Establishing a company in the Dubai Free Zone is a strategic step that opens up a horizon of business opportunities and economic expansion. Free Zones in Dubai are known for providing a distinctive business environment, where companies have the opportunity to benefit from a wide range of benefits, from tax benefits to customs facilities and full ownership rights for foreigners. This article aims to explore the process of setting up a company in the Dubai Free Zone, with a focus on: On the basic steps and benefits available to those wishing to invest. We will provide a closer look at the legislative requirements and administrative procedures that must be followed, as well as highlight some of the economic and operational advantages that make this move attractive to investors.

How to create a company in the Dubai Free Zone

Here’s an overview of the basic steps for setting up a company in a free zone in Dubai:

1. Choosing a business activity: Determine the type of business activity you wish to practice. This activity must be compatible with activities permitted in the free zone of your choice.
2. Choose a free zone: Select the free zone that suits your business needs. There are several free zones in Dubai, each offering different benefits and opportunities.
3. Determine the type of company: Choose the type of company that suits your needs, whether it is a sole proprietorship, a limited liability company, or a joint stock company.
4. Submit a registration application: Submit an application to register your company in the chosen free zone. You will need to provide required documents such as passports, photographs, rental agreement (if required), and business plan.
5. Determine capital: You may need to determine the value of your company’s financial capital, according to the legal requirements of the free zone.
6. Review and Approval: The body supervising the free zone will review the application and make a decision on it. If approved, you will obtain a company license.
7. Opening a bank account: Open a bank account in the name of the company in one of the approved banks in the free zone.
8. Visas and Residences: Organize residence visas for shareholders and directors who will work in the company.
9. Signing contracts: Sign the necessary contracts with the supervising body and any other relevant parties.
10. Compliance with Legal Obligations: Ensure compliance with all legal obligations and local regulations in the free zone.

Tax benefits available in the free zone

In Dubai’s free zones, tax benefits provide attractive advantages for businesses, enhancing their attractiveness as an investment destination. The many pharaohs introduced in these regions indicate economic stimulation and the promotion of economic growth in the region. Here are some of the tax benefits available:

1. Income tax exemption: Providing full or partial exemption from income taxes for a specified period. This allows new companies to achieve sustainable growth without significant tax burdens.
2. Not imposing customs taxes: Providing exemption from customs duties on imports of goods and services for use in production.
3. Full Ownership Rights: Providing full ownership rights to foreign investors, including intellectual property rights and property rights over property.
4. No profit transfer fees: There are no fees for transferring profits outside the free zone. This allows companies to freely transfer profits abroad without any fees.
5. No restrictions on currency conversion: There are no restrictions on currency conversion, which makes it easier for companies to handle financial operations with ease.
6. Exemption from inheritance and gift tax: In some free zones, investors can enjoy an exemption from inheritance and gift tax, which protects inheritance rights.
7. Banking secrecy: Protecting corporate banking secrecy, which helps protect financial and business information.
8. No restrictions on foreign investments: Facilitating foreign investments without major restrictions, which encourages the attraction of international capital.

Legal conditions for establishing a company in the free zone

The legal conditions for establishing a company in the Dubai Free Zone vary and may depend on the type of company and its activity. Here are some general legal conditions that may be necessary:

1. Company type: You must specify the type of company you wish to create, such as a sole proprietorship, limited liability company, or joint stock company.
2. Business activity: The business activity that the company will undertake must be determined, and this activity must be compatible with local laws and regulations.
3. Capital: Establishing a company requires determining the financial capital that will be allocated to the company. This capital can vary depending on the type of company and activity.
4. Shareholders: The identity of the shareholders and their shares in the capital must be determined. Sometimes identification documents and personal photographs of shareholders are required.
5. Licenses and Permits: Some economic activities may require special licenses and permits. These needs need to be verified and eliminated before commencing works.
6. Lease Contract: If the company needs an office or work space, a valid and approved lease contract must be submitted.
7. Compliance with local laws: The company must comply with all local laws and regulations, by providing the necessary documents and information.
8. Visas and Residences: Residence visas must be organized for shareholders and employees who will work in the company.
9. Legal Documents: All required legal documents, such as agreements, partner contracts, and the company’s articles of association, must be prepared and submitted.
10. Bank account: A bank account must be opened in the company’s name and the required documents must be provided to the bank.

Costs required to establish a company in the Dubai Free Zone

The costs of establishing a company in a free zone in Dubai may vary depending on the type of company and its activity, in addition to the chosen free zone. Here is a list of some of the costs required:

• Registration costs: Application fees for registering the company in the free zone.
• Capital costs: The necessary capital for the company must be determined, and its availability must be ensured in the company’s account.
• License and licensing costs: fees for obtaining the necessary business licenses and the costs of various licenses.
• Office rental costs: Office or industrial space rental costs in the free zone.
• Logistics costs: You may incur additional costs for logistics and administrative support services provided by the free zone.
• Legalization and notarization costs: Legalization and notarization costs if required for legal documents.
• Legal and financial consulting costs: You may need legal and financial consulting to ensure compliance with local laws and regulations.
• Visa and residency costs: Costs of obtaining visas and residency for shareholders and employees.
• Advertising and Marketing Costs: Advertising and marketing costs required to promote the company.
• Insurance costs: The costs of obtaining the necessary insurance for the company and employees.
• Additional administrative costs: Additional administrative costs may be involved such as communications and energy costs.
• Banking services costs: Costs of opening a bank account for the company.

The most important documents required to establish a company in the Dubai Free Zone

The most important documents required to establish a company in the Dubai Free Zone

Establishing a company in the Dubai Free Zone requires a set of documents and procedures. Here is a general list of the most important documents required:

1. Company license application form: contains details about the company’s activity and legal structure.
2. Copy of passport for investors: A copy of the passport for each of the main investors in the company.
3. Recent personal photos: Recent personal photos of each investor appearing in the passport.
4. Business Plan: A document that explains the company’s goals and plans and how to achieve them.
5. Commercial Registration Form: contains details of the company, investors, and company activity.
6. A copy of the property: A copy of the lease contract or ownership document of the property in which the company will be located.
7. Certificate of incorporation (if the company is already registered): If the company was registered elsewhere before transferring to the free zone, a certificate of incorporation must be submitted.
8. Financial Report: Providing financial reports to investors and the company if it exists.
9. Legal authorization (if there is an agent): If an agent is used to submit the license application, a legal authorization document must be provided.
10. A copy of the work permit (if there are employees): If there are plans to hire employees, a copy of the work permit must be submitted.

Our experience is in helping clients establish a company in the Dubai Free Zone

In conclusion, establishing a company in the Dubai Free Zone represents an attractive option for many businessmen and investors. The free zone provides a favorable business environment and legal and economic advantages that make it an ideal destination for starting a business. The cost of establishing a company in the Dubai Free Zone depends on several factors such as the type of company, its activity, and specific legal and regulatory requirements. Costs may include licensing, registration and legal documentation fees, as well as rental costs and additional services. To ensure obtaining accurate and comprehensive information about the cost of establishing a company in the free zone in Dubai, it is preferable to contact the competent authorities and inquire about the requirements of each free zone and current government policies. After obtaining the necessary information, you can make an informed decision and proceed to establish your company in the Dubai Free Zone and benefit from the business opportunities and benefits available there.

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