The Free Zones in Dubai are one of the fastest-growing business hubs globally. Company formation in Dubai free zones offers benefits such as 100% ownership, simplified regulations, and more. However, setting up a freezone company can be a complex process.
Therefore, we have created this blog to help you with business setup services in Dubai. In this post, we will highlight the advantages of starting a business or a startup in Free Zones, as well as the process of company setup in Dubai.
Benefits Of Starting A Business In The Dubai Free Zone
A free zone in Dubai is a specialized economic zone established by private authorities. Each Free Zone has its own rules and regulations for all international businesses and startups operating within it.
Here are a few reasons why global brands and startups choose free zones to expand in Dubai:
- 100% foreign ownership
- Low to 0 corporation tax and income tax
- Access to modern infrastructure
- Exposure to the global market
- Total repatriation of capital and profit
- Hire highly-skilled team members
When you use business setup services in Dubai, you can flawlessly register in the Free Zone and enjoy each of these benefits. Remember, every Free Zone has its own benefits. So, explore all your options before making a decision.
Step-by-step guide for Free Zone Company Setup in Dubai (UAE)
The following is a step-by-step guide for company setup in Dubai Free Zones.
Define your business activity and legal structure
The first step is to define what type of business you want to do in the Dubai Free Zone. Each industry or sector might have a specific free zone to help you find your target market easily. Consulting, Ecommerce, IT services, and Trading are among the common types of businesses in a Free Zone in Dubai.
Each business needs a legal identity to register in a Free Zone. The following are three types of legal structures accepted in most Dubai Free Zones:
- Free Zone Establishment (FZE) for solopreneurs or other business entities with a single shareholder
- Free Zone Company (FZCO) is a limited liability business entity with multiple shareholders
- Brand office of existing global companies
Choose a free zone that fits your needs
Free zones are designed to serve a specific industry. Therefore, you need to choose the one that fits your business and operations model. Your choice depends on your business type, location preference, free zone regulations, and more.
Here’s a list of popular free zones in Dubai:
- Dubai CommerCity (DCC) free zone for digital commerce business
- Dubai Media City is a free zone for media companies
- Dubai Multi Commodities Center (DMCC) is a free zone for commodity trading
- Dubai Outsource City free zone for external business services
You can explore more industry-specific Free Zones in Dubai here.
Choose a trade name for your business
The business name is vital for a freezone company setup in Dubai. Once you have finalized the legal structure of your company, you must choose a trade name.
You must contact the relevant authority in the free zone to check whether your desired trade name is already registered. It helps you avoid any fallback in the registration process.
The following are a few rules that most free zones in Dubai have for trade names:
- The trade name shouldn’t already exist in the free zone
- The trade name must be followed by its legal structure
- The name shouldn’t include any religion, governing authority, or offensive element
Submit documents for initial approval
You’ll need initial approval from the free zone’s authorities to ensure that your business is eligible for registration. A few common documents are:
- Passport copies of all shareholder(s)
- Passport-size photos
- Proof of residence (utility bill or tenancy contract)
- NOC (if shareholder is a UAE resident under another sponsor)
Signing of MOA documents
Once you have initial approval, the company must sign an MOA outlining the shareholders’ details, the type of business activity, the ownership structure, capital flow, and more, detailing how the business will operate.
Lease a workspace (office or co-working facility)
A free zone company registration needs an address. Therefore, you need to rent a space for your business. It could be a physical office, desk space, or a flexi-desk in the free zone. Choose a space that fits your business & clients, and is spacious enough for your team.
Apply and pay for a business license
Once you have an address and an approved trade name, you need to apply for a business license from the free zone. The license application includes a business plan, legal documents, a license form, and payment for registration, license, lease charges, and more.
Apply for a company establishment card
Once your application is reviewed and verified, you’ll receive a company establishment card. This establishment card makes your business a legal entity that complies with local immigration laws. Using this card, you can recruit people and interact with government entities.
Apply for visas for yourself and your partners
Now that you have met all the requirements and received the official establishment card and licence, you can apply for visas for yourself, partners, and employees if you are recruiting globally.
If you are expanding your business in Dubai, a free zone can help you get a strong start. However, the initial registration process can be complex. That’s where a business setup company in Dubai, like 365 Day PRO, can help you.
Why Choose 365 Day Pro Services To Set Up A Company In The Dubai Freezone?
We provide a wide range of business setup services in Dubai. We can help you start a new business or grow your current one in the Dubai Freezone. For more than 15 years, we have helped more than 1,000 businesses find the right free zone and start their business without any problems. Let’s talk about how we can help you get started on your path to becoming part of Dubai’s growing business community.
Conclusion
Working in a free zone in Dubai offers various advantages, including complete ownership, tax benefits, market exposure, access to modern infrastructure, and more. The freezone company setup process includes finalizing the business model, name, and MOA documentation, and working closely with the free zone authority. 365 Day PRO is a business setup company in Dubai that helps you manage the registration process and more to kickstart your business. Contact us to know more.
FAQ
What is a free zone business in Dubai?
A free zone business is a company or startup registered within a designated Free Zone area in Dubai. These free zones offer 100% foreign ownership, tax benefits, and simplified regulations. There are various industry-specific free zones the company can choose from.
How to set up a business in a free zone in Dubai?
The following are the steps to set up a business in the Dubai Free Zone:
- Define your business activity
- Choose a Free Zone
- Reserve a trade name
- Obtain initial approval
- Lease office space
- Apply for a license
- Complete visa formalities.
Which document is required for company formation in the Dubai free zone?
The following are a few necessary documents to start your company in the Dubai Free Zone:
- Passport copies
- Visa copy (if applicable)
- Entry stamp page
- Business plan (for certain activities)
- MOA documents
- Lease registration document
How much does it cost to set up a free zone business in Dubai?
The cost of a free zone business in Dubai can vary depending on the free zone, number of visas, licence type, office lease, and more. A very basic package can start at AED 11,000-14,000. Contact 365 Day PRO Services for cost estimates.