Business Setup in Dubai Freezone

Dubai offers a business-friendly environment and ease of doing business due to state-of-the-art infrastructure and low tax rates. If you want to set up a business in the UAE, then you can consider establishing a free zone company in one of the free trade zones in Dubai. There are no foreign ownership restrictions and independent free zones authorities govern the companies registered under them. There are nearly 30 Dubai free zones to choose from!

For assistance in free zone company formation in Dubai, connect with Registrationwala. We’ll make the entire process of company registration UAE a cakewalk for you!

About Freezone Companies

A free zone company is a business entity which is registered with one of the designated economic zones in UAE. Such a company can offer its services to the international market and inside the free zone while benefiting from the zero tax policies. However, as opposed to mainland companies, free zone companies cannot operate on the mainland directly.

List of Dubai Free Zones

Dubai has the following free zones:

• Dubai Airport Free Zone (DAFZA)

• Dubai Science Park (DSP)

• Dubai Textile City

• International Humanitarian City (IHC)

• International Media Production Zone (IMPZ)

• Dubai Production City (formerly known as International Media Production Zone or IMPZ)

• Dubai Outsource City

• Dubai Studio City

• Dubai International Academic City (DIAC)

• Dubai Techno Park

• Dubai Auto Zone

• Dubai Flower Centre

• Dubai Gold and Diamond Park

• Dubai Industrial City

• Dubai Wholesale City (Dubai Industrial Park)

• Dubai Logistics City (Dubai South Logistics District)

• International Free Zone Authority(IFZA)

• Jebel Ali Free Zone (JAFZA)

• Dubai Multi Commodities Centre (DMCC)

• Dubai Silicon Oasis (DSO) Meydan Free Zone

• Dubai Internet City (DIC)

• Dubai Media City (DMC)

• Dubai International Financial Centre (DIFC)

• Dubai Healthcare City (DHCC)

• Dubai South (formerly known as Dubai World Central)

• Dubai Knowledge Park (DKP)

• Dubai Biotechnology and Research Park (DuBiotech)

• Dubai Maritime City (DMC)

• Dubai Cars and Automotive Zone (DUCAMZ)

• Dubai Design District (d3)

Benefits of Freezone Companies

Let’s look at the benefits associated with free zone company in Dubai:

• To establish a freezone company, the foreign investors do not require a local UAE national sponsor. A free zone company can be formed with 100% foreign ownership irrespective of the investor’s nationality.

• There are no currency restrictions of any kind in free zones in Dubai, making financial transactions simpler and easier.

• For free zone jurisdictions, import and export duties are not charged, promoting global trade.

• Free zone companies have 100% tax exclusion from income tax and corporate tax.

• They have full repatriation benefits for all their profits and financial assets.

• Free zone companies enjoy state-of-the-art infrastructure and cost-effective energy.

• Warehouses and physical office spaces are easily available in free zones, making it ideal for start-ups and small to medium enterprises.

Eligibility for Dubai Freezone Company Formation

In order to form a free zone company in Dubai, you need to make sure that you fulfill the eligibility requirements. These requirements are mentioned below:

• The entrepreneur must be a minimum of 18 years of age.
  He must have a valid passport and a valid UAE Visa for running a business.

• His company must meet the minimum capital requirements for LLC/Subsidiary/Branch Office.

• The name of the company must be unique and not already taken.

• The free zone company can be formed by a natural person or legal person.

• It must have obtained the necessary business license to conduct business operations in the Dubai free zone.

Documents Required for Freezone Company Registration

For free zone business setup in Dubai, you need to have the following documents: 

• Certified Passport Copy and UAE Visa/UAE entry stamp. 

• Proof of Address.

• Company Application Form.

• Shareholder details.

• Business card.

• Business plan outlay.

• Bank or Professional Reference Letter.

• Curriculum Vitae (CV) which provides professional history’s summary.

• Memorandum of Association and Articles of Association.

Freezone Company Formation Dubai Process

Establishing a free zone company in Dubai involves several steps. Each step has been described below:

Step 1: Decide the Business Structure

You must choose a legal business structure for your free zone company in Dubai depending on the type of business you want to run. You can set up your company as a limited liability company (LLC), subsidiary company, joint venture company or branch of a local or a foreign company. While choosing your business structure, take into account several key factors like ownership, liability protection and operational requirements. 

Step 2: Pick a Name for your Business

The name for the company must be chosen very carefully. Make sure the name you’ve picked hasn’t already been taken or trademarked. Finally, make sure the company name reflects your scope of business and doesn’t contain any derogatory terms. 

Step 3: Apply for a Business License 

It is extremely important for you to obtain a business license from the free zone authority where you want to conduct your business. Without obtaining a valid business license, you cannot legally commence your business. 

Step 4: Search for Physical Office Space 

You need to have a physical space for your office within the designated UAE free zone area. There are numerous office space options available in free zones. Depending on your budget, you can rent a dedicated office space, shared office space or flexi desks.

Step 5: Obtain Necessary Pre-approvals 

All the necessary pre-approvals must be taken from the concerned free zone authority. This requires filing an application and submitting all the required documents with the authority. After obtaining all the approvals, you can conduct your business in Dubai.

Conclusion

Many entrepreneurs register their companies in Dubai. The city provides entrepreneurs access to multiple opportunities that they may not get elsewhere in the world, such as 100% foreign ownership, no income tax, no corporate tax on qualifying income, etc. By establishing a company in Dubai, businesses can import goods, equipment and merchandise from foreign countries without paying any custom duties. 

If you want company incorporation in Dubai, connect with Registrationwala. We’ll provide you with our professional guidance and comprehensive support, so that you can start your business journey in Dubai smoothly without any hassle!

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.