Dubai Free Zone Company Formation
The United Arab Emirates has multiple free zones, the majority of which are located in Dubai. The high quality of life and outstanding infrastructure in the Dubai Free Zones attract investors to this futuristic metropolis. Dubai’s free zones provide a regulated and secure business environment in which a wide range of business activities can be licensed. They stimulate the economy, encourage foreign investment, and accelerate expansion for investors and entrepreneurs thus paving the path for Dubai free zone company formation.
Freezone Company Setup Dubai
Setting up a business in the Dubai free zone is a complicated process, so it’s a good idea to seek professional guidance and advice on the various incorporation and registration requirements. Jumeira Consultants provide free consultation and assistance in setting up a business in the Dubai free zone to assist you in streamlining the entire documentation and paperwork process so that you can concentrate on expanding your business in Dubai.
What are the advantages of starting company in a free zone?
Every free zone is managed by an independent free zone authority, which is accountable for maintaining free zone operating licenses and assisting businesses in establishing operations in the areas. A free zone firm is governed by the rules and regulations of the free zone in which it is established. The following are some of the advantages of a Free Zone:
- There is no necessity for a local partner/sponsor because the company is 100 percent owned by foreigners
- Repatriation of all capital and profits
- Exclusion of corporate and personal income tax
- Easy immigration and labor recruitment processes
- Currency restrictions are not imposed.
- There is a wide range of activities that can be licensed
- Unlimited and low-cost energy
- Communications are both sophisticated and reliable
- Increased efficiency in logistics
What are the different free zones in Dubai for setting up your company?
The form of business activity you want to engage in will have a major impact on which free zone is best for you. The following are the main free zones where we can assist you in starting a business.
Jebel Ali free Zone (JAFZA) is one of Dubai’s most rapidly rising and sought-after free zones, featuring world-class infrastructure in general trading and logistics.
The Dubai Airport Free Zone (DAFZA), which is home to thousands of businesses from a variety of industries, is one of the city’s most prominent and fastest-growing free zones.
Dubai Multi Commodities Centre (DMCC), formerly known as Dubai Metals and Commodities Centre, is the appropriate commercial hub for Dubai and the UAE.
The Dubai International Finance Centre (DIFC) is an independent free zone in Dubai that provides companies with 100 percent ownership. It was founded as part of Dubai’s strategic aim to strengthen its financial assets and attract funds and investments to the region.
The Dubai South free zone, formerly known as Dubai World Central, serves as a vital link between the Middle East, Africa, and South Asia.
Dubai Silicon Oasis
The Dubai Silicon Oasis Authority is a government-owned free zone that supports and promotes advanced technology-based businesses.
What are the stages for starting a free zone company?
Without a question, the UAE’s free zones are the most crucial basis of the country’s growing economy. In Dubai alone, there are around 30 free zones that contribute significantly to the city’s economy. There are two sorts of firms that can be established in a free zone:
- Free Zone Establishment (FZE)
FZE is a limited liability company with only one stakeholder
- Free Zone Limited Liability Company (FZ LLC)
FZLLC is a limited liability company with a maximum of five shareholders
It is considerably easier to start a business in a free zone. The authorities of the free zone need only the bare minimum of paperwork and time. The following are the essential steps to starting a business in a free zone.
- Identify the legal entity’s business activity.
- Choose a business name for the activity.
- Make an application for a business license.
- Preparation of the memorandum and articles of association
- Select an office location.
- Complete the application form and present the business plan.
- Get pre-approval from the authorities, register your company, and obtain a license.
What are the required documents for registering a Dubai free zone company?
In order to start the process of setting up a free zone company, we will need the following papers from all shareholders/directors of the new business.
- Proof of certified passport and UAE visa/entry stamp (if non-resident)
- Completed application form and letter of Intent
- Copy of existing trade license/registration certificate (If you already have a business, applies to local companies only)
- Letter of reference from a bank or 2 years of audited financial reports for a corporate entity are required
- Business plan and Registry Identification Code Form (RIC) (Original and notarised)
- Sample signatures of the company’s shareholder(s) and the new company’s designated Manager/Director
- Curriculum Vitae (CV) (summary of professional history)
- NOC from present sponsor and unit title deed
Before you start setting up a business in one of Dubai’s free zones, make sure you have the correct resources in order. Starting a business in Dubai with Jumeira Consultants is a smooth and quick procedure. We can assist you in designing, analysing, and evaluating the total cost of your Dubai company setup as experienced consultants.
If you have any queries, please do not hesitate to contact us.
Dubai Freezone Company Formation (FAQ's)
Why would you want to set up a business in a free zone?
One of the most appealing aspects of starting a business in one of the UAE’s free zones is that there are no limitations on foreign ownership, and exemption of taxes. The benefits of a free zone are numerous and advantageous to businesses.
Where can I establish a free zone in the UAE?
The majority of the free zones are located in Dubai, which is considered the UAE’s business hub, with particular created free zones covering a wide range of commercial sectors.
What kinds of businesses can I start in a free zone?
You can operate in the financial, educational, retail, hospitality, logistics, and media industries. Verify with the individual free zone authorities to see what kind of companies are allowed on their property.
Is it necessary to be a UAE resident in order to own a Free Zone Company?
No, you do not need to be a UAE resident or reside there, if you own a free zone company
Is it possible for my Free Zone Company to open a bank account in the UAE?
Yes, it is possible.
Is it feasible for the company to receive a Tax Residency Certificate?
If the intention is to use the UAE’s network of double tax treaties, it is possible and can be quite beneficial.
What types of businesses can you start in a free zone?
A Sole Establishment (FZE) with one shareholder and a Free Zone Limited Liability Company (FZLLC) with a maximum of five shareholders are the two types of businesses that can be established in the Free Zone.
What are the tax regulations in the free zone?
Companies based in the free zone are exempt from corporation and income taxes.
Is it possible to do business anywhere with a free zone company?
No, you can only do business worldwide (outside the UAE) or within the Free Zone.
Are there any limitations on business activities?
Yes, Due to the nature of business, different ministries or regulatory agencies may demand external approval for specific activities.