25 Feb How to start a business in a Dubai free zone
It is no secret that Dubai currently has one of the best markets on offer, be it for budding entrepreneurs or established businesses. Dubai offers equal access to every investor and has made laws that are friendlier for any investor to start a business in Dubai.
The whole process of starting a Dubai free zone company setup cost has been made very easy and smooth due to different provisions bought in by the government from time to time.
An investor can start a business in Dubai at various locations be it mainland Dubai or Free zone Dubai. however, when it comes to opening up a business set up in mainland Dubai, the investor has to choose a local partner in order to be able to start the business, which eventually becomes a turn off for various investors as they are not comfortable with the idea of having to choose a local partner which will allow them to start the business in Dubai as per the established laws.
Free zones company formation in Dubai
Free zone company formation in Dubai has become very popular among the investors as it provides hassle-free access to various resources, provides tax benefits, and much more for starting a business in a free zone Dubai. In the Free zones of Dubai, 100% foreign ownership has been allowed, making them a big hit among the investors.
Free zone Company in Dubai
Free zone Company in Dubai is a special economic area where an investor can have special tax fee status and trade conditions are such that any investor can manufacture.
Import/export goods without having to pay customs duties. Free zones in Dubai have been established at places of transit like seaports, airports in order to help the investor to increase their trading opportunities. Free zones in Dubai have been set up across multiple locations with each free zone being kept open for particular business activity.
Advantages of Free Zone Business in Dubai
- Complete foreign ownership as no local partner is required.
- The whole of the profits earned can be repatriated.
- Tax-free business zones with an investor not bound to pay any kind of taxes.
- There are no controls over foreign currency exchanges and no limit being imposed on funds transfer.
- No duties being charged on any kind of goods.
- The energy needs can be very inexpensive in all Freezones.
- Easy procedure while applying for a business license.
- Office spaces are available in abundance both for sale as well as rent.
- Easy to obtain visas for skilled workers as they have been made very affordable.
- One can operate the offices 24*7 as no timing restrictions have been put in place.
A procedure that one needs to follow while step to Setup a business in Free zone Dubai
- Type of company: – while deciding to start a business in Free zone Dubai one has to decide the type of business that has to be started and also the free zone where the investor intends to start the business as different Free zones have different requirements that will need to be fulfilled.
- Trade name:- Once the investors have decided on the type of business that will be started in the Dubai free zone, it is time to choose the name for the same and at the same time keep in mind while naming one should follow the making conventions that have been put in place by the government.
- Business license: – Once the name has been decided and has been registered with the concerned authority, the investor needs to apply for a business license. Different licenses are provided in different Free zones for various activities.
- Office space: – Once the license has been obtained for starting a business in Dubai Free zone it is time to look out for an office space. One can either buy the space or hire the same on rent.
- Approvals and License: – the investors need to get all the approvals from different authorities before a license can be issued. Once all the approvals have been taken the investor can start the business. The whole process is very simple and can take merely a time of 2-4 weeks.
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.
Here are the key steps to free zone company formation in Dubai.
- Determine the type of legal entity.
- Choose a trading name.
- Apply for a business license.
- Choose an office space.
- Get pre-approvals, register your business and get your license.