How to start a business in a Dubai free zone

1. Determine the type of legal entity.
2. Choose a trading name.
3. Apply for a business license.
4. Choose an office space.
5. Get pre-approvals, register your business, and get your license.

The steps mentioned outline the process of setting up a free zone company in Dubai.  Let’s go through each step in detail:

1. Determine the Type of Legal Entity

This involves deciding on the legal structure for your company, such as a limited liability company (LLC), branch office, or subsidiary. The choice will depend on factors like ownership, liability, and operational requirements.

2. Choose a Trading Name

Select a unique and appropriate name for your company that complies with the regulations set by the free zone authority. It’s important to check for name availability and ensure it aligns with your business activities.

3. Apply for a Business License

Submit an application for a business license to the relevant free zone authority. The license will specify the activities your company can engage in and is essential for conducting business legally in Dubai.

4. Choose an Office Space

Depending on the free zone regulations, you will need to select an office space within the designated free zone area. Free zones typically offer various options such as flexi desks, shared offices, or dedicated office spaces to cater to different business needs.

5. Obtain Pre-approvals and Acquire the Necessary License.

Once you have finalized the legal entity, trading name, and office space, you need to obtain pre-approvals from the free zone authority. This may involve submitting required documents, such as a business plan, shareholder details, and passport copies. After receiving the necessary approvals, you can proceed with registering your company and obtaining the business license, which allows you to operate legally within the chosen free zone.

Investors who wish to establish a free zone company in Dubai must adhere to the procedure outlined above. Following these steps is essential to ensure a smooth and successful setup process within the Free Zone. The outlaid process is simple and has been made easy by the government to make the process friendly for investors.

The whole process has been put out in simpler terms and will not take more than four weeks to complete the Dubai freezone company formation and pave the way for the investor to start a free zone company formation in Dubai.

Advantages of Free Zone Business Setup in Dubai

Setting up a business in a free zone in Dubai offers several advantages that can greatly benefit entrepreneurs and businesses. These advantages include:

1. Complete Ownership of Business

One of the most significant advantages of free zone company formation in Dubai is that it allows 100% foreign ownership. Unlike mainland companies that typically require a local sponsor or partner, free zones permit full ownership by foreign investors. This provides greater control and flexibility in managing the business.

2. Full Profit Repatriation

Profits from free zone enterprises can be repatriated outside the UAE. This allows them to transfer 100% of their capital to their country of origin without any restrictions.

3. 9% Corporate Tax

The UAE laws state that companies with a revenue of less than AED 375,000 do not require corporate tax out of their business revenue, thereby helping small businesses; on the other hand, businesses with revenue of more than AED 375,000 have to pay 9% corporate tax.

4. Simplified Import and Export Processes

Simplified import and export processes are one of the advantages of setting up a business in a free zone in Dubai. In free zones, businesses are relieved from paying customs duties on imported and exported goods. Customs duties are taxes imposed on goods when they cross a country’s borders.

5. Strategic Location

Strategic location refers to the advantageous geographic positioning of free zones in Dubai, typically situated close to seaports, airports, and national borders. Being located near airports allows businesses to expedite the transportation of goods via air cargo. This facilitates faster delivery times, reduces shipping costs, and enhances supply chain efficiency.

6. Global Connectivity

Dubai has major seaports and airports that easily enable you to trade locally and internationally. The location provides easy access to distributors and manufacturers in the MENA region and South Asia.

7. Thriving Expat Entrepreneurs

Dubai draws millions of tourists and investors as one of the world’s most popular transit destinations. The city is home to a multi-national community, allowing you to connect with a global business community.

8. Range of Business Activities

Dubai free zones provide a diverse range of commercial activities, allowing entrepreneurs to explore a variety of sectors and businesses. Free zones accommodate diverse business activities, Whether trading, manufacturing, services, technology, media, healthcare, or consulting. This allows entrepreneurs to align their business ventures with their expertise and market opportunities.

9. Time-saving and Simple Registration Process

The entire procedure of acquiring a license is rather quick and simple. You can have simple access to free zone company formation and convenient administrative services as an investor.

Documents Required for free zone company formation in Dubai

Documents that will need to be produced before starting a Dubai Free Zone company A number of documents will need to be produced by the investor and get approved from the Gulf Cooperation Council or the Arab embassy:

• Application license form.
• Business card.
• Business plan outlay.
• MOA(Memorandum of Association) and AOA(Articles of Association)
• Passport copies.
• Banking reference and license of the partners existing business if required.

The above-discussed procedure needs to be followed by an investor while starting a business in the Dubai-free zone. The outlaid process is simple and has been made easy by the government so as to make the process friendly for investors.

The whole process has been put out in its simpler terms and will not take more than 4 weeks to get completed and paving the way for the investor to start a free zone company formation in Dubai.