Dubai’s free zones are an ideal destination for investors seeking to establish their companies in a vibrant business environment and opportunities. The speed of time to establish a company in the free zones in Dubai is an important factor that attracts many investors.
The duration of setting up a company in a free zone in Dubai varies according to several factors, including the type of company and its legal and administrative requirements. However, Itqan Company seeks to facilitate this process and provide an efficient and fast service.
Through Itqan Company, investors can benefit from the experience of a specialized team in managing company establishment procedures in a free zone in Dubai. The team handles the legal and administrative aspects and helps prepare the required documents, reducing the time spent in the process.
By using the services of Itqan Company, investors can save time and effort in establishing a company in a free zone in Dubai . The team provides assistance in accelerating the process and providing the necessary advice to comply with legal and administrative requirements. Hence, investors can quickly start operating their company and take advantage of the business opportunities available in a free zone in Dubai.
What are the free zones in Dubai?
The free zones in Dubai are considered one of the most important places that provide an ideal environment for business and investment. These areas offer various investment opportunities and facilitate administrative and operational procedures for companies. Here are some of the main free zones in Dubai:
- Jebel Ali Free Zone (JAFZA): Considered one of the largest free zones in the world, JAFZA provides advanced infrastructure and integrated services including shipping, customs clearance, distribution, and manufacturing.
- Dubai International Trade (DIC) Free Zone: DIC provides an ideal environment for companies in the fields of technology, media and creativity, with world-class facilities and advanced research centres.
- Dubai Free Zone (DAFZA): DAFZA provides excellent services to industrial, commercial and logistics companies, while providing benefits such as fast customs clearance and easy access to major roads and the airport.
- Dubai Media Free Zone (DIFC): DIFC is a world-leading financial and legal center, home to many global banks and leading financial and legal services companies.
- Dubai Knowledge Free Zone (DKP): DKP aims to promote scientific and technical research and innovation, and provides an ideal environment for companies in the fields of technology, education and scientific research.
The time period for establishing a company in the free zones in Dubai
The duration of setting up a company in Dubai free zones can vary based on several factors, including the type of company and local administrative procedures. However, the process is usually relatively quick compared to some other countries.
Typically, establishing a company in Dubai’s free zones can take approximately two weeks to two months, depending on the agreements concluded and the fulfillment of legal and administrative requirements. These processes include submitting the required documents, paying fees, and dealing with the relevant government agencies.
However, there may be some delays if there are problems or queries that need to be resolved, or if there are complications in the process. Therefore, it is wise to plan for the additional period of time that may be required before commencing company operations.
Basic steps to establish a company in the free zone
Establishing a company in the Dubai Free Zone requires following several steps. Here are the basic steps:
- Market study and research: Conduct a market study and analyze the opportunities and challenges in the free zone in which you wish to invest. Check market requirements, local laws and economic conditions.
- Choosing the legal type of company: Decide what type of company you want to create, such as a limited liability company (LLC), partnership, or sole proprietorship, according to your needs and goals.
- Determine the company name: Choose a suitable name and check its availability to ensure that it is not duplicated and that it matches the naming laws in the free zone.
- Obtaining the necessary licenses and permits: Apply for the necessary licenses and permits from the local authorities in the free zone, such as a business license and work permits.
- Determine the geographical location: Determine the geographical location of the company within the free zone, and ensure the availability of the required space and necessary infrastructure.
- Determine the capital and sign contracts: Determine the capital required to establish the company and sign the necessary contracts and documents with the relevant authorities in the free zone.
- Registration and qualification: Registration in the local company registry and obtaining the necessary qualification certificates and documentation from local authorities may be required.
- Opening a bank account: Open a bank account for the company in one of the approved banks in the free zone.
- Compliance with legislation and legal controls: Ensure compliance with all local legislation and legal controls in the free zone that relate to the company’s activity.
- Starting commercial operations: After completing all necessary procedures and obtaining approvals, you can start the company’s commercial operations in the free zone.
Commercial licenses available in free zones
In Dubai’s free zones , a variety of business licenses are available to suit different needs of companies and investors. Here are some common types of business licenses available in free zones:
- General Trade License: This license allows companies to conduct a wide range of businesses and distribute products and services inside and outside the UAE.
- Limited Trade License: This license allows companies to conduct business in free zones and specify the specific business activity that the company wishes to undertake.
- Industrial Trade License: This license allows companies to establish and operate factories and industrial units within free zones to produce products and goods.
- Import and Export License: This license allows companies to conduct import and export operations to and from free zones and outside them.
- Professional Services License: This license allows professionals and freelancers to provide their professional services in fields such as medicine, accounting, law, and engineering.
- Global Corporate Center License: This license provides an ideal environment for international companies to establish their regional or regional offices in free zones.
Differences between companies operating in free zones
| the side | Companies operating in free zones | Companies outside free zones |
|---|---|---|
| Establishment | Companies can establish within the free zone under specific conditions and customized licenses. | Establishing companies outside free zones is subject to local and national legislation and regulations. |
| Investment | Free zones provide a distinct investment environment and features such as customs clearance and no direct taxes. | Investment outside the free zones is subject to state-specific taxes and regulations. |
| Taxes | Companies located in free zones are exempt from income taxes and customs taxes. | Investment outside the free zones is subject to various taxes such as income tax and sales taxes. |
| Regulations and legislation | Regulations and legislation in free zones may be less complex and more flexible compared to areas outside them. | Companies are subject to compliance with national and local regulations and legislation of the country in which they are located. |
| Access to markets | Free zones may provide better access to a global market and facilitate transport, export and import. | Market access varies depending on the company’s location, transportation complexities, and customs regulations. |
| customs clearance | Free zones provide the advantages of quick and easy customs clearance. | Companies outside free zones may experience delays in customs clearance and slower processing. |
| Flexibility and innovation | Free zones may be more flexible and creative in their legislation and regulations, allowing for faster innovation and growth. | Companies outside free zones may be less flexible and need to comply with more complex regulations. |
Tax advantages of establishing a company in the free zone
Establishing a company in the Dubai Free Zone offers many tax advantages that attract investors. Among these advantages:
- No income tax: In Dubai’s free zones, companies are usually exempt from paying income tax on profits made within the free zone. This contributes to increasing the profitability of companies and enhancing their competitiveness.
- Not charging value-added tax (VAT): In light of the implementation of value-added tax in the UAE, companies located in free zones in Dubai are often exempt from paying this tax.
- Not imposing customs duties: Free zones in Dubai allow the management of goods and products without imposing customs duties, which reduces import and export costs and facilitates international trade operations.
- Full Company Ownership: Dubai’s free zone system allows wholly foreign-owned companies to gain full ownership of their assets and profits, without the need for a local partner.
- Ease of administrative procedures: Free zones in Dubai provide simple and easy administrative procedures, which reduces bureaucratic procedures and speeds up the establishment and operation processes of companies.
The duration of setting up a company in a free zone in Dubai varies according to various factors, including the type of business activity and the legal procedures required. However, Itqan Company has extensive experience in this field and provides the necessary support to accelerate the company establishment process.
Through Itqan Company, investors can benefit from a specialized team that manages administrative and legal procedures and deals with relevant government agencies. This is achieved by providing the necessary professional advice and guidance to ensure compliance with all conditions and accelerate the company establishment process.
By using Itqan Company’s services, investors can benefit from time and effort and reduce potential risks. Depending on the chosen business activity, the company can provide a specific time plan for setting up the company in a free zone in Dubai.
The most important frequently asked questions about establishing a company in free zones in Dubai
What business licenses are available in free zones?
Commercial licenses vary between individual companies, limited liability companies, and free companies.
What are the basic steps to establish a company in the free zone?
The steps include submitting a registration application, specifying the type of company, submitting the required documents, and paying the prescribed fees.
What are the tax advantages of establishing a company in free zones?
Companies in free zones typically enjoy no income taxes and no import and export customs duties.
What are the legal restrictions and regulations related to establishing a company in the free zone?
Companies must comply with local and international laws and regulations and file financial reports regularly.
Can companies in the free zone trade with companies outside the zone?
Yes, free zones allow trade with national and international companies.
