Types of Companies and Setup Steps in Dubai Free Zone

Thinking of starting your business in Dubai?

 

If you’ve got a great business idea and Dubai is on your radar, Free Zones are one of the best places to launch.
But before you dive in, there are two important things to figure out:

  • What type of company structure suits your business?

  • What are the actual steps to set it up?

Let’s break it down in a friendly, easy-to-follow guide — no legal jargon, just clear answers.

 

First: Types of Companies You Can Set Up in Dubai Free Zones

Free Zones offer several business structures. The right choice depends on your goals, partners, and industry.

 

1. Free Zone Company (FZ-LLC or FZE)

 

  • FZE: One shareholder

  • FZ-LLC: More than one partner/shareholder

  • 100% foreign ownership

  • Full control over your business

  • Ideal for most commercial and service-based businesses

 

2. Branch of an Existing Company

 

Already have a business inside or outside the UAE? You can open a branch in a Free Zone.

  • No need for additional capital

  • Same business activity as the parent company

  • Great for expanding into Dubai with minimal risk

Perfect for global or regional businesses

 

3. Representative Office

 

This is a non-trading entity used for:

  • Market research

  • Building client relationships

  • Promoting the parent company

Ideal if you want to explore the UAE market before fully launching

 

4. Industrial or Logistics Company

 

Zones like JAFZA and Dubai South offer licenses for:

  • Manufacturing

  • Warehousing

  • Distribution and export

Requires special facilities and sometimes additional approvals — but offers huge growth potential.

 

Sidrahub Tip:

 

Each Free Zone has its own rules. Don't choose a structure just because it’s popular — base it on your business model and plans.
And yes, we’re here to guide you to the best fit.

 

Second: Steps to Set Up Your Free Zone Company in Dubai

 

Now that you know the structure that fits you, here’s how to actually get started:

 

1. Choose the Right Free Zone

 

Each Free Zone has a niche:

  • Dubai South – eCommerce, logistics

  • DMCC – trading, import/export

  • Dubai Media City – media, design, creative industries

  • JAFZA – industrial and commercial

Choose based on your sector, not just price.

 

2. Define Your Business Activity

 

Are you offering services? Selling products? Manufacturing?
This step decides which type of license you’ll need.

 

3. Reserve Your Company Name

Pick a name that fits your brand and isn’t already taken.
Some zones let you check and reserve names online within minutes.

 

4. Gather the Required Documents

 

You’ll usually need:

  • Passport copy

  • Personal photo (white background)

  • Application form

  • Simple business plan (for some activities)

Requirements vary, so double-check with the zone or your consultant.

 

5. Submit Your Application

 

You can apply online, or use a business setup agent like Sidrahub to save time and avoid errors.




6. Sign Lease Agreement or Select Office Package

 

You need a registered address. Options include:

 

  • Flexi-desk (shared workspace)

  • Dedicated office

  • Warehouse or industrial unit

Some Free Zones offer all-in-one packages including office, license, and visa quotas.

 

7. Receive Your Business License

 

Once approved, your official license is issued — and your company is now legally active.

 

8. Open Bank Account & Apply for Visas

 

You can now open a corporate bank account and apply for UAE residence visas for yourself and your team.

 

Final Thoughts from Sidrahub

 

Starting a Free Zone company in Dubai doesn’t need to be complicated or expensive.


With the right guidance and support, it's a smooth process — and a smart investment in your business future.

At Sidrahub, we don’t just advise — we walk with you from start to finish:

 

  • Choosing the best Free Zone

  •  Selecting the right company type

  • Preparing documents

  • Submitting applications

  •  Getting your license and visas

 

Let’s make it happen — together.

 

Conduct a free consultation with Sidra Business Services platform specialists