overview

Set Up Your Free Zone Company

Choose the Right Free Zone for Your Business
With over 50 free zones in the UAE, it can be hard to know which one is right for you. Picking the right free zone is key to your business’s success.

Key steps to start a business

Setting up a business in a free zone is relatively easier. Free zone authorities require minimum paperwork and duration. Here are the key steps to set up a business in a free zone.

• Determine the type of legal entity  
• Choose a trade name
• Apply for a business licence
• Choose an office space
• Get pre-approvals, register your business and get your licence

Determine the type of legal entity

Determine the type of legal entity your business would take up. In a free zone, you can set up one of the two types of companies:

• Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
• Free Zone Establishment (FZE)

The differences lie in the number of shareholders and whether the shareholder is a natural person or a legal person. All free zones might not register both types of companies. IZ helps with company incorporation in over 50 UAE free zones. With so much to consider—like location, cost, business type, office space options, auditing, bookkeeping, share capital requirements, and more—it can be tough to choose the best free zone for your business.

That’s where the IZ team comes in. We guide you through the process step-by-step, point you in the right direction, save you money, and make the entire experience stress-free.

Capital requirement

There is no minimum capital requirement at twofour54 Abu Dhabi.

In KIZAD, you can form an LLC for which the minimum paid-up capital should be AED 150,000.

In Dubai Airport Free Zone, you can form an FZ Co. with a minimum share capital of AED 1000. Each share should be in the denomination of AED 1000.

In DMCC, the minimum share capital for forming a free zone company is AED 50,000 per company and AED 10,000 per shareholder. For a company to be issued a General Trading Licence, it should have a minimum of AED 1 million share capital.

In Hamriya Free Zone, you can form an FZE with a share capital of AED 150,000.

Choose a trade name

While you are deciding upon the type of legal entity your business should take, you should choose a trade name.

In most cases, you should check either with the respective free zone authority or the respective with the Department of Economic Development about the permitted trade names and whether the intended name has already been registered.

As per the website of twofour54, you cannot use ‘Abu Dhabi’ and/or ‘United Arab Emirates’ in the name of the FZ-LLC or the branch.

In general, for DED to approve the proposed trade name, the key requirements are that the trade name:

• must not violate the public morals or the public order of the country
• must be followed by the legal form of the company, for example (LLC, FZE, DMCC etc.)
• has not been previously registered
• is compatible with the required type of activity and legal status
• should not contain names of any religion, or governing authority, nor names or logos of any external bodies.

Apply for a business licence

The type of business licence you will apply for depends on the primary activity of your business.

Choose an office space

You can either buy or lease office spaces in free zones. Office requirements depend on the number of employees and type of business activity of your company.

You can choose between ‘Office Packages’, ‘Smart Desk Office Packages’ and ‘Executive Office Packages’. You can choose from a flexi desk of 20-30 sq. m., a flexi office of 200-265 sq. m., or offices running through multiple floors totalling up to 2,000 sq. m. each.

Get pre-approvals, register your business and get your licence

Companies established in free zones are governed by the rules of the respective free zones. To get the necessary approvals, you need to apply with the documents. The list of documents varies on the type of business activity, the type of company and the requirements of the free zone authority.