How to establish a company in the Dubai Free Zone? Dubai is one of the most prominent global destinations for business and investment, as it provides a distinct and attractive commercial environment for investors from all over the world. Establishing a company in the Dubai Free Zone has many advantages that enhance the chances of success and growth. In this article, we will review five of the most prominent advantages that make establishing a company in the Dubai Free Zone an ideal choice for investors, starting from full ownership of the company to competitive taxes, which makes these free zones an ideal starting point for new businesses.

Establishing a company in the Dubai Free Zone offers many advantages that make it an attractive option for investors. Here are some of these advantages:

Full ownership of the company: Establishing a company in the free zones allows you to have 100% full ownership, which means that you do not need a local partner.

Tax exemptions: Companies in the free zones enjoy comprehensive tax exemptions, as there is no tax imposed on profits or income, which helps increase profitability.
Ease of Procedures: Free zones provide great facilities in the establishment and licensing procedures, allowing investors to complete the procedures quickly and efficiently.
Strategic Location: Dubai’s free zones are strategically located near ports and airports, facilitating access to global markets and enhancing international trade opportunities.
Providing a flexible work environment: Free zones offer a variety of office space options and facilities, in addition to logistics services and technical support, which helps companies achieve their goals efficiently.
These features are part of the factors that make establishing a company in the Dubai Free Zone an attractive investment option for investors from all over the world.

Documents required to establish a company in the Dubai Free Zone

To establish a company in the Dubai Free Zone, investors must submit a set of necessary documents and papers. Here is a list of the required documents:

Incorporation Application Form: The application form related to establishing the company in the free zone must be filled out.

Passport: A copy of the passport of the owners and managers, with a copy of the residence permit required if the investor is a resident of the UAE.
No Objection Certificate: If one of the shareholders works for a government entity, a No Objection Certificate must be obtained from the employer.

Business Plan: A document that outlines the type of business activity and the services or products that the company will offer.

Local Address: Proof of the company’s local address, which can be a virtual office address or a rented office in the free zone.

Partner Signature: Signature of the partners or shareholders on the incorporation documents.

Acknowledgment and Authorization: A document authorizing the appointment of a local agent (if required) to carry out the necessary procedures.

Incorporation Fee: Payment of the fees required to issue the license. The exact requirements vary depending on the type of free zone and the type of business activity, so it is best to check the official website of the relevant free zone or consult a specialized consulting firm for accurate guidance.

Conditions for establishing a company in the Dubai Free Zone

Establishing a company in the Dubai Free Zone requires adherence to a number of basic conditions and requirements. Here are the most important of these conditions:

Type of business activity: The business activity you wish to establish must be consistent with the activities permitted in the free zone of your choice, as the permitted activities vary from one zone to another.
Minimum capital: Although most free zones do not require a minimum capital, it is preferable to have sufficient capital to support your business activity.
Submitting identity documents: Passports are required for owners and managers. Passports must be valid.
Determining the legal structure: The legal structure of the company must be determined, such as a limited liability company, a branch of a foreign company, or otherwise, according to local laws.
Submitting a business plan: A clear business plan must be submitted that specifies the company’s objectives and the type of activity and services or products that it will provide.
Appointing a manager: A manager or group of managers must be appointed, as they must have sufficient experience in the field of work.
Submitting a no-objection certificate: In the event of a local partner, a no-objection certificate must be obtained from the employer.
Partners’ attendance: In some cases, partners are required to be present in person to sign the incorporation documents.

Compliance with local laws: Local laws and regulations in force in the free zone must be adhered to, including labor and trade laws.

These conditions are basic requirements, and details may vary depending on the free zone and the type of business activity. Therefore, it is preferable to review local laws or consult a specialized consulting firm such as Itqan Company to ensure compliance with all requirements.

Steps to establish a company in the Dubai Free Zone

Establishing a company in the Dubai Free Zone requires following a set of systematic steps. Here are the basic steps to establish your company:

Determine the business activity: Determine the type of business activity you want to establish, and ensure that it is consistent with the activities permitted in the free zone of your choice.

Choose the free zone: Choose the appropriate free zone for your business, such as the Dubai Free Zone in Jebel Ali or the Dubai Airport Free Zone, based on the nature of your business and your requirements.

Prepare a business plan: Prepare a detailed business plan that includes the company’s objectives, the services or products you will provide, and the marketing strategy.
Gather the required documents: Prepare the necessary documents to establish the company, which include passports for the owners and managers. Establishment application form. Business plan.
Any additional documents as required by the free zone.
Submit application: Submit the establishment application along with the required documents to the authority responsible for the free zone. You can submit the application in person or online, depending on the zone.
Pay fees: Pay the fees required to issue the license. The fees vary depending on the type of business activity and the free zone.
Receive license: After processing the application, you will receive the commercial license. Make sure to review all details to ensure accuracy.
Open a bank account: Open a bank account in the name of the company to facilitate financial transactions.
Register employees (if applicable): If you intend to hire employees, make sure they are registered according to local laws and obtain the necessary work visas.
Furnish the office: Furnish the office or space where you will work, and make sure that all the necessary equipment is available to start work.
Starting work: After completing all the steps, you can officially start your business.
These steps will help you successfully establish your company in the Dubai Free Zone. It is also preferable to hire a specialized consulting company to facilitate the process and ensure compliance with all legal requirements.

Factors in the cost of establishing a company in the Dubai Free Zone

The cost of establishing a company in the Dubai Free Zone varies based on several factors. Here are the most important of these factors:

Type of free zone: Fees and costs vary depending on the free zone you choose, as some areas may be more expensive than others based on the services and benefits they offer.
Type of business activity: The nature of the business activity can affect costs. Some activities may require special licenses or additional fees.
Required capital: Some businesses may require a minimum amount of capital. This can affect the overall cost, especially if you have to invest large amounts at the beginning.
Licensing fees: These include the costs of obtaining trade licenses and company registration fees. These fees vary depending on the type of company and activity.
Office costs: These may include rental costs for offices or commercial spaces. Some free zones offer virtual offices at lower prices, while physical offices may be more expensive.
Additional fees: Costs may include additional fees such as visa fees for employees, service fees, and administrative fees.
Legal or advisory advice: If you are using advisory services to facilitate the establishment process, you should take into account the cost of these services.
Operating costs: These include the daily running costs of the company such as salaries, utilities, office supplies, and potential taxes. In general, it is advisable to conduct a comprehensive feasibility study to accurately determine the potential costs and ensure your investment is effective.

Itqan Company Services for Establishing a Company in the Dubai Free Zone

Itqan Company provides a comprehensive range of services to facilitate the process of establishing companies in the Dubai Free Zone. Here are some of the main services it provides:

Legal Consultations: Itqan provides specialized legal consultations to help you understand the legal requirements and procedures necessary to establish a company.

Establishment Procedures: Itqan handles all procedures related to registering the company, including submitting documents and applications to the relevant authorities.

Business Licenses: The company helps in obtaining the necessary commercial licenses to practice commercial activity in the free zone, making it easier for you to start your business legally.

Document Preparation: It provides services for preparing all documents required to establish the company, including articles of association and legal forms.

Opening a Bank Account: Itqan helps in opening bank accounts for new companies, which facilitates financial transactions.
Work Visas: It provides services for obtaining work visas for employees, in addition to the necessary residence permits for investors.
Providing Virtual Offices: Itqan offers virtual office options to reduce costs and provide flexible workspace.

Logistics Support: It provides comprehensive logistical support such as arranging office facilities and services.

Financial Consulting: It provides financial consulting to help you with financial planning and budget management.

Post-Incorporation Services: Itqan provides ongoing support services after the company is established, including legal updates and tax compliance.

Itqan is a trusted partner for investors looking to establish their companies in the Dubai Free Zone, facilitating procedures and reducing complications.

In conclusion, establishing a company in the Dubai Free Zone is a strategic step that reflects ambition and innovation in the business world. With the many advantages offered by the free zone, such as full ownership and tax exemptions, as well as the advanced infrastructure and flexible business environment, Dubai is an ideal destination for investors from all over the world. Following the right steps and complying with legal requirements, in addition to the assistance of experienced consulting firms such as Itqan, ensures the success of your business establishment experience. With the continuous trend towards developing the investment environment in Dubai, opportunities remain available for growth and expansion, making it an attractive destination for the future.

Frequently Asked Questions about Establishing a Company in the Free Zone

What are the steps to establish a company in the free zone?
The steps include determining the business activity, choosing the free zone, preparing the required documents, submitting the application, and paying the fees.

Can I change the company activity later?
Yes, but this requires submitting a formal application and may involve additional fees. It is preferable to consult a consulting firm regarding the procedures.

Can I employ employees?
Yes, you can employ employees and apply for work visas for them.