UAE Free zones


UAE free zones companies, Benefits, and Document required

There are nearly 40 Free Zones effective in UAE, and many of them are under construction. Each UAE Free Zone offers licenses to companies in some particular commercial categories.

Free Zone Authority (FZA) is the only autonomous governing body over which no foreign ownership restrictions is applicable. It is the single authority responsible for issuing operating licenses and regulating the activities of companies within the UAE Free Zone.

The UAE is the chief business pivot for setting up representative office or a business center. It is a very tedious task to identify the best free trade zone out of the existing 40 free trade zone of the UAE to conduct business in this region.

The biggest delusion among business personals is that a Free Zone Company is an offshore company, however with some similarities; they also have some different characteristics.

Benefits of the UAE Free Zone:

  • Permitting directors, shareholders and employees to acquire residency visas in the UAE.
  • Allows foreign ownership i.e. no need for a local partner/sponsor.
  • Complete exile of profits and capital.
  • No currency restrictions.
  • World class infrastructure.
  • Lowest tariffs in the region.
  • Cheap energy.
  • Modern business approaches.
  • Excellent support services.

Selecting the principal Free Zone has a wide impact on the business activity and establishment.

Read More: Benefits of business setup in Dubai Free Zones

UAE Free Zone exemptions

  • Corporate tax immunities for nearly 50 years.
  • Complete foreign ownership
  • Exemption from the tax imposed on export and import.

What is the cheapest free zone in UAE?

Ajman is the cheapest free zone in UAE. Ajman Free Zone ( AFZ ) is the second free zone in Dubai after Deira Free Zone.

Ajman is a known centre for light manufacturing industries including textile, garments, leather and surgical supplies making it one of the best places to invest in UAE.

Holding companies in Ajman are only permitted as 100% foreign-owned entities without any local ownerships or directorships that require registration with either DFSA (Dubai Financial Services Authority) or RTA (Road Transport Agency).

This makes them a very suitable holding partner especially when mergers and acquisitions take place. You can also hire a professional management company to assist you with your day-to-day operations if required.

UAE Free Zone Company Requirements

An investor can register for a new company in two different sections. One is Free Zone Establishment (FZE) and other is Free Zone Company (FZC).

FZE has one shareholder and an FZC has one or more than one shareholder or a representative office of their prevailing or parent company grounded within abroad or UAE.

FZE and FZC are the company that fall under the rules and regulation of UAE Free Zone. The provision of the UAE Commercial Companies Law (CCL) is not applicable to them.


Documents required for setting up a Free Zone Company:

  • Certified passport copy and UAE Visa.
  • 2 Proofs of Address (dated within 3 months).
  • Professional reference letter.
  • Documents concerning professional history.
  • And a company application form to be filled


Some of the UAE Free Zones may demand annual business plan, after the completion of documentation, corporate needs lease premises or land and an operating license from the FZA. If a company want to sell a product in UAE, a UAE authorized representative is also required.


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