stablishing a company in a free zone: The free zones in the UAE are among the most prominent options that attract international and local investors due to the many advantages they offer, such as administrative facilities, tax exemptions, and 100% investor ownership of the business. Among these areas, Dubai stands out as a major destination for investors wishing to establish their companies in a flexible and advanced environment. Establishing a company in a free zone is an ideal option for business owners seeking to obtain significant economic benefits by investing capital in the UAE markets. Free zones provide an ideal environment for establishing commercial, industrial, and service projects, with advanced infrastructure and distinguished logistical services, which contribute to accelerating business establishment processes.
The free zone also provides investors with additional benefits, including exemptions from income taxes and customs duties, as well as facilities for transferring funds and establishing commercial partnerships. In cooperation with specialized companies such as Itqan, investors can benefit from extensive experience in the field of company formation and licensing procedures, making it easier for them to take the necessary steps to establish businesses quickly and efficiently. With the continuous support and professional advice provided by Itqan, investors can focus on developing their businesses without worrying about the legal and administrative complexities that may accompany the establishment process. In this context, Dubai’s free zones are an ideal gateway to start and expand businesses in the regional and international market.
Establishing a company in a free zone
Procedures required to establish a company in a free zone
Establishing a company in a free zone is a strategic step for many investors who want to benefit from a flexible business environment and significant tax benefits. The United Arab Emirates, specifically Dubai, offers many free zones that allow investors to establish companies in a variety of commercial, industrial and service activities. Free zones enjoy flexibility in laws and procedures, making them an ideal choice for foreign investors who want to expand into the markets of the Gulf and Middle East. The process of establishing companies in free zones includes a series of procedures that vary from one region to another, but there are some basic steps that must be followed to ensure success in establishing a business.
Procedures required to establish a company in a free zone:
Choosing the appropriate free zone: The first step is to choose the free zone that suits the type of business activity you intend to practice. There are many free zones that specialize in specific areas such as trade, technology, media, and industry. The availability of appropriate infrastructure, transportation facilities, and other factors that support the growth of the business activity must be taken into consideration.
Choosing the type of company: The types of companies that can be established in the free zones vary, such as limited liability companies (LLC) or companies wholly owned by foreign investors. The investor must determine the appropriate structure for his business according to the requirements of the business activity.
Determining the business activity: The investor must determine the business activity that he wishes to practice, as some free zones provide special licenses for a number of activities such as general trade, consulting services, manufacturing, or technological activities.
Applying for a license: After determining the activity, an application must be submitted to obtain the appropriate license from the responsible authority in the free zone. This requires submitting the personal documents of the investors, in addition to the business plan and approval of the type of business activity.
Securing a workplace: A lease contract must be provided for the company’s workplace in the free zone. The office space depends on the type and size of the company, and offices can be small or large according to the needs. Many free zones provide virtual offices or flexible offices for investors.
Opening a bank account: After obtaining the license, the company must open a bank account in the name of the company in one of the approved banks in the Emirates. This account helps in conducting financial transactions and depositing the required capital.
Recruitment of employees: If the company needs to hire employees, the investor must apply for work visas for the employees. Free zones facilitate this process and provide facilities for issuing visas.
Registering the company with government agencies: Once the basic procedures are completed, the investor must register the company with the relevant government agencies such as the Department of Economic Development or the competent authorities in the free zone.
Additional licenses: If the activity requires additional licenses or approvals from other government agencies such as the Ministry of Health or the Ministry of Economy, these approvals must be obtained before starting work.
By following these steps, investors can establish a company in the free zone quickly and efficiently, allowing them to benefit from the region’s advantages such as tax exemptions, full ownership, and advanced infrastructure.
Licenses required to establish a company in the free zone
Establishing a company in the free zone is an ideal option for many investors seeking to expand into the UAE or regional market, as free zones provide a flexible business environment with many advantages such as tax exemptions, 100% foreign ownership, and simplified procedures. The UAE offers a range of specialized free zones that investors can choose the most suitable for them according to the type of business they wish to practice. To obtain these benefits, investors must follow the legal procedures and apply for the appropriate licenses. The types of licenses vary based on the type of business activity, the geographical location of the free zone, and the services required. With the right licenses, companies can obtain legal legitimacy and enjoy all the privileges offered by the free zones.
Licenses required to establish a company in the free zone:
Commercial licenses: These licenses are granted for commercial activities that include buying and selling goods and products. The type of commercial license depends on the nature of the products and services provided by the company. This includes commercial companies that work in distribution, import, or export.
Industrial licenses: These licenses are granted to companies that wish to practice industrial activities such as manufacturing, production, or packaging. The investor in this type of license needs to prove that the company will conduct actual manufacturing activities within the free zone.
Professional licenses: These licenses are intended for individuals or companies that provide professional services such as consulting, design, or programming. These licenses require the submission of a certificate of experience in the specialized field as well as payment of the required fees.
Technology Licenses: Some free zones offer special licenses for companies operating in the technology sector, such as software development, internet services, or information technology companies. These licenses require compliance with technical standards, in addition to determining the extent of technological progress provided by the company.
Tourism Licenses: This license is granted to companies operating in the tourism and hospitality sector, such as travel agencies, hotels, or tourist transportation services. This type of license requires obtaining the necessary permits from the competent authorities.
Media Licenses: Certain free zones offer media licenses to companies operating in areas such as media production, publishing, advertising, or digital media. Companies providing these services need to submit detailed business plans on the type of media activities that will be practiced.
Logistics Licenses: These licenses are granted to companies dealing with transportation and shipping services, such as sea, air, and land shipping companies. These licenses require the possession of logistics headquarters and special equipment to provide these services.
Investors should study the most appropriate type of license based on the nature of their business activity in the relevant free zone. By cooperating with specialized companies such as Itqan, licensing procedures can be accelerated and the company can be guaranteed to comply with all legal requirements.
What is a free zone in Dubai?
Dubai’s free zones are among the most prominent options that allow local and international investors to establish their companies easily and with a range of advantages that support business growth. These areas are characterized by providing a flexible work environment and laws that facilitate procedures and help companies expand and grow in the UAE and regional markets. Since the establishment of the free zones in Dubai, they have become an attractive destination for investors thanks to the incentives they offer such as tax exemptions, 100% ownership of companies for foreign investors, in addition to the availability of modern infrastructure and global facilities. These areas are considered a major driver of the UAE economy, as they contribute to attracting foreign investments and enhancing economic diversification.
What is a free zone in Dubai?
The free zone in Dubai is an area designated for businesses in which multiple facilities are provided to investors, allowing them to establish companies wholly owned by foreigners with tax exemptions for up to 50 years in some cases. Each free zone in Dubai specializes in a specific type of business activity such as trade, manufacturing, information technology, media, aviation, and others. The free zones in Dubai were established with the aim of attracting foreign investments and enhancing the ability of companies to expand and innovate.
One of the most prominent advantages of Dubai’s free zones is the facilitation of administrative procedures, as comprehensive services are provided by the responsible authority, such as allocating land, providing offices, and completing visa procedures. These zones also provide an advanced business environment with customs exemptions on imported and exported goods, in addition to the ability to transfer profits and capital freely without restrictions. Dubai is one of the most prominent investment destinations in the world thanks to these facilities that make the free zone an ideal environment for starting businesses in various fields.
Our company’s role in establishing a company in the free zone
In conclusion, establishing a company in the free zone is an ideal choice for investors seeking to benefit from a flexible and advanced business environment that provides many advantages that contribute to accelerating business growth. Choosing a free zone to establish a company gives investors the opportunity to benefit from tax exemptions, customs incentives, and facilities in commercial transactions, in addition to providing an advanced infrastructure that supports business operations. By cooperating with Itqan Company, investors can ensure that company establishment procedures are implemented efficiently and in accordance with applicable legal systems, which helps avoid potential complications and problems. Itqan is a reliable strategic partner that provides specialized advice and full support from choosing the right business activity, through licensing procedures, to facilitating employment processes and complying with local regulations. Free zones also allow investors to fully own their companies without the need for a local partner, giving them complete control over their business. Establishing a company in a free zone is not only about obtaining tax benefits, but also includes opening a new horizon for expansion and growth in global markets. With the support of Itqan, establishing a business in a free zone becomes an essential step towards success, which enhances investment opportunities and provides an ideal business environment for new entrepreneurs.
Frequently Asked Questions about Establishing a Company in a Free Zone
What is a free zone in Dubai?
A free zone is a commercial area with special legal and administrative characteristics that aim to attract foreign investment. Free zones provide tax exemptions, flexibility in licensing, and 100% company ownership for foreign investors.
Can foreigners fully own a company in a free zone?
Yes, foreigners can own 100% of the shares of companies in the free zones without the need for a local partner, which distinguishes the free zones from companies in the main Dubai.
What are the business activities that can be established in the free zone?
Companies can be established in various activities such as general trade, services, manufacturing, consulting, and technology. The permitted activities vary according to the free zone and the system it follows.
Is there a minimum capital when establishing a company in the free zone?
Yes, the minimum capital varies according to the type of activity and the company, and some free zones may specify a basic capital to establish the company. In some cases, companies can be established with a symbolic capital.
What are the licenses required to establish a company in the free zone?
Companies need to obtain a license from the competent authority in the free zone, whether it is a commercial, industrial, or professional license. Some activities require special licenses or additional approvals from other government agencies.
Can employees be employed from outside the UAE?
Yes, companies in the free zones can employ employees from outside the UAE, and facilities are available to obtain work and residence visas for them.
Can a company open a bank account in the free zone?
Yes, after completing the company establishment procedures, you can open a bank account in the company’s name in approved banks within the Emirates.
What are the procedures required to establish a company in the free zone?
The procedures include choosing the type of company, submitting the required documents such as passports, specifying the business activity, obtaining a license, and signing lease contracts for the headquarters.
