Free zones provide advanced infrastructure, modern facilities, and an encouraging legal environment, which facilitates procedures for establishing and operating companies quickly and efficiently. These free zones also provide opportunities for companies to benefit from tax and customs incentives, which enhance Dubai’s attractiveness as a global investment destination.

Establishing companies in Dubai’s free zones reflects the emirate’s vision of promoting innovation and economic sustainability, and achieving long-term sustainable development. As these opportunities and initiatives continue to grow, it is expected that Dubai will continue to attract investors and entrepreneurs from all over the world, and strengthen its position as a major global business center.

 

Advantages of starting a business in Dubai free zones

Starting a business in Dubai’s free zones has a number of notable advantages that make it an attractive destination for investors and entrepreneurs alike. Among the main pluses:

1. Advanced infrastructure: Dubai’s free zones are characterized by a modern and advanced infrastructure, including logistical facilities, ports and airports, which facilitates the transportation of goods and resources with high efficiency.
2. Encouraging legal and regulatory environment: Dubai provides an encouraging legal and regulatory environment that protects the rights of investors and facilitates procedures for establishing and managing companies efficiently. Free zones also enjoy easy customs and tax policies that increase their attractiveness as an investment destination.
3. Economic incentives: Dubai free zones offer a variety of economic incentives such as tax facilities, customs exemptions, and low duties, which reduce production costs and enhance companies’ profitability.
4. Access to global markets: Dubai is a strategic access point to the Middle East, North Africa and South Asia markets, making it easier for companies to access new networks of customers and business partners.
5. Diversity of economic sectors: Free zones in Dubai provide opportunities to establish companies in various economic sectors such as trade, manufacturing, and services, allowing investors to diversify their business portfolio and increase growth opportunities.

In general, Dubai’s free zones are an ideal environment for startups, medium and large companies, as they combine advanced infrastructure, encouraging regulations, and economic incentives, which helps promote economic growth and attract international investors.

Establishing companies in free zones in Dubai

Establishing a company in the Dubai Free Zone requires following several steps, and here are some basic steps that can be followed:

1. Choosing the appropriate free zone: Study the different free zones in Dubai and choose those that suit your company’s activity and practical requirements.
2. Determine the type of company: Decide the type of company you want to create, whether it is a sole proprietorship, a limited liability company, or a joint stock company.
3. Determine the activities and businesses: Determine the activities and businesses that you intend to carry out first, and make sure that they are compatible with the laws and regulations of the free zone.
4. Choosing a company name and registration: Choose a suitable name for your company and make sure that it does not conflict with the names of other companies, then register the name with the competent authorities in the free zone.
5. Preparing the necessary documents: Prepare the company’s incorporation documents such as the Memorandum of Association and the necessary contracts for shareholders and managers.
6. Submit a license application: Submit your application for a company license in the free zone, which includes the required documents and personal information for shareholders and managers.
7. Obtaining a work permit: After receiving the license, apply for a work permit for employees and managers who work in the company.
8. Opening a bank account: Open a bank account for the company in one of the approved banks in Dubai, in order to manage the company’s financial transactions.
9. Securing a place to work: Choose a suitable location for your company’s headquarters within the free zone, whether it is an office, production space, or storage of goods, and complete the necessary lease contract.
10. Compliance with laws and regulations: Ensure compliance with all local and international laws and regulations that regulate the work of companies in the free zone.

Types of free zones in Dubai

Below is a table showing the types of free zones in Dubai and some of the features of each type:

These are some of the main types of free zones in Dubai, and each type of these zones provides different benefits and services that suit the needs and requirements of the companies operating in them.

Documents and documents required to register the company in the Dubai Free Zone

To register a company in the Dubai Free Zone, the documents required usually vary based on the type of company and the free zone you choose. However, here is a general list of basic documents you may need when registering a company in the Dubai Free Zone:

1. License application form: An official form that is filled out and submitted to the authority concerned with licensing in the free zone.
2. Original copy of passport: For shareholders and directors, the copy must be valid and not expired.
3. Memorandum of Association: A document that defines the company’s structure, objectives and operating rules, and must comply with local laws.
4. Articles of Association: A document that explains the rights and duties of shareholders, managers, and the internal procedures of the company.
5. Proof of Address Certificate: This could be a payable bill for water or electricity or a lease contract for the office in the free zone, confirming the permanent address of the company.
6. Details of directors and shareholders: Detailed information about the directors and shareholders must be provided, including the full name, nationality, date of birth, address, and percentage of each shareholder.
7. Work Permit: For managers and employees working in the company, a work permit is required from the local authorities.
8. Financial report: In some cases, it may be required to submit a financial report for the company, showing the ability to invest and grow.
9. Authorization to sign documents: If necessary, you may need documents showing the authorization to sign documents for the company from shareholders or directors.

 

Create a company bank account

Creating a company bank account in Dubai requires some steps that must be followed carefully. Here are the basic steps that can help you in the process of setting up a company bank account:

1. Choosing a bank: Start by researching and choosing the bank that best suits your company’s needs. It is preferable to choose a reliable bank with a good reputation for providing services to companies.
2. Contact the bank: Contact the chosen bank to obtain information about the requirements needed to open a company bank account.
3. Required Documents: Required documents may vary based on bank policies and company type.
   Personal attendance: The bank may require the presence of the general manager or an authorized representative to sign documents and complete the account opening process.
4. Initial capital: In some cases, you may be required to deposit the initial capital into the company’s bank account.
5. Agree on additional services: Make sure to discuss all the additional services the bank can offer such as online banking, credit cards, and loans.
6. Signing the agreement: After completing all documents and procedures, the agreement to open the account will be signed between the company and the bank.

Cost of a business license in Dubai Free Zone

The cost of a business license in the Dubai Free Zone varies based on the type of company and its activity, and also depends on the free zone you choose. The costs of obtaining a business license in a free zone usually include:

1. Annual license fees: Depends on the type of company and the volume of work it does. For example, licensing fees for a limited liability company (LLC) or sole proprietorship are lower than those for joint stock companies.
2. Additional service fees: There may be additional fees for services such as quick fulfillment of licenses or expanding the geographical scope of the company.
3. Re-export fees: In the case of export and re-export companies, there may be additional fees that vary according to local and international policies.
4. Initial registration fees: There may be fees for initial company registration which also vary depending on the type of company and registration requirements.

To obtain accurate details regarding costs, you must contact the relevant authority in the free zone you intend to join, or consult the experts of Itqan Company. This helps identify all potential fees and costs according to the individual company’s circumstances.

At the conclusion of the article, it can be said that establishing companies in the free zones in Dubai represents a distinct investment opportunity that attracts investors from all over the world. These regions are characterized by advanced infrastructure, facilitating customs and tax policies, and an encouraging regulatory environment, which facilitates the establishment and expansion of businesses at the regional and global levels. Dubai’s free zones also provide a wide range of economic incentives that enhance its attractiveness as a fruitful investment destination, contributing to strengthening the local economy and enhancing Dubai’s position as a global business center.

Common questions for establishing companies in free zones