How to Get Your Business License in a Dubai Free Zone: A Step-by-Step Guide

Starting a business in a Dubai Free Zone offers immense opportunities, but navigating the licensing process can be confusing without expert guidance. This guide will walk you through the step-by-step process of setting up a company in one of Dubai’s many Free Zones, making it faster, easier, and more cost-effective. 

Step 1: Choose your business activity  

The first step in setting up your business in Dubai is selecting the right business activity. Dubai’s Department of Economic Development (DED) offers a list of over 2,000 approved business activities, covering sectors from tech and consultancy to trading and manufacturing. 

Important: Be specific and accurate when choosing your activity as this determines the type of business license, you'll need in your chosen Free Zone.  

Step 2: Choose the right Free Zone 

Once you’ve selected your business activity, the next step is choosing the most suitable Free Zone in Dubai. Free Zones are designated economic areas that offer benefits like 100% foreign ownership, tax exemptions, and simplified setup processes. But not all Free Zones are the same, each caters to specific industries and offers different facilities, pricing, and licensing options.   

Understanding the cost of setting up a business in Dubai is essential at this stage, as setup fees, visa packages, and office lease requirements can vary significantly between Free Zones. Some offer low-cost packages for startups, while others provide premium office spaces and infrastructure tailored to large enterprises.    

Here are some of the most popular Free Zones in Dubai:  

Dubai Multi Commodities Centre (DMCC)  

DMCC is Dubai’s flagship Free Zone, home to over 25,000 businesses in commodities, trading, and finance. Beyond top-tier office space, it offers access to global markets and a thriving community of over 90,000 professionals. It’s an ideal choice if you're looking for networking and scalability in a well-regulated environment.   

International Free Zone Authority (IFZA) 

Known for affordability and flexibility, IFZA caters to a wide range of industries including consultancy, trading, and services. With 100% foreign ownership, 9% corporate tax, and simplified import and export procedures, it’s a popular choice for businesses seeking international growth.   

Jebel Ali Free Zone (JAFZA) 

JAFZA is designed to support manufacturing and industrial enterprises, offering complete foreign ownership, extended corporate tax exemptions, and duty-free import and export privileges. It also allows unrestricted currency usage and provides the flexibility to hire international professionals. Additionally, businesses have the option to mortgage their premises, offering added financial security.  

Meydan Free Zone 

Located within the prestigious Meydan Hotel, this Free Zone offers a perfect environment with flexible office solutions and access to over 2,500 licensed activities. It’s an ideal choice for entrepreneurs seeking a premium business address. Certification from both the Ministry of Foreign Affairs (MoFA) and the Dubai Chamber of Commerce adds credibility and enhances your appeal with global partners.      

Dubai Media City (DMC) 

Perfect for marketing, media, and advertising professionals, Dubai Media City (DMC) is home to over 2,000 companies. It supports a wide array of industries including publishing, digital media, gaming, and event management, making it an ideal hub to innovate, collaborate, and thrive in Dubai’s dynamic media landscape.     

Step 3: Decide on a Legal Structure 

Your company’s legal structure affects everything from liability to visa limits. Common Free Zone company types include: 

• Free Zone Limited Liability Company (FZ-LLC): ideal for multiple shareholders. 

• Sole Establishment: perfect for single-owned businesses. 

• Branch of a Foreign Company: for expanding international businesses. 

Step 4: Choose and register your trade name 

Your trade name is your brand identity in the UAE, so choose wisely. 

Tips for trade name registration: 

• Avoid offensive or religious terms. 

• Ensure the name aligns with your business activity. 

• Provide 2–3 name options in case your first choice is unavailable. 

• Check for conflicts with existing registered names. 

A distinctive, professional trade name helps your Dubai business stand out. 

Step 5: Submit documents and obtain initial approval  

Once your trade name is approved, gather and submit the required documents to your chosen Free Zone authority:  

• Passport copies of all shareholders. 

• Detailed business activity description. 

• Memorandum of Association (MOA) for LLCs. 

After reviewing, the Free Zone will issue initial approval, allowing you to move forward with the business setup process. 

Step 6: Secure your office space 

To get a Free Zone license in Dubai, you must have a physical business address. 

Office options include: 

• Flexi-desk/shared office: Ideal for startups, often linked to visa eligibility. 

• Dedicated office: Best for growing businesses needing a permanent location. 

Important: Most Free Zones require you to lease office space within their jurisdiction. Some, like Meydan Free Zone, offer more flexible location rules. 

Step 7: Receive your business license 

Once all documents are approved and your office lease is finalised, you’ll receive your official Free Zone business license. You can now legally operate your business in Dubai, open a bank account, and apply for residence visas for you and your staff. 

Ready to set up your Dubai Free Zone company? 

If you're looking for expert support, we are here to help. Whether you're a startup founder or an international entrepreneur, our expert consultants will guide you through every step of the process, saving you time, money, and stress.  

Get in touch today to launch your business in one of the UAE’s thriving Free Zones.