A Dubai Free Zone company can’t directly sell its products or services in the UAE. Yet, thousands of businesses are still choosing to open a free zone company in Dubai. So, why is Free Zone Business Setup in Dubai so popular?
There are many reasons why people love to set up their business in Dubai, UAE. In this post, we will go over these benefits and the cost and process of business setup in Dubai Free Zone.
Let’s start by understanding what a free zone really is.
What Is A Free Zone In Dubai?
A free zone (or freezone) is an economic area inside the UAE which has a special status, kinda operating under a different legal framework compared to the rest of the nation. Dubai has more than 30 free zones for sectors like ecommerce trading, logistics, tech, media, healthcare and finance.
Any foreigner or UAE citizen can start a Free Zone company in Dubai and retain 100% ownership. These Free Zones have industry-specific resources to help businesses grow and thrive in the international market.
Benefits Of Business Setup In Dubai Free Zone
The benefits of Free Zone business setup in the UAE are the same across most zones. Here are a few reasons why Free Zones attract hundreds of businesses each year:
100% Ownership
All Free Zone businesses in Dubai, UAE, can be established without any local sponsor. All the business activities that you can choose to start a Free Zone Company don’t need supervision from a local partner. Thus, you are the sole owner or partner of your business and can keep the profits.
Tax Benefits
Free Zone businesses need to follow the regulations set by the individual Free Zone Authority. Therefore, they have to pay 0% corporate tax if their income is lower than the qualifying income. However, if you earn more than the qualifying income, you will have to pay 9% corporate tax.
Faster Business Setup
Many Free Zones have minimal paperwork and digital-first procedures to reduce the time for UAE business setup. This can help you get the trade licence within a week or less, so you can kickstart your business ASAP.
Custom Duty Exemptions
One of the most important benefits that attracts ecommerce and logistics businesses to the Dubai Free Zone is customs duty exemptions. The Free Zone Companies get full exemptions on import and export duties as long as the goods stay within the Free Zone and are shipped in the international market.
World-Class Infrastructure
From DMCC’s gleaming towers to the logistics powerhouse of Jebel Ali (JAFZA), Dubai’s free zones offer premium offices, warehouses, co-working hubs, and cutting-edge facilities tailored to specific industries.
Visa Eligibility
A free zone trade license empowers you to apply for UAE residency visas for yourself, your employees, and even your family members. The number of visas typically depends on your license package and office space.
Cost Of Dubai Free Zone Business Setup
The cost of business setup in the Dubai Free Zone varies with each zone. However, a few variables of business setup cost in Dubai Free Zone are the licence fees, visa fees, rent for office or virtual space, and other miscellaneous expenses.
The cost can range from AED 6000 in budget-friendly free zones like IFZA (International Free Zone Authority) or RAKEZ to AED 35,000 or more in premium free zones like DMCC, DIFC, and DAFZA. 365 Day PRO Services can help you get an accurate cost estimate based on your choices. Contact us for affordable UAE business setup services.
Process Of Business Setup In Dubai Free Zone
Choose a Dubai Free Zone that matches your business and has the infrastructure you require. After selecting a zone, there are simple steps to set up a freezone business in Dubai.
Define Your Business Activity
Defining your business activities is one of the most crucial tasks for your setup process. This will help you choose the right free zone and get the necessary licence to operate without any problems. The chosen activities will determine what regulations you must follow.
Select Your Company Structure
You must choose a business structure when registering a company with the Free Zone Authority. Common structures include the Free Zone Establishment (FZE) for a single shareholder, Free Zone Company (FZC) for two or more shareholders, and a Branch Office for companies expanding in the UAE.
Reserve Your Trade Name
It is critical to register your trade name with the Free Zone Authority to avoid duplication or choosing an offensive name. A few regulations that your trade name should comply with are:
- No offensive terms
- No religious or political references
- Should reflect the nature of the business
- Shouldn’t be insulting the other community
Submit Your Application
Once you have gathered the relevant approvals and documents, you can apply for a trade license. A few documents that you might need to submit are passport copies of all shareholders and directors, passport-size photographs, a brief business plan (required by some zones), and a Memorandum of Association (MOA).
Find An Office Space (Physical Or Flexi Desk)
Most free zones require you to lease some form of space, like a flexi-desk, co-working setup, private office, or a warehouse. The lease agreement is also needed when opening a corporate bank account.
Receive Your Trade License
Once all your documents are verified and you make the final payment, your trade license and establishment card will be issued within 3 to 7 days.
Open A Corporate Bank Account
Once you have the trade license in hand, you will need to open a bank account to manage your finances. Transparency and taxation are important and all the financial transactions of your business should be done through this account.
Apply For Visas
You can apply for personal, employee, and sponsor family visas after you get the trade license. The number of visas may vary based on your office and the free zone visa package that you choose.
The process of business setup in the Dubai Free Zone can be a little complicated and time-consuming, especially if it’s your first time. Over the last 15+ years, we have helped hundreds of entrepreneurs, business founders, and investors start their free zone company in Dubai. We can help you too with business setup, visas, bank account management, and more. Contact us now to know more.
Conclusion
Dubai is among the most lucrative markets to start a business. Benefits of Dubai Free Zone include 100% ownership, 0% corporate tax, infrastructure and more. All of this makes it ideal for companies who want to expand internationally. To establish a business in a Dubai Free Zone, you must determine your business activities and structure, register your trade name, get a physical or virtual office and open a bank account. 365 Day PRO Services is here to help you in every step of your UAE business setup. Let our experts take care of the registration so you can concentrate on your business. Call us today for your consultation.
FAQs
How much does it cost to set up a free zone business in the UAE?
The cost of setting up a business in the UAE’s free zones depends on many different variables, including license fees, office/flexi-desk cost, visa fees, etc. The cost varies between AED 6,000 to AED 35,000 on average. Connect with our team and get accurate pricing.
Can free zone companies do business in Dubai?
Free Zone companies can primarily do business within the free zone or internationally. They aren’t permitted to enter the Mainland. However, you can get special permits from the Free Zone Authority and DED to do business in the Mainland.
Which is the cheapest Free Zone in Dubai?
There are a few affordable free zones near Dubai such as Sharjah Media City (Shams), Sharjah Publishing City (SPC) and International Free Zone Authority (IFZA).
How long does it take to open a company in the Dubai free zone?
Most Free Zones have a fast processing time due to minimal documents or digitized systems. Therefore, you can open your Free Zone company in Dubai within 3 to 10 days, depending on the authority. Contact us for fast and secure business registration.