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free zone business setup

Advantages of free zone business setup in UAE

What are the advantages of setting up a company in Freezone?

For ex-pats, it can be difficult for a company set up in Dubai and Abu Dhabi and the other parts of the UAE. Most Free Zones have developed in recent years to support freelancers, contractors and small companies to be allowed to work in the United States. Despite the advantages of free zones, a range of main considerations needs to be considered. Be careful to raise the following concerns when contemplating business forming in Abu Dhabi and Dubai in the separate free zones.

When setting up a business in a free zone, what are the biggest costs?

Free zones also say you can establish a very little charge, but there are a few mandatory costs in fact, which are easily summarised. Five primary costs must be weighed in every Free Zone;

  • Reserving of Business name
  • Registration
  • License for Exchange
  • Lease of Office
  • Visas and other supplementary charges

How is a Flexi Desk and an Office different?

A Flexi desk is the smaller and most simple office room inside a Free Zone and is essentially a sharing desk in a public office. Although this is usually the lowest renting, the number of flexible desks is restricted and a maximum time period for a flexible desk is enforced like many free zones.


An office in the Free Zone is, in comparison, allocated for that organisation solely and can be tailored to operational needs. Your visa needs are among the most valuable ones to remember when agreeing on a lease form for your company. A Flexi desk typically refers to one or two visas and can thus be the best budget choice in the long term, based on the number of visas you need.


When a physical office has been requested, and/or more as 1 or 2 visas have to be requested, so the cost of AED 30,000 minimum set up in a Freezone rises dramatically. Usually, the Freezone will bill you for your office room per person/per visa and generally demand you to be between 7-10 sqm per licence visa. In certain instances there is a minimum number of small offices in Freezones, so check in advance, because you will end up progressing from an AED 15,000 virtual room directly to an AED 80,000 4 person office annually without any intermediary.

The office room on-shore is a lot more accessible, you have to get at least 200sqft of licence space but can get more visas for this space if you have work titles for people who don't need to work – for example, sales or technicians. For more details please enquire with us.

What are the advantages of having a free-zone company?

The creation of a business in a free zone has a range of benefits such as:

  • Foreign proprietorship 100%
  • 100% return of money and benefit
  • 100% exemption from taxes on business and personal wages
  • Free from both import and export tariffs

Trading inside the Free Zone also has some extra advantages. Often Free Zones host frequent and openly attendable training and networking activities. The bulk of the meetings can be organised for a private charge, and many allow participants to share business interests within the free region.

Do free zones only permit businesses of one industrial type?

Free zones are usually specialised in one sector. Dubai Healthcare City is aimed primarily at medical professionals and suppliers. The free field you are involved in is necessary to learn and see that your organisation is in good shape. In the end, the organisation profits from operating in an atmosphere where you can exchange market ideas and networking is a normal activity. It should be remembered that certain sectors are not appropriate or are not allowed to develop in a free zone. Do contact us for  company formation in Dubai.