Dubai has become renowned for its free zones that pose endless business opportunities to its entrepreneurs & foreign investors. With the number of specialist free zones in Dubai flourishing, their influence on the economy of the UAE has also increased. A free trade zone or free zone is a field with special tax-free status & reduced trade barriers where goods can be manufactured, imported or exported, managed, or reconfigured without giving any customs tax. It has grown a popularized form of company registration in UAE, where 100% foreign ownership is allowed. Free zones are commonly found in strategic geographical areas such as major seaports, international airports & national borders, to expand trading profits.
Companies working in free zones are exempt from all sorts of taxation like income tax, customs, corporate tax & VAT. The main purpose of these free zones is to promote foreign investment & stimulate economic activity in the territory. There are more than 30 free zone areas in Dubai that are presently being operated & administered by the UAE government. Each free zone has its set of rules & regulations for everybody to follow. All the trade zones are supposed for various industrial categories & give business licenses to the entrepreneurs. Given below the list of free trade zones in Dubai:
- Dubai Airport Free Zone Authority (DAFZA)
- Jebel Ali Free Zone Authority (JAFZA)
- Dubai Silicon Oasis Free Zone (DSO)
- Dubai Multi Commodities Centre (DMCC)
- Dubai International Financial Centre (DIFC)
- Dubai Knowledge Village (DKV)
- Dubai World Centre (DWC)
- Dubai Maritime City
- Dubai Healthcare City (DHCC)
- Dubai Textile City (DTC)
- Dubai Internet City
- Dubai Biotechnology and Research Park (DuBioTech)
- Dubai Studio City (DSC)
- Dubai Outsource Zone (DOZ)
- Dubai Gold and Diamond Park
- International Media Production Zone (IMPZ)
- Dubai Energy Park (Environmental Park)
- Dubai Logistics City (DLC)
- International Humanitarian City
- Dubai Dragon Mart
- Dubai Flower Centre (DFC)
- Dubai Techno Park (DTP)
Steps to Setup a Business in the UAE Free Zones
Once we decide to set up the business in any free zone in UAE, certain steps or procedures must follow.
- Determine the Type of Legal Entity
Find out the type of legal entity your company would commence. In a free trade zone, you can set up one among the two types of companies:
- Free Zone Establishment (FZE)
- Free Zone Company (FZ Co.) or Free Zone Limited Liability Company (FZ LLC)
These can be differentiated based on the number of shareholders & the nature of the shareholder (a natural person or a legal person). All free trade zones may not register both categories of companies. You must check with individual free zone specialists regarding the kind of company they can register.
- Choose A Business Name
Next to selecting the type of legal entity, pick a name for your company. Before finalizing one name you should cross-check with the corresponding free zone authority regarding the permitted business names & whether the proposed name has previously been registered.
- Apply for A Business License
Once you picked the business name & registered it in the free zone authority's portal, then you must proceed with the business license application. For this, you need to submit all the essential documents & based on the nature of your business activity, the business license can be varied.
- Choose an Office Space
Free zone specialists give flex- desk office assistance to help new companies. You can buy or rent office areas in free zones. Office necessities rely upon the number of representatives & sort of business activities of your organization.
- Get Initial Approval, Register Your Business & Get the License
Get pre-approval & the associated business approvals from the appropriate specialists, register your business at the free zone portal, and receive your trade license. It will hardly take 2 to 4 weeks to get done completely with this process. When you get the permit, you are eligible to begin your company formation in Dubai Free Zone, without any hassle.
Required Documents for Company Formation in The Dubai Free Zone
- Business Plan
- Passport copies of the shareholders
- Passport copy of the manager
- Verification of trade name reservation
- Verification for pre-approval for the activities
- Personal information of shareholders
- Personal information of the manager
- Lease agreement documents with complete details
- Power of Attorney of the legal delegate
- Initial approval of third parties on certain activities
Gains of Company Formation in Dubai Free Zones
Business set up in Dubai free zones offer several advantages to the businesses. They are:
- 100% ownership
- 100% repatriation of profits
- No corporate tax
- No income tax
- No currency restrictions
- No activity restrictions
- Liberal labour laws & no visa restriction
- Virtual office facilities
- No import or export duties
- No recruitment problems
If you are in search of a business set up consultant in Dubai to ease your UAE free zone company formation & unveil your business aspirations into action, then you can approach Connect Services Middle East. We have a team of professionals who can deal with the whole assignment of setting up a free zone company, winning a business license, the Bank Account opening, placing office staff, visa procedures, auditing, accounting & all prerequisites related to the organization. Ultimately, we are one-stop solutions for all your business needs! We can walk you across it step-by-step, pushing you in the proper direction, protecting your cash, & in time, we can make the entire set up process in a hassle-free manner.
Connect with our team today for assistance – we’ll be glad to help you!