How to Move Your Existing Company into a UAE Free Zone

Relocating your existing business to a UAE Free Zone can open doors to tax benefits, 100% ownership, and international market access—but the process requires careful planning and the right steps. Whether you’re looking to migrate from a mainland setup, another free zone, or even from outside the UAE, a strategic approach can make your transition smooth and compliant.

Why Businesses Are Moving to UAE Free Zones

In the last few years, UAE Free Zones have become a magnet for both startups and established businesses due to their flexibility and global reach. Here’s why companies are making the move:

• 100% Foreign Ownership – No local sponsor or partner required for most activities.

• Tax Incentives – Corporate tax exemptions and no personal income tax.

• Simplified Operations – Streamlined business regulations and clear licensing processes.

• Global Connectivity – Access to world-class infrastructure and international markets.

• Scalability – Multiple visa quotas, office options, and support for trading, e-commerce, and consultancy operations.

For businesses looking to expand or restructure, free zones such as Sharjah Free Zone, Ajman Free Zone, RAK Free Zone, UAQ Free Zone, Dubai Free Zone, and Fujairah Free Zone offer industry-specific hubs that can accommodate diverse sectors like trading, manufacturing, tech, and e-commerce.

Step-by-Step Process to Move Your Existing Company into a UAE Free Zone

Relocating your business to a UAE Free Zone involves more than just transferring your operations. It requires careful legal and administrative steps to ensure a seamless transition while maintaining compliance with local regulations. Here’s a structured roadmap for your migration:

1. Evaluate Your Current Business Structure

Before moving to a Free Zone, assess your company’s existing structure and operations:

• Check your current license type – Is it mainland, offshore, or an international license?

• Determine your business activities – Ensure your activities are allowed in the target Free Zone.

• Understand your company size – Consider your team, visa requirements, and office needs.

This evaluation helps select the right Free Zone that aligns with your business model. For example, Ajman Free Zone is ideal for e-commerce and small-scale trading, whereas RAK Free Zone suits manufacturers and logistics companies.

2. Choose the Right Free Zone

Each Free Zone offers different benefits, industry clusters, and pricing:

• Dubai Free Zones – Best for tech, finance, and high-profile international operations.

• Sharjah Free Zone – Cost-effective for startups and media companies.

• Ajman Free Zone – Flexible e-commerce licenses and storage solutions.

• RAK Free Zone – Manufacturing and industrial-friendly with low costs.

• UAQ Free Zone – Suitable for small businesses with minimal visa needs.

• Fujairah Free Zone – Great for import/export businesses with port access.

This decision impacts your license type, visa eligibility, and scalability in the future.

3. Understand the License Migration or Conversion Process

Moving your company often requires one of these approaches:

• License Conversion – If you’re already in the UAE, you can convert your existing license to a Free Zone license, subject to approval.

• Branch Setup – Establish a Free Zone branch of your existing company, keeping your current license intact.

• Full Migration – Close your current company license and re-register completely in the chosen Free Zone.

Each Free Zone authority has its own requirements for these processes. For example, Dubai Free Zone authorities may ask for NOCs from your current licensing authority.

4. Handle Legal and Documentation Requirements

Typical documents include:

• Trade license copy of the existing company

• Certificate of incorporation or registration

• Shareholder passport copies and visa copies

• Board resolution (if applicable) for migration or branch setup

• No Objection Certificate (NOC) from the current licensing authority

All documents should be verified and attested as per UAE regulations.

5. Open a Free Zone Bank Account and Transfer Operations

Once your Free Zone license is approved:

• Open a business bank account with a UAE bank.

• Migrate operations including employee visas, contracts, and supplier agreements.

• Cancel old licenses or branches if opting for full migration.

By following this structured path, businesses can ensure a smooth move while protecting their operational continuity and compliance.

Benefits and Key Considerations for Migrating to a UAE Free Zone

Relocating your business to a UAE Free Zone is not just a move; it’s a strategic upgrade that can unlock new opportunities. However, it’s crucial to weigh both the benefits and the key considerations before making the shift.

Key Benefits of Moving to a Free Zone

• 100% Foreign Ownership
  Free Zones allow you to retain complete control over your business without the need for a local partner, giving entrepreneurs and investors full autonomy.

• Zero Personal and Corporate Taxes
  Most Free Zones offer tax exemptions for corporate and personal income, helping you maximize profitability.

• Simplified Import & Export Operations
  With proximity to major ports and airports, Free Zone companies enjoy streamlined customs processes and duty exemptions on imports and exports.

• Industry-Specific Ecosystems
  Certain Free Zones like DIFC for finance or Dubai Media City for creative industries provide networking opportunities, sector-focused infrastructure, and strategic business hubs.

• Global Credibility
  Operating from a recognized Free Zone boosts your brand image internationally, often making banking, cross-border trade, and partnerships easier.

• Flexible Office Solutions
  From virtual offices to warehouses and coworking spaces, Free Zones offer scalable workspace solutions for businesses of all sizes.

Key Considerations Before Migrating

• License and Activity Restrictions
  Some Free Zones limit activities to specific sectors. Ensure your business activity matches the Free Zone’s scope.

• Visa Allocation
  Each Free Zone has a specific visa quota per office size. If you plan to expand your team, factor in your visa requirements.

• Banking Requirements
  Banks may require physical office space or additional documents to open a corporate account for Free Zone entities.

• Costs and Renewals
  While Free Zones can reduce operational costs, consider annual license renewal fees, visa costs, and mandatory requirements like audits.

• Geographical Limitations
  Free Zone companies primarily operate within the Free Zone or internationally. Direct trade within the UAE mainland often requires a local distributor or special approval.

Migrating to a Free Zone can be a game-changer, but planning around these considerations ensures you maximize your investment and avoid disruptions.

Step-by-Step Migration Tips & Common Mistakes to Avoid

Migrating your existing company to a UAE Free Zone involves a combination of strategic planning, compliance checks, and operational adjustments. Here’s a detailed guide to make the process smooth and successful.

Step-by-Step Migration Process

• Step 1: Evaluate Your Business Needs
  Before initiating the move, assess your goals. Are you looking for tax benefits, global expansion, or sector-specific infrastructure? For instance, an IT company may prefer Dubai Internet City, while a trading firm may opt for JAFZA for its port access.

• Step 2: Choose the Right Free Zone
  Every Free Zone has its own industry focus, cost structure, and regulations. Consider:
  • Sector alignment (e.g., finance, media, logistics)

  • Office requirements and visa quota

  • Access to ports, airports, or urban hubs

  • Licensing fees and renewal costs

• Step 3: Prepare Documentation for Migration
  Commonly required documents include:
  • Existing trade license and registration documents

  • Passport copies of shareholders and directors

  • Memorandum of Association (MOA) and Board Resolution for migration

  • No Objection Certificate (NOC) from your current licensing authority if applicable

• Step 4: Apply for License Conversion or New License
  Depending on the Free Zone, you can either convert your existing license (if the activity is similar) or apply for a new license while de-registering the old one. Coordinate closely with both the current and the Free Zone authorities to avoid overlap.

• Step 5: Manage Bank Accounts & Financial Transitions
  • Open a new corporate bank account under the Free Zone entity.

  • Transfer company funds, pending invoices, and payrolls carefully to avoid disruptions.

  • Inform clients and suppliers about updated banking details.

• Step 6: Update Contracts, Staff Visas & Stakeholder Records
  • Employee visas need to be canceled under the old license and re-issued under the Free Zone license.

  • Update contracts, supplier agreements, and client records with the new company details.

• Step 7: Officially Close or Transfer the Old License
  After migration is complete, ensure your old mainland or Free Zone license is officially canceled to avoid ongoing fees or penalties.

Common Mistakes to Avoid

• Not Choosing the Right Free Zone
  Opting for a Free Zone that doesn’t align with your business activity can lead to costly license changes later.

• Overlooking Visa & Office Requirements
  Failing to plan for visa quotas or workspace needs may limit your growth after migration.

• Banking Delays
  Many companies forget that bank compliance checks for Free Zones can take time. Begin the process early to avoid cashflow issues.

• Skipping NOC or Legal Clearances
  Migrating without proper approvals from your current licensing authority can delay your new license approval.

• Not Informing Clients & Suppliers
  A sudden change in business details without communication can disrupt operations and client trust.

By following these steps and avoiding these pitfalls, your migration to a UAE Free Zone can be a seamless and strategic move toward growth.

Frequently Asked Questions (FAQs)

1. Can I move my existing mainland company to a UAE Free Zone?
   Yes, you can migrate your mainland company to a Free Zone, but the process involves license cancellation or conversion, obtaining a No Objection Certificate (NOC), and meeting the Free Zone’s business activity requirements.
2. How long does it take to migrate a company to a Free Zone?
   Typically, migration takes 2–6 weeks, depending on your current setup, NOC approvals, and the Free Zone’s documentation process.
3. Do I need to close my existing company to move to a Free Zone?
   Not necessarily. You can either close the old license or maintain it if you need to continue operations under multiple entities. However, if you are fully relocating, you must officially cancel the previous license.
4. What are the costs involved in company migration to a Free Zone?
   Costs vary depending on the Free Zone, visa requirements, and whether you are opening a new license or converting an existing one. Expenses typically include:

• License and registration fees

• Office space or flexi-desk fees

• Visa processing fees

• Bank account setup costs

5. Do I need to inform clients and suppliers about the migration?
   Yes, it’s essential to notify your clients, suppliers, and banking partners to avoid any operational disruption and ensure payments and legal agreements are updated.
6. Can I keep my existing employees when moving to a Free Zone?
   Yes, but their visas must be canceled under the old entity and reissued under the Free Zone license. Ensure this is planned to avoid any employment gaps or penalties.