Establishing a company in the free zone in Dubai . The UAE government seeks to attract investors from all over the world and provides many facilities, including providing free zones in Dubai, which have many advantages. In this article, we review how to establish a company in the free zone in Dubai.

How to establish a company in the free zone in Dubai

To establish a company in the Dubai Free Zone, you must complete three main steps. The first of these steps is obtaining a commercial license, obtaining a residence visa in Dubai, and opening a bank account. The validity period of these licenses is one year from the date of issuance and is renewed annually.

Here are the steps necessary to establish a company in the Dubai Free Zone in detail:

1. Choose the license type and business activity

There are several types of licenses for free zones, and the type of license is determined based on the nature of the company’s activity. For example: commercial activity requires a commercial summary, services and consulting require a service license, and industry and production require an industrial license.

2. Choose a free region

Dubai contains many free zones, and each free zone has a set of permitted activities. Visas and types of offices also differ from one free zone to another. Therefore, you must select the appropriate free zone for the nature of your work according to your activity.

3. Determine the company structure

The company structure can be one of the following:

• A new company with shareholders.
• Subsidiary company with shareholders.
• Joint venture company.
• Branch of a local or foreign company.

4. Choose the trade name and prepare the documents

The Departments of Economic Development require certain controls for the name, so it must not violate public taste and must be compatible with the nature of the activity.

5. Request for initial approval

Initial approval includes the locations of the company name, business activity, and proposed company structure.

6. Signing legal documents

Meet the free zone representative to verify the passport of the final beneficiary or shareholder, then sign documents such as the board of directors’ decision and others.

7. Establishing a work site

A business headquarters must be established for the company, whether by purchase or rent, and it must be a physical headquarters in the free zone appropriate to the nature of the activity.

8. Obtaining licenses

After completing all the previous steps, the investor can receive the license and attach some documents and papers with it, in addition to the economic development steps to pay the costs of the license fees, then register in the UAE Chamber of Commerce as a member.

Costs of establishing a company in the Dubai Free Zone

The costs of establishing a company in the Dubai Free Zone depend on several factors, including the type of company, the size of its activity, and the exact location in the free zone. Here are some items that can affect costs:

1. Type of company: The costs of establishing companies vary according to their type, whether it is a sole proprietorship, a limited liability company, or a joint stock company.
2. Company location in the free zone: The price per square meter for offices or commercial space in free zones varies, and this affects the cost.
3. Additional services: Some free zones may provide additional services such as logistical support or advanced infrastructure, and this may lead to higher costs.
4. Licenses and Fees: There is a fee to pay to obtain the necessary licenses, and there are costs associated with administration and registration.
5. Legal documents and consultations: You may need to pay costs for legal consultations and preparing the documents required to establish the company.

Conditions for establishing a company in the free zone in Dubai

Establishing a company in a free zone in Dubai requires following several steps and adhering to specific conditions. You should contact the relevant authority in the free zone of your choice for accurate details and current updates. However, some general conditions that are usually part of the process of establishing a company in free zones in Dubai can be clarified:

• Company type: You can choose the type of company you would like to establish, such as a limited company, limited liability company, or sole proprietorship.
• Company activity: The company activity you intend to carry out must be determined, and it must be in line with the permits and regulations approved in the free zone.
• Capital: There may be minimum capital requirements to establish a company, and this depends on the type and size of the company.
• Shareholders: The identity of the shareholders and their shares in the capital must be determined.
• Business licenses: The necessary licenses must be obtained to practice commercial activity in the free zone.
• Legal Office: You must specify an address for the legal office in the free zone.
• Legal procedures: You must adhere to the legal procedures specified for establishing the company, by submitting the required documents and specified financial payments.
• Insurance: There may be requirements for insurance for employees and business assets.
• Special permits: There may be special permits related to the company\\\’s activity, such as industry licenses or health permits.
• Bank Accounts: There may be a need to open a company bank account in approved banks in the free zone.

Documents required to establish a company in the Dubai Free Zone

The documents required to establish a company in the Dubai Free Zone vary according to the type of company and economic activity. However, here is a general list that may be necessary:

• Registration application form: A document containing details of the company and the activities it will undertake.
• Model of Stock Ownership (MOA): Defines the scope of business activities a company can undertake.
• Photos of partners and identity documents: Passports and IDs for all partners.
• Lease contract or location license: proves the company\\\’s location and may require management approval.
• Registration and License Fees: The required fees must be paid to obtain business licenses.
• Bank report: It can be required in some cases to confirm the company\\\’s ability to bear the costs.
• Authorization of partners: if there are agents or representatives.
• Business Plan: A document that explains the company\\\’s goals and how to achieve them.
• Financial Reports: May be required in some cases to provide a picture of financial strength.
• Market Research Report: Sometimes, a report needs to be provided highlighting market opportunities and challenges.

Advantages of establishing a company in the free zone in Dubai

Establishing a company in the Dubai Free Zone carries many advantages that make it an attractive option for those wishing to invest. Here are some important features:

• Tax disparity: It allows companies in Dubai\\\’s free zones to benefit from tax disparity, as there may be tax exemptions on profits.
• Full Ownership: Foreign companies and investors can benefit from 100% ownership of their business, which means no need for a local partner.
• Not imposing customs duties: Companies in free zones can import and export goods without imposing customs duties.
• Advanced commercial environment: Dubai\\\’s free zones provide modern infrastructure, advanced commercial facilities, and excellent logistics services.
• Easy registration procedures: The registration system in free zones allows quick and easy establishment procedures, making it easier for investors to effectively start their business.
• Freedom to move and shift: Dubai\\\’s location allows it to benefit from an excellent transportation network, making it easy for companies and employees to move and move around.
• Access to regional markets: Dubai is located in a strategic location that facilitates access to many markets in the region, opening up opportunities for expansion and trade.
• Flexibility of legal systems: Free zones allow companies to benefit from flexible legal systems that allow them to adapt procedures to suit their needs.
• Availability of professional labor: Dubai has a diverse international community, which makes it easy to find experienced professional labor.
• Research and innovation facilities: Free zones provide infrastructure for research and innovation, which encourages development and technological progress.

To know the costs necessary to establish a company in the Dubai Free Zone, you can contact us and our experts will provide you with all the information. We have experts to clear all the procedures, documents and papers necessary to establish a company in the Dubai Free Zone .