Introduction
Setting up a business in the UAE has become a top choice for global investors, and one of the most attractive options is a UAE Freezone business setup. With 100% foreign ownership, zero personal taxes, and simplified procedures, Freezones are ideal for startups, SMEs, and international companies looking to expand.
In this blog, we’ll cover the costs, benefits, and step-by-step process of starting your Freezone company in 2025.
What is a Freezone in UAE?
A Freezone (also called Free Trade Zone) is a special economic area in the UAE where businesses enjoy tax exemptions, full ownership, and relaxed regulations.
There are over 40 Freezones in the UAE, each catering to specific industries like trade, technology, media, logistics, healthcare, and finance.
Key Benefits of UAE Freezone Business Setup
- ✅ 100% Foreign Ownership – unlike mainland companies.
- ✅ Zero Corporate & Personal Income Tax.
- ✅ Full Profit Repatriation.
- ✅ Easy Company Formation (quick approvals).
- ✅ Modern Infrastructure and world-class facilities.
- ✅ No Customs Duty on imports and exports within Freezones.
- ✅ Wide Range of Licenses (trading, service, industrial).
Costs of Freezone Business Setup in UAE (2025)
The cost varies depending on location, type of license, and visa quota. On average:
- Trade License: AED 10,000 – 15,000
- Office Space / Flexi Desk: AED 8,000 – 12,000
- Visa (per person): AED 3,000 – 6,000
- Miscellaneous (legal, admin, approvals): AED 2,000 – 4,000
👉 Overall, a Freezone business setup in UAE costs between AED 15,000 – AED 30,000.
Step-by-Step Process for UAE Freezone Business Setup
1. Choose the Right Freezone
Select based on your industry (e.g., Dubai Internet City for tech, JAFZA for trade).
2. Select a Business Activity
Trading, services, consultancy, or manufacturing.
3. Decide on a Legal Structure
Options include FZ-LLC (Freezone Limited Liability Company), branch office, or freelance license.
4. Apply for a Business License
Submit documents to the Freezone authority.
5. Lease Office Space
From a flexi-desk to a full office.
6. Apply for Visas
Get your own and employee visas through the Freezone.
7. Open a Corporate Bank Account
Required for all transactions in the UAE.
Best Freezones in UAE for Business (2025)
- Dubai Multi Commodities Centre (DMCC) – best for trading.
- Jebel Ali Free Zone (JAFZA) – logistics and shipping.
- Dubai Silicon Oasis (DSO) – tech startups.
- Abu Dhabi Global Market (ADGM) – finance.
- Sharjah Media City (SHAMS) – media & creatives.
- Ajman Freezone – cost-effective option.
👉 See the full list at UAE Freezones Directory.
Documents Required for Freezone Company Formation
- Passport copies of shareholders.
- Passport-size photos.
- Business plan (for some Freezones).
- Proof of address.
- Application form.
FAQs About UAE Freezone Business Setup
1. Can I do business outside the Freezone?
Only with a local distributor or if you set up a mainland branch.
2. Do I need a local sponsor?
No, Freezones allow 100% foreign ownership.
3. Can I open a bank account with a Freezone license?
Yes, all Freezone companies are eligible.
4. How long does setup take?
Usually 5–10 working days, depending on approvals.
Why Choose VagaGroups for Freezone Business Setup?
At VagaGroups, we simplify the process of company registration in Dubai Freezones with end-to-end support:
- ✅ Guidance in selecting the best Freezone for your industry.
- ✅ Assistance with license application & approvals.
- ✅ Help with bank account opening.
- ✅ Affordable packages tailored to your budget.
👉 Learn more about our Business Setup Services or Contact Us today to get started.
Conclusion
The UAE Freezone business setup is one of the most cost-effective and rewarding ways to start a company in 2025. With 100% ownership, zero taxes, and quick approvals, entrepreneurs can focus on growth while enjoying UAE’s world-class infrastructure and opportunities.
🚀 Ready to launch your Freezone company? Partner with VagaGroups for expert guidance and a smooth process.
