The UAE has established itself as a business hub, attracting numerous entrepreneurs from around the world to set up shop, particularly in Dubai. One of the reasons why many people are keen to start a business in Dubai is because of the city’s flexible taxation system.

Entrepreneurs who wish to establish up shop in Dubai, on the other hand, have a variety of possibilities for company creation, all of which will necessitate the assistance of experts and specialists. Either a Free Zone or a Mainland business can be established. The International Free Zone Association (IFZA) is the most well-known organization for establishing a Free Zone business. For entrepreneurs, establishing a free zone company has numerous advantages. Let’s first learn what a free zone setup is. 

What is a Free Zone?

Free Zone businesses operate within free trade zones, where they can trade goods and services at reduced tax and customs rates. Many individuals mistakenly believe that offshore corporations and free zones are the same things. A Free Zone is a business zone in Dubai where companies are permitted to conduct business under certain rules.

In the absence of professional assistance, launching a free zone business endeavor in the UAE can be difficult because various critical aspects come into play before, during, and after the incorporation procedure that affects the company’s eventual success. This is why every investor needs to know some tips before starting any free zone business. If you want to know more about business setups and the Freezone, make sure to visit AirZone

7 Vital Tips About UAE Free Zone Business Setup

In comparison to other jurisdictions, the Free Zone business setup process is simple and straightforward. It requires the least amount of paperwork and takes less time than other Dubai business establishment procedures. There are a few key considerations when starting a Free Zone business. They are as follows:

Find Out The Business Activity

Free zones are geographically delimited jurisdictions that permit the incorporation of unique legal formations in the UAE. Because its operational restrictions are limited, the activity you choose is critical to effectively forming a free zone firm in the UAE. Some of the business activities include Content Production, Animation, Advertising, etc. 

Select a Good Business Name

Specific criteria and requirements apply to deciding on the name you want to use for your business (registered name) and the name you want to trade under (trading name). The trading name, for example, should not be replicated or coincide with the names of any well-known companies. If you use offensive language in your business name, it will be denied. Take some time to properly think about a name that represents your business. For example, if your business is related to content production, you cannot name your business “Eat Good”. The name needs to be linked with content production. 

Check to see if the names are available; if they are, don’t take them.

Select a Suitable Place For Your Business

The official location of your firm has a significant influence on your company’s image. It should be strategically located to help you run your firm. Your primary place of business as a Free Zone company should be located inside the jurisdiction in which you have registered. IFZA provides a variety of office solutions to help your company succeed.


Many administrative and financial concerns are handled by the relevant free zone authority because free zones are built under a unique structure, laws, and regulations. Visas, company creation, licensing, office space, and other matters are handled completely by the zone authority.

Logical Support

If you want to start a trading company, be sure the free zone you chose has quick and reasonable logistics support to cover the transportation and delivery costs you’d have to outsource otherwise.

Exemption of Tax

Benefits include a 0% incorporation and personal tax rate, as well as no customs or duties on import-export commodities. Dubai alone has approximately 45 separate free zones on its map, making it a globally known tax haven.

Have a Business License

A business license is required to start a Free Zone company in Dubai. Companies are given licenses based on the type of business they do. Ask someone you know who has started a free zone business, and you’ll be able to get enough help. 


It’s a great idea if you want to start a UAE Free Zone business, but if you don’t want any issues in the beginning, it’s important to be aware of some tips that can help your business flourish. Moving to a new country and getting familiar with the business rules can be tough, but if you have proper guidance, you can do it. Make sure to read this article properly because it will help you start your business in the Freezone. All the best!