Frequently Asked Questions

Everything you need to know about setting up your business in the UAE

General Questions

What is a free zone company in the UAE?

A free zone company is a business entity established within one of the UAE's designated economic zones. Free zones offer benefits including 100% foreign ownership, zero corporate and personal income tax, full repatriation of capital and profits, customs duty exemptions, streamlined setup procedures, and world-class infrastructure. Free zone companies are generally restricted from trading directly in the UAE local market.

How long does it take to set up a company in the UAE?

7-14 days for free zone setup and 14-21 days for mainland setup. Timeline depends on the free zone chosen, business activity complexity, and document readiness. With all documents ready, some free zones complete setup in 5 days.

Do I need to be physically present in the UAE to set up a company?

Not for the entire process. Initial setup can be done remotely. Physical presence is required for 2-3 days for medical fitness test, biometrics for Emirates ID, bank account opening, and visa stamping.

What is the minimum investment required?

For free zone companies, minimum capital is usually symbolic (e.g., AED 1,000). Setup costs range from AED 6,499-25,000+ depending on free zone, license type, and visas. For mainland companies, minimum capital is AED 50,000-300,000.

Can I run my business remotely from outside the UAE?

Yes, many free zone companies operate remotely. You can manage operations from abroad, serve international clients, and use UAE as a regional base. Popular for e-commerce, consulting, trading, and digital services.

Free Zone vs Mainland

What's the difference between Free Zone and Mainland companies?

Key differences – Ownership: both allow 100% foreign ownership. Local Trading: Free Zone limited, Mainland full access. Tax: Free Zone zero, Mainland corporate tax may apply. Office: Free Zone flexible, Mainland physical required. Setup Cost: Free Zone lower, Mainland higher. Setup Time: Free Zone 7-14 days, Mainland 14-21 days.

Can a free zone company trade in the UAE local market?

Generally no. Exceptions include some free zones offering Local License options, trading through a local distributor, and certain service activities. If local trading is essential, consider a mainland company.

Which is better — Free Zone or Mainland?

Choose Free Zone for international business, 100% ownership with minimal costs, online/e-commerce, or tax-free operations. Choose Mainland if you need local UAE market access, UAE-based clients, government project bidding, or local presence.

Pricing & Costs

How much does it cost to set up a company?

Free Zone starting from AED 6,499 for basic package (1 visa) including government fees, office, service fees, and visa costs. Business package (3-5 visas) from AED 12,999-25,000. Additional costs include bank account support, PRO services, and office upgrades.

Are there any hidden fees?

At 7Stars Diamond, absolutely not. We provide complete upfront pricing with itemized breakdowns. Packages include government fees, trade license, incorporation, company documents, immigration card, and visa processing.

What are the annual renewal costs?

Typical costs: license renewal AED 3,000-10,000, office renewal at initial cost, visa renewals AED 3,500-5,000 per visa, PRO services AED 3,000-8,000. Total AED 10,000-30,000+ depending on setup.

Visa & Immigration

How many visas can I get?

Depends on office type – Virtual Office 1-2 visas, Flexi-Desk 3-5 visas, Small Office 5-10 visas, Larger Office more. You can increase quotas by upgrading office space.

Can I sponsor my family?

Yes, you can sponsor spouse, children, and parents (with salary requirements of AED 20,000+/month). Requirements include valid residence visa, minimum salary, accommodation contract, and health insurance.

What is the Golden Visa?

A long-term 5 or 10 year residence visa with extended residency, no sponsor required, and family sponsorship. Categories include Investors, Entrepreneurs, Specialized Talents, and Skilled Professionals.

How long is the visa process?

10-14 days average. Entry Permit 2-3 days, Medical Test 1 day, Emirates ID 1 day, Visa Stamping 2-3 days, Emirates ID Collection 5-7 days.

Banking

Can I open a corporate bank account?

Yes, but requirements are stringent. Process includes bank selection, documentation, application, meeting, due diligence, and approval. Timeline 5-15 days.

Which banks should I consider?

Major options include Emirates NBD, Mashreq Bank, ADCB, DIB, RAKBANK, CBD, FAB, plus international banks like HSBC and Standard Chartered. Best choice depends on business activity and needs.

What if my bank account is rejected?

We understand rejection reasons, improve applications, try alternative banks, consider digital banks, and provide temporary solutions. We work with multiple banks to increase approval chances.

Post-Setup

What ongoing compliance is required?

Annual requirements include trade license renewal, visa renewals, office rental renewal, ESR filing, audit requirements if applicable, and AML compliance.

Can I close or transfer my company?

Yes. Closure takes 4-8 weeks and costs AED 5,000-15,000. Transfer involves share transfer, document updates, and authority notification. We assist with both.

What happens if I don't renew on time?

Late fees of AED 1,000-5,000+, license suspension, visa overstay fines of AED 125/day, and possible bank account freezing. We send reminders 60 days in advance.

Specific Scenarios

Can I run an e-commerce business from a free zone?

Absolutely. Best free zones include RAKEZ, Ajman, and Meydan. Virtual office options available, access to payment gateways, tax-free operations. Can sell internationally and to UAE with some free zones.

I'm a consultant/freelancer. Do I need a company?

It depends. A company provides legal operation, corporate banking, invoicing, visa, credibility, and liability protection. Alternatives include freelance permits. Typical consultant setup costs AED 7,000-12,000 first year.

Can I have multiple businesses under one license?

Yes, you can list multiple activities on one license (3-10 typically). All must be within the same category. Cannot mix trading and service activities on one license.

Still Have Questions?

Our team is ready to help. Get personalized answers to your specific business setup questions.

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