Establishing a Company in the Free Zone (Dubai Free Zone)
October 15 Establishing a Company in the Free Zone (Dubai Free Zone)
POSTED AT 00:47H IN ARABIC BY ADMIN
The free zones in Dubai are among the most prominent investment destinations that provide an ideal environment for establishing companies. These areas are characterized by providing unique incentives that make them an attractive option for investors and businessmen from all over the world. Investors in the free zones enjoy many privileges, such as full foreign ownership, low taxes, and fast and flexible establishment procedures, which facilitate the process of entering the UAE market.

The activities that can be practiced in the free zones range from general trade to various services, which gives investors great opportunities to expand their business. In addition, the free zones in Dubai provide advanced infrastructure that contributes to facilitating commercial and logistical operations, such as modern ports and airports, which enhances the ability of companies to compete locally and globally.

Establishing a company in the free zone is not just a business opportunity, but rather a strategic step towards achieving growth and expansion goals. This system provides the necessary support to investors by facilitating procedures and providing comprehensive advisory services, which helps overcome the challenges associated with starting a business.

When considering establishing a company in the free zones of Dubai, investors must consider a set of necessary requirements and procedures, such as choosing a trade name, submitting the required documents, and obtaining the appropriate license. In this article, we will review in detail the basic steps for establishing a company in the free zone in Dubai, in addition to the benefits that investors can reap from this option, which contributes to driving economic growth in the Emirates.

Rules for establishing a company in the Free Zone

Establishing a company in the Free Zone can be a simple and quick process compared to establishing a company in the private sector. There are several general steps to establishing a company in the Free Zone, and the rules and requirements may differ between different Free Zones. Here are some general rules for establishing a company in the Free Zone:

Choosing the type of company: A sole proprietorship, limited liability company, or partnership can be established in the Free Zone, depending on your needs and business goals.
Choosing the business activity: You must determine the business activity you wish to practice, and ensure that it is permitted in the specific Free Zone.
Determining the trade name: You must choose a unique and appropriate name for your company and ensure that it is compatible with the Free Zone rules.
Arranging the required documents: Establishing a company in the Free Zone requires submitting a set of documents such as a passport, personal photos, address confirmation documents, and others.
Submitting the application: The company establishment application must be submitted with all the required documents to the relevant Free Zone Authority.
Obtaining the necessary approvals: After submitting the application, it will be reviewed and the necessary approvals will be granted by the Free Zone Authority.
Payment of fees: Establishing a company requires paying the required fees to issue the necessary licenses and permits.
Receiving licenses and permits: Once all the conditions and requirements are met, you will be able to receive the necessary business licenses and permits to start your business in the free zone.

Fees for establishing a company in the free zone (Dubai Free Zone)

The fees for establishing a company in the free zone in Dubai vary based on several factors, including the type of business activity, the size of the company, and the services required. Generally, these fees include the following:

Registration fees: Each free zone requires a specific fee to register the company, which includes processing applications and submitting the necessary documents.

Commercial license fees: These include the fees required to obtain the commercial license that allows the company to practice its activity.

Rental fees: Companies need to rent an office or workspace in the free zone, and there are annual fees related to the lease contract.
Additional service fees: Companies may need additional services such as consulting services or legal services, which may be related to establishing the company.
Special certificate and license fees: Some activities require obtaining additional licenses or certificates, which require paying additional fees.
Renewal Fees: Companies are required to renew their licenses and permits annually, which requires a renewal fee.

Bank Transfer Fees: If the company needs to open a bank account, this process may incur additional fees.

Types of Companies That Can Be Formed in the Free Zone

In the Free Zones in Dubai, several types of companies can be formed under local regulations. Here are some common types of companies that can be formed in the Free Zone in Dubai:

Limited Liability Company (LLC): An LLC is a common form of company that can be formed in the Free Zone, and this structure allows for financial protection for shareholders.
Sole Proprietorship: Individuals can form sole proprietorships in the Free Zone, and these companies are affiliated with the founding individual.
Joint Stock Company: A joint stock company can be formed in the Free Zone, where shareholders share in the capital, profits and losses under the agreement.
Subsidiary Company: Foreign companies can establish branches in the Free Zone, and this branch is part of the parent company but operates as a separate entity.
Investment Company: Investment companies can be established in the Free Zone to invest in specific areas such as real estate or securities.

Multinational Company (Offshore Company): Multinational companies can be established in the Free Zone, and this type of company is usually used for financial purposes and asset protection.

Advantages of establishing a company in the Free Zone

Establishing a company in the Free Zone in Dubai has many advantages that make it an attractive destination for investors and businessmen. Here are the most prominent of these advantages:

Full ownership: It allows foreign investors to own 100% of the company’s shares without the need for a local partner.
Tax exemptions: Free zones offer a complete exemption from corporate tax for up to 50 years, which contributes to increasing profitability and reducing costs.
No tax on personal profits: No taxes are imposed on individual income, allowing investors to retain a larger portion of their profits.
Ease of establishment procedures: Free zones are characterized by simplified and fast establishment procedures, making it easier for investors to start their businesses faster.
Supportive business environment: Free zones provide a suitable business environment with advanced infrastructure, which facilitates doing business and expanding its scope.
Freedom to transfer funds: Investors can transfer profits to their countries without restrictions, which facilitates managing funds.
Obtaining support services: Free zones provide multiple support services, including legal and administrative consultations, which helps investors overcome challenges.
Providing modern facilities: Free zones provide modern offices, manufacturing facilities and warehouses, making it easier for companies to carry out their operations efficiently.
Easy access to global markets: Dubai enjoys a strategic location that provides quick access to regional and global markets.
Providing opportunities for expansion: Free zones provide companies with opportunities to expand in various fields, which contributes to diversifying activities and increasing revenues.

In conclusion, it is clear that this step represents an attractive option for investors and businessmen from all over the world. Dubai’s free zones provide a suitable environment for commercial activities, making it easier to start a business and supporting economic growth. By offering multiple benefits, such as tax exemptions, full ownership of companies, and ease of administrative procedures, free zones have been able to attract a wide range of companies and investors.

When establishing a company in a free zone, it is essential to adhere to specific legal procedures and requirements, starting from choosing a trade name and submitting the necessary documents to obtaining a commercial license. The assistance of specialized commercial services offices can help speed up this process, saving investors time and effort.

Also, investors should be aware of the local market and the sectors suitable for investment, as the Dubai Free Zone offers diverse opportunities in multiple fields, including trade, industry, and services.

In addition, free zones are an ideal starting point for expansion into regional and international markets, which enhances opportunities for growth and prosperity. Investors should deal with potential challenges with flexibility and preparedness, which contributes to achieving their business goals.

The most important frequently asked questions about establishing a company in the Free Zone

What is the Free Zone?
The Free Zone is a special commercial area in the United Arab Emirates that allows foreign investors to establish their companies with special benefits such as full ownership and tax exemptions.

What are the costs of establishing a company in the Free Zone?
The costs vary according to the type of activity and size, and include registration fees, licenses, and rent.

Can foreigners establish a company in the Free Zone entirely?
Yes, it allows foreign investors to own 100% of the company’s shares without the need for a local partner.

What are the main advantages of establishing a company in the Free Zone?
Benefits include tax exemptions, full ownership, ease of procedures, and free repatriation of profits.