Establishment of companies in free zones in Dubai

In light of the rapid economic growth and open investment environment, the Emirate of Dubai in the United Arab Emirates is one of the most prominent global destinations for establishing companies in free zones. Dubai has a large number of free zones that provide an ideal environment for business, attracting entrepreneurs and investors from around the world. This article provides an overview of the benefits and procedures for establishing companies in Dubai’s free zones , as well as the services available and potential challenges that new companies may face.

Establishment of companies in free zones in Dubai

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Instant license in Dubai

The instant license in Dubai represents an innovative and effective service provided by some free zones in Dubai, and aims to facilitate and accelerate the process of establishing companies. This license allows investors to start business immediately without the need for lengthy transactions or complex bureaucratic procedures. An instant license usually includes the ability to quickly obtain a General Manager’s license and visa, facilitating the immediate and efficient process of starting a business. An instant license in Dubai provides investors with many benefits, including:

Speed and efficiency: An instant license allows companies to start operating immediately, reducing the time needed to set up a company and increasing the efficiency of launches.
Low costs: The costs of obtaining an immediate license compared to traditional methods of establishing companies in Dubai are usually lower, which attracts investors looking for affordable investment opportunities.
Flexibility in legal options: The Instant License offers flexibility in choosing the types of companies permitted, such as sole proprietorships and limited liability companies, allowing investors to choose the legal structure best suited to their needs.
Support for small and medium-sized entrepreneurship: The instant license enhances the opportunities for entrepreneurship and innovation in Dubai, and supports emerging, small and medium-sized companies by giving them the opportunity to start quickly and at a reasonable cost.
Simple and transparent procedures: The instant license features simplified and transparent procedures, making it easier for investors to easily understand the requirements and conditions.

In short, a business license in Dubai is an ideal option for investors looking for a dynamic and favorable business environment that helps them start business quickly and effectively.

Types of companies in free zones in Dubai

The types of companies available in Dubai’s free zones can be divided into several main types, as follows:

Company type	Description
Sole proprietorship	A company owned by one person. This person is solely responsible for all of the company’s obligations.
Limited Liability Company (LLC)	A company consisting of partners whose liability is limited to the extent of their capital contributions, and which is managed or managed by a group of directors.
Joint stock company	A company whose members own shares in the capital and are liable in proportion to the size of their shareholding in the company.
Limited Liability Company (FZ-LLC)	A special type of limited liability company available in free zones, with financial policies and laws favorable to foreign investors.
Branch Company	A branch of a national or international company owned by the parent company and enjoying certain rights and privileges in accordance with local laws.

These types represent various options that allow investors to select the company structure that best suits their needs and business objectives in the free zones in Dubai .

Establishing companies in free zones in Dubai

To establish a company in a free zone in Dubai, the required documents usually vary slightly from one free zone to another and differ depending on the type of company you wish to establish, but in most cases, you will need the following documents:

Company registration application form: includes information about the company, such as its name, legal type, and objectives.
Copy of the passport of shareholders and directors: These copies must be certified.
No objection certificate for shareholders: This certificate can be requested if there are individual shareholders.
Investment Agreement (MOA): A document that defines the scope of activity, distribution of shares and basic details of the company.
List of directors: You need to provide the names and details of the directors authorized to manage the company.
Office lease contract: You must have a lease contract for the office within the free zone.
Certificate of good financial conduct: This certificate means that there are no financial problems with the company or managers.
Business Plan: You may be asked to submit a business plan that outlines your business goals and plans for growth.

Remember that these requirements can vary based on the type of company and policies of the free zone you choose in Dubai. It is always best to check the exact requirements of the specific free zone in which you intend to set up your company.

What are the free zones in Dubai?

In Dubai, there are several free zones also known as special economic zones or industrial free zones. These free zones usually include advanced infrastructure and provide a facilitating investment environment for local and international companies. Among the main free zones in Dubai include:

Jebel Ali Free Zone (JAFZA)

JAFZA is the largest free zone in the world.
It provides advanced infrastructure and integrated logistics services.
It attracts many industries such as manufacturing, logistics, and trade.

Dubai Investments Free Zone (DED – Dubai Silicon Oasis)

Specializing in Information Technology, Communications and Electronics.
It includes international companies and research and development centers.

Dubai Aviation Free Zone (DAFZ – Dubai Airport Free Zone)

Located near Dubai International Airport.
Specializing in logistics services, aviation and air freight.

Dubai Technology and Media Free Zone (DIC – Dubai Internet City)

She specialized in the technology, media and communications sector.
It attracts global technology companies and startups.

Dubai Healthcare Free Zone (DHCC – Dubai Healthcare City)

I specialized in the medical and healthcare sector.
It includes hospitals, medical centers, and healthcare technology companies.

Dubai Media Free Zone (DMCC – Dubai Multi Commodities Centre)

It specializes in the multi-commodity sector such as gold, diamond and jewelery trading.
It also includes offices for international and regional companies.
These are some of the major free zones in Dubai, and each offers distinct opportunities for companies to take advantage of the emirate’s facilitating and developing business environment.

Establishing foreign companies in the Emirates

The establishment of foreign companies in the Emirates usually takes place through one of the free zones that provide a convenient and advanced investment environment, such as free zones in Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain, and Fujairah. These areas provide foreign companies with several benefits, including:

Full ownership: Some free zones in the UAE allow foreign companies to fully own their assets and shares without the need for a local partner.
Logistics facilities: Free zones provide advanced infrastructure and integrated logistical services that facilitate import, export and distribution operations.
Tax exemptions: Free zones in the UAE usually operate with a favorable tax system, as they do not impose taxes on profits and income.
Simplified procedures: The procedures for establishing companies in free zones are characterized by simplicity and transparency, which makes it easier for investors to establish and manage their businesses efficiently.
Government support: The UAE government provides significant support to foreign companies through stimulating investment policies and incentive programs.

In addition, these areas allow foreign companies to access a large consumer market in the Middle East and Asia, making them an ideal destination for international investments.

The importance of establishing companies in free zones in Dubai

Establishing companies in free zones in Dubai carries great importance on several levels, the most prominent of which are:

Facilitated legislative policies: Dubai free zones are characterized by clear and easy legislative policies that help speed up the establishment and operation of companies, which reduces bureaucracy and makes it easier for entrepreneurs to quickly start their businesses.
Full foreign ownership: Dubai free zones allow foreign companies to fully own their assets and capital without the need for a local partner, which increases Dubai’s attractiveness as an international investment destination.
Advanced Infrastructure: Dubai free zones provide advanced infrastructure that supports businesses with integrated logistics services, facilitating import, export and distribution operations effectively.
Tax and customs exemptions: Dubai free zones are an environment free of taxes on profits and income, as well as customs, import and export duties, which reduces the overall costs of companies and increases their profitability.
Access to the regional and global market: Dubai is located in a strategic location that facilitates access to the Middle East, North Africa and Asian markets, which enhances growth and expansion opportunities for companies located in the free zones.
Government and investment support: The Dubai government supports companies in free zones with stimulating investment policies and encouraging programs aimed at supporting innovation and leadership and attracting foreign investments.

In short, Dubai’s free zones are an ideal stop for companies wishing to benefit from an advanced and easy business environment that makes it easier for them to achieve success and growth in a competitive global market.

At the conclusion of this article, it is clear that setting up companies in Dubai’s free zones is indeed a favorable investment option. These regions feature advanced infrastructure, favorable legislative policies, and attractive tax exemptions, making them an ideal haven for small, medium and large companies alike. In addition, free zones in Dubai contribute to strengthening the local economy, increasing trade exchange at the international level, and providing job opportunities for residents and citizens alike.

By exploiting available investment opportunities and enjoying strong government support, companies in Dubai’s free zones can achieve sustainable growth and continued success in a competitive global market. Therefore, investing in establishing a company in one of these regions represents a crucial strategic step for any investor seeking to achieve success and stability in Dubai, the commercial and financial center of the region.

Frequently asked questions about establishing companies in free zones in Dubai

What are the main advantages of setting up a company in a free zone in Dubai?

Free zones in Dubai enjoy easy legislative policies, tax exemptions on profits and income, 100% foreign ownership without the need for a local partner, and advanced infrastructure that supports business.

What types of companies can I establish in Dubai free zones?

A variety of companies can be created such as sole proprietorships, limited liability companies, joint stock companies, and branches of national or international companies.

What are the basic steps to establish a company in a free zone in Dubai?

The basic steps include choosing the company type, submitting a license application, determining the business address, submitting the required documents, opening a bank account, and obtaining the necessary licenses.