Benefits of Business Setup in the UAE Free Zone

If you are planning to set up your business in the UAE, I am sure you have heard about the free zone. But, do you know the benefits of business setup in the UAE free zone? The benefits are endless.

Free trade zones are areas that run under a special tax-free and customs law. Each free zone has its own rules and regulations that benefit the companies.

Before introducing the free zone, every company has to partner with the UAE national to set up a business. Hence, the government introduced a free trade zone across 44 geographical locations.

Benefits of Business Set up in the UAE Free Zone

The free zone policy gives lots of benefits to companies. The concept of free zones results in double foreign investment. It brings direct investment from over 200000 companies from all over the world.

Any business inside the free trade zone can have 100% ownership. There is a minimal setup cost, and paperwork need, though the basic rules remain the same.

Apart from the cost and ownership, the company is also liable for a 3-year visa. The company can also hire an inexpensive workforce from other countries with easy recruitment procedures.

The company also gets the advantage of 100% repatriation of profits, 100% exemption of income tax and 100% free transfer of funds.

Other advantages of business set up in the UAE free zone are:

  • NO restriction on import and export
  • Inexpensive energy
  • Inexpensive transportation
  • Liberal government policies
  • Smooth immigration process
  • The affordable visa cost for skilled workers
  • Right to move and sale office
  • Easy start-up and licensing process
  • Right to operate 24/7

Free Zone License

You have known the benefits of free zone business setup in the UAE. But, you should also know the type of license the Government Issue for free zone business set up.

  1. General license – for investors.
  2. Commercial license – This license allows a business to operate for a limited time.
  3. Service license – license for companies that give services.
  4. Industrial license – Companies that manufacture goods, export finished products, and import raw materials.
  5. Warehouse License – Companies that deal with packaging, good store and distribution.
  6. Manufacturing License – Company that manufactures products.


Business setup in the UAE might look daunting, but the free trade zone has changed the game of business. The free zone has given the opportunity to 100% business ownership. Whereas in a non-free zone you will have to partner with a UAE nation for 51% partnership.

There is no better time than starting your business in the UAE free zone. The country is booming, and so is the economy.