Jebel Ali

The first thing to contemplate after you’ve decided to setup a company in Dubai is where to physically setup the company in Dubai. There are several places where you can setup the company – the offshore company, the mainland company and the free zone company. Each of these options has their advantages over the other, and since you’ve clicked on this article, you are definitely interested in Free Zone company formation. There are several advantages that a Free Zone company offers to the person who wants to setup a business in Dubai, but here are concise steps you can take to get your company setup in Dubai inside a Free Zone.

Choose the Type of Company

The Department of Economic Development is the organisation that defines the types of companies that can be setup in Dubai:

The Sole Proprietorship

It is a legal entity owned and operated by a single person

One-Person Company

A limited liability company which is owned by a corporate body or a single person.

Civil Company

This is a company that is essentially a partnership made up of several doctors, accountants, engineers, and lawyers.

Limited Liability Company

This a company that is composed of two to fifty shareholder who is all responsible for it only up to the extent of the share they possess.

Partnership Company

The ownership of this sort of company is between two or more entities or people

Branches of a Foreign Corporate

This branch of a foreign company will be headquartered in Dubai and will not be allowed to import foreign goods.

Choose the Free Zone

There are several free zones that exist in Dubai, but if you want to get a good foundation for your business then there are these four which are most preferred over the others: The Dubai Airport Free Zone, The Dubai Silicon Oasis, the Dubai Multi Commodities Centre, and the Jebel Ali Free Zone. All of these free zones are having several specific advantages over others.

Advantages of Free Zones

Free Zones are really good for you because they are having several incentives for fledgeling entrepreneurs to come and invest their time.
– Free zones often offers the owner complete ownership of the
– There is substantial tax exemption for companies in Free Zones
– Can open up local bank account
– There is freedom to engage in international business
– It is usually located near to possible markets

Getting the Licenses

Once you have chosen the right free zones that are perfect for your business. Then you need to get the right licenses that will allow you to setup your company in Dubai. There are several types of licenses that you will need to acquire from different authorities. Here are some of the most important ones:
Depending upon the type of business, you will need licenses – such as licenses for the creation of an L.L.C Company
The Memorandum of Association- This is the document where the LLC and its relationship with the shareholders are defined.
There are required licenses from the government ministry and the chamber of commerce as well as the ones from the ministry of justice


It is often taken for granted, but the fact is that most companies started in the Free Zones are all LLC companies. It is important to define those will be part of the shareholding before you can go about setting up a company in Dubai.

Shared Capital

The next step is to decide upon the share capital for each of the shareholders. Each shareholder will have different shares, however; some of the free zones have a stipulated amount as the minimum amount of shares as the default. It is often from 150,000 AED to 1 Million AED.