How Do I Form a Business in the Free Zone of Dubai? Everything You Must Know
Considering launching a company in one of Dubai’s free zones, but unsure where to start? The specifics of establishing a business in one of Dubai’s free zones are covered in our blog.
Due to its robust economy, first-rate infrastructure, cheap taxes, international connections, and growing business, the United Arab Emirates (UAE) is a well-liked destination for entrepreneurs from all over the world. The best place to operate a business is Dubai in particular.
The primary draw for foreign investors to Dubai’s more than forty Free Trade Zones (FTZs) is the array of advantages they offer. Obtaining a trading license within the Dubai Free Zone confers the subsequent advantages:
1. Complete ownership of the business
2. Return all profits and capital home.
3. Exemption from import/export and corporation taxes
The International Free Zone Authority (IFZA) and Meydan Free Zone company setup are the best options if you’re thinking about starting a free zone business in Dubai.
Because of all of its benefits for investors, IFZA has grown to be one of the most sought-after free zones in the United Arab Emirates.
IFZA stands apart from other UAE free zones by providing investors with a number of special advantages.
1. Not need to submit an audit report every year
2. Absence of required paid-up share capital
3. For a maximum of three years, owners’ and employees’ visas
4. No need for an employee guarantee deposit
5. Choosing to open a virtual office
6. Investors do not have to be present in person when the firm is formed.
7. The present visa sponsor is not necessary to provide a NOC (No Objection Certificate).
How to Setup a Company in Dubai Free Zone
Step 1: Select Your Commercial Pursuits
The first step in setting up a company in the Dubai Free Zone is identifying the type of business you will be conducting. Making this choice is essential to deciding on the right place to register your business.
Are you thinking of becoming a freelancer or starting an employee-run free zone business?
Choosing to freelance might be a financially advantageous option, but keep in mind that not all of Dubai’s free zones allow freelancers, which may restrict your options. However, establishing a free zone business provides a multitude of choices, with both comprehensive and specialized zones accessible.
Additionally, you have to decide on the business’s legal entity. The following legal entities are accessible in free zones:
1. Limited Liability Company in the Free Zone (FZ LLC)
2. Establishment of a Free Zone (FZE)
Step 2: Choose an Appropriate Free Zone
Finding the best free zone for your business comes next in importance, after deciding on the kind of company you want to start.
With so many excellent UAE free zones at your disposal, the job is to evaluate and choose the best place for your business activities.
Step 3: Give your free zone business a company name
Next, choose a name that complies with the regulations set forth by the government. After that, you can reserve the name and bide your time until the Department of Economic Development (DED) and/or the authority of the free zone grant their initial approval.
Step 4: submit a license application
Gather all the documents such as:
- Completed the application
- Copies of the shareholders’ passports and the business plan
Please send it to the appropriate free zone authority. It will take them a little more than a week to review and respond to you. Various free zones may call for additional documentation.
Step 5: Start Applying for Visas
You can now start the application procedure for a visa. This entails filing for a UAE residency visa for yourself, your employees, and any domestic workers you may hire.
Step 6: Creating Your Corporate Bank Account
It is imperative that you have a designated business bank account to support your trading activity. Make sure this account is distinct from any personal accounts you may have and is especially designed for your free zone commercial operations in Dubai.
It’s important to remember that opening a corporate bank account in the United Arab Emirates can be a difficult procedure with many considerations, including the requirements specific to each bank.
What is the price to establish a free zone business in Dubai?
The first expense of establishing a free zone business in Dubai is registering with the appropriate authorities. The costs vary according to the selected free zone, often ranging from AED 11,900 to AED 50,000. These fees include company registration and the procurement of necessary licenses.
Benefits of Establishing a Free Zone Business in Dubai
Total Ownership: International investors are eligible to hold a 100% stake in their business.
Repatriate all profits earned outside of the United Arab Emirates, retaining the option to move all of your capital back to your nation of origin.
100% company Tax: You can keep all of your profits because there is no company tax on business revenue.
Easy Import/Export: Customs duties are waived for free zones, making international trade simpler.
Strategic Location: Closeness to borders, seaports, and airports to maximize trading benefits.
Global Connectivity: You may trade locally and internationally with the MENA and South Asia by having access to major seaports and airports.
diversified commercial Community: Dubai’s international attraction draws a diversified population, which promotes international commercial ties.
Business Flexibility: The ability to carry out a range of business-related tasks.
Swift Registration: A simple and rapid licensing process
How Can I Form a Business in the Free Zone of Dubai?
Establishing a Business in the Dubai Free Zone:
1. Select a license type and business activity.
2. Select a Free Zone.
3. Select the corporate structure you want.
4. Choose a trade name and compile the required paperwork.
5. Request first permission.
6. Sign the legal paperwork pertaining to incorporation.
7. Decide on a location for your business.
8. Get a license for your business.
Can a free zone company do business in Dubai?
To establish a business in the UAE free zone, follow these steps:
Define Your firm Activity: Choose the type of activity that your firm will engage in.
Selecting the Legal Structure for Your Company: Establish the legal framework for your business.
Put the Trade Name in Registration: Obtain a commercial name registration.
Choose a Location & Business Space: Within the free zone, pick the right site and company space.
Get the First Approval: Get your business approved at the beginning.
Register and Pay Fees: Finish the registration procedure and send in the necessary payment.
The duration required to establish a free zone company in Dubai may differ based on a number of variables, such as the free zone selected, the nature of the economic activity, and the effectiveness of the registration procedure.
The entire setup process can typically take a few weeks to many months to finish. It’s important to speak with the relevant free zone authorities and business setup service providers for precise and current information regarding the schedule for your unique case, as certain free zones offer accelerated services that can shorten the establishment period.
