What You Need to Know About Dubai Freezone Company Formation

Dubai night skyline. Dubai streets by night. Al Yaqoub tower Dubai. Dubai Millennium Plaza. Dubai Sheikh Zayed Road by night. Dubai night view. Dubai cityscape by night. Dubai metro station view.

Whether you are a business owner or a start-up company, your main aim is to maximize profits and grow your business. Most countries have strict tax guidelines that eat into the company’s profits. Business owners would prefer countries or zones were setting up a business requires minimal costs and where the cost of operation and tax is minimal. Dubai provides this freezone company formation, where you can retain all of the profits made from your business and use it to grow your business if you want to. Here is what you need to know before investing there.


Unlike in other trading zones or countries where you have partial ownership of your business, in Dubai free zone, you get to have complete ownership of your business. You do not need a local to introduce you or act as a referee when setting up a business in this zone for offshore companies. You will need a sponsor, though, for an on-shore company. Further, you can own your business as a single individual.

Multiple Operations

Some countries restrict foreigners to one line of trade. In such countries, you are only allowed to trade or do business in the field that you apply for. It is very difficult or in some cases impossible to get a license to operate any other activity even if it is closely related to your business. Dubai free zone is a different case. You are allowed to engage in multiple activities, even if they do not relate to your business as long as they are within the confines of the county’s laws.

Closing Your Business

Unlike in most countries where you sign contracts that restrict you to one particular place for the period of the contract you sign, in Dubai, you can start a business and wrap it up at any time. This window allows business owners to avoid sticking in one line of business even when it is not profitable.

Opening a Bank Account

In Dubai, you do not need to be a citizen to open and operate a bank account. You can use your international documents to open a bank account with your name. You can, thus, protect your business from any form of exploitation as you get to manage your finances. You do not have to rely on a local to make bank transactions hence the smooth flow of business.

Variety of Industries

Dubai business zone offers you an array of business opportunities in various industries. You can invest in education, finance, aviation, media and communication, and logistics among others. the zone has first world infrastructure that enables businesses in all of these industries to thrive.

Offshore and On-shore Companies

You must decide whether you want to open an on-shore or an offshore company. For an on-shore company, your company will adhere to the tax obligations and filing requirements as stipulated in the country’s laws. For an offshore company, you are not liable for any corporate tax. You can also never activate an offshore company like you can an on-shore company.



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