Dubai is now considered as one of the most appealing business destinations in the world with global entrepreneurs and investors having infinite opportunities to set up their companies and develop them. Among the most preferred options by investors is establishing a business within the freezone company in the city. business setup in dubai free zones will offer a wide range of advantages including 100 percent ownership, tax exemptions, streamlined set up process and accessibility to foreign market. To both startups and SMEs as well as multinational corporations, it is deemed that Dubai free zones are the gateway to success in the Middle East and even further.
Regardless of whether you want to start up a trading company, a consultancy or an industrial unit, the free zones in Dubai provide specific solutions to satisfy your needs as per the industry. The free zone businesses will give you complete control over your company unlike mainland businesses which normally demand a local sponsor. Additionally, due to the presence of flexible visa packages, modern infrastructure and affordable alternatives, obtaining a freezone company formation license in Dubai is now easier than ever and can be used to capitalize on the vibrant economy in the city.
Why is it better to start a business with the help of Dubai Free Zones?
- Wholesale Foreign Ownership- It is among the largest benefits where foreign investor is able to own the business in its entirety without having to own it through local sponsor.
- Tax Benefits- Have corporate tax exemptions, none on personal income taxes and 0 on customs duty on imports and exports in free zones.
- Strategic Location – Dubai is a connecting point between the East and West which opens up trade paths with other countries across the globe.
- Modern Infrastructure – The state of the art office, warehouses and logistic facilities that cater to international business.
- Simplicity in Establishment- With simplified processes, entrepreneurs can incorporate and get licenses within few days.
- Sector-Specific Free Zones- There are technological, media, health, logistic, education and financial zones that accommodate specialized sectors.
Dubai Freezone Company Formation Licenses types.
In case when you are asking to be licensed, you have to choose the category according to your business activity. Common licenses include:
- Commercial License: The commercial license is used in trading, importing and exporting business.
- Service License- In the case of consultancies, IT services, education or professional firms.
- Industrial License – To manufacture, process or industrial.
- E-commerce License -In the case of online business and trading online.
- Freelancer License – This is available to self-employed workers in such professions as design, writing, or IT.
- The type of a license you select is very important as it influences the operations your business is permitted by the law to execute.
How to obtain Free zone Company Formation License in Dubai Step by Step.
1. Identify Your Business Operation.
Definitely define what your core business is. The free zone authority needs proper classification so as to grant the appropriate license.
2. Choose the Right Free Zone
Dubai has more than 30 free zones that serve particular industries. Examples include:
- Dubai Multi Commodities Centre (DMCC) – Trade and commodities.
- Dubai internet city 3 – IT & tech startups.
- Dubai media city- Media and communications.
- Dubai Healthcare City- Medical and wellness business.
3. Select a Company Name
The name of your business should be in line with the naming requirements of the UAE. Do not use abusive words, religious names, and repetitive names.
4. Apply for Initial Approval
Make an application form and hand in your business plan and personal documentation to the applicable free zone authority.
5. Prepare Legal Documents
The documents required are often:
- Copies of shareholders passport.
- Visa copies
- Proof of address
- No Objection Certificate (where necessary)
- Business plan
6. Select Office Space or Flexi desk.
Based on your business requirements, flexible desks (shared offices), dedicated offices, or warehouses will be offered at free zones.
7. Pay Fees and License Cost
You are required to pay the cost of Dubai free zone license and this will differ according to the free zone, type of license and facilities selected. The average expenses are between AED 10,000 and AED 50,000 each year.
8. Get Your Business License.
Upon successful process, the issuance of your license is made by the free zone authority and you can start off with your operations.
Dubai Freezone License price: What You Should know.
The Dubai freezone license cost varies based on a number of factors:
Type of License A service license may be cheaper than an industrial one.
- Space Needs at the office- Flexi desks are cheaper as compared to dedicated offices.
- Number of Visas- The higher the number of visas required by employees, the higher the package.
- Individual Free Zone -Each free zone entity has its own pricing and advantages.
On average:
- Freelance license: AED 7,500 – 12,000
- Small business license: AED 12,000 – 25,000
- Incident/business license with office: AED 30,000 50,000+.
Paperwork needed to apply to Freezone License.
- Completed application form
- Copies of passport of shareholders and directors.
- Passport-size photos
- Evidence of residence (utility bills, tenancy contract)
- Bank reference letter (some may be required)
- Business plan (in other free zones)
Setting up Business in Dubai Free Zones – Most important Benefits.
Investing in Dubai free zones business setup will enable investors to enjoy:
- Complete profit and capital repatriation.
- Streamlined immigration and visa handover.
- Availability of world-class infrastructure.
- International contacts with businesses.
- Easy entry of startups and freelancers.
Typical Interviewing errors to be avoided.
- Selecting the Wrong Free Zone – Select one that suits your business activity.
- Lack of complete Documentation – Make sure that all the documents are recent and correct.
- Disregard of Renewal Requirements- licence should be renewed on annual basis.
- Underestimating Costs – It is always best to budget on visa costs, renting an office and miscellaneous expenses.
- Failing to consult a professional helper- Consultants may make the process easier and less time-consuming.
Top Free Zones in Dubai to Open New Businesses.
- Dubai Multi Commodities Centre (DMCC) -Most suitable in terms of trade and commodities.
- Dubai Airport Free Zone (DAFZA) – Perfect location in a close proximity to the airport.
- Jebel Ali Free Zone (JAFZA) – Perfect in case of logistics as well as massive industries.
- Dubai Internet City (DIC) – As an IT startup/technology entrepreneur.
- Dubai South Free Zone -Cheap but with a larger potential.
- The Time Taken to Obtain a Free Zone License?
- It lasts between 3 and 10 working days, which depends on the free zone authority and the complexity of your application.
Conclusion
The application of free zone company formation license in Dubai is among the most intelligent business strategies that those entrepreneurs can apply in capitalizing on the booming economy, a tax-free nature of Dubai and its global connectivity. Dubai free zones are the best in providing business success opportunities due to streamlined processes, the world-class facilities, and full foreign ownership. With proper choice of the appropriate free zone, preparation of the required documents and budgeting of the Dubai freezone license cost, one can establish the business within a few days.
Business set up in Dubai free zones opens the international trade, innovation, and financial prospects whether you are a freelancer, a small business enterprise, or a multinational corporation. The investment support in the city of Dubai has made it a perfect place to establish the company and with your license under the belt of the city, your business will be established on a solid and future-viable platform.