A free zone is a special economic zone in a geographical territory or jurisdiction in the UAE that is permitted to perform a certain economic activity or group of activities. A license is required for a business to be established in a Dubai Freezone, and licenses in Dubai and the UAE are provided based on the company’s specific business activity.
Dubai Freezone Licenses are granted based on the company’s specific commercial activity. There are more than 40 free zones all over UAE. Some new free zone locations are being built; therefore the overall number of free zones will increase in the next years. Invest First is a registered channel partner to more than 12+ free zones in the UAE.
The Free Zone Authority (FZA) is the governmental organization in charge of Free Zone operations such as license issuing and operation. The commercial regulations that govern mainland UAE corporations do not apply to free zone enterprises. One of the most significant advantages of establishing a firm in the Dubai Freezone is that international investors may enjoy 100% ownership. Apart from total ownership advantages, monetary advantages such as complete tax exemptions, 100% repatriation advantages, and the lack of foreign exchange limits are further advantages of Dubai’s free zone business establishment.
When your firm is accepted for Freezone business, the Free Zone Authority grants it one of the UAE Freezone licenses, such as a Trade License, Industrial License, Service License, or National Industrial License. As long as the leasing agreement is in existence, these freezone permits in Dubai/UAE can be extended yearly.
You should choose your preferred free zone jurisdiction based on the nature of your business. The nature of your firm should correspond to the category of the desired Free zone. Although offshore corporations enjoy some of the same benefits as Dubai Freezone companies, they are not the same.
The type of license you seek has a direct implication on the total cost. It will differ according to the type, viz. General Trading, Commercial, Industrial, Service and so on. Generally, the free zone license in Dubai can cost anywhere around AED 5,000 to 100,000 depending on the chosen activity and free zone jurisdiction.