Dubai has been one of the most popular business destinations for investors and entrepreneurs around the world. The city’s strategic location, world-class infrastructure, and business-friendly policies have made it a hub for international trade and commerce. One of the most attractive features of Dubai’s business landscape is the availability of free zones that offer a range of benefits to foreign investors.
A free zone, also known as a free trade zone or a free zone authority, is a geographical region with its own set of rules that do not apply to companies operating outside the zone. Companies like to operate in free zones to trade goods and services while taking advantage of unique tax and foreign ownership laws.
What is a Free Zone Company Setup?
A Free Zone Company Setup is a type of business formation that allows companies to operate within designated areas where they can enjoy various tax benefits, customs exemptions, and other incentives. It’s like a magical land where businesses can run free and wild without the usual bureaucratic hurdles and financial burdens. Think of it as a business version of Narnia or Wonderland, where you can start your own company and enjoy the perks of low overhead costs and access to a pool of talented workers. So, if you want to start a company in Dubai and escape the drudgery of the traditional business world, hop on board the Free Zone Company Setup train and enjoy the ride! Just don’t forget to bring your sunscreen, because this train’s going to a sunny destination!
How to Open a Business in a Dubai Free Zone?
Opening a business in a Dubai-free zone is an easy and hurdle-free process. Here are the steps involved:
Step 1: Choose a free zone
The first step in setting up a free zone company in Dubai is to choose the right free zone and that depends on the type of business and the market you are going to cater. Dubai has more than 30 free zones, each with its own set of rules and regulations. It is essential to choose a free zone that best suits your business needs and requirements. Some of the most popular free zones in Dubai are Dubai Airport Free Zone (DAFZA), Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), and Dubai Silicon Oasis (DSO), IFZA, Shams, SPC, and Rakez.
Step 2: Choose a legal entity
The second step is to choose the legal entity for your company. Freezones in UAE, Dubai free zones offer different types of legal entities, such as Free Zone Companies (FZCO), Free Zone Establishment (FZE), Branch of Foreign Companies, and Branch of UAE Companies. The type of legal entity you choose will depend on your business needs and requirements, but we certainly understand that setting up a business is already a big hassle, and you don’t want to add more to it, consulting business setup experts like Adam global can help you with this and make your journey as easiest as possible.
Step 3: Submit passport and other documents
The third step is to submit the required documents and passport to your business setup consultant for the further process.
Step 4: Give three unique names to your consultant
You need to provide a set of unique names to your consultant with a passport size photograph so that the process of online application, security & immigration can start
Step 5: Initial approvals and license
The fourth step is to obtain initial approval from the free zone authority which your consultant will provide you (only few freezones need initial approvals). After that you will get the licence and necessary permits (if needed) by your consultant to start the work.
Dubai Free Zone Company Setup Cost
The cost of setting up a free zone company in Dubai varies depending on the type of legal entity and the free zone chosen. The cost includes the registration fee, license fee, office rent, visa fees, and other expenses. If you take administrative costs, options for office space, tax advantages, and other benefits into account when creating a business in Dubai, a free zone can be a cost-effective solution. In these free zones, a dynamic community, cutting-edge infrastructure, and first-rate services have been developed to create a business climate free of
Benefits of Free Zone Business Setup in Dubai
There are numerous benefits of setting up a free zone company in Dubai. Some of the most significant benefits are:
100% foreign ownership: One of the most attractive benefits of setting up a free zone company in Dubai is that it allows 100% foreign ownership. This means that foreign investors can own and control the company without the need for a local partner.
Zero corporate tax: Another significant benefit is that free zone companies are exempted from corporate tax for a period of up to 50 years.
No restrictions on repatriation of capital and profits: Free zone companies are allowed to repatriate their capital and profits without any restrictions.
Easy company setup process: The company setup process in Dubai’s free zones is relatively straightforward and can be completed within a short period.
World-class infrastructure: Dubai’s free zones offer world-class infrastructure and facilities, including modern office spaces, advanced telecommunications, and transportation facilities.
Access to a large market: Dubai’s strategic location and excellent connectivity make it an ideal hub for international trade, providing free zone companies with access to a large market of over 2 billion people.
Process of Opening a Free Zone Company in UAE, Dubai
The process of opening a free zone company in Dubai involves several steps, including choosing a free zone, selecting a legal entity, reserving a trading name, obtaining initial approval, leasing premises, and submitting the application for company formation. Here is a detailed breakdown of the process:
Step 1: Choose a free zone
The first step in setting up a free zone company in Dubai is to choose the right free zone. Your business setup experts will research the available options and choose a free zone that best suits your business needs and requirements. Each free zone has its own set of rules and regulations, so it is essential to choose a free zone that aligns with your business objectives.
Step 2: Choose a legal entity
The next step is to choose the legal entity for your company. Dubai’s free zones offer different types of legal entities, such as Free Zone Companies (FZC), Free Zone Establishment (FZE), Branch of Foreign Companies, and Branch of UAE Companies. The type of legal entity you choose will depend on your business needs and requirements.
Step 3: Reserve a trading name
The third step is to reserve a trading name for your company. The trade name should be unique and not similar to any existing company name in the UAE. You can reserve the trade name through a business setup company service provider.
Step 4: Obtain initial approval
The fourth step is to obtain initial approval from the free zone authority. You need to submit a set of documents, such as passport copies, business plans, and proof of address. The free zone authority will review your application and provide you with initial approval.
Step 5: Lease a premise
The fifth step is to lease premises in the free zone. You need to provide the free zone authority with the necessary documents.
Step 6: Submit the application
The final step is to apply to company formation. You need to submit all the necessary documents, such as the Memorandum of Association (MOA), Articles of Association (AOA), and other required documents. The free zone authority will review your application and issue the license.
Documents Required for Free Zone Company Formation in Dubai
To set up a free zone company in Dubai, you need to provide certain documents to the free zone authority. The specific requirements may vary depending on the type of legal entity and the free zone you choose. However, some of the common documents required for free zone company formation in Dubai are:
1. Passport copies of shareholders, directors, and managers
2. Business plan
3. Proof of address of shareholders, directors, and managers
4. No objection certificate (NOC) from the current sponsor for UAE residents (required in few of freezones)
5. Power of attorney, if applicable
6. Proof of initial approval from the free zone authority that your business setup expert will provide
7. It is advisable to seek the assistance of a business setup company service provider in Dubai like Adam Global to ensure that you have all the necessary documents, and the process is done smoothly.
How to Choose the Right Free Zone for Your Company Setup
Choosing the right free zone is critical to the success of your business. Here are some factors to consider when selecting a free zone for your company setup:
Business activity: Different free zones in Dubai cater to different business activities. You need to choose a free zone that aligns with your business activity.
Cost: Each free zone has its fee structure, and the costs may vary depending on the type of business activity and the number of shareholders. You need to choose a free zone that fits your budget.
Location: The location of the free zone is also important, as it can impact your access to customers and suppliers.
Infrastructure: Dubai’s free zones offer world-class infrastructure and facilities, such as modern office spaces, advanced telecommunications, and transportation facilities. You need to choose a free zone that offers the infrastructure you need for your business.
Rules and regulations: Each free zone has its own set of rules and regulations that businesses need to comply with. You need to choose a free zone that has rules and regulations that align with your business objectives.
How to Get a Free Zone License in UAE?
To get a free zone license in the UAE, you need to follow and submit documents according to what your business setup expert suggests you. That’s it is very important and recommended to choose the right business setup experts for hassle-free and fast process.
To obtain a free zone license in the UAE, you’ll need to choose a free zone and submit an application to the relevant authority. You’ll typically need to provide information about your business and its activities, as well as relevant documents such as a business plan, passport copies, and proof of address. The specific requirements and application process can vary depending on the free zone you choose, so it’s important to do your research and seek professional advice from business setup experts in the industry.
Setting up a free zone company in Dubai offers several benefits to foreign investors, such as 100% foreign ownership, zero corporate tax, and no restrictions on capital and profit repatriation. However, the process of opening a free zone company in Dubai can be complex and time-consuming. Therefore, it is advisable to seek the assistance of a business setup company service provider in Dubai like Adam’s Global to ensure a smooth and hassle-free company setup process.
When choosing a free zone for your company setup, you need to consider factors such as business activity, cost, location, infrastructure, and rules and regulations. By following the step-by-step guide to obtaining a free zone license in the UAE, you can successfully establish and operate your business in Dubai’s thriving economy.
As a service provider company, we understand the importance of having a freezone company setup license for businesses looking to operate in a tax-free environment. Our team of experts is dedicated to helping our clients navigate the complex process of obtaining a freezone license with ease and efficiency. We pride ourselves on delivering exceptional customer service and personalized solutions tailored to meet the unique needs of each of our clients.