First of all, What do you mean by Dubai free zone?
Dubai Free zones or Free trade zones are business zones in Dubai where companies operating inside the free zone area are exempt from all types taxes such as value-added tax (VAT), Income tax, Corporate Tax and customs. Business owners inside the free zone areas in Dubai have 100% ownership of the business.
Some of the major Free zones operating in Dubai are:
- Dubai Airport Free Zone
- Dubai Auto Zone
- Dubai Design District
- Dubai Healthcare city
- Dubai International Academic City
- Dubai Internet City
- Dubai International Financial Center
- Dubai Knowledge Village
- Dubai Media City
- Dubai Gold and Diamond Park
- Dubai Multi Commodities Center
- Dubai Silicon Oasis
- International Media Production Zone
- Jebel Ali Free Zone
- Dubai Production City
- Dubai World Central
- Dubai Studio City
Business setup in Dubai Free Zone – Advantages
- 100% tax-free on personal or corporate income and gains.
- 100% ownership for investors disregarding of their nationality and domicile.
- 100% banishments of capital and profits for setup of new business.
- Banishment from all imports and export duties
- Exceptions from corporate tax for 15 years, with an extra renewal option for 15 years.
- No capital deposition required.
- 100% free transfer for funds, and no foreign exchange controls
- Low cargo charges.
- Less expensive workforce and easy recruitment procedures
- Well organized communication procedures and single window administration.
- The Timely and smooth immigration process.
- Sponsorship and visas for a budget-friendly skilled workforce.
- Flexible to operate 24*7
- Offices available for sale or lease
- In build offices, factories and warehouses
- Easy start-up procedures
What are the limitations in setting up a company in Dubai Free Zone
- The necessity of renting office premises within the chosen free zone.
- Being not able to conduct business or engage in business activities with the company clients or suppliers in Dubai mainland
- High transportation and notarization costs.
Procedures to start new business in the UAE free zones
1) Determine the type of legal organization
Decide what type of business you want to set up in any of the free zones. The capital requirements for such a business entity depends upon that particular free zone where you want to form a company; for example, there is no minimum capital requirements for setting up a business in twofour54, whereas in Dubai Airport Free Zone you are supposed to have a minimum share capital requirement of AED 150,000.
2) Choose a business name
Choose a business name for your company, after deciding the type of legal entity. MAke sure you cross-checked with the respective free zone authority about the permitted trade names and whether the name has already been registered/taken.
3) Apply for trade license
After choosing a business name and registering the same in the free zone authority’s portal, you have to register for a Business license. The type of business license depends on the type of business of your company. Supporting documents should also be presented while applying for the license.
4) Choose a work space
Free zone authorities provide shared desk office service to support new business entities. You can lease or buy office spaces in free zones according to your business type and size.
Get business approvals from the specific authorities, register your business at the business portal, and get your business license. Usually within 2-3 weeks the approvals processing is done. Once your business license is issued, you are all good to start your business.
Documents required for setting up a business in UAE
- General Documents
2) Documents for consultancy License
3) Documents for industrial License
4) Documents for a branch of companies
Company Formation Service in UAE
Having your own company is the dream of every businessman. The opportunities provided in the UAE are endless. It is potentially the most productive business destination that you can find around the world. Emirates such as Dubai are a prime tourist destination and a hub for business activities. But as much as company formation services in Dubai is fruitful for the investors and businessman, it is a very extensive process and hard to understand for a person who is not aware of the language and the laws of Dubai.