Procedure of UAE Free Zone Company Formation

Hello, welcome to the video about how to register a free zone company in the UAE.

As you know there are 3 major types of companies in the UAE: LLC, free-zone and offshore. If you still doubt which one to choose – you are welcome to come back to Module 1, Section 1.6. to refresh your knowledge.

Today we are going to explain you the step-by-step registration process of your new free zone company in the UAE, so grab some pop-corn, make notes and be ready for great adventure. You are about to open your first free-zone company in the UAE.



All right. As you already know, a free zone company will be 100% owned by you and  you don’t need any local sponsor or local agent that. So you don’t need to search for local sponsor or agent, instead the first thing is to understand how many shareholders there will be in a company.

Second thing is activity. You should bear in mind that not all free zones allow you to do the activity you wish, therefore before thinking of free zone itself identify if your intended free zone allows to perform the activity of your choice.

When selecting a free zone of your incorporation you should be aware of these important things: firstly, all free zones in Dubai have annual audit submission requirement, while free zones outside don’t; secondly, all free zones in Dubai require you to provide your employees with insurance, while in other emirates there is no such requirements; thirdly, most of Dubai free zones require to deposit the capital into bank account, while free zones outside Dubai don’t.

Ok, so now you clearly understand what free zone you would like to proceed with and what emirate. What happens next?

All free zones within one emirate and obviously in two different emirates have completely different requirements in terms of the initial procedure. But the overall process looks pretty the same.

Some business activities in UAE require you additional approval from governmental bodies or ministries, so be sure to understand if your particular business would require such 3rd party approval or not. If so, that could postpone your plans on company registration and also require additional expenses. (Please see Module 3, 3.1 for more details)

Step No.1 Get in touch with a free zone, give notice of your intention to set up new company and you will be given a certain point of contact among free-zones employees. Some free-zones are so busy, that you might not reach them over the phone and will have to come in person, in any event don’t give up, just visit your intended freezone.

Step No. 2. Get name approval with activity and license type. You will need to provide at least three (3) options for your future company name:

- The name should not have obscene or indecent words, and should not be offending to the general public even if it is a personal name.

- The name should not include Allah's name nor "God" or His divine attributes

- If the business includes the name of a person, that person must be a partner/owner in the license. 

- Family names should not be used as a trade name unless it includes the first name. (For example, Ahmed al Ghandi cannot have "Al Ghandi Contracting", he must change it to "Ahmed al Ghandi Contracting".

- Names should be written literally and not translated. (For example, if the Arabic name is (الصقر للمقاولات) it must be written as "al Saqer contracting".

- The name should not include the name of a country or government.

- The business name must strictly reflect the business activity. 

- The name cannot include any restricted names such as global political organisations, religious sectarian organization etc. (For example, FBI, Mafia.).

- If the name is abbreviation – it will cost extra

- If the name contains GULF – it will cost extra

- If the name cannot be translated into Arabic – it will cost extra

- If the name contains numbers – it will cost extra

- If the name contains foreign words – it will cost extra

- If the name is Part of a trade mark/ is a trade mark – it will cost extra

- If the name contains regional references  – it will cost extra


Step 3. Once free-zone gives you approval for your activity and name you will have to fill in the particular free-zone application forms, specimen signature, MoA and AoA, Lease agreement, etc. you sign, scan and send documents back with the regular set of documents like: passport copy, visa copy (some free zones allow you to register your company remotely in case you had been to UAE prior to business setup application), Latest utility bill confirming your current resident address (even if it’s in your native language, you can translate it into English and provide the translation), ID copy. At this step, you submit all documents with other requirements.

Some free zones require you to send documents in original with original signatures (preferably in blue ink, as black ink might be considered as a copy)

Step 4. The next step is payment of registration fees to the free zone. Usually, you get invoice from a free zone and can make a bank transfer, pay in cash or cheque. Upon payment be sure to take your slip as sometimes due to numerous transactions free zone accounting department might miss it and then you will have to spend time looking for your payment. What we advise is to scan your payment slip and send its scan copy to free zone representative, for him to expedite the whole process.

Step 5. Is the issuance of your company’s trade license and share ceritificate. In addition to that, in some free zones you will be given a Certificate of registration and lease agreement (for a flexi-desk or office). All you have to do is just to collect it and start your business journey to the life of dreams in the UAE!


    If you want to know more about Dubai freezone company formation, feel free to get in touch with our professional consultant team and we would be delighted to assist you and help you to compare Dubai freezone company setup costs and help you to find that free zone, which would suit your business needs the most.


 Disclaimer: Business Boutique is not affiliated with any particular government or legal entity. Business Boutique does not give professional legal advice nor any other professional advice subject to a public office in the government. This article merely sets out a simple and basic idea as to the reasons of Dubai freezone company setup and Dubai free zone company formation cost. Business Boutique in no way holds nor imposes any official governmental or legal authority and the article herein is only to be taken as a guide. All further governmental or legal issues should be addressed to the corresponding authorities.

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