How to set up a company in Dubai Free Zone? Dubai is a leading destination for establishing companies thanks to its advanced economic environment and the provision of a variety of free zones. Establishing a company in Dubai Free Zone is an attractive option for investors and entrepreneurs due to the facilities offered by these areas, including 100% ownership of the company without the need for a local partner. Moreover, Dubai Free Zones provide additional benefits such as tax exemptions on profits and income, freedom to transfer profits abroad, and fast and simple establishment procedures. How to establish a company in Dubai Free Zone depends on choosing the type of business activity and the free zone that is most suitable for the business. After that, the required applications must be submitted to obtain the necessary licenses and complete the legal procedures. This unique system in the free zone is an ideal way to establish companies and expand businesses in Dubai.
Establishing a company in Dubai Free Zone requires following specific steps to ensure compliance with applicable laws and procedures. Here is how to establish a company in Dubai Free Zone:
Choosing the right free zone: Dubai includes several free zones such as “Jebel Ali”, “Dubai Airport”, and “Dubai Internet City”. The choice depends on the type of business you want to practice.
Determine the business activity: You must determine the activity you want to practice, whether it is commercial, industrial, or service. This will help in knowing the special licenses and requirements.
Determine the type of company: Several types of companies can be established in the free zone, such as a limited liability company (FZ-LLC) or a subsidiary company. The choice depends on the size of the activity and the legal structure that suits you.
Submit the required documents: These documents usually include a passport, a personal photo, a business plan, and articles of association.
Obtain approvals and licenses: After submitting the documents, you need to obtain the necessary licenses that allow you to practice the business activity.
Rent an office or workspace: A business address must be provided within the free zone. Some free zones offer flexible offices or virtual office services.
Open a bank account: Once you have obtained the licenses, you can open a commercial bank account to facilitate your company’s financial operations.
Complete the final procedures: After receiving the license, you can start operating the company officially within the free zone.
In short, setting up a company in a Dubai free zone offers investors many benefits such as full ownership and tax exemptions, making it an ideal business destination.
Dubai Free Zone
Dubai Free Zone is one of the most prominent investment destinations in the world, providing an encouraging business environment for companies and entrepreneurs alike. Free zones offer a range of advantages that make them ideal for establishing companies and rapid growth. These advantages include 100% foreign ownership, as there is no requirement for a local partner, in addition to tax exemptions on profits and income for long periods, which reduces the financial burden on companies.
In addition, Dubai free zones provide advanced infrastructure that includes modern offices and advanced industrial and service spaces, making it easier for companies to operate efficiently. They also enjoy fast and simple establishment procedures compared to other regions, saving investors time and effort. Some free zones offer various services such as immediate customs clearance, which contributes to facilitating international trade.
Dubai free zones vary according to commercial specializations. For example, there is a free zone specializing in technology industries such as “Dubai Internet City”, and another in logistics services such as “Jebel Ali”. This diversity makes Dubai an attractive destination for a wide range of economic sectors. In short, establishing a company in one of the free zones in Dubai is a strategic step towards achieving commercial success thanks to the flexible environment and unique competitive advantages it offers.
Requirements for establishing a company in the free zone in Dubai
Establishing a company in the Dubai Free Zone requires fulfilling a set of conditions set by each free zone to ensure compliance with applicable laws and regulations. The following are the most important general conditions for establishing a company in the Dubai Free Zone:
Choosing the business activity: You must determine the type of business activity you wish to practice, whether it is commercial, industrial, or service. The business activity determines the required licenses and necessary legal procedures.
Determining the legal form of the company: There are several types of companies that can be established in the free zone, such as a limited liability company (FZ-LLC), or a branch of a foreign company. Choosing the type depends on the size of the activity and type of investment.
Submitting the required documents: Establishing a company requires submitting a set of documents, including a copy of the passport of shareholders and directors, personal photos, a business plan explaining the objectives and services, in addition to the company’s articles of association.
Required capital: Capital requirements vary according to the free zone and the business activity, as the capital must be deposited in a bank account for the company after its establishment.
Security approval: Approval must be obtained from the relevant security authorities to ensure that the activity complies with local laws.
Renting an office or headquarters: The company is required to have an actual address in the free zone, whether it is an office or an industrial space depending on the activity.
Obtaining a license: After fulfilling all the conditions and submitting the documents, a license is issued that allows the practice of the commercial activity.
These conditions are essential for starting any commercial activity in the Dubai Free Zone and provide investors with the opportunity to work in an advanced and encouraging environment for success.
Documents required to establish a company in the free zone
Establishing a company in the Dubai Free Zone requires submitting a set of official documents to ensure that the procedures are conducted legally and smoothly. Some requirements vary depending on the type of company and the selected free zone, but in general the required documents include the following:
Copy of the passport: A valid copy of the passport must be submitted for the shareholders and directors of the company.
Personal photos: Recent personal photos of the shareholders and directors are required, which must meet the standards of official photos.
Registration application form: Fill out the registration form for the selected free zone, including detailed information about the company and the commercial activity.
Articles of Association and Memorandum of Association: This document explains the company’s structure, distribution of shares, and management powers, and is essential for starting the incorporation procedures.
Business Plan: A business plan must be submitted that explains the business activity that the company will carry out, its future objectives, organizational structure, and operating plan.
Proof of Address: Provide proof of the residence address of the founders or managers, such as a utility bill or rental agreement.
Security Approval: Some free zones require approval from the relevant security authorities, especially for companies that carry out sensitive activities or require special licenses.
Letter of Intent: In some cases, some free zones may require the submission of a letter of intent or a letter explaining the intention to establish the company and the targeted activity.
After submitting these documents and completing the legal procedures, you can obtain the commercial license and start the activity in the free zone.
The importance of establishing a company in the Dubai Free Zone
Establishing a company in the Dubai Free Zone carries many benefits that make it a preferred choice for investors and entrepreneurs. These benefits vary between legal facilities, tax exemptions, and advanced infrastructure, which enhances the chances of success and growth. Here are some points that explain the importance of establishing a company in the Dubai Free Zone:
100% ownership: Free zones allow foreign investors to fully own their company without the need for a local partner, giving them complete control over their business.
Tax exemptions: Free zones offer attractive tax exemptions, such as exemption from corporate tax and personal income tax for periods of up to 50 years, which reduces financial burdens and increases companies’ profits.
Advanced infrastructure: Dubai’s free zones have world-class infrastructure that includes ports, airports, highways, and advanced technical facilities, allowing companies to operate their businesses effectively.
Ease of transferring profits: Investors can freely transfer their profits and capital outside the country without any restrictions, which enhances the sustainability and growth of their businesses at the international level.
Fast establishment procedures: Dubai’s free zones are characterized by fast and flexible establishment procedures, as all procedures can be completed and the necessary licenses obtained in a short period.
Multiple specializations: Dubai provides free zones specialized in various sectors such as technology, logistics, trade, and media, allowing investors to choose the environment that suits their business activity.
With these advantages, establishing a company in the Dubai free zone is a strategic step to achieve growth and commercial prosperity in one of the most developed and prosperous global markets.
Etqan’s efforts in establishing a company in the free zone
Etqan offers distinguished efforts in helping investors and entrepreneurs establish their companies in the free zones in Dubai. Thanks to its extensive experience and in-depth knowledge of local laws and regulatory procedures, Etqan works to simplify and accelerate the establishment process effectively. The following are the most prominent efforts made by the company:
Specialized Consulting: Itqan provides customized consultations for each client, helping them choose the most appropriate free zone according to the nature of their business activity and future needs.
Legal Facilities: Itqan handles all legal aspects related to establishing the company, including preparing the necessary documents, such as the articles of association and bylaws, and submitting them to the competent authorities, ensuring compliance with local laws.
Licensing Procedures: The company is responsible for submitting the necessary commercial license applications to obtain the permits and licenses required to operate in the free zones, saving investors time and effort.
Office and Headquarters Rental: Itqan helps in finding suitable offices or industrial spaces within the selected free zone, providing flexible solutions that suit the size of the company and its operational needs.
Post-incorporation Support: Itqan’s efforts are not limited to incorporation only, but also provide comprehensive support in the post-incorporation stages, such as opening bank accounts for the company, and dealing with future government requirements.
With these integrated services, Itqan Company effectively contributes to facilitating the process of establishing companies in Dubai’s free zones, making it a reliable partner for achieving commercial success.
In conclusion, establishing a company in the Dubai free zone is a strategic step for investors seeking to benefit from an advanced economic environment and many advantages such as full ownership and tax exemptions. By following the right steps, starting from choosing the appropriate free zone and determining the business activity, all the way to completing the legal procedures, entrepreneurs can establish their companies quickly and easily. These areas contribute to supporting commercial growth and prosperity thanks to their advanced infrastructure and numerous facilities. Therefore, investing in Dubai’s free zones is an ideal option for achieving success and expansion locally and internationally.
Frequently asked questions about how to establish a company in a free zone
What is a free zone in Dubai?
A free zone is a special economic zone that allows foreign investors to establish their companies and benefit from tax and legal advantages, such as full ownership without the need for a local partner.
What are the advantages of establishing a company in a free zone?
Benefits include 100% foreign ownership, tax exemptions, easy repatriation of profits, advanced infrastructure, and fast incorporation procedures.
What is the first step to setting up a company in a Dubai free zone?
The first step is to choose the right free zone according to the type of business activity you wish to practice, whether it is commercial, industrial, or service.
