Dubai is a dynamic economic world for foreign entrepreneurs, investors, and multinational companies to come and start business there because of its advantageous position, cutting-edge infrastructure, tax incentives, and business-friendly atmosphere. Starting into business in the UAE is easy and has a lot of perks.
The United Arab Emirates is famous for its successful free zone company structures. It is the best business structure that offers diverse business opportunities and benefits to their license holders.
Dubai Business Set Up Services assists people in facilitating the company formation process to guarantee a seamless experience for our customers. Here we explain everything about starting a company in a Dubai Free Zone, from what a Free Zone is, how to choose the best free zone for your company, free zone registration or license, and the step-by-step starting procedure.
People sometimes call free zones “free trade zones”. The Free Zones are the designated areas in the UAE where expatriates can run their business and have 100% foreign ownership ownership.
Free Zone Company Registration in the UAE is an attractive business opportunity for expats with specific economic restrictions, Repatriation of Profits and tax incentives to encourage foreign investment and company development.
The UAE has 45+ Free Zones, with 26 of them in Dubai alone. More than 150,000 businesses from all over the world are now working in these free zones, and these numbers are continuously increasing. Each free zone has the necessary infrastructure and is intended to support certain kinds of businesses.
These free zones have various industries, including technology, logistics, media, and healthcare, and offer multiple opportunities for business activities.
The Free Zone License is given to the owner by the Free Zone Authority after the company is registered. It is essential to choose the appropriate business activity for the company structure.
Each free zone is for a different type of business and has its own perks. Popular Free Zones include!
Your industry and company objectives will determine which Free Zone is best for your business activity.
Business owners can choose the right free zone structure according to the company requirements. These are some popular company structures to choose from:
Free Zone Establishment (FZE): It is suitable for sole proprietors or companies with only one stakeholder. It is an excellent choice for small to medium-sized businesses.
Free Zone Company (FZC): Companies having two or more owners are intended to work as Free Zone Companies (FZCs). It gives collaborative experiences and partnerships flexibility.
Branch Office: You can set up a branch in the Free Zone if your business is already working outside of the United Arab Emirates. This free zone authority allows you to develop your business without creating a new company.
Private Limited Liability Company (LLC): This type of business arrangement is great for those who want to keep shareholders’ responsibility for the amount of money they put into the business. Everyone from one to fifty people may own a piece of a Free Zone LLC, and they’re all legally responsible only for the amount they put in.
Public Limited Liability Companies (PJSCs): This structure allows the company to sell its shares to the public through a stock market. A PJSC must have at least 10 shareholders and follow tight requirements. This structure is a great option for companies that want to grow rapidly.
Dubai Business Set Ups Services helps to make sure that these structures are set up correctly and in accordance with the law.
Starting a company in a free zone is quite simple. Here’s a complete process of your company formation in a Dubai Free Zone:
The business activity you choose will determine the kind of license you need. Select a business, commercial, or professional license appropriate for your company’s operations because many Free Zones allow several activities under a single license.
Choose the appropriate Free Zone to start your business in Dubai Free Zone. We already know that each free zone is made to help a specific type of business or industry. You can choose a free zone that authorizes the license and all associated operations, and offers office space and other benefits, by the nature of your business.
Free zone has different company structures, including Free Zone Establishment (FZE) for single shareholders, Free Zone Company (FZC) for multiple shareholders, and branch offices for existing companies. Choosing the proper structure relies on the business owners’ needs and growth goals.
After selecting your Free Zone license and company structure, you must register your business and obtain a license from the free zone officials. The Free Zone authorities will check your application with all the necessary documents. You can apply for the trading, service, and industrial license.
Free Zones provide everything from fully furnished offices to flex workstations. A suitable office is needed to register and give your business a proper location.
Submit the following documents with the application form!
When you get your business license, open a business bank account in Dubai. Choose a bank that provides international banking services with minimal balance restrictions and fulfill your company’s demands.
After getting your business license, you can apply for residency visas for yourself, your employees, and your family.
Investors can get low-cost business licenses in the Dubai-free zones. Many things affect how much it will cost to launch a company in Dubai’s free zone:
Each free zone needs a fee to register a business license and the price is different for each free zone and business type. The costs range from 10,000 to 50,000 dirhams.
Renting office or warehouse space in the free zone is another cost. The cost of renting an office depends on its size and location.
The cost of a visa varies by Free Zone, with a range of AED 3,000 to AED 5,000.
Some banks may charge a fee to open.
You must have money for utility bills, office supplies, advertising, and staff pay.
Starting a business in the Dubai Free Zone has many benefits.
Businesses in the free zone do not need a local sponsor, thus entrepreneurs get 100% ownership of their free zone company.
You and your business will save money because there is no company or income tax.
Enjoy 0% corporate and only 5% VAT tax and improve profit margins.
Both profits and capital can be sent back to the home country without any hurdle.
Import and export operations inside the Free zone are free from customs duties and make businesses cost-efficient.
Dubai has major seaports and airports that help you to trade locally and internationally.
There are many options for businesses that want to get the most out of their investment and save money on taxes by starting up in a Dubai Free Zone. Dubai Business Set Ups Services is always available to help you choose the right Free Zone, manage all the required permits, prepare documentation, acquire office space, acquire team hiring, and obtain visas.
Are you ready to start your business in the Free Zones of Dubai and benefit from this advanced country? So, let’s begin your journey in the UAE with Dubai Business Setup Services!
Setting up a company in the Dubai free zone takes between 2 and 4 weeks, depending on paperwork preparation and licensing approval.
Direct trade with companies on the mainland is not possible. For mainland activities, you may, however, open a branch office or work with a local distributor.
It is quite legal for you to trade internationally and export and import goods. However, it is advisable to consult with a legal advisor, as there may be specific legal constraints.
