What Is a Free Zone Licence in Dubai?
A Free Zone Licence is a business license issued by one of Dubai’s many Free Zone Authorities. Free Zones are special economic areas where businesses enjoy certain concessions and regulatory flexibility which are not always available in mainland. These include full foreign ownership, easier setup, tax advantages, and custom duty exemptions.
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enec.gov.ae
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Dubai Free Zone Business
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A company operating under a Free Zone Licence is registered with the Free Zone Authority, rather than with the Dubai Department of Economy & Tourism (mainland). The kind of licence depends on business activity: trading, services, industrial, e-commerce, etc.
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Types of Licences in Dubai Free Zones
Dubai Free Zones offer several license types, depending on what you want to do. Some common types are:
License Type What It Covers / Who It’s For
Trading / Commercial License For buying, selling, importing/exporting physical goods or e-commerce.
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Service / Professional License For service providers: consultancy, marketing, IT, events, training. No need to carry goods.
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Industrial / Manufacturing Licence For businesses that manufacture, process or assemble products. Requires appropriate facilities/industrial-type Free Zone.
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Dubai Business Services
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E-Commerce License For online businesses / platforms / drop-shipping etc. Some Free Zones now offer licenses focused on digital commerce.
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Logistics / Warehousing License If you need storage, freight forwarding, transportation etc. Often combined with trade license.
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Freelance / Professional Permits For individuals offering professional services or creative work without needing full company structure.
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Key Benefits of a Free Zone Licence
Free Zones in Dubai come with attractive perks. These are some major benefits:
100% Foreign Ownership
You do not need a local partner or sponsor. Full control of ownership is allowed.
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Tax Advantages
Many Free Zone companies enjoy 0% corporate tax and 0% personal income tax (though recent corporate tax rules apply for profits above certain thresholds).
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Customs / Trade Benefits
Exemption from import/export duties, and easier customs procedures inside the Free Zones.
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Ease and Speed of Setup
The licensing process tends to be faster compared to mainland licensing, with many Free Zones issuing licences in days. Less paperwork and fewer formalities.
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Flexible Office Options
Many Free Zones offer flexible office solutions: virtual office, flexi-desk, co-working, rather than needing large, permanent offices right away.
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Visa Eligibility
With a free zone licence, you are eligible for investor visas, employment visas for employees, and dependent visas in many zones.
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What Does a Free Zone Licence Cost in Dubai?
The cost can vary a lot depending on:
Which Free Zone you choose (DMCC, DSO, JAFZA, IFZA, etc.)
Type of license (service, trading, industrial etc.)
Number of visas or employees
Office requirement (virtual, flexi-desk, private office)
Additional services or facilities bundled
Here are some recent ranges / examples to give you an idea:
Free Zone / Scenario Approx Cost / Range Notes
SP-Free Zone (consultancy / e-commerce) AED ~ 8,000-25,000 Depends on office and number of activities & visas.
SPC
IFZA Free Zone (trading + registration + flexi desk + few activities) ~ AED 18,900 Covers basic package, registration, license, flexi-desk etc.
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DMCC (service/trading licence) ~ AED 11,900-28,000 Including facilities in some packages.
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Basic package (low-end Free Zone, minimal office /virtual) ~ AED 5,000-12,000 For small operations, fewer visas, no big office footprint.
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Initial fees usually include trade licence fee, registration fee, name reservation, plus any office costs. Renewal fees every year or licence-term will also apply.
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Steps to Obtain a Free Zone License in Dubai
Here is a typical process:
Choose your Free Zone
Decide which Free Zone suits your activity, location, cost, and facilities.
Select Legal Structure
Options include Free Zone Establishment (FZE), Free Zone Company (FZC), branch, etc.
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Choose Your License Type / Activities
Decide if you need trading, service, industrial, etc. Be precise — each activity may need approvals.
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Reserve Trade Name & Apply
Pick a name; submit application with required documents (passport copies, business plan, proof of address, etc.).
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Office Space & Visa Quota
Depending on licence, you might need an office (flexi or dedicated). Based on that, visa eligibility is set.
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Pay Fees & Get License
Once documents are approved and fees paid, the license is issued. Often fairly quick.
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Renewal & Compliance
Renew your license annually (or as per period), maintain records, comply with reporting, visas.
