Dubai Free Zone Company Formation
Located along the Arabian Gulf coast, Dubai has undergone a remarkable transformation in the past few decades. While it used to be known mainly for its oil industry, it has now become a global city and a business hub that competes with Western nations.
This transformation is powered by Dubai’s diverse business model, which keeps its economy thriving and attracts entrepreneurs from all over the world. To encourage foreign investment and boost the economy, Dubai has established free zones. These zones offer attractive incentives to foreign entrepreneurs looking to start businesses in the Emirates.
As professional business setup consultants, we’re here to assist you in setting up a company in Dubai’s free zones. We provide you with all the information you need and expert guidance to ensure your business venture in this dynamic city is not only successful but also geared for growth. Dubai’s free zones offer numerous opportunities, and we’re here to help you make the most of them.
what is free zone
Dubai’s transformation from an oil-centric economy to a global business hub is remarkable. Free Zones, Located Along the Arabian Gulf coast and overseen by the Dubai Free Zone Authority, play a pivotal role, offering tax incentives and simplified registration to attract foreign investment.
As professional consultants, we guide you through Dubai Free Zone Company Formation, optimizing your business for growth. In this context, a “Free Zone” in Dubai is a designated area that encourages foreign investment by providing tax benefits and streamlined processes, making it an excellent choice for international businesses.
Dubai Free zone License Types
Explore the various incentives offered by Dubai’s free zones for license holders, making it an enticing destination for business setup. Free zone authorities provide the following licenses for company formation:
Trading License: This license permits the buying, importing, exporting, and selling of a limited range of commodities.
General Trading Activities: With this license, businesses can engage in trading all types of goods, with the exception of a few prohibited products, which may require special approval.
Service License: Ideal for companies involved in consulting, accountancy, and related service-based activities.
Industrial License: Businesses can undertake manufacturing, packaging, and processing activities once they obtain this license.
Understanding these licenses is crucial for tailoring your business setup to your specific needs within Dubai’s free zones.
Types of business entities allowed in free zone
Free Zone Establishment (FZE): This company type allows registration with a single individual or corporate shareholder, offering flexibility for solo entrepreneurs or businesses.
Free Zone Company (FZC): Businesses can register this type with two or more shareholders, who can be either individuals or other companies. It caters to ventures involving multiple stakeholders.
Branch Office: Companies based in the UAE or abroad can establish a branch in one of Dubai’s free zones. This option facilitates expansion and diversification while maintaining a link to the parent company.
Understanding these company structures is essential for tailoring your business setup in Dubai’s free zones to your specific ownership and expansion requirements.
documents required for free zone company formation
When applying for a Business License in a Dubai Free Zone, you’ll typically need to provide the following documents:
- A color copy of the shareholder(s)’ passport and visa (if applicable)
- The completed application form
- A detailed business plan
- Board Resolution
- Memorandum and Articles of Association (MAA)
On the other hand, for opening a bank account in a Dubai Free Zone, the required documents usually include:
- A corporate account opening form
- A board of directors’ resolution authorizing the account’s opening and listing the account signatories
- A copy of your company’s certificate of incorporation
- A copy of your share certificate
- A copy of the company’s Memorandum and Articles of Association (MAA)
- Copies of passports for all company partners
These documents are essential for regulatory compliance and the seamless establishment and operation of your business in a Dubai Free Zone.
setup a business in dubai free zone
The Dubai Free Zone company setup follows five straightforward steps:
Choose Your Business Activity: Select the business activity you intend to pursue, as your license type hinges on this choice. Many Dubai zones offer a range of activities, allowing for flexibility.
Pick the Right Free Zone: After determining your business activity, the next step is to choose the most suitable free zone for your needs. Dubai offers sector-specific zones, such as IT, healthcare, commerce, and trading. Research and choose wisely.
Select Your Company Name: Before finalizing your company name, make sure it’s available for registration on the Dubai Free Zone authority portal. Your chosen name should also adhere to specific naming standards.
Gather Documents and Apply for a License: Once you’ve settled on your business activity and registered your trade name, the next vital step is to apply for a license. The license type depends on your chosen activity. You’ll need to fill out an application form, gather the required documents, and even initiate a visa application if needed. You can expect to receive a valid license within 2-4 weeks.
Open a Corporate Bank Account: Opening a bank account is a straightforward process. Gather your documents and your business license, and provide them to your chosen financial institution.
Following these steps, you’ll be well on your way to setting up your business in a Dubai Free Zone.
Open business in dubai free zone with VSS
The Department of Economic Development (DED) Dubai grants licenses for mainland businesses, and the free zone companies can obtain their licenses from the respective free zone authorities.
The Business Setup Cost in Dubai structure varies depending on the business activity opted for, and to enjoy a low-cost business setup in the Emirate; it is better to seek a professional consultant.
Such professional consultants would break down the proper cost for your company incorporation and make your work easier.
Frequently Asked Questions
The procedure includes
- Finalize the Business Activity and Name of your Business.
- Get All the Documents
- Get your License
- Avail Added Services like visa, office space etc.
- Open a Bank Account.
It depends on several aspects like the location you choose, the business activity, the scale of your business etc. Contact our advisors to get your quotation in no time.
Yes, Dubai encourages business set up regardless of nationalities through its friendly laws and policies.
Yes, it is possible. However, it is a tedious and tiresome process and Commitbiz Business Management Consultants — one of the best company formation consultants in Dubai — can effectively incorporate your business in no time.