Basic costs of establishing a company in a free zone

Dubai Free Zones are a favorite destination for many global entrepreneurs and investors who are looking for a favorable business environment to establish a company in the Dubai Free Zone and expand their business activities. This growing interest is due to the multiple advantages these regions offer, from advanced infrastructure and quick and easy incorporation procedures, to attractive tax exemptions and access to regional and international markets. However, before embarking on this process, investors should carefully consider the costs associated with establishing a company in a free zone. Basic costs for establishing a company in a free zone:

• Licensing and registration fees: These fees vary depending on the type of activity and the expected size of the company, and are considered one of the basic costs that must be taken into consideration when planning to establish a company.
• Office rental fees: These costs depend on the location and space required, and represent one of the main components of the establishment budget.
• Operating and management costs: These include employee salaries, office services, insurance, maintenance, etc., and are considered ongoing operational costs that investors must take into consideration.
• Other establishment costs: These include legal establishment costs, professional consultations, and other government fees, which may vary depending on the nature of the project and the services required.

In cooperation with a specialized consulting company, investors can accurately determine these costs and plan their budget realistically, which helps them avoid potential risks and ensure the long-term success of their project.

Key advantages of establishing a company in a free zone in Dubai

Dubai is one of the most attractive areas in the world to establish a business, thanks to its advanced economic system and outstanding infrastructure. At the heart of this success are free zones that provide a range of unique advantages to companies seeking to grow and prosper. These advantages have made Dubai a global business and investment hub. The main advantages of establishing a company in Dubai :

• Tax exemptions: Companies registered in free zones enjoy full tax exemptions on profits and value-added tax, providing an exceptional opportunity to enhance profitability and growth.
• Fully foreign ownership: The free zone system allows 100% foreign ownership of companies without the need for an Emirati partner, which gives investors complete control over their business.
• Ease of establishment and operation: Establishment procedures in free zones are characterized by simplicity and speed, and the licenses and permits necessary for operation are easily available.
• Access to markets: Dubai’s free zones constitute an ideal gateway to accessing regional and international markets, thanks to their strategic geographical location and advanced transportation system.
• Advanced Infrastructure: Dubai’s free zones provide world-class infrastructure, including offices, logistics space and support services, facilitating the business process.

Thanks to these multiple advantages, Dubai free zones are a strategic choice for companies aspiring to succeed on the global stage.

Types of licenses available in free zones

Dubai free zones provide a variety of licenses that meet the needs of different companies. These licenses regulate and facilitate business operations, and give companies the flexibility necessary to successfully implement their strategies. Understanding the types of licenses available is crucial for investors and entrepreneurs wishing to establish their companies in free zones. Types of licenses available in free zones in Dubai:

• Commercial license: This license allows companies to practice commercial and service activities, such as export, import, storage, and distribution.
• Professional license: This license is suitable for companies that provide professional services, such as legal consulting, engineering, and accounting auditing.
• Industrial license: This license allows manufacturers to produce goods and products within the free zones.
• Service license: This license is suitable for companies that provide various services, such as hospitality, entertainment, and health care.
• Data Center License: This license is intended for companies working in the field of information technology and data technology.

Each type of these licenses has its own requirements and conditions, which are determined according to the nature of the company’s activity. This diversity of licenses gives companies more options to achieve their goals and aspirations in Dubai’s free zones.

Basic requirements for establishing a company in a free zone

Establishing a company in a free zone in Dubai offers many advantages to investors and entrepreneurs, including low taxes, ease of incorporation procedures, and logistical support. However, there are some basic requirements that must be met to obtain a company license in the free zone. Understanding these requirements is critical to ensuring that the incorporation process runs smoothly and efficiently. Basic requirements for establishing a Dubai company :

• Choosing a company type: Founders must select the company’s legal entity, such as a limited liability company (LLC) or a publicly traded company.
• Choosing a company name: The company name must be unique and compatible with the laws and regulations in force in the free zone.
• Determine paid-up capital: Founders must determine the minimum capital required for each type of company in the free zone.
• Choosing the office location: The founders must choose the location of the company’s office within the free zone suitable for their activity.
• Submitting the required documents: The founders must submit a set of basic documents, such as the license application form and the company’s articles of association.
• Obtaining the necessary licenses: The founders must obtain a commercial, professional, or industrial license depending on the type of company activity.
• Fulfilling additional requirements: These requirements may include providing insurance certificates or proof of ownership or residency in the UAE.

By adhering to these basic requirements, founders will be able to establish their company in the Dubai Free Zone smoothly and efficiently.

Our company’s role in establishing a company in the Dubai Free Zone

Although setting up a company in Dubai Free Zone involves some basic requirements, the overall cost of the process can be affordable for investors and entrepreneurs. Itqan, a leading consultancy firm in Dubai, provides comprehensive services to help companies move to the free zone smoothly and efficiently.

The basic cost of setting up a company in Dubai starts , which includes license fees and other licenses. However, this cost may vary depending on the type of company and the activities you will undertake. For example, the cost of establishing a trading company may be lower than the cost of establishing a manufacturing or service company.

Itqan Company provides comprehensive consulting services to assist clients in all stages of the establishment process, including choosing the appropriate legal structure for the company, obtaining all necessary licenses, and leasing equipped offices in the free zone. The company also provides additional services, such as human resources management, accounting and logistics, which helps new companies focus on their business growth.

In addition to the basic cost, the incorporation process may involve additional costs, such as insurance fees, staffing costs, or other operational expenses. However, with Itqan’s help, founders can plan for these costs better and achieve significant savings in the long term.

In conclusion, establishing a company in the Dubai Free Zone can be a worthwhile investment if planned carefully and in cooperation with Itqan. By leveraging its extensive experience and comprehensive services, new founders can receive the support and guidance needed to successfully establish their companies in the free zone.

Frequently asked questions about establishing a company in the Dubai Free Zone