UAE Free Zones

uae free zones

Why Establish Your Business in UAE Free Zones?

The UAE has earned its reputation as a global business hub, supported by its strategic location, investor-friendly regulations, and strong infrastructure. With more than 40 free zones across Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, and Fujairah, it offers excellent opportunities for international investors and companies looking to grow in the Middle East.

Partnering with Mehar Business Solution LLC a trusted consultancy with over 14 years of experience ensures a smooth, efficient, and fully compliant process for setting up your company in any UAE free zone.

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 granted to companies engaged in import, export, wholesale, and multi-product trading within the UAE free zones. This license enables businesses to trade in a wide range of goods, offering flexibility to expand product categories without major restrictions. With full import and export rights, it is ideal for companies involved in international trade, distribution, and wholesale operations. The General Trading License provides an excellent foundation for building a strong presence in the UAE competitive business market.

1. General Trading License

A General Trading License is granted to companies engaged in import, export, wholesale, and multi-product trading within the UAE free zones. It allows businesses to deal in a wide range of goods, offering flexibility to expand their operations without major restrictions. With import and export rights included, companies can efficiently manage multiple product lines, making this license ideal for international trade, distribution, and wholesale activities. It serves as a strong foundation for establishing a stable presence in the UAE competitive business market.

2. Commercial/Trading License

A Commercial or Trading License is intended for businesses involved in selling and distributing physical goods, including retail outlets, e-commerce platforms, and trading companies operating within the UAE free zones. This license authorizes the buying, selling, and import or export of approved products across various sectors. It is well-suited for enterprises managing specific product lines or operating across multiple categories. Whether for physical or online trading, this license helps businesses establish a credible and efficient presence in the UAE competitive commercial market.

3. Service License

A Service License is ideal for businesses engaged in niche retail, e-commerce, or specialized product trading within the UAE free zones. It allows companies to focus on specific goods or services that match their business model. This license is suitable for retail chains, online stores, and service providers seeking a simple and efficient setup. With clear permissions and streamlined procedures, a Service License helps businesses establish a reliable and compliant presence in the UAE competitive market.

4. Industrial License

An Industrial License is designed for businesses engaged in manufacturing, processing, or assembling goods in the UAE. It allows companies to operate in dedicated industrial zones with access to facilities and infrastructure needed for large-scale production. With this license, businesses can import raw materials, carry out manufacturing, and export finished products efficiently. It is ideal for factories, production plants, and other industrial operations seeking a strong presence in the UAE developed industrial sector.

5. Warehousing & Logistics License

A Warehousing License is intended for businesses engaged in logistics, distribution, and supply chain operations. It allows companies to lease warehouse and logistics facilities within UAE free zones, providing a strong operational base. This license enables businesses to manage imports, exports, storage, and the movement of goods locally and internationally. With 24/7 access to facilities, companies can handle shipments efficiently at any time. It is an ideal choice for businesses looking to streamline their supply chain and expand their reach in regional and global markets.

6. Manufacturing License

A Manufacturing License is designed for companies engaged in large-scale manufacturing, fabrication, or assembly. It provides access to fully equipped industrial zones that support high-volume production. Businesses benefit from advantages such as customs duty exemptions on imports and exports, helping to reduce costs and simplify trade. This license is ideal for manufacturers seeking to establish or expand operations in the UAE, with strong infrastructure and a strategic location for 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

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

Why Choose Mehar Business Solution LLC?

With over 14 years of experience in UAE business setup and consultancy, we help businesses of all types get started. We guide you through company setup, office space, banking, and visa processing, all with clear pricing and no hidden fees. From your first consultation to getting your license, we support you every step of the way. Our team is ready to help you set up your free zone business in Dubai and across the UAE. Contact us today to discuss your business setup and PRO service needs.

Frequently Asked Questions (FAQs)

Options like IFZA, UAQ FTZ, and Sharjah Media City (Shams) are known for their affordable setup packages, which are suitable for startups and SMEs.

Yes, most free zones offer 2- to 3-year renewable UAE residence visas for business owners and employees.

No. Free zones permit 100% foreign ownership, eliminating the need for a local UAE sponsor.

Usually between 3 to 10 working days, depending on the free zone and business activity.

Yes. We assist with opening bank accounts and guide the required documentation.