Establishment of a company in the free zone in Dubai

Dubai is one of the most prominent global destinations for establishing companies, thanks to its strategic location and advanced infrastructure. Among the most prominent options available to entrepreneurs and investors, establishing a company in the Dubai Free Zone is an ideal option that provides many unique advantages. Free zones offer foreign investors full ownership of companies, attractive tax exemptions, and a flexible business environment that encourages innovation and growth. Thanks to these advantages, Dubai’s free zones have become a major attraction for companies from various sectors, enhancing Dubai’s position as a global economic center. In this article, we will review the basic steps for establishing a company in the Dubai Free Zone, highlighting the benefits that investors can obtain from this vital option.

Establishing a company in the free zone in Dubai

Establishing a company in the Dubai Free Zone provides investors with a range of unique advantages that make this move an attractive option for many entrepreneurs. Thanks to government facilities and tax exemptions, investors can enjoy full ownership of the company without the need for a local partner, in addition to the freedom to transfer profits and capital in full. The advanced infrastructure and integrated services provided in the free zones ensure a flexible and supportive work environment that allows companies to grow and prosper. Thanks to Dubai’s strategic location, companies can easily access regional and international markets, enhancing opportunities for expansion and success.

Establishing a company in the Dubai Free Zone with the help of Itqan Company provides investors with a smooth and efficient experience. “Itqan” provides integrated advisory services that include guiding investors through all establishment steps, from choosing the appropriate business activity until completing all legal and administrative procedures. Thanks to its extensive experience in the local market, Itqan helps expedite the process of obtaining the required licenses and approvals, while ensuring full compliance with local laws and regulations. The continuous support from our company saves investors time and effort, allowing them to focus on growing their business and achieving their business goals in a flexible and supportive investment environment.

Advantages of establishing a company in the free zone in Dubai

Establishing a company in the Dubai Free Zone has several advantages that make it an ideal choice for investors seeking growth and stability in an advanced and sophisticated business environment. Among these features:

1. 100% Foreign Ownership: Dubai’s free zone system allows foreign investors to fully own their companies without the need for a local partner.
2. Tax exemptions: Free zones provide complete exemption from taxes on income and profits for up to 50 years, which contributes to enhancing profitability and stimulating economic growth.
3. Simple incorporation procedures: Investors enjoy easy and fast incorporation procedures, which helps them get started quickly and efficiently without major administrative complications.
4. Advanced infrastructure: Dubai’s free zones have modern infrastructure and advanced facilities, which supports companies in carrying out their activities with high efficiency and low costs.
5. Freedom of currencies: The free zone system in Dubai allows freedom to convert currencies and deal in foreign currencies without restrictions.
6. Access to regional and global markets: Thanks to its strategic location, Dubai provides an interface for global trade, making it easier for companies to access the Middle East, Africa and South Asia markets with ease.
7. Integrated logistics services: Free zones in Dubai allow companies to benefit from integrated logistics services, including customs clearance, transportation and distribution, which contributes to accelerating supply and distribution operations.

In short, establishing a company in the Dubai Free Zone is an attractive investment option that provides many opportunities and competitive advantages that enhance business success and achieve commercial goals with high efficiency.

What is a free zone?

The meaning and definition of the word free zone varies depending on the type of free zone, but in most cases the word free zone expresses a geographical area in which goods are preserved, stored, manufactured, traded and re-exported according to a known and specific customs system, but it is not subject to any customs duties.

The term free zones is also considered to be entities completely separate from the laws of the state, as they are not governed by the trade laws of the country and do not require a sponsor. Likewise, the company that is established in the free zone can be owned by a person of another nationality without the need for a partner who is a citizen of the Emirates.

The free zones in Dubai and in the Emirates in general are not subject to the general laws set by the Ministry of Economy to regulate the commercial activities of companies, as this free zone in Dubai works to provide ownership freedom for businesses, in addition to tax exemption and exemption from any customs duties. These advantages in the free zones make them An ideal and honorable face for international companies that carry out many commercial activities. It is also an advantage that opening and establishing a company in Dubai and in the free zone does not require the presence of a partner or sponsor who is a citizen of the Emirates.

Steps to invest in Dubai

Starting to reside and invest in Dubai requires knowing the procedures for establishing a company in the Emirates, and the procedures for obtaining a commercial license in Dubai. Among the procedures for establishing a company in the Emirates and obtaining a commercial license in Dubai are the following:

1. The UAE market must be studied well, as well as the target region’s need for investment, and on its basis the type of company activity is determined, whether it is professional, commercial, or industrial.
2. After deciding on the appropriate type of activity for the company, the company name is determined, and it must be compatible with the type of activity.
3. The UAE stipulates that any foreign investor must have an Emirati partner, and must own a limited liability company, or contract with an authorized agent office in the Emirates.
4. Choose a suitable place to be the company’s headquarters, and all safety measures must be in place, as well as an element of security and protection, and easy access to public facilities.
5. Obtaining a lease contract for the company’s headquarters, or an ownership contract, and documenting these contracts in the relevant government agencies.
   Submitting documents and papers related to company ownership, type of activity, and obtaining a commercial license in Dubai.
6. Obtaining initial approval to conduct business.
7. Receiving the commercial license, and starting the company’s commercial registration procedures.
8. These are some of the procedures for establishing a company in Dubai, and also obtaining a business license in Dubai, in order to reside and invest in Dubai.

What is an instant license Dubai?

Instant license in Dubai is a service provided by the Department of Economic Development (DED) with the aim of facilitating and accelerating the process of establishing companies and obtaining a commercial license quickly. This service targets entrepreneurs and investors who want to start their business immediately without having to wait for long periods. Here are the details of this service:

Advantages of instant license

1. Speed ​​of issuance: An instant license can be obtained within minutes.
2. Flexibility of activities: The immediate license covers a wide range of commercial and service activities.
3. Reducing documents: It does not require submitting a large number of documents in the first stage.
4. Full foreign ownership: Foreign investors can own 100% of the company.
5. Ease of renewal: The license can be easily renewed online.

Steps to establish a company in the free zone in Dubai

Now, regardless of your financial ability or what you set a financial budget for establishing and establishing any investment projects in Dubai or establishing a company in Dubai, you can now establish any project or investment service in Dubai due to the multiple needs of the UAE and also due to the ease of providing methods for establishing investment projects there, but it must Knowing the appropriate and basic steps in establishing a company in Dubai are as follows:

1- Determine the nature of the company’s activity:

Determining the nature of the company’s activity is one of the most important procedures imposed by UAE law when establishing companies in Dubai. This facilitates procedures and then determines the parties associated with the company’s activity and the permitted legal forms. There are approximately 2,000 economic activities permitted in the UAE, and economic activities are classified into three main types:

Commercial activity includes real estate, leasing, transportation, financial intermediation, wholesale, retail, storage, and communications. Professional activity includes agriculture, health, social work, education, and various service activities related to society, i.e. an activity that depends on physical and mental activity to practice it. Finally, industrial activity includes transformative industries such as mining, water, electricity, quarrying, and there are also some tourism activities.

2- Determine the legal form of the company:

Here we are talking about the legal form of the new company that will be established. This form depends on the nationality of its owners, and the legal form of the company that you plan to establish in Dubai is as follows:

• Joint company.
• Limited liability companies.
• Public joint stock company.
• Private equity company.
• Civil works companies.

3- Trade name registration:

The third step of establishing companies is specifying the trade name in establishing a company in Dubai, which is what distinguishes one commercial license from another. The trade name is also related to the form and activity of the commercial company and is met with several important conditions that the Department of Economic Development stipulates on the trade name before it approves it. The name is that the company’s trade name does not contain words that are inappropriate for the country, that it does not contravene the public and private taste of the country, and that the trade name reflects the commercial activity accurately and clearly.

4- Obtaining initial approval:

After determining the legal activity of the company and its legal form as well, and registering its trade name, you must now obtain initial approval for the economic activity of the company and follow up in order to obtain the approval of the authorities related to the activity.

5- Preparing the articles of incorporation and choosing a location for your business:

Here comes the moment of concluding or preparing the contract designated for establishing a company in the free zone in Dubai. The contract of incorporation must be presented in agreement between you and the competent authorities in Jebel Ali. You must also choose a location to establish the company in the free zone or establish a company in Jebel Ali to conduct business. All Established companies must have a physical address located in the United Arab Emirates, and this headquarters must meet the specified requirements and land allocation systems previously, in addition to having an existing license.

6- Obtaining approvals from the authorities concerned with the facility’s activity

Some commercial activities and projects require obtaining additional approvals from the competent authorities for those projects and activities concerned with them, such as approval from the Ministry of Economy, or specialized approval from the Ministry of Interior, or specialized approval from the Ministry of Justice, or approval from Civil Defense if the activity, for example, is related to the activities of selling equipment. Fire extinguishing.

7- Obtaining the license

After completing all the previous steps to prepare and establish an investment company in Jebel Ali or establish a company in the free zone in Dubai, you can now receive the commercial activity license, attach some of the required papers and documents, including also the economic development steps and pay the commercial license fees for establishing the company, then after registration is completed in the chamber. Business as a member.

Costs of establishing a company in Dubai

The costs of establishing a company in Dubai are mainly limited to several expenses, which are as follows:

1. Cost of commercial license expenses (license to practice business)
2. The price of purchasing the office location or the company through which you conduct your business, whether renting or purchasing.
3. The price of purchasing furniture and decor for the office in which you conduct your business.
4. The price for obtaining work permits for sponsored employees and the required visas for them under the name of your current company.
5. The price of opening a new account in the name of the company in a bank and depositing the minimum capital according to the type of business activity.
6. The amount of the cost of the company’s legal form has a fundamental role in whether the cost of incorporation increases or decreases, so the costs of establishing industrial companies increase
7. About the cost of establishing commercial and professional companies in Dubai. Finally, the price of the commercial license.

Establishing a company in the Dubai Free Zone represents a strategic step with many benefits for investors and entrepreneurs. Thanks to government facilities and advanced infrastructure, companies can benefit from full ownership without the need for a local partner, along with tax exemptions and flexible legislation. These advantages allow companies to grow and thrive in a global business environment. By choosing Dubai Free Zone, investors are guaranteed to join a thriving economic hub characterized by stability and broad opportunities. Dubai represents a gateway to success and expansion in regional and international markets, which makes establishing a company there a smart and future-proof investment.

Frequently asked questions about establishing a company in the Dubai Free Zone