Understanding Dubai Free Zones
UAE Free Zones are the designated areas in UAE, where the expatriates can fully own and operate their business. The jurisdiction of the Dubai Free Zones differs from that of the Dubai mainland. This is an area with unique regulations that apply to it. Although registering a company in a free zone in Dubai may be less expensive, there are several limitations on the locations, hours, and methods of operation that must be followed.

Benefits of Dubai Free Zone Company Set-Up

There are more than 45 free zones in the UAE, among them more than 20 are Dubai Free Zone. Each Free Zone has unique setup fees, business activities that are allowed, facility options, and share capital requirements.

  • A company formed in the free zone of Dubai allows for 100% foreign ownership.
  • Companies operating in free zones are subject to lower personal income and capital gains taxes.
  • Companies operating in free zones are exempt from corporate taxes and charge no import or export duties.
  • You can have 100% capital and profit repatriation by registering your business in the Dubai Free Zone.
  • One of the main advantages of free zones is their relaxed labor laws and simple hiring procedures.

International Free Zone Authority (IFZA)

If you’re considering establishing a free zone company in Dubai,the International Free Zone Authority (IFZA) is a perfect choice. With its outstanding facilities, modern infrastructure, and business-friendly laws, IFZA is a premier free zone community in Dubai and the perfect place for foreign investors to launch and expand their enterprises.

Steps to Register a Company in a Dubai Free Zone

1. Choose the Correct Free Zone.

Consider things like the industry focus, the location, and the facilities provided and choose a free zone that fits your specifications and business operations.

2. Choose your Business Activities.

Next step is identifying the type of business you will be conducting.

3. Determine the type of legal entity.

Choose the legal form that your company would adopt. One of the following two business models can be established in a free zone:

  • Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
  • Free Zone Establishment (FZE)

4. Choose a Trade Name

The following are essential conditions for DED to accept the proposed trade name:

  • must not violate the nation’s public morality or orders;
  • must be followed to by the company’s legal structure, such as LLC, FZE, DMCC, etc.);
  • has never been registered before;
  • is in line with the necessary activity type and legal status;
  • should not include the names of any official entities, religious titles, or logos of outside organizations.

5. Apply for a Business License

Your business’s main activity will determine the kind of license you need to apply for.

6. Office Space and Visa Processing

In free zones, office space is available for purchase or lease. The size of your office will depend on how many people work there and what kind of business you do. After that, proceed with the visa processing of shareholders, employees and dependents according to the rules.

7. Get preapprovals, register your company, and apply for a license.

Businesses founded within free zones are subject to the regulations set forth by the specific free zones. You must apply with the required paperwork to receive the required approvals. Depending on the kind of business activity, the kind of company, and the requirements of the free zone authorities, different documents are included in the list.

8. Corporate Bank Account

You must have a designated business bank account to support your trading activity. Make sure this account is customized to your Dubai free zone business operations.

Dubai Mainland Business Set-up Vs Dubai Free Zone Business Set-up

A Free Zone license is a wise choice when it comes to affordable ways to establish a business in Dubai, especially when compared to the costs involved in establishing a Mainland firm. Other considerations to make include administrative fees and office options.

Mainland License: It is necessary to establish a Limited Liability Company (LLC) with a mainland license if your clients are in the local market in the United Arab Emirates.
Free Zone License: If you perform imports, exports, or re-exports, obtaining a Free Zone license may be your best option.

Costs Involved in Dubai Free Zone Company Set-up

Dubai Free Zone business set-up cost varies based on several factors such as the free zone selected, the nature of the business activity, and the facilities needed. There will be registration fees, office space rental, license fee, visa and immigration expenses and other costs like documentation charges.

One of the best business set-up consultants in the UAE, Promptus Global has affordable business set-up packages with a dedicated accounting manager for you. With a cost as low as 12,500/- AED, we will help you to set up a business in Dubai Free Zone.
To conclude, you can easily set up a company in on Dubai being informed of the advantages, costs, and processes involved in setting up a free zone firm. Because of this, we are here to help you save time and money by proposing the best Free Zone based on your investment budget, business goals, and requirements for offices and visas.

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