Free zones are an ideal haven for investors seeking to establish a company in the free zone in Dubai. Dubai’s free zones are characterized by a flexible investment environment and a favorable business climate, offering many advantages and privileges that attract investors from all over the world.
Establishing a company in the Dubai Free Zone includes several steps and procedures, and companies are obligated to abide by local laws and legislation. Investors should also be aware of the terms and requirements of each free zone, as these requirements may differ between regions.
The main steps for establishing a company in the Dubai Free Zone include determining the appropriate company type, determining the appropriate geographical location within the free zone, submitting the required documents and fulfilling the applicable legal and administrative procedures.
It is worth noting that establishing a company in a free zone also requires knowledge of the tax systems and practical regulations specific to each region. Moreover, investors can benefit from the advisory services and assistance available to them by the competent authorities and legal advisors to ensure the smoothness of the company establishment process and its compliance with all conditions and requirements.
In this way, investors can make the most of the investment opportunities available in Dubai’s free zones, and build successful and thriving companies in a distinguished business environment.
Establishing a company in the free zone in Dubai
Establishing a company in the Dubai Free Zone is a popular option for investors who want to take advantage of the favorable business environment and advanced tax and logistical incentives that these areas offer. Here are general steps for establishing a company in the Dubai Free Zone:
- Choosing a free zone: Before embarking on the establishment process, investors must choose the free zone appropriate to the company’s activity and needs, as there are several free zones in Dubai such as Jebel Ali, Jebel Ali Industrial, Dubailand, and others.
- Determine the type of company: Investors must determine the type of company they wish to establish, such as a limited liability company (LLC), limited liability company (FZ-LLC), or a sole proprietorship.
- Preparing the required documents: The required documents usually include a copy of the shareholders’ passport, the company’s articles of incorporation, the company registration form, and the lease contract for the office or space in the free zone.
- Submitting the application: After preparing the documents, investors must submit a registration application to the relevant free zone authority, which is usually done online or through the local services office.
- Payment: You must pay the fees required to register the company and obtain the necessary licenses. These fees vary according to the type of company and services required.
- Receiving licenses and permits: After reviewing the application and documents, the necessary licenses and permits are issued to start work.
What free zones are available in Dubai?
In Dubai, free zones provide a distinct environment for entrepreneurship and investment, and include several specialized and diverse zones targeting various sectors and economic activities. Among the free zones in Dubai :
- Al Jabal Al Akhdar Technology District (DIC): It is characterized by a focus on technology and innovative companies in areas such as information technology, communications, media and entertainment.
- Dubai Media District (DMC): specializes in the media, television and film production, advertising, publishing and audio studio industries.
- Blue Mountain Technology Park (DTEC): It is characterized by providing an environment for startups and small and medium-sized technology companies.
- Dubai Quality District (DQ): Focuses on companies in the areas of professional services, education, training, and research and development.
- Dubai International Investment District (DIFC): It is a major financial center dedicated to financial, banking and insurance services.
- Jebel Ali Technology Park (JLT): specializes in technology and creative companies and offers a distinctive environment for entrepreneurship.
The cost of establishing a company in the free zone in Dubai
The cost of setting up a company in a Dubai free zone varies depending on several factors, including the type of company and business activity you plan to engage in, the exact location in the free zone, and additional services you may need. However, some common costs that may be included can be highlighted:
- Registration and license fees: These fees vary depending on the type of company and business activity. These fees may range from several thousand to several tens of thousands of UAE dirhams.
- Virtual office fees (if required): In some free zones, registration requirements may require a virtual office, and this can increase the cost.
- Legal and consulting fees: You may need to engage the services of a lawyer or legal advisor to assist you in the process of establishing the company and meeting legal requirements, and this can add to the cost.
- Other administrative services fees: This may include the cost of general company administration, such as attestation, translation, stamp, etc. fees.
- Annual Fees and Fixed Expenses: These may include annual fees for renewing licenses and permits and any other fixed costs.
Types of companies that can be established in the free zone
In Dubai’s free zones, several types of companies can be established to suit investors’ needs and economic trends. These are some of the main types of companies that can be established in a free zone:
Joint Stock Limited Liability Company (FZ-LLC):
- This company is ideal for investors who want complete control over the company’s operations and have partners who contribute capital.
- Its establishment requires at least one partner and a specific capital.
Sole Proprietorship (FZE):
- This company is suitable for individuals who want to establish a company without partners.
- The owner has full responsibility for the company, and no specific capital is required.
Joint Stock Company (PJSC):
- This company is suitable for investors who want to attract capital from the public by selling shares.
- Subject to strict financial estimation, reporting and disclosure rules.
Company Branch:
- International companies can establish branches in the free zone to expand their operations.
- The branch must adhere to the conditions specified by the free zone authority.
Advantages of establishing a company in the free zone in Dubai
Conditions for establishing a company in the free zone in Dubai
In Dubai free zones, the conditions required for company establishment can vary slightly depending on the exact type of free zone and business activity. However, here are some common conditions that may be included in the conditions for establishing a company in the Dubai Free Zone :
- Visa and residency: There may be special visa and residency requirements for directors and employees who work for the company.
- Obtaining special approvals: Some free zones may require special approvals from local authorities before establishing a company, especially if the company operates in certain sectors such as heavy or petroleum industries.
- Health and social insurance: There may be requirements to provide health and social insurance for employees and employees of the company.
- Submitting a business plan: There may be a need to submit a detailed business plan outlining the company’s activity and future plans.
- Foreign Ownership: In some free zones, there may be restrictions on foreign ownership, and the company may require a local partner.
- Compliance with local regulations and laws: The company must comply with all local regulations and laws that regulate business in the free zone.
- Special financial requirements: There may be special requirements regarding the company’s core capital or security deposits.
The necessary papers to establish a company in the free zone in Dubai
Here is a general list of papers that may be required to establish a company in the Dubai Free Zone. Please note that exact requirements may vary depending on the type of company and the specific free zone. Therefore, it is best to check the exact requirements with the local authorities or the entity managing the free zone in question before starting:
- Registration application form: contains information about the proposed company such as name, business activity, and business location.
- A copy of the lease contract or office license: to determine the company’s location in the free zone.
- Power of attorney form: In the event that another person is authorized to carry out the registration procedures.
- Passport copy: for shareholders, managers and partners.
- Recent personal photos: of shareholders, directors and partners.
- A statement from the official authorities: approved by the competent authority in the free zone.
- Shareholder information form: identifies shareholders and their shares in the capital.
- Letter of support from the bank: proving the deposit of the required capital.
- Tax notification declaration form: for registration with the Tax Department.
- General Federation of Self-Employment (Trade and Industry) form: if you intend to register a local company.
- Other legal documents: Additional documents required may include depending on the type of company and activity.
The role of our company in the process of establishing the company in the free zone
Itqan Company plays a crucial role in the process of establishing a company in the Dubai Free Zone , as it provides a range of services and expertise that facilitate and accelerate the establishment process and ensure full compliance with local laws and regulations. Here are some of the main roles played by Itqan Company in the process of establishing the company in the free zone:
- Establishment and Planning Consulting: Itqan Company provides customized consultations to investors on the best options for establishing a company in the free zone, based on the type of economic activity and unique business needs.
- Assistance in choosing the most appropriate location: Itqan Company provides its in-depth knowledge of the various free zones in Dubai, and helps investors choose the location that best suits their needs and business goals.
- Arranging documents and procedures: Itqan Company arranges and prepares all documents necessary to register the company, including contracts, forms, and other legal documents.
- Submitting applications and following up with the relevant authorities: Itqan Company is responsible for submitting company registration applications and following up with the relevant authorities in the free zone, and ensuring full compliance with all procedures and requirements.
- Providing legal and financial support: Itqan can provide the necessary legal and financial support to investors during the incorporation process, including providing legal advice, tax analysis, and arranging financing.
- Managing relationships with local authorities: Itqan Company facilitates communication and management of relationships with local and governmental authorities in the free zone, making it easier for investors to implement procedures smoothly.
In short, Itqan plays a crucial role in facilitating the company establishment process in the Dubai Free Zone, and providing the necessary support and assistance to investors to ensure the success of the establishment process and its compliance with legal standards and local regulations.
In conclusion, it can be said that establishing a company in the Dubai Free Zone represents a strategic and smart step for those wishing to build a successful business in a dynamic and evolving business environment. Dubai’s free zones provide an ideal environment for new and expanding companies, providing advanced infrastructure and multiple government benefits that help accelerate construction and growth.
Through this article, we have provided you with a comprehensive overview of the process of establishing companies in free zones in Dubai, from the basic procedures to the expected costs and potential benefits. Choosing the right free zone and making the right decisions at the establishment stage can contribute greatly to the success of your business in Dubai.
However, you should not forget the importance of research and careful planning before making any decision. Consulting experts and attorneys who specialize in this field may be crucial to ensuring compliance with local regulations and achieving sustainable success in your business.
In short, establishing a company in the Dubai Free Zone represents a great opportunity for investors and entrepreneurs, and can lead to success and sustainable growth in the international business market.
The most important frequently asked questions about establishing a company in the free zone
What are free zones and what are the benefits of establishing a company in them?
Free zones are isolated areas within the country that enjoy specific customs and tax legislation and benefits. Establishing a company in the free zone provides many benefits such as 100% foreign investment, exemption from customs duties and taxes, customs and logistical facilities, flexible employment and ease of work procedures.
What types of companies can be established in the free zone?
A variety of companies can be established in the free zone, such as limited companies, limited liability companies, sole proprietorships, multinational companies, real estate companies, industrial companies, and others.
What are the basic requirements for establishing a company in the free zone?
Requirements vary depending on the free zone and type of company, but usually include specifying the company’s name and activity, submitting a registration application form, providing personal documents to shareholders and directors, submitting a business plan and financial estimates, and signing the required contracts and agreements.
Do I have to have a certain capital to establish a company in the free zone?
Establishing a company in a free zone requires a specific capital, which depends on the type of company and the specific free zone. There may be a minimum capital requirement, but in some cases flexible capital is allowed and can be negotiated.
Can the free zone company deal with the local market in the country?
Yes, the company in the free zone can deal with the local market in the country in accordance with local laws and legislation. However, there may be some special conditions and requirements regarding marketing products or providing services to the local market. This may require obtaining additional licenses or complying with local distribution requirements.
