Before we know the forms and methods of investment in the free zone, we must first know what the free zone is, as it is the first area for investment in the United Arab Emirates.

The Emirate of Dubai includes many important and distinctive areas that made it one of the most important emirates in terms of trade and the most attractive for tourists and foreign investors. This is due to the excellent and distinctive places that this emirate contains. The most important of these areas are the Dubai Free Zone, the Jebel Ali area, the Sharjah area, and many, many more. The Dubai Free Zone works to provide a suitable work environment that helps achieve large profits without paying any type of taxes and without the need or resorting to having a partner who holds Emirati citizenship.

There are also some private companies in the free zone to help new companies in the process of establishing their companies. Knowing the initial costs of establishing any company is considered one of the most important steps in developing a workable business plan. It can help you finance any of the different types of projects through investors who have dealt with them before and with the most important investment companies in Dubai. You only have to make the project plan and show it to them to find the right investor for them.

The UAE government also provides sufficient support to Emirati contractors. There are many grants available to people who have an excellent business plan and are foreigners to the UAE. The government is working to provide many commercial and administrative buildings and free business centers available for rent in the free zone. This is so that investment can be made within the free zone to suit the size of the business and services they provide, while providing appropriate solutions to all investor complaints.

Establishing new companies in the free zone:-

New companies wishing to establish their businesses in the free zone enjoy greater flexibility in choosing their various commercial activities or service activities that are compatible with the nature of their work. This is in addition to what distinguishes that area (Dubai Free Zone) from tax exemptions. This is one of the biggest factors attracting many new contractors, which contributes to activating the experience of investors and motivating them when contracting or establishing companies in the free zone and conducting their business there.

How to establish a new company in the free zone:-

Now, anyone, regardless of their financial capacity or budget, can establish and found any investment project in the free zone or establish a company in Dubai. You can now establish any project or provide any investment service in the free zone due to the multiple needs of the UAE and also due to the ease of providing the requirements and methods of establishing investment projects there. However, it is necessary to know the basic steps in establishing a company in the free zone, which are as follows: 

Determine the nature of the company’s activity:

Determining the nature of the new company’s activity in the free zone is considered one of the most important procedures imposed by the UAE law on establishing companies for the year 2009 in Dubai. This is based on facilitating the procedures and then determining the parties associated with the company’s activity and the legal forms permitted within the new company.

There are approximately twenty thousand economic activities permitted in the UAE. Economic activities are classified into three main types, which are:

· Commercial activity related to (real estate, leasing, transportation, financial brokerage, wholesale, retail, storage and communications).

· Professional activity that is specific to (agriculture, health, social work, education, and various service activities related to society, i.e. any activity that depends on physical and mental activity to practice it).

Industrial activity, which is concerned with (transformation industries such as mining, water, electricity, and quarrying), and there are also some tourism activities.

Determine the legal form of the company:

Here comes the role of determining the legal form of the new company that will be established, but this form depends on the nationality of the company owners, and the legal form of the company that you plan to establish in Dubai, which are as follows:

Liability companies.

Limited liability companies.

Public joint stock companies.

Private joint stock companies.

Civil business companies.

Trade name registration:

The third step in establishing companies is determining the trade name in establishing a company in the Emirates, which is what distinguishes one commercial license from another. The trade name of the new company is also related to the form and activity of the commercial company, and this is achieved by several important conditions stipulated by the Department of Economic Development on the trade name before approving it, namely that the company’s trade name does not contain inappropriate words, does not violate public and private taste, and that the trade name reflects the commercial activity accurately and clearly.

Get initial approval:

After determining the legal activity of the company, determining its legal form, and registering its trade name, it is now necessary to obtain initial approval from the competent authorities for the company’s economic activity and follow up to obtain the approval of the authorities related to the activity.

Preparing the articles of association and choosing a headquarters for your business:

Here comes the moment to prepare the contract designated for establishing a company in the free zone. This is done by bringing the incorporation contract in agreement between you and the competent authorities in the free zone. You must also choose a location to establish the company in the free zone or establish a company in Jebel Ali to begin.

Obtaining approvals from the authorities concerned with the facility’s activity:

Some commercial activities require obtaining some additional approvals from the competent authorities for those projects concerned, such as approval from the Ministry of Economy, or approval from the Ministry of Interior, or from the Ministry of Justice, and a competent approval from the Civil Defense if the activity is related to firefighting equipment activities, etc.

Get the license:

After completing all the previous steps to prepare and establish a company in the Dubai Free Zone, you can now receive the commercial activity license and attach some papers and documents related to the company and you, including the economic development steps and paying the company’s commercial license fees, then register in the Chamber of Commerce as a member.

Costs of establishing a company in the free zone:-

The costs of establishing a company in the free zone are mainly limited to several expenses, which are as follows:

Cost of commercial license expenses to practice the legal activity (license to practice commercial work)

The cost of purchasing a site or location for the office or company through which you conduct your business, whether renting or purchasing.

The cost of purchasing furniture and decorations for the office where you operate your business.

The cost of obtaining permits (work permits for sponsored employees) and visas required for them under the name of your current company.

The cost of opening a new account in the company’s name in a bank to deposit the minimum capital, depending on the type of the company’s commercial activity.

The cost of determining the legal form of the company plays a fundamental role in increasing or decreasing the cost.

Finally, the cost of the commercial license.

Does Dubai Free Zone allow any type of manufacturing?