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Dubai Free Zone Business License

٢٧ يوليو Dubai Free Zone Business License

What are the advantages of a commercial license in the Dubai Free Zone? Dubai is one of the most prominent commercial and investment destinations in the world, as it hosts many free zones that provide an ideal environment for business. A commercial license in the Dubai Free Zone is an essential element for establishing a successful company, as it provides many advantages such as full ownership of the company, tax exemptions, and the ability to trade internationally without restrictions. Obtaining a commercial license in the free zones allows investors to establish their companies with flexibility and ease, which contributes to enhancing business growth and opening new horizons for expansion. In this article, we will review the steps and requirements for obtaining a commercial license in the Dubai Free Zone , and the most important benefits that investors can achieve from this step.

Dubai

Business License in Dubai

A trade license in Dubai is a legal document granted by the competent authorities in the emirate, allowing individuals or companies to legally practice certain commercial activities. A trade license is necessary to establish any type of business in Dubai, whether in free zones or traditional areas. Trade licenses include several types, such as general trade license, professional trade license, and industrial trade license, where the type is determined according to the nature of the activity to be practiced. The benefits of obtaining a trade license in Dubai include:

  1. Full ownership: In free zones, investors are allowed to own 100% of the company’s shares without the need for a local partner.
  2. Tax Exemptions: Many free zones in Dubai offer tax benefits such as exemption from taxes on profits.
  3. Ease of procedures: The procedures for obtaining a commercial license are facilitated, which contributes to accelerating the start of the business activity.
  4. Access to global markets: The trading license gives investors the opportunity to trade with multiple markets without restrictions.
  5. In general, a trade license is an essential step for any business that wants to expand and grow in Dubai’s dynamic business environment.

Obtaining a commercial license in the Dubai Free Zone

Obtaining a commercial license in the Dubai Free Zone requires following specific steps that ensure compliance with legal and procedural requirements. Here are the basic steps to obtain a commercial license in the Dubai Free Zone:

  1. Determine the business activity: Before starting, you must determine the type of business activity you wish to practice, as activities differ according to the free zone.
  2. Choosing the right free zone: There are many free zones in Dubai, such as Jebel Ali Free Zone, Dubai Silicon Oasis, Dubai Exhibition Zone, and others. You should choose the area that suits the nature of your business activity.
  3. Apply for a company name: Apply for a company name. The name must comply with local laws and not be used by other companies.
  4. Submitting the application: After completing the documents, you can submit the application to the competent authority in the free zone. This may involve filling out the application form and paying the required fees.
  5. Obtaining approvals: The application will be reviewed by the relevant authorities, and if approved, you will receive your commercial license.
  6. Receiving the commercial license: After completing all procedures and paying the fees, the commercial license will be issued.
  7. Register with other government departments (if required): Depending on the nature of your business, you may need to register with other government departments or obtain additional permits.
    In short, obtaining a trade license in the Dubai Free Zone requires good planning and compliance with legal requirements, which will help you start your business successfully in one of the best business environments in the world.

Dubai Free Zone Business License Fees

The cost of a business license in Dubai free zones varies based on several factors, including:

  1. Fees vary depending on the type of activity, as commercial, industrial or professional activities can have different costs.
  2. Each free zone in Dubai has its own fees, so choosing the one that best suits the nature of your business may affect the cost.
  3. Some free zones may require a minimum capital to set up a company, which impacts overall costs.
  4. If you wish to obtain more than one license or activity, this will require the payment of additional fees.
  5. The cost of the license also depends on the type of office you choose (independent office, shared space, or virtual office) and the fees associated with it.
  6. Includes government fees associated with issuing the license, which vary from one region to another.
  7. The cost may include additional fees such as legal advice fees, accounting services, or business incorporation consulting services.
  8. Some free zones offer tax exemptions, but annual or recurring fees should be considered.
  9. In some cases, the time it takes to issue a license can impact the cost, as expedited processes can result in additional fees.
    Understanding these factors helps in better estimating the cost of a Dubai free zone business license, enabling investors to plan financially appropriately.

DubaiTypes of commercial licenses in Dubai Free Zone

In Dubai, there are several types of free zone business licenses available , which vary depending on the type of activity you wish to engage in. Here are the main types of business licenses in Dubai free zones:

  1. General Trading License : Allows a wide range of commercial activities, such as selling products and services. It is considered the ideal choice for businesses that deal with multiple types of goods.
  2. E-commerce License: For businesses that are entirely online, such as online stores and online services. Typically includes activities related to online commerce.
  3. Industrial Activities License: Allows the establishment of factories or production workshops. Can be used for activities related to the manufacture or assembly of products.
  4. Professional Activity License: For providers of professional services, such as consulting, accounting, engineering, or medical services. This license allows professionals to legally provide their services.
  5. Support Services License: Includes activities related to support services for other businesses, such as marketing, advertising, and information technology services.
  6. Tourism activity license: granted to companies that provide tourism services, such as travel agencies, tour operators, and hotels.
  7. Import and Export License: Allows companies to engage in import and export activities of goods and products, facilitating international trade.
  8. Specific Business License: These can be related to specific activities, such as car or food trade, and are designed to meet the requirements of those activities.
    Each type of license comes with a set of specific requirements and procedures, making it essential to choose the right type based on the nature of your business.

Documents required for a commercial license in the Dubai Free Zone

To obtain a trade license in the Dubai Free Zone, a set of documents is required. The requirements may vary slightly depending on the specific free zone and the type of business activity, but in general, the required documents include the following:

  1. Copy of Passport: Copies of passports of all shareholders and directors of the company must be submitted.
  2. Personal photographs: Usually a recent personal photograph of each shareholder and director.
    License application form: Fill out the license application form available from the competent authority in the free zone.
  3. Choosing a company name: A list of suggested names for the company must be submitted, taking into account local laws regarding company naming.
  4. Lease Agreement: If you have a physical office, you must provide a lease agreement stating the location of the office. It can be a stand-alone office or a shared space.
  5. Business Plan: You may be required to submit a business plan outlining the business’s activity and financial goals.
  6. Necessary approvals: In the case of activities that require additional approvals (such as health or educational activities), these approvals must be submitted.
  7. Copy of Emirates ID: For people residing in the country, you may need to provide a copy of your Emirates ID.
  8. Payment Receipt: Proof of payment of the required fees to obtain the license.
    Be sure to check with the relevant authority in the specific free zone for an exact list of required documents, as some free zones may require additional documents or the requirements may differ slightly.

In conclusion, obtaining a Dubai Free Zone business license is an essential step for any investor or entrepreneur looking to enter the dynamic Dubai market. Thanks to the attractive environment provided by free zones, such as tax exemptions, full ownership, and simplified registration procedures, investors can establish and grow their companies effectively. A business license is the gateway to achieving business goals and expanding into global markets, making it an ideal choice for both local and international investors. Therefore, it is important to plan well and understand all the requirements and procedures to ensure the success of the project. With the increasing investment opportunities in Dubai, a free zone business license remains a distinct option that supports innovation and economic growth in the region.

Frequently asked questions about a commercial license in the Dubai Free Zone