Establishing a company in the Dubai Free Zone is an important strategic step for investors seeking to benefit from the economic advantages and opportunities available in this vibrant emirate. Dubai’s free zones offer a business-friendly environment and offer a variety of benefits, making them an ideal destination for establishing companies and growing a business. In this guide, we will explore in detail how to set up a company in the Dubai Free Zone. We will review the basic steps, required documents, and procedures needed to successfully establish your company in this dynamic economic environment. Establishing a company in the Dubai Free Zone requires precise knowledge of the steps that must be taken and commitment to the required procedures. Let us begin to explore this process and help you reach your goals of building a successful business in one of the most attractive investment destinations in the world.

How to establish a company in the free zone in Dubai

Establishing a company in the Dubai Free Zone requires following certain procedures and adhering to specific legal and administrative requirements. Here are general steps on how to establish a company in the Dubai Free Zone:

Choosing a free zone: Start by determining the appropriate free zone for your company’s activity. There are several free zones in Dubai, such as the Montenegro Zone, the Technology and Media Zone (DIC), and the Dubai Medical Industries Zone (DIC). Choose an area that matches your company’s needs and goals.

1. Choose the type of company: Decide what type of company you want to establish, whether it is a sole proprietorship, a limited liability company, or a partnership, according to the nature of your business and legal requirements.
2. Determine the legal form: Choose the appropriate legal form for your company, such as Limited Liability Company (LLC) or Public Joint Stock Company (PJSC), according to the requirements of local law and the company’s organizational structure.
3. Determine names and activities: Choose an appropriate name for your business and make sure it is compliant with local laws and regulations. Define the scope of business activities your company will undertake.
4. Identify partners and shareholders (if any): Identify the partners or shareholders in the company if it is a partnership or joint stock company, and determine their shares and responsibilities.
5. Preparing the necessary documents: Prepare and submit the documents required for registration, such as the investment agreement, articles of incorporation, and official forms required by local authorities.
6. Submitting a registration application: Submit a registration application to the competent government authorities in the selected free zone, and submit all required documents.
7. Payment of fees: Pay the fees required to register the company and to obtain the necessary licenses.
8. Waiting for approval and receiving the license: After submitting the application and paying the fees, wait for the official approval to establish the company and receive the commercial license.
9. Creating a bank account: Open a bank account for the company and deposit the required capital.

The cost of establishing a company in the free zone in Dubai

The cost of setting up a company in the Dubai Free Zone may vary based on several factors, including the type of company, the free zone chosen, and additional services you may need. However, here is a general estimate of the cost of setting up a company in the Dubai Free Zone:

• Company registration fees: These fees vary according to the type of company and the chosen free zone, and may range from several thousand to several tens of thousands of UAE dirhams.
• Legal advice and attorney fees: You may need legal advice or a lawyer to assist you in the company formation process, and these services can usually cost several thousand AED.
• Management and Virtual Office Fees: If you need virtual office or administrative services, you may have to pay a monthly or annual fee for these services.
• License and Annual Renewal Fees: After establishing a company, you will need to pay annual renewal fees to maintain the business license and continue operating legally.
• Necessary capital: You may need to provide a certain capital to establish the company, and the amounts required can vary depending on the type of company and free zone.

Key benefits of establishing companies in the Dubai Free Zone

Establishing companies in free zones in Dubai provides many benefits to companies and investors, among these benefits:

1. Customs facilities: Free zones in Dubai provide customs exemption on imports of goods and materials used in production for companies located there, which facilitates the trade of goods and reduces costs.
2. Tax facilities: Free zones in Dubai often offer attractive tax benefits, such as no income or direct taxes for a specific period of time, which helps improve the profitability of companies.
3. Bureaucratic easing: Company formation in Dubai free zones offers simplified and fast licensing procedures, which effectively facilitates the process of starting a business.
4. Access to the regional and global market: Dubai is located in a strategic location and is considered a gateway to regional and global markets, and therefore establishing companies in free zones provides an opportunity to access these markets easily.
5. Advanced Infrastructure: Dubai’s free zones feature advanced infrastructure, including ports, airports, roads and communications, which effectively supports business development.
6. Logistics facilities: Dubai free zones provide integrated logistics services, such as warehousing, distribution, and shipping services, which helps facilitate supply and distribution operations for companies.
7. Vibrant business environment: Dubai’s free zones encourage competitiveness and innovation, and provide a supportive business environment for emerging and medium-sized companies.
8. Availability of skilled workers: Dubai and the UAE in general provide a diverse and multinational labor market, which makes it easier for companies to access skilled and specialized workers in various sectors.

Types of companies that can be established in the free zone

In Dubai’s free zones, a variety of company types can be established, to suit the needs of investors and the type of business activity desired. Here are some of the main types of companies that can be established in a free zone:

• Sole proprietorship: One person can be the owner and manager of the company, and this type of company is considered one of the simplest forms of establishing a business.
• Limited Liability Company (LLC): A limited liability company is a common form of company in free zones, where shareholders are only responsible for the company’s capital.
• Joint-stock company: The ownership of a joint-stock company consists of shares of stock that can be sold to new shareholders, and profits and losses are divided according to the share shares.
• Limited Company (Ltd): A limited company is a form of limited liability company, where financial responsibility is assigned to partners or shareholders.
• Company limited by guarantee: The partners in this type of company have limited liability but pledge to pay a specific amount in the event of the company’s liquidation.
• Public Company: Also known as a public company, this type of company offers shares to the public and is traded on the financial market.
• Joint Company: This company consists of a joint contribution between several parties or companies, and the partnership and responsibilities are determined through specific partnership contracts.
• Wholly owned foreign company: Free zones in Dubai allow the establishment of branches of wholly owned foreign companies, making it easier for international companies to enter the local market.

Documents required to establish a company in the Dubai Free Zone

To establish a company in the Dubai Free Zone , the required documents may vary slightly depending on the type of company you wish to establish and the specific free zone. However, here is a general list of documents you may need:

1. Copy of passport: Provide a copy of the passport of all shareholders and directors involved in establishing the company.
2. Personal photos: You may need personal photos of all shareholders and directors.
3. Business Plan: A detailed business plan must be submitted that explains the company’s activity and the future expansion and development plan.
4. Contracts and Agreements: If a company works in collaboration with another company or has contracts with potential clients, it may need to provide copies of relevant contracts and agreements.
5. Financial records: You may be asked to provide financial records of shareholders and directors, such as personal financial statements and bank certificates.
6. Credit Reports: In some cases, you may be required to provide personal credit reports to shareholders and directors.
7. Academic and professional certifications: If you work in a field that requires specific professional or educational certifications, you will have to provide the necessary certifications.
8. Registration Application Form: You may need to fill out the registration application form provided by the specific free zone.

Frequently Asked Questions