Type of Business Entities That Can Set Up in the Dubai Free Zone

company setup in Dubai

Planning a company setup in Dubai free zone? Thanks to its tremendous economic growth and development, the UAE has become a fertile ground for budding organizations.

Apart from the low cost business setup in Dubai, another main attraction is establishing an entity in one of their free zones. It makes the process of starting a company very simple and hassle-free because authorities in the free zone require minimal paperwork, less duration, and fewer efforts.


Free Zones in Dubai

There are 45 free zones across the UAE with more under construction. More than half of these are found in Dubai. A free zone is described as a special economic zone where businesses can operate and receive tax and fee exemptions. It enables shareholders and employees to obtain residency visas and allows 100% foreign ownership, and repatriation of capital and profits.

Even with all the great benefits, attention must still be paid when starting a company in the free zone. Before applying for a license, it is important to determine the type of legal entity your business would take up. Investors can choose between one of the two types:

  • Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
  • Free Zone Establishment (FZE)

The key difference is that an FZE has one shareholder which is either an individual person or company, while an FZC requires two to a maximum of five shareholders. An FZC can be a branch or representative office of an existing company within the country or abroad.

While both entities receive the same operating benefits in the free zone, there can be differences depending on the purpose of incorporation, such as the share capital requirements.


Business Setup Services Dubai

Authorities of every free zone come with their own rules and regulations. A common restriction among free zone business entities is that they are only allowed to operate within their specific free zone. Here are the steps to start setting up a company:

  • Determine the type of legal entity
  • Choose a trade name
  • Apply for a business licence
  • Choose an office space
  • Get pre-approvals, register your business and get your licence

The process doesn’t stop after establishing a legal presence. An organization still has to lease an office space and acquire an operating licence. If you need guidance in choosing the right business form, consult with the experts at Austria Business Center.


You can trust Austria Business Center to provide you with the best company incorporation services in Dubai. Whether you need assistance with business licensing, instant offices, filing of documents, or partner outsourcing services, we deliver results quickly and efficiently. Call +971 4 454 9700 today for inquiries!


    Jumeirah Bay X2 Tower (3rd Floor)
    Email: office@austriabc.com
    Phone: +971 (0)4 427 3600

    Jumeirah Bay X2 Tower (3rd Floor)
    Email: office@austriabc.com
    Phone: +971 (0)4 427 3600

    Jumeirah Bay X2 Tower (16th Floor)
    Email: office@austriabc.com
    Phone: +971 (0)4 437 5700

    Opal Tower
    Email: office@austriabc.com
    Phone: +971 (0)4 427 3700