Dubai Freezone Company Set Up Guide

How to do it on your own and save a lot of money!

There are many articles online about how to set up a business in Dubai, but most make it sound far more complicated (and expensive) than it really is. went through the whole thing myself, researching day and night to figure out the simplest and most affordable route. So I thought I’d share what I learned and hopefully save you some time and hassle, the same way I’d explain it to a friend who’s thinking about moving to Dubai.

1. Get clear on what type of company you actually need

Before choosing a Freezone, you should understand what you are setting up and why. Dubai gives you three main options, each with its own purpose:

Mainland company

This is for businesses that operate physically in the UAE: restaurants, hair salons, gyms, construction, shops and so on. Some activities require a local sponsor, so ownership rules depend on what you do. If your business is tied to local customers and physical operations, this is where you look.

Freezone company (My choice)

This is the most common option (and probably the right one for you) for online businesses, consulting, design work, marketing, trading, tech projects and anything remote or service-based, you name it. You get 100% ownership, the setup is fast, and you can work with clients both inside and outside the UAE. Each Freezone works a little differently, so choosing the right one makes a big difference.

Offshore company

Mainly used for holding structures or tax purposes. You can’t get visas through offshore companies, so if your goal is to live in Dubai or sponsor yourself, this is not relevant.

Once you know which of the three options fits your situation, choosing the structure becomes much easier.

2. Choose the right Freezone (and why you should speak to them directly)

There are more than 30 Freezones in the UAE, each with different allowed activities (basically titles of what your company does, i.e. IT Services in my case), pricing, visa limits and processes. A lot of people think they need an agency to help them compare Freezones, but agencies simply contact the Freezones for you and then charge a large fee. You can talk to the Freezones yourself. It’s faster, cheaper and you get the information straight from the source as most of them are just a Google search away.

When comparing Freezones, look into:

• What activities they allow

• How many activities you can add

• How many visas you can get

• Whether you need an office or if a flexi-desk is enough

• License cost and renewal fee

In my case, I've decided to set up my business with Meydan Freezone, as they were (and are) very flexible for people who run multiple activities (up to 3) or different brands under the same company. Pricing is moderate, communication is (very) smooth and you don’t need to rent a physical office (as they will provide an address for you). I remember travelling during my set up and they were available literally 24/7!

Their cost is 12,500 AED per year, you can get 500 AED off your registration through my referral, by emailing me at niccolo@thenamstudio.com (as long as you aren’t already in their system).

If budget matters, Freezones in Sharjah or Ras Al Khaimah are usually cheaper. If prestige or very specific industries matter to you, places like DMCC or DIFC exist, but with significantly higher fees.

3. Be careful with add-ons

Once you start talking to a Freezone, you will notice they offer various add-ons. For example: help with opening a bank account, Emirates ID assistance, PRO services and so on. These look harmless, but they can quickly increase the cost up to 5,000/10,000 AED extra!

The reality is that most of these steps are simple enough to do yourself. If you are comfortable going by yourself to a medical centre, uploading documents through an app or visiting a service centre, you don’t need to pay someone to do it for you.

Say yes only to what you truly need, I did all by myself and it went extra-smooth.

4. Your visa and Emirates ID

This step can feel confusing the first time, but it’s quite logical when broken down.

Once your company license is issued, usually after a couple of day, the Freezone will create your immigration file. They’ll charge separate fees for things, in the case of Meydan Freezon the costs are:

• Visa Allocation: AED 1,850 (Annual)

• Establishment Card: AED 2,000 (annual)

• Employment Visa: AED 3,500 (valid for 2 years) or Investor Visa: AED 4,000 (valid for 2 years)

• Status Change: AED 1,500  (apply visa inside UAE)

The most convenient route is usually an Employment Visa. It costs less, and being listed as an employee puts you in a stronger position with banks later on when you need a loan, whether for a car or a mortgage. There are really no major benefits on choosing an Investor Visa.

After your visa is approved (or your status is changed if you’re already in the UAE), you complete three simple steps:

1. Medical test

This is done in a government-approved medical centre. Find the nearest to your house (or hotel) and simply walk in, show your passport and visa, register at the typing counter and pay the fee. The test is just an x-ray and a quick blood test. It takes about 10–15 minutes. Results are usually ready within 24 hours, but you can pay for quicker results too if needed earlier.

2. Biometrics

If this is your first Emirates ID under this sponsor, you’ll need to go to an ICP Happiness Center to give your fingerprints and photo. Bring your passport, visa and medical result. If you’re renewing, you can often skip this step.

3. Emirates ID application

Once your medical is marked as “fit”, you apply for the ID to be printed. This can be done directly through the UAEICP app or through an Amer centre, where someone can submit it for you for a small fee.

After this, your Emirates ID is printed and delivered to the address you provided. If you plan things efficiently, you can go through medical and biometrics back to back and have your ID within less than a week.

The whole process is simple when you know what happens at each step. You don’t need someone to “guide” you through it unless you simply prefer not to do it yourself.

5. Opening your business bank account

Once your Emirates ID is in your hands, you can open a business bank account. Banks will ask for your company documents, passport, Emirates ID and a short explanation of your business model.

My choice has been Wio, since digital banks have made this very easy. You apply through their app, upload documents and often get approved quickly without needing a deposit.

Traditional banks are still an option but usually require more documents and often a fixed deposit to keep in the account. Unless you specifically need a traditional bank (my recommendation would be ADCB), a digital one is enough for most Freezone businesses.

6. Corporate tax (Must do, don't get fined!)

Yes, it applies, but trust me, it’s simpler than it sounds.

The UAE introduced corporate tax recently, but the rules are straightforward. The rate is 9% and applies only to net income above 375,000 AED (salaries are counted as an expense). Anything below that is taxed at 0%.

All companies must register on the EmaraTax platform (you have 3 months after your company is set up - failing to do so will incur into a 10,000 AED fine!!!) and file once a year. My (very big) recommendation would be to have someone someone manage this (along with VAT and bookkeeping).

I've been with Finanshels for the past few years and I could not be more happy. Not only they have some of the best rates in the market, but I've managed to partner with them to offer a 10% discount off their packages through my referral code (https://fas.st/t/xEYFYuiF) or by directly reaching out to my email at niccolo@thenamstudio.com.

Final thoughts

Setting up a Freezone company in Dubai isn’t complicated once you understand the flow. If your business is simple and doesn’t require complex licensing, you truly can do everything yourself and avoid unnecessary costs. It’s a clean process: choose the Freezone, get your license, complete your residency steps, open your bank account and register for tax. Trust me, if I did it, you can do it!

If you want the Meydan discount or the Finanshels discount, or if you simply want help understanding which Freezone fits your business best, feel free to reach out at niccolo@thenamstudio.com.