If we could choose 3 words to describe Freezone Business Setup in Dubai, it would be:
- Cost-effective
- Smooth setup
- Great ROI
UAE is undoubtedly a hot spot for business owners from all around the world, all thanks to its ever-growing economy, investor-friendly business regulations, and strategic location. If you’re also planning to dive into Dubai’s growing business sector, here’s the guide you need to know all about Business Setup in Dubai Freezone.
What is a free zone company?
Freezone, also known as free trade zone, is basically an economic zone where goods and services can be traded.
Perks of setting up a company in the Dubai Free Zone
Following is the list of benefits you can enjoy by setting up a company in a Dubai Freezone:
- The process for new business setup in Dubai Freezone is extremely straightforward. It takes only a week or two to complete the whole process.
- Enjoy 100% exemption from corporate and personal tax.
- No import/export tax.
- Benefit from 100% foreign ownership.
- Another major plus of setting up a Dubai Free Zone Company is that you receive ongoing support. From helping you apply for visas for yourself and your staff to help you open a corporate bank account, the free zone will provide assistance every step of the way.
Set up a company in Dubai Free Zone
Following is the step-by-step process of company registration in Dubai Free Zone:
1. Select a business activity
Hundreds of business activities are available to choose from. The license you will apply for will depend on the business activity you choose. You can also select multiple business activities under one license.
The first step is to determine your business activity because not all free zones cater to all business activities.
Once you have listed down the business activities you wish to conduct, you can then decide on a free zone that covers your desired business activities.
2. Decide on a company name
Then, the next step is to finalize a name for your business. You must also make sure that the name you choose complies with the rules set by UAE.
Following are some rules defined for naming a company:
- Do not use offensive language
- It’s not allowed to use any religious references
- It’s also not allowed to use any references to any known organizations (such as, FBI or Mafia, etc).
3. Decide on a company structure
You’re then required to decide on a legal structure for your company.
Below is a list of the kind of legal structures you can choose in a free zone:
- Free Zone Company Limited Liability Company
- Free Zone Company
- Free Zone Establishment Limited Liability Company
- Free Zone Establishment
- Branch Company
4. Start your application and submit documents
Once you’re done with the steps mentioned above, you can then start your application process and submit all the required documents.
You’ll need:
- Completed Application form
- Immigration card
- Entry Permit
- Medical Fitness Test Report
Documents required:
Following is the list of documents required:
- Passport copy and contact information
- Visa Copy
- Emirates ID (if you’re already a UAE Resident)
- Passport-size photos
- Some free zones might also require you to submit a business plan
Please note: You may need to submit additional documents, depending on the free zone’s requirements.
5. Select an office space
Many free zones require you to have a physical office space, in order for the license to be approved. This can be your own or rented office space.
The office space size will depend on the nature of your business and the number of visas you wish to process.
6. Process your visas
In order to legally work or conduct business in the UAE, you should have a valid UAE visa. The free zone you have chosen for business setup can help you with visa processing. To further ease the process, you can take assistance from a professional business setup company to complete the process on your behalf.
7. Open a bank account
To keep track of your business transactions, you’ll need to set up a corporate bank account.
Once your license is issued, you can proceed with opening a corporate bank account by submitting all the necessary documents.
