Entrepreneurs entering the UAE market often choose business setup in dubai free zone because of the flexibility, tax benefits, and complete ownership it offers. Free zones are specially designed economic areas that allow foreign investors to establish companies without the need for a local partner. However, the most important step in this process is obtaining the right free zone license UAE, which defines exactly what types of activities your company can legally carry out.

There are two common license categories: service and trading. A service license is best for companies focused on consulting, software development, logistics support, education, or marketing services. These businesses generate income through expertise and professional activities rather than selling physical products. In contrast, a trading license is required for companies involved in buying, selling, importing, or distributing goods.