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Advantages of establishing a company in the Dubai Free Zone

٠٨ يونيو Advantages of establishing a company in the Dubai Free Zone

What are the advantages of establishing a company in the Dubai Free Zone? The Dubai Free Zone is considered one of the best global destinations for establishing companies, as it provides an ideal investment environment that combines commercial incentives and legal facilities. Establishing a company in these free zones is an attractive option for investors seeking to benefit from full tax exemptions, 100% foreign ownership, and the ease of transferring profits abroad. In addition, the Free Zone provides simplified and fast establishment procedures compared to other regions, allowing investors to start their businesses quickly. These advantages contribute to attracting investors and global companies seeking to expand their business activities in one of the fastest growing and innovative cities in the world. In this article, we will review the advantages of establishing a company in the Dubai Free Zone .

Advantages

Advantages of establishing a company in the free zone

Establishing a company in the Free Zone in Dubai offers many advantages that make it a preferred destination for investors and entrepreneurs. Here are the most prominent of these advantages:

  1. Full foreign ownership: Foreign investors can own their companies 100% without the need for a local partner.
  2. Tax Exemptions: Companies in the Free Zone enjoy comprehensive tax exemptions on income and profits for up to 50 years, with the possibility of renewal.
  3. Simplified and fast procedures: Freezone provides simplified establishment procedures, with comprehensive administrative support to facilitate the registration process and obtain licenses quickly.
  4. Free repatriation of profits: Profits and capital can be fully repatriated abroad without restrictions, giving investors financial flexibility.
  5. Advanced Infrastructure: Free Zone provides modern and advanced facilities, including offices, warehouses, and logistics services that suit all types of businesses.
  6. Diverse Business Environment: Freezones provide great opportunities to network and collaborate with other global companies, which contributes to enhancing growth and expanding the market. These features make freezones in Dubai an ideal investment option for those who want to expand their business in the Middle East region.

Steps to establish a company in the Dubai Free Zone

Establishing a company in Dubai Free Zone is done through simple and quick steps that allow investors to start their business easily. Here are the most important steps:

  1. Choosing the right free zone: Dubai has many free zones, such as Jebel Ali, Dubai Airport, and Dubai Internet City. You should choose the area that suits your company’s activity.
  2. Determine the type of business activity: You must determine the type of business activity you intend to practice, whether commercial, industrial, or service, according to the activities permitted in the free zone.
  3. Choosing the legal structure of the company: You can choose the appropriate legal structure such as a free zone limited liability company (FZ-LLC) or a branch of a foreign company.
  4. Submitting an application and registering: It requires submitting an application to the competent authority in the free zone, along with submitting the required documents such as a passport and a business plan.
  5. Obtaining the necessary approvals: Some commercial activities may require additional approvals from the relevant government authorities.
  6. Office or warehouse rental: Free zones offer a variety of office and warehouse options depending on the company’s needs.
  7. Obtaining a commercial license: After completing all the previous steps, a commercial license is issued that allows you to start practicing business within the free zone.
  8. Open a bank account: You can open a bank account in the name of the company to manage financial matters legally. By following these steps, you can establish your company in one of the free zones in Dubai and benefit from the many advantages it offers.

Documents required to establish a company in the Dubai Free Zone

 

To establish a company in Dubai Free Zone, a set of papers and documents must be submitted to the responsible authority in the selected free zone. These papers vary slightly depending on the type of activity and company, but in general the required papers include the following:

  1. Company Establishment Application Form : Filled out and submitted to the free zone authority of your choice.
  2. Copy of passport : for all partners and shareholders of the company, including directors and legal representatives.
  3. Personal Photos : Passport size photos of both partners and shareholders are usually required.
  4. Copy of visa or residence stamp : If you are a resident of the UAE, you will need to provide a copy of your residence visa or residence stamp.
  5. Business Plan : Some free zones may require a business plan detailing the company’s anticipated business activity.
  6. Proof of Address : Whether it is a local or international address, you need to provide proof of residential address.
  7. Approval from the relevant government authorities : If your business activity requires special approvals, these approvals must be obtained and submitted with the papers.
  8. Power of Attorney : If you are appointing a legal representative to establish the company on your behalf.
  9. Proof of Capital : Some free zones may require proof of the availability of the capital required to establish the company.

These papers are the basis for the application process and establishing the company in the Dubai Free Zone. After submitting them and fulfilling the conditions, the administrative steps to issue the commercial license begin.

 

Factors in the cost of establishing a company in the Dubai Free Zone

 

The cost of establishing a company in the Dubai Free Zone depends on several factors that directly affect the final cost. Here are the most important factors that contribute to determining the cost of establishing a company in the Free Zone:

  1. Type of business activity : License fees vary depending on the type of activity (commercial, industrial, service), as industrial activities may require additional costs for special equipment and permits.
  2. Choosing a Free Zone : The cost of establishing a company varies depending on the free zone you choose. Some areas, such as Jebel Ali or Dubai Airport, have higher costs compared to other areas.
  3. Company size and legal structure : The fees also depend on the size of the company and the number of shareholders, as establishing a free zone limited liability company (FZ-LLC) is often more expensive than a branch of a foreign company.
  4. Office or warehouse rental cost : Prices vary based on the location and size of the office or warehouse your company needs within the free zone, and this plays a big role in the overall cost.
  5. Number of Visas : The cost of visas depends on the number of employees you intend to employ, as some free zones offer packages that include a specific number of visas in the establishment fees.
  6. Additional costs : These may include additional costs such as administrative fees, company name registration fees, bank account opening costs, or other expenses related to obtaining the necessary approvals for some activities.
  7. License Duration : The license can be renewed annually, and some free zones offer licenses for multiple years, and the longer the license period, the more discounts or increases in costs. By choosing the right factors and managing costs effectively, expenses can be reduced and the benefits offered by the free zone in Dubai can be taken advantage of.

 

Advantages

 

Types of Free Zone in the Emirates

There are many types of free zones in the UAE to meet the needs of various commercial, industrial and service activities. Here are the most prominent types of free zones in the UAE:

  1. Free Trade Zones : These zones are primarily dedicated to business, import, export and distribution of goods. Free Trade Zones include:
  2. Industrial Free Zones : Designed for industrial and manufacturing companies that need large production and storage spaces. These zones provide an integrated infrastructure to support industrial operations.
  3. Technology and Media Free Zones : These zones are dedicated to technology, media and innovation companies. They provide an ideal environment for digital, media and software companies.
  4. Financial Free Zones : Dedicated to companies operating in the financial and banking sector, such as banks, insurance and investment companies. The most famous of these is: Dubai International Financial Centre (DIFC).
  5. Logistics Free Zones : Focus on logistics, transportation and warehousing, and are regional hubs for trade in goods and logistics services. These include: Dubai Airport Free Zone (DAFZ) and Jebel Ali Logistics Zone (JAFZA).
  6. Educational and research free zones : aim to support higher education and scientific research, and host educational institutions and research centers. Prominent examples include: Dubai Academic City and Sharjah Research, Technology and Innovation City.
  7. Medical Free Zones : Targeting companies operating in the healthcare and medical technology sectors, providing an integrated environment for hospitals, medical centers, and pharmaceutical companies. Most notably: Dubai Healthcare City (DHCC)

Each free zone in the UAE differs in terms of specialization and services it offers, providing multiple options for companies to establish their businesses in line with the nature of their business activity.

 

In conclusion, setting up a company in the Dubai Free Zone is an ideal investment option for those seeking to benefit from the many advantages these free zones offer. From 100% tax exemptions to 100% foreign ownership and easy repatriation of profits, the Free Zone provides a conducive environment for business growth and expansion. The streamlined procedures and advanced infrastructure also make it an attractive option for startups, medium and even large companies. Taking the step of setting up a company in the Dubai Free Zone opens up a wide range of opportunities and ensures a strategic presence in one of the most dynamic business cities in the world.

 

Frequently asked questions about establishing a company in the Dubai Free Zone