Dubai’s free zones are an ideal destination for investors and entrepreneurs, providing a flexible and growth-friendly business environment. Dubai is a global business hub, with cultural and economic diversity making it an ideal place to set up a business. Prominent free zones in Dubai include Jebel Ali Free Zone, Dubai World Trade Zone, and Dubai Silicon Oasis, each offering unique benefits such as tax exemptions, full company ownership, and simplified registration procedures. The costs of setting up a business in these zones vary depending on the type of business and size of the company, but in general, the costs are moderate compared to other markets. Costs can include licensing fees, rents, and utility costs, providing investors with an attractive investment opportunity. In this article, we will review the most important free zones in Dubai and discuss in detail the costs of setting up a business in them.

The most important free zones in Dubai

Dubai is one of the most prominent global destinations for investment, and includes many free zones that provide competitive advantages to investors. Here are the most important free zones in Dubai:

Jebel Ali Free Zone (JAFZA): It is considered one of the largest free zones in Dubai, and hosts many international companies. It offers benefits such as tax exemption, full foreign ownership, and simplified registration procedures.
Dubai World Trade Zone (DWTC): Focuses on trade fairs and events, and provides advanced infrastructure for conferences and exhibitions. It is an ideal choice for companies operating in the fields of international trade.
Dubai Silicon Oasis: A technology and innovation hub, targeting companies in the technology sector. It provides an advanced business environment and special facilities for investors in this field.
Dubai Healthcare Zone (DMC): Focuses on companies operating in the field of healthcare and medical research. It provides a suitable environment for establishing clinics, hospitals, and research centers.
Fujairah Free Zone (FFZ): Provides excellent infrastructure and integrated facilities, and targets companies in various fields such as industry, trade, and services.
Dubai Media City: A center for media, marketing, and advertising, and provides a suitable environment for companies operating in this sector.
Dubai Logistics City: Focuses on transportation and shipping services, and provides a sophisticated infrastructure that supports businesses in the field of logistics. Each free zone offers its own advantages, making it suitable for different sectors and business activities.

Cost Factors for Setting Up a Company in Dubai Free Zones

The costs of setting up a company in Dubai free zones vary based on several factors. Here are some of the main factors that affect the cost of incorporation:

Type of Business: Costs vary depending on the type of business (commercial, industrial, service, etc.), as some activities require special licenses, which increases the cost.

License Fees: These include the fees required to obtain a commercial license, which vary from one free zone to another.

Company Location: Rental costs vary depending on the location of the office within the free zone. Prime locations or larger spaces may be more expensive.

Company Size: The size of the company and the number of employees affect the costs of rent, licenses, and visas.

Additional Services: The costs of services such as internet, utilities, and health insurance for employees.

Number of Licenses Required: Some companies require multiple licenses to practice several activities, which increases the costs.

Incorporation Fees: These include the legal and accounting fees for establishing the company, which may vary based on the services provided.

Visa Costs: These include the costs of issuing work and residence visas for employees and investors.
License Duration: The length of time licenses are renewed annually can impact costs.

Costs in free zones are more competitive compared to other areas in Dubai, making them an attractive option for investors and businessmen.

How to set up a company in Dubai Free Zone

Setting up a company in Dubai Free Zone requires following specific steps. Here are the basic steps to follow:

Determine the type of company: Choose the type of company you want to establish, whether it is a limited liability company (LLC), a branch of an existing company, or a sole proprietorship.
Choose the free zone: Select the free zone that is appropriate for your business. Free zones vary in terms of permitted activities, infrastructure, and available benefits.
Choose the company name: Choose a distinctive name for your company and ensure that it complies with local regulations. You must submit an application for name approval.
Prepare documents: Prepare the required documents, such as the shareholders’ passport. A personal photo. A business plan (sometimes). Documents of the parent company (if you are establishing a branch).
Submit the application: Submit the incorporation application to the competent authority in the free zone, along with the required documents, and pay the prescribed fees.
Obtain the license: After the application is approved, you will receive a commercial license, which allows you to practice the specified business activity.
Rent an office: Rent an office space in the free zone, as most free zones require a physical office.
Open a bank account: Open a business bank account for your company to facilitate financial transactions.
Obtain business visas: Apply for work and residence visas for employees and investors.
Register for taxes: Although free zones offer tax exemptions, it is important to ensure that you are registered with the relevant tax authorities.
Start business operations: After completing all the previous steps, you can officially start business operations. These steps are general, and requirements may vary depending on the specific free zone and type of activity. It is useful to use consulting firms such as Atqan to help you expedite the process and ensure compliance with all laws.

Documents required to establish a company in the Dubai Free Zone

Establishing a company in the Dubai Free Zone requires submitting a set of basic papers and documents. Here is a list of the documents generally required:

Shareholders’ passports: A copy of the passport of each shareholder (individual or company).
Personal photographs: Recent personal photographs of the shareholders and directors.
Company Name Approval Request: A sample application form for company name approval, with three alternative name options.

Business Plan (sometimes): A detailed description of the activities you intend to undertake, your objectives, and your target market.

No Objection Certificate (if required): If you have an existing company or a branch, you may need a No Objection Certificate from the parent company.

Company Articles of Association: A document that sets out the details of the company, such as its name, address, type of activity, and shareholders.

Legal Documents: This may include additional documents such as incorporation documents or partnership contracts (if applicable).

Office Address: A lease agreement or document proving the presence of a physical office in the free zone.

Insurance: Some free zones may require health or commercial insurance documents.

Registration Form: The registration form for the relevant free zone.

Work Permit: Some free zones may require you to apply for work permits in advance.

Be sure to check the requirements of the specific free zone you intend to establish in, as some details may differ. It is also advisable to use specialized consulting firms such as Atqan to help you prepare the documents and ensure compliance with legal requirements.

The specific period for establishing a company in the Dubai Free Zone

Establishing a company in the Dubai Free Zone is a quick and efficient process, making it an attractive option for investors. The period of establishing a company usually takes from one to four weeks, depending on several factors including the type of business activity and the required documents.

First, the investor must submit the necessary documents, such as a copy of the passport, personal photos, and a business plan, in addition to the application form and the articles of association. After submitting these documents, the relevant authority reviews them and ensures that they comply with the legal requirements. If all the documents are in order, the application can be approved within a few days. After that, the investor must sign the articles of association and obtain the necessary certificates and licenses.

The period varies depending on the complexity of the business activity, as some activities may require additional approvals from other government agencies, which may extend the period of establishment. In general, Dubai free zones are among the fastest places in the world to establish companies, allowing investors

By starting your business quickly and efficiently. It is always advisable to work with specialized advisors to facilitate the process and ensure compliance with all legal requirements.

In conclusion, Dubai is one of the most prominent global destinations for establishing companies, as free zones provide an ideal business environment that encourages innovation and growth. With simplified procedures, tax exemptions, and full ownership, investors can take advantage of the available opportunities and achieve their success. Establishing a company in a free zone requires compliance with local legislation and preparing the necessary documents, but with the support of consulting firms such as Atqan, it becomes easier and more convenient. Taking the step of establishing a company in Dubai not only opens new doors for businesses, but also contributes to strengthening the local economy and making Dubai a leading business hub in the world.

Frequently Asked Questions about establishing a company in a free zone

Can I establish a company on my own?
Yes, you can establish a company on your own in the free zones, as you are allowed to own 100% of the shares.

What are the free zones in Dubai?
Free zones are special business areas that offer benefits such as tax exemptions and 100% company ownership to foreign investors.

Is there a minimum capital requirement?
The minimum capital requirement varies by free zone and type of business. It is best to check the specific requirements.