Dubai Freezone company set up - this guide will save you money

Here's the story of how I set up my Dubai Freezone company in just 2 days and got my Emirates ID within 5 days, all by myself. And the best part is, you can do it too by following these simple steps.

Jul 05, 2023

Last newsletter with the story of my friend: How NOT to set up a company in Dubai, got a lot of attention and positive feedback. It seems like this is still a burning topic for many people, so let me share a happy story - personal tips and set-by-step instructions on how I set up my Freezone company in 2 days, got my Emirates ID (EID) in 5 days, all done on my own, for a fraction of the price you would get from local agents and consultants.

Let’s jump in, set by step.

1. Decide what you need.

What’s the purpose of your company? Why are you setting it up in Dubai? In short, you have 3 options:
1. Mainland company - onshore establishment, needed if you sell your services/goods physically in the UAE (i.e. restaurant, hair salon, groceries…), you are allowed to manage ten activities (some might require local sponsor → you won’t own 100% of the company), the best way to learn more and set up a Mainland company is through DED cafe (official government service)
2. Freezone company - virtual company (LLC) where you can do business within and outside the UAE (both with other Freezones and Mainland companies), there are over 30 Freezones in the UAE, each with it’s specialization (e.g. media, internet, design, crypto, banking…), they give you 100% ownership, but each Freezone works differently, allows different number of activities and has a different price tag - I went with Freezone establishment, so I’ll dig deeper into that.
3. Offshore company - business registered in the UAE for tax purposes only, LLC, won’t touch those as I have no personal experience

2. Find the best Freezone.

As mentioned, there are more than 30 Freezones in Dubai, each with different specialization (here’s the full list). If you have a specialized company, go with a Freezone that fits your business activity AND CONNECT WITH THEM DIRECTLY. I cannot emphasize this enough. Really, each Dubai Freezone has an extensive website with description of their services. It’s the job of the Freezone to help you with your business set up. Book a free call and discover if it’s a good fit.

If you do this - connect with the Freezones directly - you save thousands of dirhams. Agencies and consultants do the same, there’s no other way to establish your company than directly with the Freezone. They’re just doing it on your behalf and charging $$$.

I wanted a flexible Freezone where I can do multiple activities. That’s why I chose Meydan Freezone. You can have 3 activities, and price is 12 500 AED (without a visa). I would say it’s moderately priced (you can go cheaper and also much more expensive, depends on the nature of your business). I had one call to cover my questions, they were super fast in responses and knowledgable. So thumbs up and definitely recommended if your business is flexible or you want to have multiple bands under one company.

You will have to renew and pay for your business license every year (for Meydan, 12 500 AED/year). So consider what makes sense for your company. If you want to cut costs, go for a Freezone outside Dubai (Sharjah, Ras Al Khaimah) - I believe you can pay half the price easily. On the other hand, one of the most expensive is DIFC for businesses in finance (I believe around 50k AED). DMCC is very popular for general trading (like Meydan) and is also registering crypto businesses (price more than 25k).

So, figure out what Freezone is the best for you, how much are you willing to pay and? CONNECT WITH THEM DIRECTLY!

3. Don’t opt in for add-ons unless you need to.

Once you get in touch with your Freezone, things move quickly. You should have your business license in 2-3 days.

And obviously, even the Freezones will try to cross sell different products “you need”. Bank account assistance, EID assistance etc. Think twice before buying these. Remember, there’s nothing you can’t do on your own and usually, it’s pretty simple. Decision to opt in can increase your costs for extra 5-10k AED.

4. Get your visa and EID done.

Once you’ll get you business license and memorandum of association, you can apply for residency visa and EID. This will cost you extra by default and is paid together with the Freezone company establishment. With Meydan, it was:

2 000 AED immigration card (annual)
1 850 AED visa allocation (annual)
4 000 AED investor visa (2 years)
20 AED innovation and knowledge fee

Immigration card and visa allocation are applicable to the company, you can issue multiple visa under it (and 2 investor visa). For more details about employee visa, definitely check with your Freezone.

For those new to Dubai, in order to get residency and EID, you have to have a sponsor. For employees, it’s often their employer, for you, as a business owner, it’s going to be your own company.

Your Freezone has to issue your residency visa. Once you have it, do the following:

1. register for a new/renew EID (renew if you already had EID under a different sponsor)
2. find the nearest medical center and go for a medical check (x-ray and blood test), it takes about 15 mins. You will pay a fee of about 400 AED - just go to the center and register directly there via their typing center. Take your passport and residency visa copy. Results will be shared online within 24hrs.
3. Once you have your medical results (with a green stamp ;)), the last step is your biometric appointment. If you’re renewing your EID, you can skip that. Find the nearest Happiness center and check if you can walk in without and appointment (it usually works). Have your medical results, residency visa and passport.
4. finally, after your biometrics, you can go to the UAEICP app and upload all documents to get your EID. Or go to the nearest Amer typing center and pay 50 AED fee for other person to do the same submission for you.

You can easily do your medical appointment one day and biometrics right the next one. Thanks to that, you’ll have your EID within a week.
Within 3-5 business days after the submission, you should have your EID at home. Congrats! You just saved 6k AED!

5. Get your business bank account.

Getting a business bank account used to be a huge pain, but it’s getting easier. If you don’t have specific requirements, Wio bank is the easies option, a digital bank for SMEs, regulated by the Central bank. I’m a happy customer too. Had my account approved and working in 12 hours. No deposit, small monthly fee.

If you want to go traditional, it can take longer, but it’s doable. Just be prepared most banks require deposits of 10k-350k that have to sit in the bank. I found RAK bank to be a good, cheaper option. Again, connect with them directly, they will respond. Either via an online form or by visiting the branch.
Remember, you have to have your EID in hand to open you bank account.

6. Register for corporate tax.

Since mid 2023, you kind of have to pay corporate tax (9%), but it’s applicable only on business activities within the UAE, over 375k AED.
All businesses have to register with Emaratax and submit tax report every year (there’s not many details about the process as of now).

And that’s it. Congratulation, you have your Freezone company, visa, EID, bank account and tax registration done :).

Want to get my full 9-page guide covering
sep-by-step details to do the company set up on your own and save thousands?

GET IT HERE

Really, it’s not that difficult.
If you don’t have special requirements and are searching for a simple company and visa, you can do it easily on your own with just a bit of research and common sense. And you’ll save 10k-50k AED.
I personally recommend hiring a professional consultant only if your company structure is complex, the nature of your business is complicated, or if 2 days of your time are worth more than 30k AED.
As with everything, do your own research, these steps worked for me, but might not for you. Also rules of this game change constantly and I’m definitely not an expert on this topic - I’m just sharing my experience.

If you have any extra questions, let me know, I’ll try to respond. But please try to google it first.

Good luck and if you found this useful, share the newsletter with your friends!

Kristina

Get AED 500 off Meydan FZ license

P.S.: Considering setting up with Meydan? Email me at kristina@melsova.com to get connected with the person who set up my company there. I’ll share my referral with you (only applicable if you’re not in their database already).