Free zone company is a type of business entity that is registered and operates within a specific free zone in the UAE. Free zones are designated areas that offer various incentives and benefits to businesses, such as tax exemptions, 100% foreign ownership, no currency restrictions, 100% profit repatriation and streamlined administrative procedures.

To set up a free zone company in the UAE, the first step is to choose the appropriate free zone and then select the legal entity type that best suits the business needs, such as a limited liability company (LLC), a branch office, or a representative office. Then, the company must submit the required documents, such as a business plan, passport copies of the shareholders, and proof of address, to the relevant free zone authority and obtain the necessary licenses and permits.

The license procedures for a free zone company in the UAE typically involve obtaining a trade license, which allows the company to conduct commercial activities within the free zone, and other relevant licenses, such as a professional license for services-based businesses or an industrial license for manufacturing companies.