The United Arab Emirates is standing firm as a platform for radical reform. The nation, which consists of seven Emirates in its arena, has outperformed a wasteland tag to a global business center. Dubai, considered the heart of the UAE, is seen by business owners as one of the most attractive and frequently preferred destinations. Tax-free regions have become one of the grabbers of publicity, essentially exploiting the country's overall development, backed by its steady growth established in UAE.
An Overview About Dubai Free Zone
The Dubai Free Zone Authority is the governmental agency that manages registration formalities and grants business licenses for Dubai free zones to non-resident companies or foreign-owned enterprises. Business setup in Dubai free zone brings with it a sea of possibilities for networking, collaboration, and business development. The attractive tax regime and numerous incentives provided by the free zone authorities make Dubai the most favored country for an investor to establish a company.
Advantages of Establishing Up a Business in Dubai Free Zone
Free zones are the most advantageous locations for establishing businesses equipped with the latest-of-the-art infrastructure, obligation and tax deductions, world-class business conveniences, adaptable government policies, and incredible facilities.
These are not the only reasons driving the formation of a free zone company in Dubai; there are many other advantages for establishing a Dubai corporation :
- 100% possession for Investor, regardless of religion and country of origin
- 100% tax exemption on personal or business income or gains
- Capital and tax repatriation of 100 percent
- Exemption from any tariffs on import and export
- Handy bureau and storage facilities
- The choice for a firm founded by a person
- Corporate tax exemption for 15 years, renewable again for 15 years
- Complete confidentiality of operation
- Flexibility to become interested in foreign business
- Limited penalties on renewals
- The flexibility of owning land, engaging in various activities and opening a Dubai Bank account
- The choice of liquidating any time
- Housing aid, workers permits, and other support programs
List of Free Zones in Dubai
There are even more than 30 free zones operating in Dubai. The major ones are:
- Dubai Airport Free Zone
- Dubai Cars and Automotive Zone (DUCAMZ) also known as Dubai Auto Zone
- Dubai Design District
- Dubai Healthcare City
- Dubai International Academic City
- Dubai Internet City
- Dubai International Financial Centre
- Dubai Knowledge Village
- Dubai Media City
- Dubai Gold and Diamond Park
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- International Media Production Zone
- Jebel Ali Free Zone
- Dubai Production City
- Dubai World Central (Dubai South)
- Dubai Studio City
Types of Licenses Available for Company Setup in Dubai Free Zone
It is essential to be mindful of the various initiatives that free zones in Dubai provide for license holders, such as the Dubai Airport Free zone, to have a dual license. Free zone authorities suggest the following permits for Dubai Free Zone company formation:
- Trading License
- General Business Activities
- Service License
- Industrial License
1. Trading License
If acquired, the trading license allows one to perform trading activities such as purchasing, importing & exporting, and selling a limited number of commodities.
2. General Business Activities
One can deal with all sorts of merchandise dealing, with an exception on a few prohibited items that need special approval with this authorization.
3. Service License
This license can be obtained by businesses who want to deal with activities such as consultancy, accountancy, etc.
4. Industrial License
After acquiring the industrial permit, a corporation can carry out industrial production, packaging, and processing activities.
Types of Business Entities Authorized in Dubai Free Zone
1. Free Zone Installation (FZE)
This form of organization may be identified with one single or corporate shareholder.
2. Business in Free Zones (FZC)
This form of organization may be licensed with two shareholders or more. A shareholder can be a
person or an organization.
3. Branch Office
A corporation that has a business in the UAE or a foreign country may have a branch in one
of Dubai's free zones.
Essentials to Consider While Establishing up a Company in Dubai Free Zone
The steps below follow a specific sequence, which transforms out to be easy for an investor to initiate and execute business operations when followed.
- Choose a free zone based on the business operation.
- Select a framework for the company
- Approach industry expert
- Get the documents ready.
- Gather the authorization and license required
- Select an office space
- Avail the core facilities to handle the business activities
1. Choose a Free Zone Based on the Business Operation
The Dubai Emirate has continuously concentrated on maximizing its ability to represent the business investors best. The region has multiple free business zones dedicated to a specific industry, making it easy for the businessman to deal with it. Analyze the company's business needs, and choose the required free zone.
2.Select a Framework for the Company
If the zone has been decided, the next step is to choose the appropriate business structure. Dubai Free Zones provides business owners with various business company options to choose one depending on the money to be invested and the number of shareholders authorized.
3. Approach Industry Expert
You can consult a specialist in the next process, who can help you accelerate the establishment process. You will be able to get the right advice regarding the business prosecutions by getting in touch with a business consultant. A specialist will be at your side from the documentation part to the exploration of market insights, which will be produced during the planning and the strategy developing phase.
4. Get the Documents Ready
It turns out to be a stringent process to develop and implement company documents. When incorporating your company into the Dubai Free Zone, you will need to compose documents such as MOA and AOA, which will prove an obligation. These documents eventually clarify the different tasks carried out in an organization's internal and external climate.
5.Gather the Authorizations and Licenses Required
The next step after drafting the essential documents is to take the required approvals from the Government Authorities. First, the Dubai Free Zone offers various types of licenses related to Trade, General Trade, Operation, Setting up Industry, etc.
6.Select an Office Space
It will take a standard time by the time you get the authorization. Till then, you have to focus on hunting an office space for your business' physical existence. The Emirate encourages foreign investors to come forward and set up a company in Dubai. The sector also takes care that the business owners finding a perfect destination for their company becomes easy. As explained earlier, you can soon point out an office space once you contact a business consultant.
7.Avail the Core Facilities to Handle Your Business Activities
You can carry out the business processes after your company's startup process. You need to make sure that your company has the core pillars like accounting, taxation, VAT services, etc. to do that effectively and to thrive your business growth. Implementing these programs at the starting takes off the hassle. From the initial stages, you will be able to effectively manage the processes, which will have a beneficial effect on the latter part of the organization.
How to Establish Up a Business in Dubai Free Zone?
Dubai provides lucrative business networking opportunities for investors, setting up their company anywhere in the Emirates focusing on their type of business, location (free zones, mainland or offshore), budget, ownership preferences (100% ownership or local sponsorship) factors. There are some rules and regulations and processes to be followed to establish a free business in Dubai. These require acute preparation, awareness of local culture and government practices, and detailed decision-making across various business setup phases.
Procedure to Establish Up a Business in Dubai Free Zone
- Select a business operation
- Select a free zone
- Select a name for the company
- Collect all the document and apply for the license
- Open a corporate bank account
1. Select a Business Operation
Decide on a business operation you plan to carry out because the type of license you are applying for will depend on its nature. Many Dubai zones support multiple business activities, so there's plenty more to explore.
2. Select a Free Zone
Once you've decided on business operation, the next step is to determine the free zone is appropriate for you. In essence, there are sector-specific zones such as IT, healthcare, banking, trading, etc., hence research before selecting a particular region.
3. Select a Name for the Company
You need to make sure your company information is up to date for registration on the free zone authority site before finalizing a name. There are also specific requirements to be adhered to by the term, including avoiding scandalous language or references to religious or political organizations.
4. Collect all the Required Documents and Apply for a License
If the business operation has been determined and the trade name registered on the registry, the next significant move is to apply for a license. The type of charge depends on the activity of the business. To apply for the same, you must first complete the application form and collect the documents, as indicated in the state. And during this phase, you can apply for a visa.
5. Open a Corporate Bank Account
Open a bank account is a straightforward process. But to do so, you have again to collect the documents and your business license and provide it to the selected financial institution.
You will be issued a valid license within 2-4 weeks after the 4th phase, and you are good to go.
Documents Needed to Set Up a Business in Dubai Free Zone
For a company license:
- Color copy of the valid passport of shareholder(s), if applicable.
- Application form
- Company plan
- Administrative Resolution
- Memorandum and Article of Association
For Opening a Bank Account
- A technique to open a corporate account
- Statement of the board of directors approving the account opening and the signatories to the account
- A copy of the certificate of incorporation at your business
- A copy of your Certificate of Sharing
- A copy of the company's Memorandum of association and article of association
- Passport copies for all stakeholders within the organization.
Why Set Up a Business in Dubai Free Zones?
Dubai's free zones are widely popular among professionals and entrepreneurs for company formation because of their reputation as tax-free zones with standard trade ports that can be owned exclusively by the person setting it up. Also, the shape of a Dubai free zone company does not have a constraint that stipulates a local sponsor’s existence to act as a liaison point, which acting as a catalyst for excessive foreign investment. The registration procedure for Dubai free trade zone company is relatively smooth and involves only that the share capital provisions be made before applying for a license.
Liberty to do business, significant tax savings and favorable government policies enable companies and business people to establish free zones in Dubai for their operational activities.
Commitbiz has the capabilities and knowledge to help you achieve your company's setup visions without stressing required documents, visa applications, documents, licensing formalities, residency permits, banking information, etc. As our specialists, take care of all of these. Our company experts take care of and provide our clients with the best solutions from registering and licensing.
Our company experts take care of and provide our clients with the best solutions from registering to licensing. We stand as one of the top business advisors in Dubai because of our dedicated service. Contact us for a free zone company established in Dubai, and our specialist team will be happy to guide you with all the details.