Company establishment service the Free Zone in Dubai

Company establishment service in the Free Zone in Dubai

Dubai is considered one of the most prominent global destinations for establishing a business, thanks to its dynamic economic environment and the diversity of options available to investors. Among these options, Free Zones are very popular due to the unique advantages they offer to businesses. These areas allow investors to establish their companies in easy and flexible ways, while providing an integrated environment that encourages growth and innovation.

Establishing a company in the Free Zone in Dubai provides foreign investors with the opportunity to benefit from many privileges, such as tax exemptions, full foreign ownership, and ease of procedures. In addition, these regions provide advanced infrastructure and comprehensive support services that help companies achieve sustainable success.

In this article, we will review the benefits and steps necessary to establish a company in the Free Zone in Dubai, in addition to the types of companies available in these areas. We will provide you with a comprehensive guide that will help you understand everything you need to know in order to start your business in one of the thriving Free Zones in Dubai.

Company establishment service in the Free Zone in Dubai

Table of Contents

Benefits of establishing a company in the Free Zone

Establishing a company in the Free Zone in Dubai provides many attractive benefits that make it an ideal choice for foreign entrepreneurs and investors. Among these benefits:

Tax exemption

One of the biggest advantages offered by free zones in Dubai is complete tax exemption on personal and corporate income. This means that companies operating in the Free Zone are not subject to local taxes, allowing them to achieve greater profits and maintain their financial resources. Companies can also benefit from customs exemption on imports and exports, which significantly reduces operating costs.

Complete foreign ownership

In many countries, foreign investors have to work in partnership with local citizens, but in the Free Zone in Dubai, foreign investors can own 100% of their companies. This enhances the freedom to control the business and make strategic decisions without having to rely on local partners.

Ease of establishing a business

Free zones in Dubai greatly facilitate the process of establishing companies compared to the complex procedures that may exist in other regions. Free Zone provides integrated services that include consulting, technical and legal support, which helps entrepreneurs establish their companies quickly and smoothly. There are also ready-to-work offices and modern facilities that meet the needs of various business activities.

These benefits make the Free Zone in Dubai an ideal environment for business growth and commercial prosperity, which enhances Dubai’s position as a global commercial center that attracts investments from all over the world.

Steps to establish a company in the Free Zone in Dubai

Establishing a company in the Free Zone in Dubai requires following a set of organized steps to ensure compliance with all local laws and regulations. Below are the basic steps for establishing a company in the Free Zone:

Choose the type of license

The first step in establishing a company is to determine the type of license that is appropriate for the company’s activity. There are several types of licenses available depending on the nature of the business that the company will carry out. The most famous types of licenses are:

Commercial license: Suitable for companies operating in the fields of trade, buying and selling.
Industrial licence: intended for companies that manufacture and produce.
Professional license: Suitable for companies that provide professional services such as consultations and medical services.

Submit the required documents

After choosing the appropriate type of license, the necessary papers and documents must be submitted to the relevant Free Zone authority. These papers usually include:

Application Form: The company establishment application form is filled out with basic information.
Copy of passport: for all partners and shareholders.
Business plan: describes the company’s activity, its goals, and the strategies used to achieve these goals.
Memorandum of Association and Articles of Association: Explains the company’s structure and the rights and responsibilities of partners.
No objection certificate: If one of the partners works in the UAE, a no objection certificate must be obtained from the current employer.

Obtaining approvals and permits

After submitting the required documents, the stage of obtaining the necessary approvals and permits from the concerned authorities begins. This stage may require some time and depends on the type of activity that the company will undertake. This step includes:

Initial approval: issued by the Free Zone Authority after reviewing the submitted papers.
Signing the lease contract: If the company needs an office within the Free Zone, a lease contract must be signed with the Free Zone management.
Issuing a license: After completing all procedures and obtaining the necessary approvals, a commercial license is issued that authorizes the company to practice its activity.

By implementing these steps carefully and carefully, investors can easily establish their companies in the Free Zone in Dubai and benefit from the many advantages that these areas provide.

Types of companies available in the Free Zone

Free Zone Dubai offers a variety of options for company formation, allowing investors to choose the structure that best suits their business needs and goals. The following are the most prominent types of companies that can be established in the Free Zone:

Limited Liability Company (FZ-LLC)

A limited liability company is one of the most common types of companies in the Free Zone. This type of company is characterized by giving shareholders legal protection, as their liability for the company’s debts is limited to the amount of capital they invested in it. Shareholders can be individuals or companies, and there is great flexibility in determining the number of shareholders and the percentage of their shares. A limited liability company is an ideal choice for small and medium-sized companies seeking to benefit from the benefits of the Free Zone without major structural complexities.

Branch Office

A subsidiary is a suitable option for foreign companies that wish to expand their operations to Dubai without having to establish a completely new legal entity. The parent company can retain full control of the subsidiary, which operates under the same name and brand. The subsidiary contributes to facilitating entry into and expansion of the local market, while benefiting from the reputation and expertise of the parent company. The subsidiary company is also obligated to follow the same business activities carried out by the parent company, which makes it a practical solution for companies wishing to expand their business quickly and effectively.

Freelance Permit or Sole Establishment

A sole proprietorship is an ideal choice for individuals who want to provide their services independently in the Free Zone. Individuals can obtain an individual license that authorizes them to practice specific activities such as consulting, design, or any other type of professional services. This type of incorporation is characterized by speed and ease of procedures, in addition to low cost compared to other types of companies. A sole proprietorship is an attractive option for independent professionals who want to work flexibly and take advantage of the tax and administrative advantages offered by the Free Zone.

The Free Zone in Dubai provides an ideal environment for establishing various types of companies, providing investors with various opportunities to achieve success and growth in the local and international market.

In conclusion, establishing a company in the Free Zone in Dubai represents an excellent strategic option for entrepreneurs and investors seeking to benefit from a stimulating and supportive business environment. These areas offer many benefits including tax exemptions, full foreign ownership, and ease and speed of incorporation procedures. In addition, there are multiple options available for the types of companies that can be established, giving investors the flexibility to choose the most appropriate structure for their business.

Understanding the steps necessary to establish a company, from choosing the appropriate type of license and submitting the required paperwork, to obtaining the necessary approvals and permits, is essential to ensuring the success of the process. Therefore, seeking assistance from specialized financial and legal advisors can play a major role in facilitating procedures and avoiding potential obstacles.

In short, the Free Zone in Dubai provides a unique investment environment that combines advanced infrastructure and encouraging economic policies, making it an ideal destination for business expansion and sustainable growth.

The most important frequently asked questions about establishing a company in the Free Zone in Dubai

Can foreign investors own all the shares in the company?

Yes, in most free zones in Dubai, foreign investors can own 100% of the shares without the need for a local partner.

What is the cost of establishing a company in the Free Zone in Dubai?

The cost varies based on the Free Zone and license type. Costs include licensing fees, office rental, government fees, and sometimes legal consulting fees.

Does it require a physical office in the Free Zone?

Yes, most free zones require a physical office, even if small, as a condition for submitting an application and obtaining a license.

What is the validity period of the license and how to renew it?

The validity period of the license is usually one or two years, and the license must be renewed before it expires to avoid fines or suspension of activity.