Author: Hanoof Al Naama
Published: September 29, 2021
UAE Free Zones are designated business areas established by the government to encourage prospective investments from around the world. The introduction of free zones has created significant benefits for entrepreneurs and investors. Those who aspire to start their own business can find opportunities in company formation within a free zone. Due to continuous support and benefits offered by the UAE Government and Free Zone Authorities, setting up a free zone company is a lucrative opportunity for investors.
This guide outlines the key steps to help you set up a free zone company in the UAE.
The most important step to beginning your entrepreneurial journey in a free zone is determining the ownership structure. Free zones provide the added benefit of allowing 100% ownership to expatriates who wish to start a business—a benefit not available to companies outside a free zone.
Investors who wish to establish a free zone company can register in one of two forms:
| Structure Type | Abbreviation | Number of Shareholders | Description |
|---|---|---|---|
| Free Zone Establishment | FZE | 1 shareholder | Single-owner company structure |
| Free Zone Company | FZC | 2 or more shareholders | Multi-owner company structure |
Both FZE and FZC structures fall under the broad classification of a Limited Liability Company (LLC). However, they are governed by the laws of the free zone they reside in, not under the provisions of the UAE Commercial Companies Law (CCL).
Naming your entity gives it an identity and is the first step to establishing your free zone company's brand presence.
Before finalizing a name for your free zone company, verify it with either:
This verification ensures the name complies with established protocols and has not already been registered by another entity.
The following naming conventions must be followed:
Legal Form Suffix Required
Public Morals and Order
Prohibited Name Elements
This aspect of the free zone company setup process involves defining the primary economic activities of your venture.
The products or services you plan to conduct business with are directly related to the trading license you must acquire. Trade licenses are particularly important because a license is the ultimate proof that your business has the legal right to function within the UAE.
Free zones like SPC Free Zone (Sharjah Free Zone) offer multiple benefits:
| Benefit Category | Details |
|---|---|
| License Variety | Over 1,500 various business licenses across multiple industries |
| License Duration | 10-year license duration periods |
Free zones offer flexibility in terms of office space requirements.
You can choose to:
The office specifications depend on:
Free zones have a large variety of office suites that range in:
The registration process for free zone companies is simple and easy to comprehend.
Submit Application
Pay Fees
Receive Permits
Business setup costs in free zones are not as high as they would be on the mainland.
Key Financial Benefits:
After payment is completed, the process is smooth sailing with entry permits issued for non-residents and your business legally established.
Starting a free zone company doesn't have to be daunting. SPC Free Zone experts can help you set up the business of your dreams with no hassle.
Contact Information: