Everything That You Need To Know About A Freezone Company

The Emirates have vast resources and very flexible rules which makes it a favourite for businesspersons all over the world. The best thing, however, has got to be the option of a freezone company formation in the UAE. However, very few business persons understand the concept of a freezone company and have a lot of queries regarding the legal structure of such a business.

Here are some of the most commonly asked questions answered for an entrepreneur who is getting ready for a freezone company formation UAE.

  • What are the onshore entities that a DAF zone company must register with?

For residential purposes, an entrepreneur must first get registered under the UAE General Directorate of Resident, and Foreign Affairs is required in order to seek. There are certain federal ministries that an entrepreneur may have to deal with for the purpose of the getting legal documents and resident visas notarised. Since this is going to be a tedious process, entrepreneurs can hire an expert who can comply with all the formalities.

  • What are the features of a freezone company in the UAE?

The features of a company incorporated in the DAF Zone are:

  • 100% ownership and privacy
  • No interference of the UAE government
  • Easy access to several banks


  • What are the approved activities that can be performed in the DAF zone?

After being incorporated, a freezone company can execute activities mentioned in the trade or commercial license of the company. Businesses can manufacture, sell, distribute or import and export goods. A DAF zone company can also provide services like a consultancy firm that gives professional advice.


  • What is the process of a freezone company formation in the UAE?

Establishing a company in the DAF zone includes four simple steps. They are:

Step 1:

An entrepreneur first needs to select a company type. Before going about the procedure of an offshore company formation in UAE, a businessperson must first determine which kind of company can be the most beneficial for his/her business idea.

Step 2

Next comes the step of selecting the type of license that the business person wants for the business startup. One can seek the following types of license in the DAF zone:

  1. Trade license;
  2. Service license;
  3. Industrial license;
  4. General trade license.

Step 3

After the legal structure has been decided on and the trade license has been obtained, an entrepreneur must look for an office space to use as the business premise.

Step 4

In the last step, a businessperson must fill in the application with the required information and submit it along with the listed documents to the DAF zone authorities and wait for the initial approval.

When it comes to a freezone company, there is no corporate and income tax applied either thus making it all the more a profitable option for entrepreneurs.

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