Starting a business in Dubai Free Zone: A guide for UK entrepreneurs

For UK entrepreneurs looking to expand their horizons, Dubai’s Free Zones presents an exceptional opportunity to launch a business in one of the world’s most dynamic markets. These zones are designed to draw global companies by offering attractive perks such as 100% foreign ownership, tax exemptions, and a simplified registration process.

This guide walks you through everything you need to know about starting a business in a Dubai Free Zone. From exploring the key benefits to understanding the step-by-step process and associated costs, we’ll highlight why Dubai is an ideal destination for UK founders seeking international growth.  

What is a Dubai Free Zone?  

A Dubai Free Zone is a designated economic area offering various incentives for foreign investors looking to start a business. These zones provide tax breaks and simplified business setup processes to help companies thrive. Each Free Zone is tailored to specific industries, creating an environment supporting growth and innovation in technology, media, logistics, and finance.  

Why choose a Free Zone for your business?

Here are some compelling reasons why setting up in a Dubai Free Zone could be the perfect choice for your business:

 

1.100% foreign ownership

Unlike some mainland businesses, Free Zones allows you to retain full ownership of your company without needing a local sponsor, giving you complete control.

2. Tax benefits

Enjoy significant tax savings, with no corporate tax on profits up to 375 AED (£80K) and no income tax to pay. Foreign investors can fully repatriate profits and benefit from no personal capital gains tax, making it a financially attractive option. 

 

3. Industry-specific zones

Dubai Free Zones cater to various industries, from technology and media to logistics and finance. Each zone offers tailored perks and services specifically designed to support businesses in that sector.

4. Simplified processes

Setting up a business in a Free Zone is quick and hassle-free. With minimal paperwork and a streamlined registration process, you can get your business up and running quickly.  

5.  Networking opportunities

Free Zones bring together like-minded businesses within specific industries, creating opportunities for you to collaborate, form partnerships, and grow through valuable networking connections.

Top Free Zones in Dubai

Dubai is home to various Free Zones, each catering to different industries. Here are some of the top Free Zones in Dubai, tailored to specific sectors:

• Dubai Multi Commodities Centre (DMCC)

As a leading centre for trade, commerce, and enterprise, DMCC is home to 25,000 businesses, from ambitious start-ups to global corporations. Designed for industries such as commodities, trading, and financial services, it provides a supportive and business-friendly environment that fosters success.

More than just a commercial district, DMCC is a smart and sustainable destination offering premium office spaces alongside exceptional residential, retail, and leisure facilities. With a vibrant community of over 90,000 professionals and more than 100,000 residents and visitors, it delivers the perfect setting for businesses to grow, connect, and access global markets.

• International Free Zone Authority (IFZA)

IFZA is a dynamic and cost-effective Free Zone catering to a wide range of industries, including consultancy, trading, and services. It offers a seamless business setup process, allowing companies to operate within a dedicated zone tailored to their sector. Businesses benefit from access to a skilled workforce and a supportive, business-friendly environment.

With 100% ownership and profit repatriation, IFZA provides an attractive base for entrepreneurs and enterprises. Companies enjoy a competitive 9% corporate tax, simplified import and export procedures, and a prime location with global connectivity, making it an ideal choice for businesses looking to expand internationally. 

• Jebel Ali Free Zone (JAFZA)

  
  

JAFZA is one of Dubai’s largest and most prominent Free Zones, designed to support manufacturing and industrial enterprises. It offers complete foreign ownership, extended corporate tax exemptions, and the freedom to repatriate profits without restrictions.

Companies operating in JAFZA benefit from duty-free imports and exports, unrestricted currency usage, and the flexibility to employ international professionals. Businesses also have the option to mortgage their premises, providing financial security. With no personal income tax and dedicated onsite customs facilities, JAFZA creates an efficient and business-friendly environment for companies seeking global expansion.

• Meydan Free Zone

If you're an entrepreneur looking for a premium business address in Dubai, Meydan Free Zone offers the perfect setting. It offers business licence recognised by the Ministry of Foreign Affairs (MoFA) and is certified from the Dubai Chamber of Commerce, enhancing credibility and global appeal.  

Set within the luxurious Meydan Hotel, this Free Zone provides a sophisticated environment with flexible office solutions tailored to your needs. With over 2,500 business activities to choose from, you have the freedom to build, grow, and expand in a business-friendly ecosystem designed for success.  

• Dubai Media City (DMC)

  
  

Dubai Media City (DMC) is a vibrant business district designed for professionals in media, marketing, and advertising. More than 2,000 companies operate within this Free Zone, including global media giants like CNN, BBC, MBC, and Reuters, alongside emerging local firms and ambitious startups.

It supports a wide array of industries, including film production, broadcasting, digital media, gaming, music, publishing, advertising, and event management. Whether you're an established business or a growing enterprise, DMC provides the perfect environment to innovate, collaborate, and thrive in Dubai’s ever-evolving media landscape.  

Step-by-step guide to starting a business in Dubai Free Zone  

Starting a business in a Dubai Free Zone is straightforward, but following the right steps is essential to ensure success. Here’s a simple guide to help you navigate the setup process:   

1. Choose the right Free Zone   

The first step is selecting a Free Zone that aligns with your industry and business goals. Each Free Zone caters to specific sectors, so take the time to research their facilities, costs, and services to find the perfect fit for your business.   

2. Select your business activity

Free Zones support specific business activities, so make sure your intended operations fall within the permissible categories. Checking this early will save you time and ensure compliance. 

3. Decide on your company structure

Next, choose the most suitable structure for your business:

• Free Zone Establishment (FZE): Ideal if you’re the sole shareholder.

• Free Zone Company (FZC): Perfect for businesses with multiple shareholders.

• Branch Office: Best for established companies looking to expand into Dubai.

4. Apply for your business license

Submit your licence application to the Free Zone authority. You’ll typically need to provide:

• Passport copies of all shareholders.

• Proof of address.

• A No Objection Certificate (NOC) if required.

5. Lease office space

Most Free Zones require businesses to take an office or flexi-desk workspace, depending on the number of visas associated with the company. This impacts the annual costs of operating in Dubai.

Based on your business needs, you can choose from flexible options like: 

• Flexi-desk: A shared workspace ideal for startups or small teams.

• Private office or warehouse: Suitable for more extensive operations or businesses requiring storage space. 

6. Open a business bank account

Finally, set up a business bank account with a UAE-based bank. While the process is straightforward, banks do require a board resolution stamped by the Free Zone, granting authority to the individual opening the account. This document must have a wet ink signature and be attested, with the original copy submitted. This is an essential step to get right to avoid delays.

Chat to our team if you’re unsure how to get this process started.

By following these steps, you’ll be well on your way to starting your business in a Dubai Free Zone. The streamlined processes and supportive environment make it an excellent choice for entrepreneurs looking to establish or expand their regional ventures.  

How much does it cost to set up a business in a Dubai Free Zone?

The cost of setting up a business in a Dubai Free Zone depends on your chosen Free Zone and the type of business you plan to run. Here's an approximate breakdown to give you a clear idea:   

1. Licence fees

• AED 14,900 (£ 3,135)  

• This annual fee is required to legally operate your business in a Free Zone, granting the necessary permissions based on your chosen business activity.

• You can choose a one-year or multi-year licence. If you opt for a one-year licence, it must be renewed annually to remain compliant.

2. Establishment card

• AED 2000 (£420)  

• Required for your company’s registration with the immigration authorities, allowing you to apply for employee and investor visas.

3. Visa costs

• AED 3,750 (£789)

• Required to obtain a residency visa, allowing you to live and work in the UAE for up to two years.    

Please note that these costs are subject to change and may differ based on the specific free zone you decide to operate.     

Pro Tip: Many Free Zones offer startup packages that combine these costs into a single, more affordable bundle. These packages can save you money and simplify the setup process, often including additional benefits like office space, business support services, and banking assistance.  

Understanding the costs upfront helps you plan your budget effectively, ensuring a smoother start to your business journey in Dubai.   

Free Zone vs. Mainland: Which is right for you?

When setting up a business in Dubai, one of the key decisions you’ll need to make is choosing a Free Zone or Mainland setup. Both options have unique advantages, so the choice depends on your business goals and operational needs. Here’s a quick comparison to help you decide:  

Criteria	Free Zone	Mainland
Ownership	100% foreign ownership	Requires local sponsor (51%) in certain sectors such as oil and gas
Tax Benefits	No corporate or income tax.	Subject to VAT and corporate tax
Business Scope	Limited to Free Zone and export.	Can trade anywhere in the UAE
Setup Costs	Lower	Higher

Tip: If your business focuses on export, technology, or services, Free Zones often provide the most advantages. For companies needing unrestricted trading across the UAE, a Mainland setup may be the better choice.

Why work with an accounting firm for Free Zone setup?

Setting up a business in a Dubai Free Zone can be an exciting venture, but navigating the process on your own can sometimes be overwhelming. This is where an experienced accounting firm can be your greatest ally. Here’s how they simplify your setup journey:  

1. Choosing the right Free Zone

With multiple Free Zones designed for specific industries, selecting the one that best suits your business can be challenging. An accounting firm helps you identify the right zone, ensuring it offers the best advantages tailored to your needs.

2. Streamlined paperwork

The paperwork involved in setting up a business can be overwhelming. An accounting firm takes care of all the applications, approvals, and required documents, making the process seamless and efficient.

3. Compliance

Dubai has specific rules and regulations that your business must follow. An accounting firm ensures that your business complies with these rules so you can avoid penalties and focus on growth.

4. Cost optimisation

Setting up a business can be costly, but an accounting firm can help you avoid unnecessary costs. They can help you choose the right packages and keep your expenses in check, ensuring your investment goes as far as possible.  

Here’s what we recommend: Partner with an experienced accounting firm to take the stress out of the setup process, allowing you to focus on launching and growing your business.   

If you are looking for expert support, we are here for you. With our guidance, starting your business becomes faster, simpler, and more cost-effective. Contact us today to get started.