Freezone License: Seamless Entry to Dubai

Yes, as a DMCC Free Zone company, you will be able to own 100% of the business as an expatriate. 

To set up a business in Dubai, you will be required to complete an application for your company, along with other paperwork and official documents.

For DMCC, UAE’s number-one Free Zone, the following is required to set up a new company:

• Company name and shareholder structure
• Passport Visa page or Emirates ID of Legal Representative
• Business plan
• Selected business activities for the new entity
• Lease agreement for the company’s legal business address in JLT (provided by AstroLabs as part of your Licensed Membership)”

For branch and subsidiary setups, additional documents are required.

Setting up a Mainland License would be more suitable for companies looking to import, export, or store any sort of physical goods, as well as for companies looking to deal directly with the UAE government. For Mainland companies, a corporate tax rate of 9% was introduced in June 2023. 

Freezone companies are always set up to promote specific industries and offer various benefits, including some exemptions from Corporate Tax, customs duties, and restrictions on foreign ownership.  However, if a Free Zone entity conducts business within the UAE mainland, that income is taxable, subject to being over certain income thresholds. Moreover, if you are looking to set up a company in an environment that is more favorable toward foreign investors, then a free zone company can attractive.

It is also worth mentioning that there is currently a small business relief scheme running until the end of 2026, whereby any business that has revenues of under AED3 million annually, regardless of where that revenue originates from, will pay 0% corporate tax. 

• Setting up your business in Dubai is very convenient. You can register your business, lease agreement and license online so you can hit the ground running without being physically present.
• If you or any of your shareholders or employees will obtain a work visa and an Emirates ID, you will have to come to the UAE to finalize this process which can also be started online. The company will require at least 1 person with a visa and Emirates ID.

The timeline to set up a business in Dubai may vary depending on the selected jurisdiction and other factors, such as type of company established (e.g. new individual company, subsidiary, branch, etc.) and business activities. Setting up a new company with DMCC, for example, takes around two weeks.

Yes, when establishing a company and getting a company license in the UAE, an office lease agreement is a necessity as this is the legal business address that will be tied to your license. You are required to have a lease that is continuously active throughout the whole period that your license is valid. AstroLabs provides a lease agreement as part of all its setup packages, including the Virtual Licensed Membership.

Any company registered in the Mainland, must comply with the local Emiratisation laws, which currently applies to companies with 20 to 49 employees. These companies will be required to hit a quota, hiring at least one UAE citizen in 2024 and another by 2025.

The requirement applies to privately-owned companies across 14 sectors including real estate, education, construction and health care. Previously, only firms with 50 or more employees needed to meet targets on hiring UAE citizens.