Why Establish Your Business in UAE Free Zones?

The UAE has its reputation as a global business hub, leveraging strategic location, investor-friendly policies, and world-class infrastructure. With over 40 strategically located free zones across Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, and Fujairah, the UAE offers unparalleled opportunities for international entrepreneurs and corporations seeking to expand their footprint in the Middle East.

Partnering with Mehar Business Solution LLC, a trusted business consultancy with over 14 years of expertise, ensures a seamless, efficient, and compliant process for company formation in UAE free zones.

What Are UAE Free Zones?

UAE Free Zones are specially designated economic areas designed to attract foreign direct investment (FDI). These zones provide a business-friendly environment with numerous incentives, including:

100% Foreign Ownership
Zero Corporate Income Tax & Personal Income Tax
Full Repatriation of Capital and Profits
Simplified Business Licensing & Registration Processes
Access to Advanced Infrastructure & Logistics Facilities
Strategic Location for Global Trade & Commerce

Each free zone has industry-specific facilities and licenses to support many sectors, including technology, finance, media, healthcare, logistics, manufacturing, and commodities trading.

Types of Business Licenses in UAE Free Zones

A General Trading License is issued to companies involved in import, export, wholesale, and multi-product trading within the UAE's free zones. It allows businesses to trade in goods across various categories, making it easier for them to expand their range without strict limitations. With import and export rights included, companies can manage multiple product lines, making this license a practical option for those who are in international trade, distribution, and wholesale. It is a choice for building a strong foothold in the UAE competitive trade market.

1. General Trading License

2. Commercial/Trading License

A Commercial or Trading License is designed for businesses involved in the sale and distribution of physical goods, including retail stores, e-commerce platforms, and companies engaged in general or specialized trading within the UAE free zones. The license allows for the buying, selling, and import/export of approved products across various sectors. It's a suitable choice for enterprises looking to manage specific product lines or operate across multiple categories without unnecessary restrictions. Ideal for both physical and online trading, this license enables businesses to establish a legitimate and efficient presence in the UAE's fast-paced commercial landscape.

3. Service License

A Service License is a suitable option for businesses involved in niche retail, e-commerce, or specialized product trading within the UAE free zones. It enables companies to focus on specific categories of goods or services that align with their business model. This type of license is well-suited for retail chains, online stores, and service providers that require a straightforward setup to operate efficiently in their chosen field. With clear permissions and simplified procedures, the Service License enables businesses to establish a reliable and compliant presence in the UAE competitive market.

4. Industrial License

An Industrial License is intended for businesses involved in manufacturing, processing, or assembling goods within the United Arab Emirates (UAE). It enables companies to establish operations in dedicated industrial zones, where they can access the necessary facilities and infrastructure for large-scale production. With this license, businesses can import raw materials, carry out manufacturing activities, and export finished products with ease. It's an ideal option for factories, production plants, and other industrial operations looking to establish a strong base in the UAE well-developed industrial sector.

5. Warehousing & Logistics License

Warehousing license is designed for businesses involved in logistics, distribution, and supply chain operations. It allows companies to lease warehouse space and logistics facilities within UAE-free zones, giving them a strong operational base. With this license, businesses can manage imports, exports, storage, and the movement of goods both locally and internationally. It also offers 24/7 access to facilities, allowing for flexible and efficient handling of shipments at any time. The Logistics and Distribution License is a practical option for companies looking to streamline their supply chain and expand their reach in regional and global markets.

6. Manufacturing License

Manufacturing license is intended for companies involved in large-scale manufacturing, fabrication, or assembly work. It offers access to fully equipped industrial zones built to support high-volume production needs. Businesses benefit from key advantages, such as customs duty exemptions on imports and exports, which help lower costs and streamline trade. The license is well-suited for manufacturers looking to establish or expand their operations in the UAE, with reliable infrastructure and a strategic location that supports both local and international distribution.

Step-by-Step Guide to Company Formation in UAE Free Zones

Establishing a business in a UAE-free zone is a straightforward process designed for speed and minimal bureaucracy. Here is a streamlined overview:

Step 1: Business Activity & Legal Structure Identify your core business activity to determine the appropriate license and legal entity. Common options include:- Free Zone Establishment (FZE): Single shareholder - Free Zone Company (FZC or FZ LLC): Multiple shareholders
Step 2: Business Name Registration Select a unique, compliant trade name that aligns with UAE naming standards and is available for registration.
Step 3: License Application & Approvals Apply for the relevant license based on your activity, such as trading, services, manufacturing, or industrial. Obtain initial approval from the Free Zone Authority.
Step 4: Office & Facility Selection Choose the most suitable workspace: Flexi-desk/shared office, Private Office, Warehousing or industrial space, Virtual office (for startups and freelancers)
Step 5: Document Preparation & Submission Prepare the required legal documents, including passport copies, business plans, and financial statements, as applicable. Submit for review and approval.
Step 6: License Issuance & Business Activation Upon approval, pay fees, receive your business license, and proceed with visa arrangements, bank account opening, and operational activities.

Key Benefits of Setting Up in UAE Free Zones

Full Foreign Ownership & 100% Control
Tax Optimization & Cost Savings
No Import or Export Duties
Strategic Geographic Location for International Trade
Access to World-Class Infrastructure and Logistics
Ease of Visa and Immigration Procedures
Long-term Business and Residency Visa Options (up to 3 years)
Operational Flexibility: 24/7 Business Operations

Leading Free Zones in the UAE (2025)

Dubai Free Zones

Jebel Ali Free Zone (JAFZA)
Dubai Silicon Oasis (DSO)
Dubai Multi Commodities Centre (DMCC)
Dubai Internet City (DIC)
Dubai Media City (DMC)
Dubai Healthcare City (DHCC)
Dubai Logistics City
Dubai Design District (D3)

Abu Dhabi Free Zones

Khalifa Industrial Zone (KIZAD)
Abu Dhabi Global Market (ADGM)
Masdar City Free Zone
Twofour54 Media Zone
Abu Dhabi Airport Free Zone (ADAFZ)

Sharjah & Other Emirates

Sharjah Airport International Free Zone (SAIF)
Hamriyah Free Zone (Sharjah)
Ras Al Khaimah Economic Zone (RAKEZ)
RAK Maritime City
Ajman Free Zone
Fujairah Free Zone
Ajman Media City Free Zone
ANCZA Free Zone

Why Choose Mehar Business Solution LLC?

14+ Years of Industry Experience in UAE business setup & consultancy.
Custom Business Formation Services for many industries.
Expert Guidance in UAE business setup & consultancy.
Assistance with Office Space Banking, and Visa Processing.
Transparent Pricing with no hidden charges.
Dedicated Support from initial consultation to license issuance and beyond.

"Our team of professionals is ready to assist with setting up your free zone business in Dubai and throughout the UAE. Contact us now to discuss your business setup in Dubai and PRO Services goals and receive a customized solution."
Muhammad Ali