Are you an entrepreneur who wishes to set up a business in Dubai with maximum flexibility, 100% foreign ownership, and attractive tax incentives? If you answered yes, then setting up a Free Zone Company in Dubai could be the ideal solution for your aspirations!
Read until the end and find out the benefits, procedures, and things to consider for setting up a free zone company in Dubai.
Understanding Free Zones in Dubai
Firstly, Dubai is home to around 50 free zones, each one is made for specific industries and sectors, including technology, finance, media, logistics, and more. Free zones are specialized economic zones where foreign investors can establish complete ownership, with no need for local partnership, tax exemptions, etc making them an attractive option for businesses.
Why You Should Set up a Free Zone Company in Dubai
1. 100% Foreign Ownership
One of the most significant advantages of establishing a free zone company in Dubai is that here, foreign investors can retain 100 % ownership of their businesses without the need for a local partner or sponsor.
2. Tax Exemption
Free Zone Companies enjoy benefits like tax exemptions on corporate and personal income, imports and export duties, or any other levies, providing a favorable environment for business growth and profitability.
3. Simplified Setup Process
Setting up a Free Zone Company in Dubai is more simple and easy than you think. The entire process is straightforward, with streamlined procedures, and minimal paperwork compared to other jurisdictions’ company formation process.
4. Open to International Markets
Free Zone Companies benefit from Dubai’s strategic location for accessing regional to international markets, enabling them to leverage the city’s world-class infrastructure, logistics facilities, and connectivity.
5. Business Support Services
Free zones in Dubai offer a range of support services to help business operations become smooth, they provide services like office space, warehousing, visa sponsorship, and access to networking events and business seminars.
Steps to Establishing a Free Zone Company
While the specific requirements and procedures may vary depending on the chosen free zone and type of business activity, the general steps to set up a free zone company are similar.
1. Choose the Right Free Zone
The first step is to research and select the free zone that is best suited to your business needs and industry requirements. Popular free zones that are affordable and preferred include Dubai Multi Commodities Centre (DMCC), Dubai Silicon Oasis (DSO), Jebel Ali Free Zone (JAFZA), and Dubai Internet (DIC)
2. Select Your Company Type
Decide on the legal structure of your choice for your company, such as a Free Zone Establishment (FZE) for a single shareholder or a Free Zone Company (FZCO) for multiple shareholders.
3. Submit Application
The next step is to prepare and submit all the required documents listed, including passport copies, business plans, lease agreements for office spaces, or flexi-desk.
4. Apply for Initial Approval
Await the review and approval of your company registration application by the Free Zone Authority, which typically takes a few days to a few weeks.
5. Complete Legal Document Finalization
Once the initial approval is obtained, you should finalize the legal formalities, such as signing the Memorandum of Association (MOA) and lease agreement and paying the requisite license and registration fees.
6. Collect Your Business License
Upon completion of the registration process and payment of fees, all that is left is to collect your free zone company license and commence business operations in Dubai.
7. Seek Legal Guidance
To ensure that the whole process is carried out smoothly and in a hassle-free manner and that you are in complete compliance with all the legal rules and regulations, you can seek legal guidance from Business Consultants UAE to push your process of new company formation in Dubai to another level.
Conclusion
Establishing a free zone company in Dubai offers entrepreneurs a unique opportunity to reach a thriving economy, with many benefits that encourage businesses to grow and expand to global and local markets.
So, establishing a Free Zone Company can be a certainly strategic move and make use of the several benefits from total ownership, tax benefits, and other industry-specific advantages.
