Thinking of starting a business in Dubai’s free zones but not sure where to begin? Our blog explains the details of setting up a business in Dubai’s free zones. The UAE is a popular choice for entrepreneurs worldwide, with a strong economy and advantages like excellent infrastructure, low taxes, global connections, and a thriving economy. Dubai, in particular, offers the ideal environment to run your business.
The benefits provided in Dubai’s 40+ Free Trade Zones (FTZs) are the main reasons that foreigners have flocked here in the masses to invest. Acquiring your trade license in Dubai free zone grants the following benefits:
- 100% company ownership
- Repatriate all earnings and capital
- Exemption from corporate and import/export taxes
If you’re considering establishing a free zone company in Dubai, the International Free Zone Authority (IFZA) and Meydan Free Zone company setup  are the perfect choice. IFZA has become one of the UAE’s most sought-after free zones, thanks to its numerous investor-friendly advantages.
IFZA is distinctive among UAE free zones, offering investors several unique benefits:
- No need to submit an annual audit report
- No mandatory paid-up share capital
- Up to 3-year visas for both owners and employees
- No employee guarantee deposit requirement
- Option to establish a virtual office
- No necessity for investors to be physically present during company formation
- No NOC (No Objection Certificate) required from the current visa sponsor
Table of Contents
How to Setup a Company in Dubai Free Zone
Step 1: Choose Your Business Activities
To setup a company in Dubai free zone, you must first determine the nature of your business activities. This decision plays a crucial role in selecting the appropriate location for your company registration.
Are you considering freelancing or establishing a free zone company with employees?
Opting for freelancing can be a cost-effective route, but it’s worth noting that not all of Dubai’s free zones provide freelance permits, which may limit your choices. On the other hand, setting up a free zone company offers a wide array of options, with specialized and comprehensive zones available.
You must also choose the legal entity for the business. The legal entities available in free zones are:
- Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
- Free Zone Establishment (FZE)
Step 2: Select a Suitable Free Zone
After pinpointing your desired business type, the next crucial step is identifying the ideal free zone for your enterprise. With numerous outstanding UAE free zones available, the task involves reviewing and selecting the most fitting location for your business operations.
Step 3: Pick a Company Name for your free zone business
Next, pick a name that is approved of under the government’s regulations. Once that is done, you can reserve the name and wait for initial approval from the DED (Department of Economic Development) and/or the free zone authority.
Step 4: Make your License Application
Gather all the documents such as:
- Filled application form
- Business plan copy
- Passport copies of shareholders
Submit it to the respective free zone authority. They will take a little over a week to review and give you an answer. Additional documents may be required according to different free zones.
Step 5: Commence Visa Applications
At this stage, you can initiate the visa application process. This involves applying for your personal UAE residence visa, along with those of your employees and any domestic staff you might employ.
Step 6: Establishing Your Corporate Bank Account
To facilitate your trading activities, having a dedicated corporate bank account is essential. Ensure that this account is specifically tailored to your free zone business operations in Dubai and is separate from any personal accounts you may hold. It’s worth noting that opening a corporate bank account in the UAE can be a complex process, with various factors to consider, including each bank’s eligibility criteria.
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How much does it cost to open a free zone company in Dubai?
The initial cost of setting up a free zone company in Dubai involves registration with the relevant authorities. Fees differ based on the chosen free zone, usually falling between AED 11,900 and AED 50,000, encompassing company registration and essential license acquisition.
Advantages of Free Zone Business Setup in Dubai
- Full Ownership: Foreign investors can enjoy 100% ownership of their company.
- Profit Repatriation: Repatriate all profits outside the UAE with the freedom to transfer 100% of capital to your home country.
- 0% Corporate Tax: No corporate tax on business revenue, allowing you to retain all your profits.
- Effortless Import/Export: Free zones are exempt from customs duties, simplifying international trade.
- Strategic Location: Proximity to sea ports, airports, and borders for maximum trading advantages.
- Global Connectivity: Access to major sea ports and airports for both local and international trade, connecting you with MENA and South Asia.
- Diverse Business Community: Dubai’s global appeal brings in a diverse community, facilitating global business connections.
- Business Flexibility: Freedom to engage in various business activities.
- Swift Registration: A quick and straightforward licensing process with easy access to administrative services.
How do I Setup a Company in Dubai Free Zone?
To Setup a Company in Dubai Free Zone :
- Choose a business activity and license type.
- Pick a Free Zone.
- Decide on your corporate structure.
- Select a trade name and gather necessary documents.
- Apply for initial approval.
- Sign legal incorporation documents.
- Set up your business location.
- Obtain your business license.
Can a free zone company do business in Dubai?
Free zone companies can engage in business within their respective free zones and on a global scale. However, they are not authorized to conduct direct business transactions with customers in Dubai or the UAE mainland.
How can I start a company in free zone in UAE?
Here are the steps to start a company in UAE free zone:
- Define Your Business Activity: Decide on the nature of your business activity.
- Choose Your Company’s Legal Structure: Determine the legal structure for your company.
- Register the Trade Name: Register your chosen trade name.
- Select Business Space and Location: Choose the appropriate business space and location within the free zone.
- Obtain Initial Approval: Obtain initial approval for your business.
- Register and Pay Fees: Complete the registration process and pay the required fees.
How long does it take to set up a free zone company in Dubai?
The timeframe for setting up a free zone company in Dubai can vary depending on several factors, including the chosen free zone, the type of business activity, and the efficiency of the registration process. Generally, it can take anywhere from a few weeks to a few months to complete the entire setup process. Some free zones offer expedited services that can reduce the setup time, but it’s essential to consult with the specific free zone authority and business setup service providers for accurate and up-to-date information regarding the timeline for your particular case.
After the initial approval, submit the registration fees and license fees. This will require additional documentation. After this, the license will be processed and your business setup in Dubai free zone will be complete.
Voila! These are the steps for business setup in Dubai free zone. Whilst the process may seem relatively simple, there can be parts that will trouble you if you are new here.
For this reason, we recommend the assistance of a business setup consultancy in Dubai. Their familiarity with the laws and regulations makes the process a breeze and allow you to focus on other aspects of your company.
For further information and assistance on how to register your company in the UAE, speak with our experienced consultants. Book your FREE consultation today at +971582595164, +97145187213Â or drop us a line on info@companysetup.ae
