Researching the free zones in the emirate is the first step if you want to launch your business in Dubai.
Once you get going, you’ll see that they have a tonne of amazing business advantages for the businesses who operate there.
Along with all the major advantages of conducting business in the UAE, such 0% tax on both personal and corporate income and a highly advantageous position in the world, you can also profit from a number of other aspects.
Free zone businesses have a number of advantages, including a complete exemption from import duties, the ability to repatriate all capital and earnings, no currency limits, and a variety of business support services.
That’s before you take into account the simple and inexpensive incorporation process, provided you are thoroughly knowledgeable about regional business standards when you start your firm. So, if you’re prepared to begin, please follow our step-by-step tutorial for setting up a corporation in the Dubai free zone.
Recognizing free zones
Free zones are designated economic zones that offer complete duty- and tax-free storage, handling, production, and trade of goods and services.
They are popular with import/export companies and others that engage in international trade as they are frequently located connected to or close to seaports and airports.
This isn’t always the case, though. The length and breadth of Dubai are covered in free zones, including Jebel Ali Free Zone, Dubai Science Park, and Dubai World Trade Center. Talk to the best business consultants to know about company registration in Dubai
Company establishment in the Dubai Free Zone
The formation of a corporation in the Dubai Free Zone just takes five easy steps with professional assistance.
- Choosing what you do
Outlining your intended business operations in detail before applying for your Dubai free zone licence is the first step to take. There are hundreds to pick from, covering a wide range of sectors and sub-sectors, according to the Dubai Department of Economic Development (DED).
While there may be a wide variety of options, it’s crucial that you explicitly list every activity you plan to participate in when submitting your application.
Working with a business setup company can help with this stage so you don’t have to spend the time sorting through the countless activities to locate the ones that are best for your organisation.
- Selecting a company name
Before continuing with the application process, you must also select a company name at this time. It is crucial that you adhere to the UAE’s naming requirements when doing this.
If you want to use your name in your company name, you must use it in full rather than simply your surname or initials. You cannot use any derogatory or blasphemous words or references that may be judged objectionable. Additionally, you need to confirm that your desired name is open for registration.
- Application for a licence
The most crucial stage of free zone company registration is already here: requesting your licence.
It is wise to seek advice from a business formation specialist while registering a free zone corporation. This can assist you in avoiding expensive delays later on.
Directly approaching the management authority of the free zone of your choice is how you should apply for your free zone licence.
You will often be required to submit a business plan with your application, along with a completed application form and a copy of your passport.
- Application for a visa
When opening a business in a free zone, you can submit both your company licence application and your visa application at once.
To manage the application as part of the business incorporation procedure, you can either manage it yourself or collaborate with a company formation specialist.
It is also possible to sponsor someone else, such as your partner, parents, or children, for a UAE visa.
- Opening a business bank account
Finally, you must open a corporate bank account before you may conduct business in Dubai.
To avoid wasting time applying to a bank that is not appropriate for your needs, it is again best to engage with an expert in this area. Numerous banks, including both national and international brands, can be found in Dubai. For foreign business owners, creating a bank account can be a challenging process, therefore it is advisable to apply with the assistance of a professional who is familiar with the procedure and its requirements.
Cost of forming a free zone corporation
Since the final cost of Dubai free zone company formation is made up of numerous factors, it is not always simple to calculate.
You must take into account the price of premises, if necessary, as well as visa expenses, in addition to the cost of the free zone licence itself.
However, it is possible to cover all of these expenses at once. A trade licence, workspace use, and one or more visas for you and your staff are all included in the majority of Dubai free zone packages.
An expert in company formation can assist you in your quest by learning about your requirements and financial constraints before identifying a package that meets your demands.
How to Pick the Best Free Zone in the UAE for Your Business
When you are a foreign investor, it can be challenging to pick wisely because there are over 50 Free Zones in the UAE. Before establishing a business in one of the UAE Free Zones, you need really do your research and think things through. Keep in mind that each Free Zone has a separate share capital minimum, various cost structures, and varied lists of approved business activities.
Step 1: Select a business activity for your UAE-based company.
Each Free Zone has a unique set of permitted activities that may be carried out inside that particular Free Zone. The number of business activities that can be conducted under the same business licence is also subject to varied regulations in each Free Zone. The cost of a licence increases with the number of activities you select. Sometimes you’ll need to apply for two or more business licences for the same enterprise. A workaround for this is to select multiple activities from the same licencing type and one activity group, which will exclude you from paying any additional payments.
Step 2: Select the kind of facilities that your company will need.
You must make plans for the upcoming years. You can easily obtain a shared or flexi-desk at a co-working space if you do not have any immediate plans for significant business growth (including the hire of staff). These locations also meet the minimal facilities standards needed to obtain a business licence in the UAE.
Step 3: Determine how many UAE residency visas your business will require
Each employee of your UAE-based business needs a residence visa. The facility type determines the visa quota. Only a certain amount of visas are available from a shared desk, and these vary from one Free Zone to another. If you share a desk in Dubai, you can often only receive two or three visas; but, if your company is located in the Northern Emirates, you can normally get more.
There are also physical office space requirements for visas: you get one visa quota for every 9–10 square metres.
Opening a business in a free zone in Dubai
Setting up a business in a Dubai free zone is a straightforward process. Having saying that, it does require a thorough understanding of the UAE’s varied cultures and laws. Go through the details of freezone business setup in dubai
In order to choose the most appropriate licence and setup type for your business, based on your requirements and your budget, it is always good to hire the services of a business setup company. These professionals can not only provide advice on the procedure.
You can rest easy knowing that your licence and visa applications are free of mistakes and omissions, both of which can result in delays and rejection, when you use company setup services. All you need to give when working with a company formation specialist is some basic documentation and some details about the nature of your firm. After that, just relax and let the professionals do the rest, including organising your licence and visa applications, liaising with the necessary agencies, and reporting back when you’re ready to begin trading. That’s how easy it is, in fact. Learn about starting an import-export business in Dubai free zone