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Advantages of establishing a company in Dubai

فتح سجل تجاري ورخصة تجارية في دبي

٠١ يناير Advantages of establishing a company in Dubai

Establishing a company in the free zone

The UAE is distinguished by having more than 40 free zones in addition to some areas that are being established. Therefore, establishing a company in the free zone is one of the difficult things facing the investor, as it is difficult to choose between many areas. Therefore, Kaber Company, through its extensive experience in business management, helps many investors in choosing the appropriate free zone for their commercial activity. It also helps in establishing and founding the company in the free zone in the shortest time and at the lowest costs.

Authorized Activities

(a) For a free zone company, you must obtain a trade license for each activity that the company will be engaged in such as consultancy, trading, etc. and shareholding or capital participation is allowed.

(b) For offshore companies, it is permitted to carry out multiple activities in one company.

Activities prohibited for offshore companies

Finance – Aviation – Media – Precious Metals – Oil & Gas

Authorized Activities

  • Business and Management Consulting
  • General Trade
  • Holding companies and holding shares in other companies in the UAE or abroad
  • Trade (type must be specified)
  • freehold property
  • Accounting, Reporting and Auditing

Offshore companies need to register accounts and prepare financial statements but are not required to provide audited financial statements. Free zone companies need to register accounts, prepare financial statements and provide audited financial statements.

How can you establish a company in the free zone?

Establishing a company in a free zone is much easier than establishing a company inside Dubai, as it can be 100% owned by any nationality and there is no requirement for a partner or sponsor from the UAE nationals, as the company is registered as a free zone establishment or a company belonging to the free zone or a branch or representative office in the Dubai free zone, and in this case the main company can be outside the UAE.

It is not required to be within the Emirates. Companies located within the free zone are regulated by the authority responsible for the free zone, which issues any licenses to the company. This is done based on the location of the free zone and the activity it carries out. The type of license issued by the responsible authority varies according to the commercial activity. A company can be established in the free zone by following some steps, including:

  • Choosing a company location
  • Agree on a trade name, as it is the name that distinguishes one company from another.
  • Obtaining the company’s business license.
  • Obtain initial approval to start work.
  • Register a commercial license.
  • Complete and obtain the commercial license requirements.

Investing in Dubai is a great option for any investor who wants to invest their money in the Arab region or the Middle East in general, due to the advantages and facilities that this wonderful emirate enjoys. If you are a businessman or a non-Emirati investor and aim to establish a small, medium or even giant company outside the borders of your country, it is great to think about heading to Dubai and starting your new business there.

What is a free zone?

The term free zone has different meanings and definitions depending on the type of free zone, but in most cases, the term free zone refers to a geographical area where goods are kept, stored, manufactured, traded and re-exported according to a known and specific customs system, but are not subject to any customs duties. Free zones are also entities completely separate from the laws of the state, are not governed by the laws of commerce in the state and do not require a sponsor. In addition, a company established in a free zone can be owned by a person of another nationality without the need for a partner from the UAE citizens.

The free zones in Dubai and the UAE in general are not subject to the laws set by the Ministry of Economy to regulate the commercial activities of companies, as the free zone in Dubai works to provide freedom of ownership for commercial businesses, in addition to tax exemption and exemption from any customs duties. These advantages in the free zones make them an ideal and honorable front for international companies that carry out many commercial activities. Among the advantages is that opening and establishing a company in Dubai and in the free zone does not require the presence of a partner or sponsor who is a citizen of the Emirates.

Can UAE free zone companies or offshore companies conduct business in the UAE or hold shares in other UAE companies? Are there any restrictions?

Companies with a commercial or industrial license can only operate within the free zone or outside the country.

In order for these companies to sell their products in the UAE, they must:

(a) You use an official UAE agent. The fee is usually 5% for “export” within the UAE. However, services and products can be obtained from other areas of the UAE and within it, but not from outside it.

or

(b) Establishing a UAE limited liability company with a 51% internal shareholding – this option can be arranged but fees must be paid to the local “sponsor” for facilitation purposes.

Free zone companies within a single free zone can trade among themselves within the same free zone or with other UAE free zone companies, and trade internationally with foreign companies but not within the UAE (outside the free zones) or with UAE residents.

UAE offshore companies and free zone companies can own shares in other UAE companies whether they are corporations. UAE offshore companies can trade internationally but not within the UAE or with UAE residents.

Economy in Dubai

Dubai has taken the lead in the field of tourism, trade and shopping for many reasons, including the discovery of oil in Dubai and making it one of the most important main sources, which led to making it one of the richest countries and attracting many foreigners to it, as Dubai is characterized by an atmosphere that encourages the establishment of businesses in it due to the calm political atmosphere in addition to its geographical location with some laws that encourage the establishment of businesses in it, as Dubai imposes a tax exemption law, which encourages many to start a new business in the country.

Recently, the UAE has become a major commercial center that people come to from all countries in the world, all for the purpose of trade exchange. One of the things that has contributed to the rapid growth of the economy in the UAE is the establishment of companies in its free zones, in addition to the flexibility of the laws that the country follows and contributes to organizing and managing businesses, which has made the free zones the markets that everyone comes to and waits for the most.

Jebel Ali Free Zone is one of the largest free zones specialized in the fields of industry, trade and logistics services in the world. Over a journey spanning about 35 years, it has established a pioneering model for economic zones, not only in the Middle East region but also in the whole world. It directs its investments to the economic region in the Middle East, Africa, Central and Southeast Asia and the Indian subcontinent, which includes about 3.5 billion consumers. It also exports to about 194 countries around the world. Today, Jebel Ali Free Zone is the headquarters of more than 7,500 companies.