UAE Free Zone Company Setup

Company Formation In Free Zones Across United Arab Emirates

UAE Free Zone Business Setup

Over the last 20 years the UAE has become a global business hub due to its location, diversification and investor friendly environment. From being an oil based economy it has expanded into tourism, real estate, logistics, fintech and more. A major driver of this growth is the establishment of Free Zones across all Emirates to attract foreign investment and boost economic growth

Each Free Zone has its own authority — like the Dubai Free Zone Authority — responsible for company registration and issuing business licenses to foreign owned companies. Setting up a business in a UAE Free Zone is very attractive to Pakistani investors as it offers 100% foreign ownership, full profit repatriation, zero import/export duties and a simplified setup process. UAE’s tax free environment and world class infrastructure makes Free Zones an ideal solution for Pakistani entrepreneurs and SMEs to expand globally with ease.

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Why Start a Business in a UAE Free Zone

With modern infrastructure, tax free benefits and streamlined processes UAE Free Zones — especially in Dubai — have become the go to destination for Pakistani entrepreneurs with global ambitions. UAE Free Zone company formation offers many strategic and financial benefits to Pakistani investors:

 

100% foreign ownership for Pakistani nationals

 

Zero corporate and personal taxes, saving significantly on operational costs

 

Full repatriation of capital and profits, supporting Pakistani investors in managing global funds

 

No import and export duties, lowering business expenses

 

Affordable office and warehouse options, ideal for Pakistani SMEs and startups

 

Single owner company setups easy for Pakistani solopreneurs

 

15 year corporate tax holiday, renewable for another 15 years, great for long term planning

 

Confidentiality in business operations for sensitive ventures

 

Access to international markets, perfect for Pakistani exporters and service providers

 

Lower renewal and setup fees for lean business models

 

Permission to own assets, engage in varied activities and open UAE bank accounts

 

Easy exit and liquidation for Pakistani investors looking to test the market

 

Staff visas, employee housing and admin support for Pakistani businesses expanding abroad

Steps for UAE Free Zone Business Setup for Pakistani Entrepreneurs

1

Business activity

Define the exact business activity, as this will decide the operations of your company. Pakistani investors should carefully choose the free zone most suitable to their planned activity.

2

Trade license

Choose your business activity. Pakistani entrepreneurs can opt for commercial trade, consultancy, educational, media, e-commerce, freelance, manufacturing or industrial licenses.

3

Type of legal entity

UAE Free Zone business setup allows two legal structures: Free Zone Limited Liability Company (FZ LLC) or Free Zone Establishment (FZE). Ensure your business activity matches the chosen legal structure.

4

Trade name

Choose a unique name that meets UAE naming criteria:

  • Must reflect the legal structure
  • Should not be offensive
  • Must match your business activity
  • Cannot violate copyright laws
  • Must be approved by the Department of Economic Development
  • Trade name registration is mandatory for Pakistani businesses planning a UAE Free Zone setup.

 

5

Location

Choose from 40+ Free Zones across the UAE. Your office space depends on the number of employees and business activity. Pakistani business owners can choose between fully furnished or partially furnished office options for their Free Zone company.

6

Initial approval

Prepare all documents: application form, business plan, trade license copy (if applicable), letter of intent, bank reference letter, registration application and shareholder signatures. Pakistani investors must ensure all documents are attested to speed up approvals.

7

Payment of fee

Pay the relevant fees after submitting documents. Pakistani entrepreneurs should track the cost structure, as fees vary by free zone and activity. Many Pakistani investors look for free zones with flexible payment terms and lower startup costs to ease cash flow.

UAE Freezone Business Setup Documents

For a business license

 

Colour copy of shareholder(s)’ passport and visa, if applicable

 

Application form

 

Business plan

 

Board resolution

 

Memorandum and Articles of Association (MAA)

For opening a bank account:

 

Corporate account opening form

 

Board of directors’ resolution for opening of account and signatories to the account

 

Company’s certificate of incorporation

 

Share certificate

 

Memorandum and Articles of Association (MAA)

 

Passports of all partners in the company

Notes:

UAE’s free zones are extremely popular among entrepreneurs and business owners for setting up companies since they are tax-free zones with free trading ports that can be owned solely by the person setting it up (regardless of nationality).