In the business world, Dubai is considered one of the most important global destinations for entrepreneurship and investment, and the emirate offers many exciting opportunities for companies to engage in commercial and development activities. Freedom zones in Dubai are one of the most prominent options available to new companies and investors, as they provide a business-friendly environment with multiple benefits, including government facilities, low taxes, and flexible legislation. Among the main factors that investors consider when choosing a free zone in Dubai is the cost of obtaining Commercial license. When it comes to the cost of a business license in a free zone in Dubai, there are several factors that must be taken into consideration, including the type of business activity, the type of license required, and the size of the company planned to be established. In this article, we will highlight the cost of obtaining a business license in a free zone in Dubai, Focusing on the factors affecting this cost and how to choose the appropriate option for the planned business activity.

Conditions for obtaining a commercial license in the free zone?

The conditions for obtaining a business license in the free zone may differ slightly between the different free zones in Dubai according to the policies and regulations of each zone, but in general, the basic conditions that usually must be met include:

• Acceptable Business Activity: The business activity you wish to engage in must be accepted by the relevant authorities in the free zone. These areas can be specialized in certain activities such as global trade or financial services.
• Approval of the relevant authorities: Obtaining a commercial license may require approval from the relevant authorities in the free zone and submitting the required documents to them.
• Required Capital: The free zone may specify a certain amount as the minimum capital required to obtain a business license. This capital is determined based on the company\\\’s activity and the requirements of local law.
• Location of the company\\\’s head office: Some free zones may require that the company have a specific main office address in the free zone.
• Providing the necessary documents: The required documents must be submitted, such as a copy of the passport, a personal photo, the incorporation document (if the company is already registered), and others as needed.
• Pay the required fees: The fees required to issue and renew the commercial license must be paid.

Steps to obtain a commercial license in the Dubai Free Zone

If you are considering obtaining a business license in a free zone in Dubai, here are general steps to follow:

1. Choosing a free zone: You must first decide which free zone you want to establish your company in. There are many free zones in Dubai, such as Dubai Investment Zone, Jebel Ali Zone, Dubai Technology and Internet Zone, and others. You should choose the region that suits your company\\\’s activity and its specific requirements.
2. Submitting an Application: Once the free zone is selected, an application must be submitted for a business license. You can do this by contacting the free zone regulating authority or through its website.
3. Determine the type of company: Before submitting the application, you must specify the type of company you wish to create, whether it is a sole proprietorship, a limited liability company, a public company, etc.
4. Submitting documents: When submitting the application, you will need to submit a set of documents and papers, such as a passport, business plan, lease contract (if the headquarters is in the free zone), and others. The required documents vary depending on the type of company and local laws.
5. Approval and payment: After submitting the application and documents, they are reviewed by the free zone regulator. If the application is approved, you will need to pay the fees required to obtain the business license.
6. Receiving the license: After payment, you will receive your business license. You must ensure that all details and information included in the license match the information you have provided.

Types of business licenses available in the free zone?

In Dubai\\\’s free zones, there are several types of business licenses that investors can obtain depending on their business needs and the type of business activity. Among the common business licenses in free zones in Dubai:

1. General Trading License: This license allows the practice of general trading activities, including buying and selling a variety of goods wholesale and retail.
2. Industrial License: This license allows companies to produce goods and products in the free zone, including industrial and manufacturing operations.
3. Professional Services License: This license allows an individual or company to provide professional services such as engineering, medical, accounting, and legal consultations.
4. E-commerce License: This license allows companies to engage in commercial activities over the Internet, including selling products and providing services via Internet platforms.
5. Logistics Services License: This license allows companies to provide logistics services such as warehousing, distribution, and transportation inside and outside the free zone.
6. Contracting License: This license allows companies to carry out contracting and construction work within the free zone.

Tax laws for companies in Dubai Free Zone

In the Dubai Free Zone, companies enjoy a number of tax advantages that make it an attractive investment destination. However, investors must comply with local and international tax laws and regulations. Here\\\’s an overview of the main corporate tax laws in Dubai Free Zone:

• Personal tax: In the Dubai Free Zone, there is no tax on individuals’ personal income, including salaries, bonuses and investment returns.
• Corporate Tax: In many Dubai free zones, there is no corporate tax on income. However, the local regulations of each free zone must be checked individually to ensure that this policy actually applies.
• Value Added Tax (VAT): Value added tax applies in the UAE, and some services and goods are subject to it. Companies must register in the VAT tax system if their annual revenues exceed the specified limit.
• Customs taxes: Companies must adhere to customs regulations when importing and exporting goods.
• International Taxes: Companies operating in the Dubai Free Zone must adhere to international tax laws and submit the required financial reports on time.

How to renew a Dubai Free Zone trade license

Here are general steps to renew a commercial license in the Dubai Free Zone:

1. Communicate with the relevant authorities: Contact the authority responsible for issuing commercial licenses in the free zone where your company is located to obtain the necessary information about the renewal process and requirements.
2. Submitting the required documents: The renewal process may require submitting some documents such as the renewal application form, a copy of the current commercial license, the incorporation document, and others according to the requirements of the local authorities.
3. Payment of fees: You must pay the fees required for the commercial license renewal process.
4. Auditing and review: The documents you provide and the information provided are audited to ensure that they meet the requirements.
5. Issuance of the renewed license: After submitting the documents and paying the fees, the renewed commercial license will be issued to your company.
6. Updating data: The renewal process may require updating company data if there are any changes in company information such as headquarters address or corporate structure.

Papers required for issuance a commercial license in Dubai Free Zone

The documents required to issue a business license in the Dubai Free Zone may vary slightly depending on the type of business activity and the policies of each free zone, but generally, the basic documents you may need include:

• License application form: You must fill out the license application form submitted by the entity responsible for issuing commercial licenses in the free zone.
• A copy of the passport: A copy of the passport must be submitted to the owner or major shareholders of the company.
• Personal Photos: Recent photographs of the owner or major shareholders may be requested.
• Company incorporation document: If the company is already registered, a copy of the company incorporation document such as the incorporation certificate or company contract must be submitted.
• Business Plan: Some free zones may require the submission of a detailed business plan outlining the proposed business activity and the company’s future plans.
• Foreign Shareholding Form: If there are foreign shareholders in the company, a Foreign Shareholding Form may have to be submitted.
• Lease contract or ownership documents: Some free zones may require proof of the company’s location through a lease contract or ownership documents for the property.
• Report on financial activity: You may need to submit a report on the company\\\’s expected financial activity.