Establishing companies in free zones in Dubai

Dubai Free Zones are one of the most prominent global destinations for establishing companies in Dubai Free Zones, providing an ideal environment for ambitious investors from all over the world. These regions provide competitive advantages that contribute to attracting new companies and promoting business growth, making them an attractive option for many investors.

Free zones in Dubai have many benefits that make the process of establishing companies smoother and more effective. The most prominent of these benefits is complete exemption from taxes on companies and personal profits, which contributes to increasing profitability and reducing operational costs. Free zones also allow foreign investors to own companies 100% without the need for a local partner, which enhances full control over the business and gives investors complete freedom in making business decisions.

Furthermore, Dubai free zones provide simplified and fast establishment procedures, reducing the time and effort required to start a business. These procedures include obtaining a business license, registering the company, and providing the necessary infrastructure, such as offices and logistical facilities.

The free zones are also strategically located near major ports and airports, which facilitates access to global markets and contributes to accelerating shipping and distribution operations. In addition, free zones provide various support services including legal, administrative, and accounting assistance, which contributes to the success and sustainability of new companies.

In this article, we will review the details of the process of establishing a company in the free zones in Dubai , reviewing the benefits, challenges, and basic steps that must be followed to achieve success in this dynamic market.

Steps to establish companies in free zones in Dubai

Establishing a company in Dubai free zones includes a set of basic steps that must be followed to ensure compliance with all legal and administrative requirements. Here are the steps to establish a company in the free zones in Dubai:

1. Choosing the appropriate free zone: Determine the free zone that suits the type of business activity, investment requirements, and strategic location.
2. Determine the type of company: Choose the appropriate company type, such as a limited liability company (LLC), a private joint stock company, or a branch of a foreign company.
3. Preparing the required documents: Collect basic documents such as passports, personal photos, business plan, articles of incorporation, and office lease contract.
4. Choosing a company name: Choosing a name that complies with the naming rules in force in the free zone, and submitting it to the competent authority for approval.
5. Submitting a license application: Submitting an application for a license to the responsible authority in the free zone, along with submitting all required documents.
6. Payment of fees: Payment of fees associated with a company license, which includes establishment fees, rent, and visas.
7. License issuance: After completing all procedures and paying the fees, the commercial license will be issued by the relevant authority in the free zone.
8. Opening a bank account: Opening a commercial bank account in one of the approved banks in the Emirates, submitting company documents and licensing approval.
9. Employment and Visas: Submitting applications for work and residency visas for employees, and implementing recruitment procedures in accordance with labor laws.
10. Trademark Registration: Register the trademark if the company intends to use it, to obtain legal protection for it.
11. Preparing the office or facility: Preparing the office or facility according to the requirements of the free zone, and ensuring the availability of the necessary infrastructure to start work.
12. Initiating commercial operations: After completing all previous steps, commercial operations can be initiated and the company operated in accordance with the activities authorized in the license.

Advantages of starting a business in Dubai free zones

Starting a business in Dubai’s free zones offers many positives that make it a preferred destination for investors and businessmen. Here are the most notable advantages:

• Full tax exemptions: Companies in free zones benefit from tax exemptions on corporate and personal profits, which enhances profitability and reduces operational costs.
• Full foreign ownership: Foreign investors can fully own their companies without the need for a local partner, providing them with full control over the company’s operations.
• Fast and simplified procedures: Free zones offer simplified and fast incorporation procedures, which reduces the time it takes to start a business and allows companies to start doing business faster.
• Advanced infrastructure: Free zones provide advanced infrastructure that includes offices, warehouses, and logistical facilities, which contributes to facilitating business operations and achieving high operational efficiency.
• Logistics facilities: Many free zones are located close to major ports and airports in Dubai, facilitating access to international markets and enhancing the effectiveness of the supply chain.
• Integrated support services: Free zones provide a range of support services such as legal, accounting, and administrative consultations, which contribute to facilitating the establishment and operation processes.
• Suitable business environment: Free zones provide a supportive business environment with laws and regulations that encourage growth and innovation, which enhances the chances of success and expansion.
• Flexibility in choosing activities: Free zones offer a wide variety of business activities, allowing investors to choose the activity that suits their strategies and goals.
• Facilitated visa services: Free zones provide facilities for obtaining residence and work visas, which contributes to attracting and retaining talent.

Costs of establishing companies in free zones in Dubai

The costs of setting up companies in free zones in Dubai vary based on the type of company and the specific free zone, but the main costs that should be considered can be classified as follows:

• License fees: This includes the fees for issuing the company’s commercial license, which is a basic cost paid to the responsible authority in the free zone in exchange for granting the license.
• Office or facility rent: This includes the cost of renting the office or commercial space in which the company will operate, which depends on the location and size of the space.
• Incorporation fees: Includes the costs of registering the company and notarizing legal documents such as articles of incorporation and notarization.
• Visa costs: These include fees for issuing work and residency visas for employees and investors, which are necessary to enjoy legal status in the country.
• Set-up and equipment costs: This includes the cost of equipping the office or facility with basic infrastructure such as furniture, equipment and technical systems.
• Legal Services Fees: Includes costs for legal consultation and review of documents to ensure compliance with local laws.
• Trademark registration fees: related to the cost of registering the trademark and protecting it legally.
• Administrative and financial costs: These include costs associated with administrative services, such as accounting, auditing, and financial operations management.
• Insurance: Includes the cost of property insurance, general liability, and required business insurances.
• Other government fees: includes any additional fees that may be imposed by government agencies or other regulatory bodies.

Types of free zones in Dubai

The number of free zones in Dubai is more than 30, and this number is increasing. We will enumerate for you some of the most famous areas that individuals resort to with the aim of establishing a company in the Dubai Free Zone:

• Dubai Airport Free Zone
• Dubai Design District
• Dubai Healthcare City
• Dubai International Academic City
• Dubai Internet City
• Dubai International Financial Centre
• Knowledge Park in Dubai
• Dubai Media City
• Gold and Diamond Complex
• Dubai Multi Commodities Centre
• Dubai Silicon Oasis
• Jebel Ali Free Zone Authority
• Dubai Production City
• Dubai South
• Dubai Media Production City
• Dubai Studio City

Documents and documents required to register the company in the Dubai Free Zone

• The Board of Directors’ decision to appoint a manager for the company is officially documented and authenticated by a notary public
• A legal agency through which the director is authorized, officially notarized and authenticated by a notary as well
• The company’s articles of incorporation and articles of association have been authenticated and authenticated by a notary public
• The director’s signature form is officially notarized, authenticated by a notary public
• A personal photo of the manager with a white background
• Information about share capital

Cost of a business license in Dubai Free Zone

The cost of obtaining a business license in free zones in Dubai varies based on several factors, including the type of business activity, the size of the company, and the specific free zone. In general, costs can be divided into the following components:

• License fees: Depends on the type of activity and size of the company, and may include the basic fees for obtaining a commercial license.
• Office Rent: Costs vary based on the location and size of the office you choose. In some free zones, you may choose a small office or virtual office package, which may affect the overall cost.
• Registration fees: Includes the costs of registering the company and submitting the required documents.
• Visa fees: Includes costs associated with residence and employee visas.
• Administrative and Service Fees: These include the costs of administrative and business services that may be required during the incorporation process.
• Insurance and additional costs: You may need to pay insurance or additional fees related to business or legal requirements.

These costs vary from one free zone to another, so it is advisable to contact the specific free zone directly to obtain precise details about the costs related to a business license and the options available.

In conclusion, the free zones in Dubai are an ideal choice for investors seeking to establish their companies in a distinguished commercial environment equipped with all facilities. These areas, including Jebel Ali, Daouda and Knowledge Village, offer a range of benefits that make them an attractive destination for businesses. From comprehensive tax exemptions to full ownership by foreigners, Dubai’s free zones provide a conducive environment for growth and expansion.

Advanced infrastructure and excellent logistics services contribute to enhancing the competitiveness of companies, as it allows them quick access to international markets through modern ports and airports. The quick and simple procedures for obtaining licenses and permits, along with administrative facilities, reduce the time it takes to start a business and contribute to accelerating the establishment process.

Moreover, investing in free zones provides great opportunities for expansion and growth, thanks to government support and the free zone’s commitment to providing integrated and innovative services. By providing continuous support and various facilities, Dubai free zones ensure companies succeed and achieve their business goals.

All in all, establishing a company in Dubai’s free zones represents a strategic step towards success in the contemporary business world, as it combines tax benefits, operational flexibility and global expansion. Choosing the right free zone depends on the type of business and the needs of the company, but what remains constant is that Dubai provides a unique business environment that supports business growth and long-term success.

The most important frequently asked questions about establishing companies in free zones in Dubai