Types of companies that can be established in the Dubai Free Zone

How to establish a company in the Dubai Free Zone . Several types of companies can be established according to the needs and goals of investors. Here are some common types of businesses that can be established in this region:

Limited Liability Company (LLC):

• This company is considered one of the most common types of companies in Dubai and the UAE in general.
• Shareholders are limited in their financial responsibilities in proportion to their share of capital.
• There must be a local partner who owns at least 51% of the company\\\’s share, and the rest can be owned by a foreign investor.

Sole Proprietorship:

• This company is suitable for individuals who want to establish a company without partners.
• The sole owner is responsible for all financial and business affairs of the company.

Public Joint Stock Company – PJSC:

• It allows a company to raise money by offering its shares to the public.
• This company is suitable for large projects that require large investments.

Free Zone Company:

• Companies in free zones are interesting for foreign investors due to tax concessions and flexible regulations.
• These companies are subject to the laws and legislation of each free zone.

Limited liability company in the free zone (Free Zone Limited Liability Company – FZ-LLC):

• It is similar to a limited liability company (LLC), but operates within free zones without the need for a local partner.
• These companies enjoy tax and customs privileges in the free zone.

Branch of a Foreign Company:

• Foreign companies can establish branches in free zones in Dubai, and the branches bear the same name and legal identity as the parent company.
• The branch enjoys independence in managing local and international business.

Remember that you should check the laws and regulations of each free zone in Dubai, as conditions and requirements vary slightly between different free zones. It is best to consult a competent attorney to guide you through the company formation process and ensure full compliance with local laws.

Basic steps to establish a company in the Dubai Free Zone

Here are the basic steps for establishing a company in a free zone in Dubai:

Choosing the appropriate company type:

• Before embarking on the establishment process, you must choose the appropriate type of company that is compatible with your business plans, whether it is a limited liability company (LLC), an individual company, or a free zone company, according to your requirements and goals.

Choose the Free Zone:

• Choose the appropriate free zone for your business. In Dubai, there are several free zones such as Jebel Ali Port, Dubai Technology and Media Zone, Dubai Marine Industries Zone, and others. Each area offers different perks and benefits, so compare them before making a decision.

Determine the company name and ensure its availability:

• Choose a suitable name for your company and make sure it is available for registration. The name must be appropriate and not similar to the names of companies already existing in the area.

Submit a registration request:

• Fill out the registration application form required by the free zone authority. This form may require information about the type of company, shareholders, and proposed business activity.

Submit the required documents:

• Submit all documents required to establish the company, such as copies of shareholders\\\’ passports, investment agreement forms if required, and lease contracts or proofs of ownership of the office chosen as the legal address.

Pay the required fees:

• The registration process may require payment of registration fees and annual renewal fees, which vary depending on the type of company and free zone.

Waiting for approval and receiving the license:

• After submitting the application and documents, you must wait for approval from the relevant authority, and this process usually takes a few days to two weeks. After approval, you will obtain a license to establish your company.

Opening a bank account for the company:

• Open a bank account in the name of the company in one of the approved banks in Dubai, where you may be asked to submit the company license and some other documents.

Office rental and business start-up:

• Rent an office within the free zone and start your business. You may need to obtain additional permits depending on the proposed business activity.

Remember that it is important to adhere to local laws and regulations, and it is advisable to cooperate with Itqan Company to ensure that the company establishment process is completed successfully and correctly.

Legal and administrative requirements for establishing a company in the free zone

Legal and administrative requirements for establishing a company in the free zone

Establishing a company in a free zone in Dubai requires compliance with a range of legal and administrative requirements. Here are some basic points you should pay attention to:

• Company type: You must choose one of the company types allowed in the free zone, such as limited liability company (LLC), sole proprietorship, or joint stock company, according to local laws.
• Licenses and Permits: You may need to obtain a license from the relevant authorities in the free zone. For example, establishing some financial or medical services businesses can require special permits.
• Seed Capital: There may be requirements for the seed capital required to establish a company. Proof of the financial source of the required capital must be provided.
• Employing local labor: In some cases, establishing a company may require employing a certain percentage of local labor.
• Contracts and Agreements: The contracts necessary to establish the company and determine the rights and duties of shareholders and managers must be prepared and documented.
• Tax and customs declarations: The company must be registered to obtain the necessary tax and customs permits to conduct business in the free zone.
• Offices and legal address: A legal address must be provided for the company, and this could be the address of a commercial office in the free zone.
• Free zone privileges: The free zone can provide some tax and customs privileges and other facilities for companies. These privileges and required conditions must be verified.
• Legal advice: It is beneficial to consult with Itqan to ensure full compliance with local laws and legislation.

Adheres to local legal and administrative requirements, which can vary based on the type of company and its proposed activity in the Dubai Free Zone.

Documents required to submit an application to establish a company in the free zone

Submitting an application to establish a company in a free zone in Dubai requires submitting a number of necessary papers and documents. Here is a list of basic documents you usually need to provide:

• Establishment Application Form: The establishment application form specified by the relevant authorities in the free zone must be completed and submitted.
• Investment Agreement Form: In some free zones, establishing a company may require signing an investment agreement with the body supervising the free zone.
• Copy of passport for shareholders: Certified copies of passports must be submitted for all shareholders of the company.
• Portraits of shareholders: You may need to provide personal photos of all shareholders.
• A copy of the ID card for residents (if required): If one of the shareholders is a resident of the UAE, you may need a certified copy of the ID card.
• Business Plan: Free authorities may request a detailed sample business plan for the proposed company, outlining business objectives, strategy and financial projections.
• Financial certificates: Local companies may require financial certificates proving the financial ability of shareholders to establish and operate the company.
• Lease or Office Ownership: A copy of the lease or proof of ownership must be provided for the office the company will use as its legal address.
• List of directors and shareholders: A list of proposed directors and shareholders of the company must be submitted.
• Shareholders’ signature on the necessary documents: Shareholders must sign all official documents required to establish the company.

Remember that these documents may vary slightly depending on the type of company and local laws in the free zone. So, before submitting any application, it is better to check the exact requirements with the relevant authority in the free zone where you plan to establish the company.

Learn how to establish a company in the Dubai Free Zone

In conclusion, establishing a company in the Dubai Free Zone is a strategic choice for many entrepreneurs and ambitious companies seeking to benefit from the various advantages and incentives that these areas provide. In cooperation with Itqan Company, any founder can create a successful company in a short time, by benefiting from the company’s experience and distinguished services.

The establishment process begins with identifying the free zone that best suits the nature of the business and activity that the company wishes to practice. Here comes the role of Itqan Company in providing the necessary advice and guidance to learn about the different regions and their characteristics, which helps in making the optimal decision. After that, the company will carry out all necessary procedures to obtain the commercial license and required licenses, including establishing the legal entity of the company and registering it in the commercial registry.

By partnering with Itqan, the founder will be able to skip many challenges and bureaucratic requirements, and focus instead on strategic planning and building a distinct business model. The company will provide the necessary support in the areas of insurance, human resources, financial and legal services, enabling the founder to focus on growing his company’s business and expanding into new markets.

In addition, Itqan will assist in finding suitable offices and facilities in the selected free zone, while providing advice on recruitment, legal compliance and other operational aspects. Thus, the founder will be able to launch his company smoothly and begin its path towards success and growth in a distinguished business environment.

In cooperation with Itqan Company, any founder can establish a company in the Dubai Free Zone with high effectiveness and efficiency, benefiting from the experience and integrated support provided by the leading company in this field. Thus, establishing and expanding into global markets becomes within reach.

Frequently asked questions about how to establish a company in the Dubai Free Zone