Dubai is one of the best business hubs for budding entrepreneurs and even established businesses. The city also gives equal access to its investors, new or old, and has created favourable laws for any investor planning to start a business here.
We will try to understand the whole process of business setup in Dubai Freezone.
Free zones company formation in Dubai
The purpose of introducing free zones in Dubai and other emirates of the United Arab Emirates was to encourage foreign investors to establish their business in the UAE without any hassle. As the mainland requires investors to choose a local partner with 51% shares, free zones company formation in Dubai has become very popular among the investors. In the free zones of Dubai (UAE), 100% foreign ownership is allowed, making them a favourite among entrepreneurs.
Benefits of Free Zone Company in Dubai
Key advantages for the investors for starting a business in free zones are:
- 100% foreign ownership as no local partner is required.
- Profits earned can be repatriated.
- Tax-free business zones and investors are not bound to pay taxes.
- No controls over foreign currency exchanges and no limitation imposed on funds transfer.
- No duties on goods.
- The energy is very cheap.
- Easy process while applying for a business licence.
- Many office spaces are available, both for sale as well as rent.
- Easy to obtain visas for skilled workers.
- Can operate 24*7 as there are no timing restrictions.
Steps to Setup a Business in Free Zone Dubai
Decide on Business Type
When you decide to set up a business in a Dubai free trade zone, you will first need to determine the type of business you would like to conduct and the free zone where you intend to start your business. In Dubai (UAE), different businesses are run in different free zones. So, it is vital to keep this point in mind while deciding your business type.
Select a Trade Name
The next step is to select a trading name of your business that you will start in the Dubai free zone. While choosing a name, follow the naming conventions put in place by the government. Also, make sure you do not select a duplicate trade name.
Obtain Business Licence
After your name is registered with the concerned departments, it is time to apply for a business licence. Every free zone has a licence of its own, depending on various activities.
Find an Office Space
After receiving your licence, it is time to find an office space to start your business. You can either buy or rent office space. Also, in free zones, you will find Flexi Desks, ideal for startups.
Approvals and Licence
You will need approvals from different authorities before a licence can be issued. Once you have all the approvals, you can start your business. The whole process can take merely 2-4 weeks.
Documents Required to Form Dubai Free Zone Company
Here is the list of documents you have to produce before starting a Dubai free zone company. You will require to get your documents approved by the Gulf Cooperation Council or the Arab embassy:
- Application licence form.
- Business card.
- Business plan outlay.
- MOA (Memorandum of Association) and AOA (Articles of Association)
- Passport copies.
- Banking reference and licence of the partners existing business if required.
The abovementioned process is essential for investors willing to start a business in the Dubai-free zone. The process is simple and friendly for investors, paving the way to form a company in Dubai free zones. If you still find it very complicated, you can approach a professional business setup consultant for smooth and hassle-free service.
