How to establish a company in the Free Zone Dubai Free Zone is one of the most prominent options available to investors and businessmen seeking to establish their companies in a flexible and attractive commercial environment. The Free Zone offers a range of benefits, such as tax exemptions, full foreign ownership, and easy registration procedures. In this article, we will review the basic steps for establishing a company in the Free Zone, helping you understand the procedures necessary to achieve this goal efficiently and effectively. We will start with the initial planning, then move on to choosing the appropriate type of company, and finally review the required documents and legal procedures.

Establishing a company in the Free Zone requires following a set of organized steps to ensure the success of the process. Here are the basic steps:

Determine the business activity: Determine the type of activity you want to practice. Make sure it is permitted in the Free Zone area you have chosen.

Choose the Free Zone: Choose the Free Zone that is appropriate for your activity. Free zones vary in terms of specializations and benefits, so look for the one that best suits your needs.
Submit a license application: Submit an application for a commercial license. You will need to fill out forms and provide information about your activity.
Prepare the required documents such as: Owners’ passport, business plan, documents proving the company’s address and any additional licenses depending on the activity

Determine the legal structure: Choose the legal structure for your company (such as a limited liability company or a branch of an existing company).

Open a bank account: Open a business bank account. The bank may require additional documents.

Register the company: After completing all the documents, register the company in the free zone. You will receive a registration and license certificate.

Obtain work visas: Apply for work visas for employees, if you plan to employ individuals.

Complete the preparations: Prepare your office or business location. Make sure that all the necessary equipment and infrastructure are available.

Start business operations: Once you have completed all the previous steps, you can start business operations and achieve your goals. Establishing a company in the free zone can be a smooth process if you follow the right steps. Make sure to do your research well and consult experts if necessary to ensure the success of your project.

The specific period for establishing a company in the free zone

The specific period for establishing a company in the free zone (free zones) in Dubai varies based on several factors, including the type of business activity and licensing requirements. In most cases, the establishment procedures can be completed within a period of two to four weeks. However, this period may be affected by the extent to which the required documents are completed and dealing with government agencies.

The process begins with choosing the appropriate free zone, then submitting the application and submitting the required documents such as personal identification, passport, and business plan. Some free zones provide greater facilities that make the process faster, as they have the ability to review applications and issue licenses quickly and efficiently.

The speed of establishment also depends on the size of the company and the type of license required. Some licenses may require additional procedures or approvals from specialized regulatory authorities, which may extend the period slightly. However, this period can be reduced by using specialized consulting companies such as Itqan, which provides comprehensive solutions that speed up the procedures thanks to its extensive experience in dealing with local authorities and managing all requirements. In short, while the duration varies from one case to another, the free zone in Dubai provides opportunities to establish companies quickly and efficiently, especially when using professional services to manage the process.

Conditions for establishing a company in the free zone

The conditions for establishing a company in the Dubai free zone vary depending on the free zone you choose, but there are a set of general conditions that must be taken into account. Here are the most important of these conditions:

Foreign ownership: Foreign investors are allowed to own 100% of the company without the need for a local partner.
Business activity: The business activity must be compatible with the activities permitted in the free zone. Check the list of available activities.
Licenses and permits: Obtain the necessary licenses from the relevant authority in the free zone, which include the commercial license and activity-specific permits.
Submit documents such as: Passports of shareholders and directors. Business plan. Documents proving the company’s address.
Legal structure: Choose the appropriate legal structure (such as a limited liability company or a branch of an existing company).
Capital: A minimum paid-up capital may be required, depending on the type of activity and the free zone.
Physical office: You must have a physical office address in the free zone. You may need to rent office space.

Work visas: If you intend to hire employees, you must apply for work visas for them.

Legal procedures: Adhere to all legal and regulatory procedures in force in the free zone, including taxes and compliance.

Required documents to establish a company in the free zone

The documents required to establish a company in the free zone vary depending on the free zone and the type of business activity, but there are basic documents that are usually required. Here is a list of the documents generally required:

Passports: A copy of the passport of all shareholders and directors.
Personal photographs: Recent personal photographs of shareholders and directors.
Business plan: A document detailing the business activity, objectives, and services or products offered.
Memorandum of Association: Drafting the memorandum of association that specifies the details of the company, such as the legal structure and percentage of ownership.
No-objection certificate: In some cases, you may need a no-objection certificate from a government agency or from your current employer.
Proof of address: A document proving the address of the shareholders’ residence or office location (such as a lease).
Additional licenses: Depending on the type of activity, additional licenses may be required (such as health or industrial licenses).
Application form: The free zone registration form, which must be completed accurately.
Proof of capital: You may need to provide a document showing the source of the capital used to establish the company.
Work visas (if required): If you plan to employ employees, you may need to apply for work visas.

Advantages of establishing a company in the free zone

Establishing a company in the free zone offers many advantages that make it an attractive option for investors and businessmen. Here are the most prominent of these advantages:

Full ownership: Foreign investors are allowed to own 100% of the company without the need for a local partner.
Tax exemptions: Most free zones offer tax exemptions on income and profits, which helps increase profitability.
Ease of procedures: The free zone enjoys simplified and fast registration and establishment procedures compared to traditional markets.
Employment facilities: Ease of obtaining work visas for employees, which facilitates the employment of suitable competencies.
Asset protection: The free zone provides legal protection for assets and properties, which reduces risks.
Advanced infrastructure: The free zone provides modern infrastructure and advanced facilities, which facilitates business operations.
Access to global markets: The free zone is a gateway to access new markets, which enhances opportunities for expansion and growth.
No restrictions on money transfers: Freedom to transfer profits and returns abroad without restrictions, which facilitates financial management.
Availability of business support services: Many free zones provide support services, such as legal and marketing consulting, which facilitates business management.

Diversity of activities: Free zones offer a wide variety of business activities, giving investors multiple options.

Itqan Company Services for Establishing a Company in the Free Zone

Itqan Company is one of the most prominent companies that provide company establishment services in the Free Zone (free zones) in Dubai, as it seeks to facilitate all stages of company establishment with the highest levels of quality and professionalism. Itqan provides a comprehensive solution for business owners and investors who wish to establish their companies in the free zones, allowing them to benefit from the many advantages of these areas, such as full foreign ownership and tax exemptions.

The company’s services start from initial consultations to determine the best free zone that suits the type of work and budget, and continue through preparing all required legal documents and dealing with government agencies. Itqan also provides flexible options for renting offices and warehouses within the free zones, allowing emerging companies to launch effectively without the need for large investments in infrastructure.

In addition, Itqan helps facilitate obtaining the necessary business licenses and permits to operate in the free zone, and provides ongoing legal support to ensure compliance with all local regulations and laws. With these integrated services, Itqan allows its clients to focus on growing their businesses and achieving their business goals, with the confidence that all administrative and logistical details are managed efficiently.

Establishing a company in the free zone represents an attractive investment option for many businessmen and investors, thanks to the many advantages that these areas provide, such as full ownership, tax exemptions, and ease of procedures. Understanding the steps and conditions required is essential to achieving success in this field. By following the right steps and seeking the help of specialized entities, investors can achieve their business goals efficiently. The free zone is not just a commercial area, but rather an environment that stimulates innovation and growth, providing wide opportunities for expansion into global markets. In light of the above, we invite anyone thinking of establishing a company in the free zone to take advantage of these opportunities and benefit from the available advantages, which may open new horizons for them to achieve success and prosperity in the business world.

Frequently Asked Questions about Establishing a Company in the Free Zone

What is a Free Zone?
Free Zones are special economic zones that offer business benefits to investors, such as tax exemptions and full foreign ownership.

Can foreign investors own 100% of the company?
Yes, foreign investors are allowed to own 100% of the company without the need for a local partner.

How long does it take to establish a company in the Free Zone?
The period ranges from approximately 3 to 6 weeks, depending on the speed of the procedures and the availability of documents.