple licenses to several weeks for full operational licenses and bank onboarding.

Some banks allow remote account opening for corporate clients, but many require in-person meetings or additional due diligence. CorpLex assists with documentation and introductions to banks that best match your profile.

Standard documents include passports and proof of address for shareholders and directors, notarized incorporation documents, a business plan or activity description, and, if applicable, signed lease agreements.

In most cases, you don’t need to visit. Many free zones allow a complete remote setup with digital signatures and couriered documents.

Yes. With proper approvals, you can shift operations from a free zone to the mainland by restructuring your license and company setup.