Establishing a company in Dubai Free Zone

Investors are interested in how to establish a company in Dubai Free Zone because in recent years, Dubai has witnessed a remarkable boom in the company establishment sector, especially in the free zones, which are considered one of the most attractive locations for businessmen and investors in the world. Dubai Free Zone offers advanced infrastructure and a range of tax and customs privileges, making it an ideal home for startups and large enterprises alike. Establishing a company in Dubai is a strategic move that reflects investors’ commitment to innovation and economic growth in the Middle East region.

Establishing a company in Dubai Free Zone

Establishing a company in Dubai Free Zone

Dubai Free Zone is a major gateway for companies seeking to expand into global markets, and offers fruitful investment opportunities thanks to its advanced infrastructure and attractive tax concessions. Itqan Company, in turn, is distinguished by providing distinguished advisory services for establishing companies in the Dubai Free Zone, as it provides a smooth path for investors by helping them choose the appropriate location, providing support in submitting the necessary applications and documents, in addition to facilitating the process of obtaining the necessary licenses and permits. Thanks to its extensive experience and deep knowledge of the local market, Itqan Company ensures investors that all procedures are completed efficiently and effectively, which contributes to the success and prosperity of new companies in Dubai.

Itqan Company also provides its services in multiple fields including legal and financial consulting, which helps investors better understand local regulations and laws, and ensures full compliance with legal and tax requirements. Itqan also has a wide network of local and international partnerships, which makes it easier for new companies to access opportunities for cooperation and expansion in regional and global markets. Thanks to the comprehensive support provided by Itqan, investors can achieve their business goals efficiently and with the highest levels of quality and professionalism.

Dubai Free Zone

The free zone in Dubai represents an essential part of the emirate’s advanced economic infrastructure, and constitutes an attractive center for international business and investments. These areas provide an ideal environment for companies to grow and expand, thanks to a range of privileges and benefits that include:

• Tax concessions: Free zones in Dubai enjoy tax exemptions, including taxes on income and taxes on capital, which reduces the operational costs of companies.
• Customs facilities: Companies in free zones enjoy customs facilities that include not imposing customs duties on import and export, which facilitates international trade operations.
• Advanced infrastructure: Free zones provide advanced infrastructure that includes modern transportation and communications facilities, and office spaces equipped with the latest technology, which supports companies in achieving high efficiency in productivity.
• Easy access to regional and global markets: Thanks to their strategic location, Dubai’s free zones provide companies with easy access to the Middle East and North Africa markets, and are considered an ideal base for global investments.
• Government support and regulating laws: Dubai’s free zones are run by government bodies that provide significant support to companies through fast administrative services and flexibility in commercial legislation.

Thanks to these benefits, Dubai’s free zones are an ideal home for startups and large enterprises alike, as they provide an encouraging investment environment that contributes to business success and sustainable growth.

Steps to establish a company in Dubai Free Zone

To establish a company in Dubai Free Zone, here are basic steps to follow:

• Investors must determine the type of company they wish to establish, whether it is a sole proprietorship or a limited liability company, and determine the economic activity that the company will engage in.
• Free zones in Dubai vary in the services and privileges they offer. The free zone must be chosen that suits the company’s activity and its special requirements.
• Establishing a company requires submitting an application to the chosen free zone authority, submitting all required documents such as the registration form, founders’ signature instruments, and business plan.
• Once the establishment application is approved, the necessary licenses must be obtained to conduct economic activity in the free zone, such as a commercial license and a business license.
• Many free zones in Dubai require the opening of a local bank account to manage company operations and financial transactions.
• Business owners should ensure compliance with all insurance requirements, obtain necessary visas for employees, if necessary, and review all local laws and regulations.
• Companies in Dubai need to register with the local tax authorities and adhere to applicable tax instructions.
• Once all previous procedures are completed, the incorporation can be completed and the actual operation of the company can begin in the chosen free zone.

Obtaining a commercial license to establish a company in Dubai

Here are the main steps for obtaining a commercial license to establish a company in Dubai Free Zone:

• Choosing the appropriate free zone: Select the free zone that suits your business, such as Dubai Commodities and Enterprises or Dubai Science and Technology.
• Choosing the legal form of the company: You can establish as a limited liability company (LLC), a sole proprietorship, or a branch of a foreign company.
• Preparing the required documents: Documents such as a copy of the passport, experience certificate, business plan, etc. will be requested.
• Submitting a license application: Fill out and submit the commercial license application to the selected free zone administration.
• Pay the required fees: Fees vary depending on the type of company and activity, but usually start from 10,000 AED.
• Waiting for approval and receipt: After your application is approved, you will be issued a business license.
  The exact details may vary depending on the chosen free zone, so it is important to contact the free zone administration to obtain the most up-to-date information. Or contact Itqan Company, which specializes in the field of establishing companies in Dubai.

Types of companies in the free zone

In the Dubai Free Zone, investors can establish several types of companies, including:

• Sole Proprietorship: Also known as a “sole proprietorship,” a business owned and operated by one person. The owner has full responsibility for the company and benefits from independence in making decisions.
• Limited Liability Company (LLC): This is the most common company, consisting of partners who own specific equity shares and have limited liability for the company’s debts.
• Public Joint Stock Company (PJSC): Also known as a public stock company, this is a company in which shares are publicly traded via a stock exchange. Shareholders are managed under strict rules regulated by the Dubai Securities and Commodities Authority.
• Private Joint Stock Company: Similar to a public joint stock company, but it is not listed on the stock exchange and is owned by a limited number of shareholders.
• Subsidiary company: This company is established to be a subsidiary of a parent company, whether local or foreign, and operates under its actual management.
• Commercial Company: This company allows partners to contribute to its management based on an agreement reached, and it can be in the form of a sole proprietorship or a limited liability company.

Each of these types of companies comes with a set of legal and regulatory requirements that investors must adhere to in accordance with local laws and regulations of the chosen free zone in Dubai.

Advantages of establishing a company in the free zone

Establishing a company in the Dubai Free Zone allows investors to benefit from several tangible advantages, including but not limited to:

• Tax benefits: Free zones in Dubai offer attractive tax breaks, such as not charging income taxes for up to 50 years, which helps reduce operational costs and increase profits.
• Customs facilities: Companies in free zones enjoy customs facilities that include not imposing customs duties on import and export, which facilitates international trade operations and reduces additional costs.
• Full Ownership: Investors have the right to 100% own and manage the company without the need for a local partner, which increases business flexibility and maintains full control of the company.
• Advanced infrastructure: Dubai’s free zones provide advanced infrastructure that includes modern transportation facilities and office spaces equipped with the latest technology, which helps improve work efficiency and increase productivity.
• Government support: Free zones are run by government bodies that provide ongoing support to companies through fast administrative services and flexibility in commercial legislation, which facilitates company management and speeds up operations.
• Access to global markets: Thanks to their strategic location, Dubai free zones provide an opportunity for companies to easily access regional and global markets, which contributes to expanding the scope of work and increasing business opportunities.

In short, establishing a company in the Dubai Free Zone is an attractive option for investors looking for a distinct investment environment that offers a wide range of privileges and opportunities to achieve success and sustainable growth.

Dubai Free Zone

Documents required to establish a company in the free zone

To establish a company in the Dubai Free Zone , the paperwork required varies slightly depending on the type of company and the free zone chosen, but usually includes the following documents:

• Company registration form: It is filled out with basic information about the company, such as the company name, its activity, the address of its headquarters, and the signature of the founders.
• Memorandum of Association: A document that specifies the structure of the company, the rights and obligations of shareholders, and details of management and directors.
• Board Resolution Document: If the company is run by a board of directors, a Directors Appointment Document will be required.
• Certificate of Incorporation: A document proving that the company has been officially established in accordance with local laws.
• Articles of Founders’ Signature: A document that specifies the company’s bylaws and details of how it will be managed, the distribution of profits, and other administrative matters.
• Company incorporation instrument (Trade License): A commercial license that allows the company to practice economic activity in the free zone.
• Founders’ identity documents: copies of passports or identity cards of founders and shareholders.
• Tax Registration Form: The company must register with the local tax authorities.
• Lease contract or office license: A document proving the rental of an office or space for the company in the free zone.

The specific requirements of each free zone should be checked, and the free zone authorities often provide a detailed list of the required documents and procedures needed to successfully establish a company.

In conclusion, establishing a company in a free zone in Dubai shows great opportunities and tangible investment advantages that make it an ideal destination for entrepreneurship. From benefiting from tax concessions and customs facilities, to easy access to advanced infrastructure and effective government support, Dubai’s free zones provide an encouraging environment for startups and large enterprises alike. In addition, the stability of the legal and economic system in the emirate contributes to creating a sustainable business environment conducive to growth and expansion. So, if you are looking for an opportunity to realize your business ambitions in the Middle East, establishing a company in Dubai Free Zone could be the ideal choice for you to succeed and thrive in the rapidly changing daily business world.

Frequently asked questions about establishing a company in Dubai Free Zone