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Free Zone Business Setup in the UAE

Free Zone Business Setup in the UAE
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Last Updated: June 19, 2024

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The United Arab Emirates may have gotten its start in upstream oil production, but it's determined to (and has now) become so much more than an oil economy. It introduced measures to encourage technological innovation, knowledge and technology transfer, and foreign investments.


One of the UAE’s initiatives toward this end is the establishment of specialized free zones throughout the country. These free zones provide favorable business conditions to attract investors and entrepreneurs from all over the world.


You can take advantage of the UAE free zones' favorable policies. Read on to learn business setup in a Sharjah free zone and in free zones in the emirates of Dubai and Ajman.


Sharjah Free Zone Business Setup

Sharjah, the emirate northeast of Dubai, is the third largest emirate in the UAE and the acknowledged cultural capital of the country. It is no stranger to progress, but has chosen to temper it with a healthy dose of cultural and heritage preservation.


Sharjah will take you back in time with its carefully preserved heritage sites, thriving traditional souks, and museums that showcase the Emirati way of life. However, the emirate has free zones where foreign investors can enjoy the ease of business setup.


Sharjah Free Zones

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There are three free zones in Sharjah:

  • Sharjah Airport International Free Zone, administered by the Sharjah Airport International Free Zone Authority
  • Hamriyah Free Zone, administered by the Hamriyah Free Zone Authority
  • Sharjah Media City, a.k.a. Shams, administered by the Sharjah Media City Authority

Dubai Free Zone Business Setup

Dubai is the UAE’s financial capital and is considered the beating heart of the country’s logistics infrastructure. It’s known for its modern and well-maintained road systems and a highly efficient international airport that will bring you (and your products) within four hours of one-third of the world's population and within eight hours of another third.


The emirate of Dubai is also a thriving real estate haven where foreigners can buy and have absolute title to properties in designated freehold areas. If your real estate purchase meets a particular threshold, you can use it as your basis for applying for a two-, five-, or even a ten-year residence permit.


Dubai is also a thriving lifestyle, recreation, and entertainment hub. You can find the world's leading hotels, restaurants and brands in Dubai. You won't want attractions to enjoy, things to do, and places to do in Dubai.


Dubai also has the most free zones in the UAE.


Dubai Free Zones

The following are your free zone options in Dubai.

  • Dubai CommerCity (DCC), administered by Dubai Integrated Economic Zones Authority
  • Dubai Internet City, administered by Dubai Development Authority
  • Dubai Media City, administered by Dubai Development Authority
  • Dubai Production City, administered by Dubai Development Authority
  • Dubai Studio City, administered by Dubai Development Authority
  • Dubai Outsource City, administered by Dubai Development Authority
  • Dubai Knowledge Park, administered by Dubai Development Authority
  • Dubai International Academic City, administered by Dubai Development Authority
  • Dubai Science Park, administered by Dubai Development Authority
  • Dubai Design District, administered by Dubai Development Authority
  • Dubai Multi Commodities Centre (DMCC), which now includes Jumeirah Lakes Towers, administered by Dubai Multi Commodities Centre Authority
  • Jebel Ali Free Zone, administered by Jebel Ali Free Zone Authority
  • Dubai Airport Free Zone, administered by Dubai Integrated Economic Zones Authority
  • Dubai Silicon Oasis, administered by Dubai Integrated Economic Zones Authority
  • Dubai HealthCare City, administered by Dubai Healthcare City Authority
  • International Humanitarian City
  • Dubai Maritime City, administered by Dubai Maritime City Authority
  • Gold and Diamond Park
  • Dubai South
  • Dubai International Financial Centre
  • Meydan
  • National Industries Park

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Ajman Free Zone Business Setup

Ajman is the emirate located northeast of Sharjah. It is the UAE’s smallest emirate and is considerably less cosmopolitan than Dubai and Sharjah. However, this may actually make it a better option for those seeking peace, quiet, and greater value for the money. 


It’s not too far from Dubai (just a little over an hour’s drive over well-maintained roads) and Sharjah (around 20 minutes by car), so if you want more dining, shopping, and recreational options than are available in Ajman, you can quickly drive to either Dubai or Sharjah.


Ajman has a seaport, and an airport is under construction. Without these, however, the airports and seaports of Dubai and Sharjah are all close by.


Ajman Free Zones

If you’re considering business setup in an Ajman free zone, you have the following options:

  • Ajman Free Zone, administered by the Ajman Free Zone Authority
  • Ajman Media City Free Zone, administered by Ajman Media City Free Zone Authority

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How to Set Up a Business in a UAE Free Zone

Starting a business in a Sharjah, Dubai, or Ajman free zone involves five basic steps.


Select your company’s legal form.

Your company can be a free zone limited liability company (FZ LLC) or a free zone company (FZ co.). Your legal entity will depend on the number of your shareholders, whether such shareholders are natural or legal persons, and how much capital you have.


Choose your business’s trade name.

Name your business. Check with your target free zone and the UAE government for terms you can’t include in your name.


Apply for a business license.

Based on your economic activities, determine the type of business license you will need to apply for. Note that some free zones may have restrictions on the business activities allowed in their jurisdiction.


Rent an office.

Choose and rent an office space in your target free zone. Free zones offer several office configurations; some even provide flexi-desk options. Your office capacity will determine how many work permits or visas you can apply for.


Obtain pre-approval, register your business, and get your license.

Once you have determined your trade name, economic activities, license type, and legal form, submit your documents and get pre-approval. Once pre-approved, pay your registration and license fees and submit your registration documents. This will start the licensing process and end with the issuance of your lease agreements and trade license and the commencement of the visa process.


Get Your Business Setup Started

Business setup in a free zone in Sharjah, Dubai, and Ajman brings many benefits. The licensing process is also quick and straightforward. 


To keep the process as simple and hassle-free as possible, you might want to consider working with a company formation consultant in the UAE to do all the business setup legwork.



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Cindy Baker
Editorial Team
Author
The editorial team behind is a group of dedicated HR professionals, writers, and industry experts committed to providing valuable insights and knowledge to empower HR practitioners and professionals. With a deep understanding of the ever-evolving HR landscape, our team strives to deliver engaging and informative articles that tackle the latest trends, challenges, and best practices in the field.
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