How to establish a company in the free zone in Dubai

How to establish a company in the Dubai Free Zone is considered an attractive strategic step for many investors and entrepreneurs from around the world, as Dubai provides an ideal environment for business thanks to its advanced infrastructure and encouraging economic policies. Dubai’s free zones are known for offering multiple incentives that include tax exemptions, full ownership by foreign investors, and no restrictions on repatriating capital and profits abroad, making them an ideal choice for companies seeking to establish a strong presence in the regional and international market. Establishing a company in the free zone requires a thorough understanding of the various legal procedures and regulatory requirements, which can be effectively achieved through cooperation with specialized companies such as Itqan, which provides comprehensive services covering all aspects of company establishment in Dubai.

The process of establishing a company in the free zone begins with determining the type of company and commercial activity to be practiced. Establishing a company in the free zone in Dubai is followed by choosing the appropriate free zone that is compatible with the company’s needs and strategic objectives. Once these criteria are determined, we move to the stage of preparing the necessary documents, which includes reserving the trade name, preparing the company’s articles of incorporation and articles of association, in addition to obtaining the required licenses from the competent authorities. Investors must also provide the necessary capital and submit financial documents proving the ability to cover establishment and operating costs

Besides these basic steps, investors must also choose a suitable location for the office or facility within the free zone, as some free zones provide various options of prefabricated offices and warehouses, allowing new companies to start their operations quickly and effectively. Cooperation with Itqan Company can contribute to accelerating these procedures and providing the necessary legal and administrative advice to ensure that the company is established correctly and in compliance with local regulations. In this way, new businesses can take advantage of the many advantages offered by Dubai’s free zones and set out for success in a growing global market.

Basic steps to establish a company in the Dubai Free Zone

Establishing a company in the Dubai Free Zone is a strategic step that can open broad business and investment horizons in one of the fastest growing economies in the world. Dubai is considered a global business hub thanks to its ideal geographical location between Europe, Asia and Africa, making it an ideal gateway to access regional and international markets. Free zones in Dubai offer a range of incentives such as tax exemptions, full foreign ownership, and no restrictions on repatriation of capital and profits, making them an attractive option for investors looking to expand their business. Establishing a company in the free zone requires following a set of steps that ensure compliance with local laws and provide a suitable work environment for business success. These steps can sometimes be complicated, but with the right guidance and support from specialized companies like Itqan, investors can ensure the process is completed smoothly and efficiently. Basic steps to establish a company in the Dubai Free Zone:

• Choosing the type of company and business activity: The first step in establishing a company in the free zone is to determine the type of company you wish to establish, such as a limited liability company or a subsidiary company. Then you must select the business activity you want to practice.
• Choosing the right free zone: Dubai has many free zones, each of which specializes in specific sectors such as information technology, media, logistics, and trade. You must choose the free zone that suits your type of business and business requirements.
• Reserving a trade name: Once the type of company and business activity is determined, a unique trade name must be reserved that reflects the company’s identity. This name must comply with local laws and not be used by any other company.
• Preparing legal documents: This step includes preparing the company’s articles of association and articles of association, which are legal documents that define the company’s structure and management rules. These documents must be documented and submitted to the competent authorities.
• Obtaining the necessary licenses: Every company in the free zone needs to obtain a license to practice its commercial activity. This could include commercial, industrial, or service licenses, depending on the nature of the company’s business.
• Renting an office or work space: Every company in a free zone needs a physical address or registered office. Investors can choose from a range of options available, from prefabricated offices to co-working spaces.
• Opening a bank account: A commercial bank account must be opened for the company in Dubai. This account will facilitate payments and is an essential part of the setup process.

Advantages offered by free zones in Dubai to investors

Dubai is considered one of the world’s leading investment destinations, thanks to its advanced infrastructure and encouraging investment environment. A large part of this success is due to the free zones established by Dubai to support local and foreign investments. Free zones in Dubai provide an ideal business environment that allows investors to achieve their business goals easily and effectively. These areas were designed to meet the needs of various economic sectors, whether industrial, commercial or service. Free zones are an ideal choice for investors who want to take advantage of the many privileges that Dubai provides, such as tax exemptions and 100% full ownership of companies, in addition to a range of other facilities that contribute to attracting capital from all over the world. Establishing a company in one of the free zones in Dubai is not only a step towards achieving commercial success, but it is also an opportunity to benefit from a competitive business environment that allows for growth and prosperity. Advantages offered by free zones in Dubai to investors:

• Tax exemptions: One of the biggest advantages offered by free zones in Dubai is complete exemption from income tax on companies and individuals for a period of up to 50 years, with the possibility of renewal. Companies are also exempt from VAT on most commercial activities.
• 100% foreign ownership: In most free zones, foreigners are allowed to fully own their companies without the need for a local partner. This allows investors to have full control over their business and manage it according to their own vision and strategies.
• Freedom to transfer funds: Free zones provide complete freedom to transfer capital and profits outside the Emirates without restrictions. This feature ensures investors can easily manage their money and get the most out of their investments.
• Flexible regulatory environment: Free zones have a flexible legal and regulatory system that suits the needs of modern companies. This facilitates flexibility in establishment and operating procedures, saving time and effort for investors.
• Advanced infrastructure: Free zones provide advanced infrastructure that includes logistical, communications, and transportation facilities, in addition to the availability of offices and work spaces equipped with the latest technology, which facilitates daily business operations.

Documents required to establish a company in the free zone

Establishing a company in the Dubai Free Zone is a pivotal step that can provide tremendous business opportunities, thanks to the incentives and privileges these zones offer. Dubai is considered one of the most important investment destinations in the world, and its free zones provide an ideal business environment that attracts investors from all over the world. By establishing a company in one of these regions, investors can benefit from a wide range of benefits such as tax exemptions, 100% ownership of the company, and the freedom to transfer funds. However, the success of this process depends greatly on submitting the required documents correctly. Preparing the necessary documents is an essential part of the company establishment procedure, as investors must comply with all legal requirements to ensure the process goes smoothly. The required documents may vary based on the type of company and the chosen free zone, but there are a set of basic documents that must be submitted to ensure that the company is registered and obtains the necessary licenses to start the business. Documents required to establish a company in the free zone:

• Passports: Provide valid copies of passports to all partners and shareholders in the company.
  Personal photo: Provide recent personal photos of all partners and shareholders according to the required standards.
• Trade name reservation: A document for reserving the trade name that will be used for the company. This name must be compatible with local laws and not used by another company.
• Articles of Association and Articles of Association: Preparing and submitting the company’s articles of association and articles of association, which are legal documents that define the company’s structure and management rules.
• Business Plan: Submitting a business plan that explains the company’s goals, the products or services provided, and the strategies followed to achieve success.
• Office lease contract: Submit a copy of the office lease contract or the office space availability contract in the chosen free zone.
• Proof of capital: Submitting documents proving the availability of the capital required to establish the company, which may include a bank certificate or any other financial proof.

Our company’s role in establishing a company in the free zone

Establishing a company in the Dubai Free Zone represents a crucial step towards achieving success in the dynamic and thriving business environment in the UAE. Choosing the appropriate free zone and determining the commercial activity to be practiced are considered among the most important decisions that greatly affect the success of the company. By cooperating with Itqan Company, investors can ensure that the establishment process runs smoothly and efficiently, as the company provides its expertise in all stages of company establishment, starting from preparing documents and licenses, all the way to providing the necessary legal and administrative consultations.

Cooperating with a specialized company like Itqan ensures that investors avoid potential obstacles that they may encounter during the establishment process, thanks to the deep knowledge and extensive experience that the company possesses in the field of establishing companies in Dubai. Itqan is a trusted partner that helps investors navigate the complexities of legal and regulatory procedures, allowing them to focus on developing their business and growth strategies. Itqan also contributes to providing innovative solutions that suit the needs of every company, whether it is a small emerging company or an international company looking to expand the scope of its operations in the region.

In addition, cooperating with Itqan provides investors with the advantage of receiving ongoing support after incorporation, both in managing day-to-day operations and in expanding the business in the future. This type of support is especially important in a rapidly changing business environment like Dubai, where companies have to be flexible and ready to adapt to constant changes in the market. Thanks to the comprehensive services provided by Itqan, new companies can start their business with confidence and proper guidance, which increases the chances of success and enhances their ability to compete in a growing global market. Establishing a company in the Dubai Free Zone is not only a step towards commercial success, but it is also an opportunity to achieve sustainable growth and make the most of the investment opportunities available in one of the most attractive cities for investment in the world.

Frequently asked questions about establishing a company in the free zone