Dubai is pushing the limits of business ease with its new One Freezone Passport initiative. For years, free zone businesses had to be in one restricted jurisdiction. That meant extra cost, more paperwork, and slower growth. But now, thanks to Dubai’s Economic Agenda D33, Dubai lets you use one license across multiple free zones. It helps to make Dubai the most business-friendly hub in the world.
This new model one freezones passport has a lot of benefits. Make it easier to operate, expand and integrate your business with the Dubai ecosystem, without setting up a new company every time.
In this guide, we will explain what the One Freezone Passport is and how it works. Including its benefits and restrictions, eligibility, steps, and examples. The Impact on tax and compliance, and the top free zones eligible.
What Is Dubai’s One Freezone Passport & How Does It Work?
One Freezone Passport is a unified licensing framework introduced by the Dubai Free Zones Council (DFZC). With this passport, a company in one primary free zone can expand operations into one or more secondary free zones.
By using the same license, without full re-incorporation or multiple distinct trade licenses. In simple words, one legal entity, one license, but multiple zones. It is a game-changer for businesses. It integrates Dubai’s free zones into one business ecosystem.
- One license → multiple free zones.
- Easy business expansion
- Lower costs, less paperwork.
Why Dubai Launched the One Freezone Passport
Dubai already has over 40 free zones. Each with its own regulatory body, license rules, fees, and business focus (tech, media, logistics, etc.).
- Jebel Ali Free Zone (JAFZA) → Logistics & Trade.
- Dubai Internet City → Technology.
- Dubai Media City → Media & Entertainment.
- Dubai World Trade Centre Free Zone (DWTC) → International business
The One Freezone Passport addresses this by:
- Reducing duplication of licensing and approvals
- Speeding up expansion processes
- Encouraging synergy across sectors (tech + logistics + media)
- Aligning with the Dubai Economic Agenda D33 to double Dubai’s GDP by 2033
This makes Dubai more competitive against global hubs by removing friction for businesses.
How the One Freezone Passport Works
Here are the following steps you need to know to complete the process.
1. Choose a Primary Free Zone & Register
First, you need to register your company in the primary freezone of your choice. That is your home base.
2. Apply for Passport Access to Secondary Zones
After registration, you need to submit an expansion request to the primary zone. The following documents are required to be submitted including.
- Your existing license and documentation
- The proposed activity in the secondary zone
- Physical facility lease (office, warehouse, etc.) in the secondary zone
- Ensure that the secondary zone’s rules accept your activity under the same license class.
3. Operate under a Unified License
Once your request gets accepted. Now you can use your one license to operate in both zones. The operations, staff, facilities, and transactions must align with the activities allowed under your license.
4. Expand & Scale
You can now open offices, warehouses, or service centres in the secondary zone. Also, conduct business just as though you had a standalone license. But remember, without an extra corporate formation.
Restrictions, Exclusions & Conditions
While the One Freezone Passport is powerful. However, at the same time, there are some restrictions and limitations. These limitations are helpful to maintain regulations and integrity.
Activity Matching
The business activity in the secondary zone must exactly match the licensed activity in the primary zone. No new, unrelated activities.
Same Corporate Structure
Shareholders, directors, and management must remain the same. Changes in governance require new licensing.
Excluded Sectors
Retail trading, regulated financial entities, DNFBPs (Designated Non-Financial Businesses & Professions) may be excluded.
No Virtual Offices in Secondary Zones
Virtual offices, flexi desks, shared space, or business centre setups in secondary zones are not allowed. Must have real physical premises.
Staff Transfer Limits
You generally cannot move or hire dedicated employees for the secondary zone under the passport alone.
License Validity Requirement
Your primary license must have remaining validity (for example, 3 months) before you expand.
Benefits of Using One Freezone Passport
The free zone passport comes with unmatched benefits. Let’s see the upside:
- Cross-Zone Operations
It allows you to run a business in multiple free zones with one license. There is no need to duplicate entities or paperwork. - Cost Savings
Fewer licensing fees, fewer incorporation costs, and reduced legal and administrative burden. - Faster Expansion
Some reports say expansion that used to take months can now happen within days. - Regulatory Efficiency
Due diligence and compliance checks are shared across zones, minimizing duplication. - Maintain Free Zone Incentives
0% corporate tax on qualifying income. Moreover, 100% ownership and profit repatriation remain intact. - Use Strengths of Each Zone
For example: tech in Dubai Internet City + logistics in JAFZA + trade in DAFZA, all under one roof. - Better Investor Appeal
Global brands like Louis Vuitton have already been onboarded as the first corporate member under this scheme
How the One Freezone Passport Affects UAE Corporate Tax & Compliance
Introducing the One Freezone Passport doesn’t override the UAE’s corporate tax laws. You must still observe them.
Here’s how tax and compliance interplay:
- Qualifying income in free zones remains at 0% corporate tax. However, if the business satisfies the qualifying conditions.
- Non-qualifying income. Like income outside the allowed scope may be taxed at 9%.
- You must keep separate accounts. For showing qualifying vs non-qualifying income for audit.
- Ministerial Decision No. 229 of 2025 is refined. Which activities in free zones qualify or are excluded? E.g., processed metals, agricultural commodities.
- VAT & customs may still apply when moving goods across zones. Especially when goods leave one designated free zone to another or for the mainland.
To understand more deeply, you can check the Bestax guide on UAE corporate tax rules.
Who Can Use the One Freezone Passport — Zones & Criteria
- Companies registered in participating Dubai free zones.
- Businesses meeting compliance with UAE corporate tax law.
- Entities aligned with sector-specific free zone requirements.
Eligibility depends on your free zone of registration and activity.
Participating Free Zones Under the One Freezone Passport
Here’s a comparison table of some prominent free zones in Dubai that are likely eligible (or planning to be) under the One Freezone Passport. Use this to plan your zone strategy.
| Free Zone | Industry Focus / Strength | Why It’s Great under One Passport |
|---|---|---|
| Jebel Ali Free Zone (JAFZA) | Logistics, trade, and manufacturing | Excellent port access and warehousing |
| Dubai World Trade Centre Free Zone (DWTC) | Events, international business | High visibility, exhibitions, meetings |
| Dubai Internet City (DIC) | Technology, startups, IT | Innovation hub, digital business cluster |
| Dubai Media City (DMC) | Media, advertising, content | Creative industries and entertainment focus |
| Dubai Airport Free Zone (DAFZA) | Trade, aviation, warehousing | Near airport — good for logistics |
| Dubai Silicon Oasis (DSO) | Tech, R&D, smart innovation | Ideal for software, IoT, and advanced tech |
Also, check Bestax DAFZA business setup guide for details on setting up in DAFZA. As more free zones join the scheme, this list may expand and shift.
How to Use the Dubai One Freezone Passport
These simple steps you can follow to use a freezone passport
- Choose the primary free zone that suits your core activity
- Now register your company and get a valid trade license
- Confirm eligibility that your business activity is allowed in the target secondary zones
- Ensure your license has remaining validity.
- Apply expansion through the primary zone. Moreover, submit documentation and the lease
- Get approval for the expansion timeframe. It may be done in a few days to a few weeks.
- Operate in both zones under the same license, maintain compliance
Use Cases & Business Strategies
- You can register for logistics. now used or licensed to cover its functions in DIC.
- It is also beneficial in tech companies. Based in Dubai Internet City, expand to DWTC for event or exhibition presence.
- Operate in DMC and expand into commercial zones like DWTC or JAFZA using the same setup.
- Use JAFZA for manufacturing, then branch into DAFZA or trading zones under the same license
One Freezone Passport vs Multi-License Free Zone Setup
| Feature | Traditional Setup | One Freezone Passport |
|---|---|---|
| Licenses needed | One per zone | One license across multiple zones |
| Cost & fees | Many incorporation, renewal, legal costs | Lower, as you duplicate less |
| Expansion speed | Slow (weeks to months) | Much faster (days to weeks) |
| Compliance | Multiple audits, filings | Streamlined, shared due diligence |
| Ownership | 100% in each zone separately | 100% across multiple zones |
| Business reach | Limited to one zone unless a new entity | Seamless cross-zone operations |
Typical Timeline for Freezone Passport Expansion
- Initial Registration required 1–2 weeks.
- A Passport Application needs at least 1 week.
- Expansion Approval is done in 1–3 weeks, depending on the sector.
Overall, your business can expand into new zones in less than a month
What You Gain with the One Freezone Passport
The One Free Zone Passport is a transformative initiative that lets you use one license across multiple free zones in Dubai. You get:
- Expansion freedom
- Lower costs
- Regulatory simplicity
- Cross-zone synergies
But you must comply with rules: the same activities, same management, physical premises, and exclusion in certain sectors. Corporate tax rules still apply; free zone income may remain 0%, but non-qualifying income does not.
If you are planning to expand across Dubai’s free zones or enter Dubai as your business hub, starting your journey towards getting a One Freezone Passport is a smart strategic move.
And whenever you need expert help, from choosing the right zone to staying compliant, Bestax is ready to support you.
Quick FAQs
What is the One Freezone Passport in Dubai?
It’s a unified license system that lets companies expand into multiple Dubai free zones with one license.
Which companies are eligible for the One Freezone Passport?
Businesses registered in Dubai’s participating free zones and meeting compliance requirements.
Can businesses hire employees in multiple free zones under this initiative?
Yes, companies can hire across different free zones without creating separate entities.
What is the Dubai Economic Agenda D33, and how does it relate to the One Freezone Passport?
D33 is Dubai’s plan to double its economy by 2033. The Passport supports this by making business easier.
How can Bestax Dubai assist in leveraging the One Freezone Passport?
Bestax can help you register, apply for Passport expansion, and stay compliant with tax rules.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
