Frequently Asked Questions
1. What is a UAE Free Zone?
Answer:
- A special economic area with its own regulations and benefits
- Offers 100% foreign ownership
- Provides tax exemptions and simplified business Setup UAE Free Zone
2. How many free zones are there in the UAE?
Answer:
- Over 45 operational free zones
- Located in all 7 emirates
- Each caters to specific industries (e.g., tech, trade, media)
3. What are the benefits of setting up in a free zone?
Answer:
- Full foreign ownership
- 0% personal and corporate tax (in most cases)
- No import/export duties within the zone
- Fast-track business setup uae and visa processing
4. Who should consider setting up in a free zone?
Answer:
- Startups looking for low-cost entry
- E-commerce businesses
- International traders
- Consultants and freelancers
5. Can I operate in the UAE mainland from a free zone?
Answer:
- Not directly without a local distributor or dual license
- Must partner with a mainland company for UAE-wide business
6. What types of licenses are available in UAE free zones?
Answer:
- Commercial License
- Professional/Service License
- Industrial License
- E-commerce License
- Freelance Permit
7. Is 100% repatriation of profits allowed?
Answer:
- Yes, full capital and profit repatriation is permitted
- No restrictions on currency movement
8. What is the typical setup time in a free zone?
Answer:
- Usually 2 to 5 business days
- Dependent on document submission and activity type
9. What documents are required for setup?
Answer:
- Passport copy of the owner/shareholder
- Passport-size photo
- Business plan (in some zones)
- Visa and Emirates ID (if applicable)
10. Do free zones provide physical office space?
Answer:
- Yes, options include:
- Flexi-desks (shared spaces)
- Executive offices
- Warehouses and logistics hubs
11. Can I apply for visas through a free zone company?
Answer:
- Yes, visa quotas are based on office size/type
- Visas available for owners, employees, and dependents
12. What is the minimum capital requirement?
Answer:
- Varies by zone and activity
- Some zones require AED 1 only
- Others may require up to AED 50,000 or more
13. Are free zones industry-specific?
Answer:
- Yes, some cater to specific sectors:
- Dubai Internet City – tech
- DIFC – finance
- JAFZA – logistics and trade
14. What are the top free zones in Dubai?
Answer:
- DMCC (Dubai Multi Commodities Centre)
- Dubai Internet City
- Dubai Silicon Oasis
- JAFZA (Jebel Ali Free Zone)
- Dubai South
15. Are free zone businesses subject to UAE corporate tax?
Answer:
- As of June 2023:
- 0% tax on profits up to AED 375,000
- 9% corporate tax on profits above threshold
- Qualifying free zone businesses may remain at 0%
16. Can I open a bank account with a free zone license?
Answer:
- Yes, all major UAE banks accept free zone companies
- Documentation includes license, MOA, and visa copy
17. Are there any nationality restrictions?
Answer:
- No restrictions on ownership based on nationality
- UAE free zones are open to investors worldwide
18. What is a dual license?
Answer:
- Allows free zone companies to also operate in the mainland
- Requires additional approval from the Department of Economy and Tourism (DET)
19. Can I run an online business from a free zone?
Answer:
- Yes, many zones offer e-commerce licenses
- Includes digital marketing, product sales, and SaaS businesses
20. How much does it cost to set up in a free zone?
Answer:
- Starting from AED 5,000 (flexi-desk and 1 visa)
- Costs increase with office space, licenses, and visa count
