Free Zone Company Setup Steps in the UAE

Last verified: 2026-10-06

Summary

The UAE government portal (u.ae) describes setting up a free zone company as four broad steps: choose a sector and free zone, choose a legal entity type, choose a trade name, and apply for a licence through the free zone authority. Each free zone then runs its own application portal, document list and timeline, so the details differ between zones.

The general steps (u.ae)

1. Select the sector and the free zone. u.ae says to start by selecting the sector you want to do business in and then the free zone where you want to establish the business.
2. Determine the legal entity type. u.ae lists these types for free zones: Private Limited Liability Company (LLC), Free Zone Company (FZ Co.), Free Zone Establishment (FZE), Public Limited Liability Company (PJSC), and a branch of a local or international company. It adds that not every free zone registers every type, and the types differ in the number and kind of shareholders allowed.
3. Choose a trade name. u.ae says a name must not violate public morals or public order, must include the legal form (for example LLC, FZE or DMCC), must not already be registered, and must fit the activity and legal status. Religious names, government authority names and external logos are excluded.
4. Apply for a business licence. u.ae says you can apply online through the free zone authority’s website, usually by giving basic company information and uploading documents. It states that after review and approval you get a licence within 14 working days (as of 2026-10-06).

How individual free zones describe their process

These are the zones’ own descriptions. They are examples, not a ranking, and each page should be read for current detail.

• DMCC. DMCC’s setup page describes three phases: discover a package through its business setup wizard, submit an online pre-approval application and complete payment and document signing in the DMCC portal, then receive an electronic licence (E-licence). It says the process typically takes around 10 working days (as of 2026-10-06), depending on documentation and approvals. Documents listed include passport copies, proof of residential address in the country of residence, identification for shareholders, directors and authorised signatories, ownership documents such as the Memorandum and Articles of Association, and ultimate beneficial owner information for individuals holding 25 per cent or more.
• Meydan Free Zone. Its company formation page lists five stages: select business activities, reserve a trade name, submit the application and documents, receive the trade licence, then process banking and visas. Documents listed include a passport copy for each shareholder, contact details and role of each person, at least three proposed company names, selected activities and a business plan or summary.
• RAKEZ. RAKEZ describes three steps: customise a package, submit the application and documents (passport copies, proof of address and a business plan where applicable), and receive the licence. It lists Free Zone Establishment (single shareholder), Free Zone Company (multiple shareholders) and Branch Office as options.
• JAFZA. JAFZA lists Free Zone Establishment (FZE), Free Zone Company (FZCO), public listed company, branch and offshore company structures, and four licence categories: trading, service, industrial and logistics. Its site links to a cost calculator, the Dubai Trade portal and a Service Guidebook.

After the licence

• Visas. u.ae says work permits and residence visas are obtained through the respective free zone authority, and that the number of visas a business can get depends on factors such as the package signed up for.
• Staying inside the free zone. u.ae states that direct sales in the mainland are generally not permitted unless the company obtains the required mainland licences or approvals.
• Banking. Meydan’s page lists corporate bank account opening as a step after the licence is issued.

What it costs

Fees depend on the free zone, licence type, activities, office or facility option and visa allocation. This guide does not quote prices; use the comparison tool on this site to see how the cost items line up, and check the free zone’s own calculator or fee schedule for current amounts.

Common pitfalls

• Assuming every free zone accepts every legal entity type. u.ae says this has to be checked with the individual authority.
• Choosing a trade name without the legal form suffix or without checking whether it is already registered.
• Treating the typical timelines on zone websites as guarantees. DMCC, for example, states its timeline depends on the completeness of documentation and approvals.
• Overlooking that free zone licences generally limit trading on the mainland, as u.ae notes.
• Not checking what the chosen package includes, since u.ae says visa numbers depend on the package.

Check the authority

Figures, document lists, timelines and rules change. Before acting, confirm the current requirements with the relevant free zone authority and the UAE government portal at u.ae.

Figures and details in this guide are as stated on the cited official pages as of 6 October 2026.

Sources

• https://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/starting-a-business-in-a-free-zone
• https://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/running-a-business-in-a-free-zone-
• https://u.ae/en/information-and-services/business/Doing-business/doing-business-in-free-zones/recruiting-in-free-zones
• https://dmcc.ae/business/set-up-a-new-business
• https://www.meydanfz.ae/blog/company-formation-meydan-free-zone
• https://www.rakez.com/
• https://www.jafza.ae/

This information is general; rules and fees can change. Check current details with the relevant authority.

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