01 Jan Establishing a company in the Dubai Free Zone
Establishing a company in the Dubai Free Zone is an important strategic step that opens wide horizons of opportunities and facilities to entrepreneurs and investors. Dubai, with its distinguished geographical location and advanced infrastructure, is considered one of the most prominent global destinations for business and trade. Dubai’s free zones provide an ideal environment for business growth thanks to numerous incentives that include full foreign ownership, tax exemption, and excellent logistical facilities. Choosing to establish a company in the Dubai Free Zone reflects a long-term vision towards success and innovation in a growing and evolving global market. In this article, we will review the main steps and advantages associated with establishing a company in these regions, as well as some practical tips for making the most of this strategic investment.
Establishing a company in the Dubai Free Zone
Establishing a company in the Dubai Free Zone with the help of Itqan Company is a successful investment option for those wishing to benefit from the comprehensive experience and advanced advisory support provided by the company. Itqan Company has a deep understanding of the legal and procedural systems in Dubai, which facilitates the procedures for establishing companies efficiently and with minimal complexity for entrepreneurs. In addition, Itqan provides comprehensive services that include obtaining commercial licenses, company registration, and legal support, which contributes to providing the necessary support during every stage of establishing a company, ensuring a strong and stable start for any project in Dubai.
What are the free zones in Dubai?
Here is a table showing the main free zones in Dubai:
the free zone | Main specialty |
---|---|
Jebel Ali Free Zone | Industry, logistics, international trade |
Jebel Ali Economic Zone | Manufacturing, international trade, logistics services |
Dubai Technology Park | Information and communications technology |
Dubai Media District | Media and media production |
Dubai Medical Services District | Medical and health services |
Dubai Aviation Zone | Aircraft maintenance and aviation logistics |
Dubai Free Zone | General trade and various services |
Dubai International Business District | Commercial services and management consulting |
Dubai Financial District | Financial and banking services |
These free zones provide a distinguished investment environment thanks to tax incentives, full foreign ownership, and advanced infrastructure, making them a magnet for national and international companies.
Conditions for establishing a company in the Dubai Free Zone
Establishing a company in the Dubai Free Zone requires compliance with some basic conditions that vary slightly depending on the type of company and the free zone chosen, but in general, the basic conditions include:
- Company type: You must determine the type of company to be established, such as a limited liability company (LLC), individual, or partnership, and ensure that it is compatible with the local laws and regulations of the free zone.
- Minimum capital: Some free zones may require specifying the minimum capital required to establish the company, and appropriate financial evidence must be provided accordingly.
- Trade name: You must choose a unique name for the company and ensure that it does not conflict with the names of companies already registered in the free zone, and that it complies with the requirements of the Ministry of Economy in the UAE.
- Company activity: The company’s activity must be precisely defined and ensured that it is permitted in the chosen free zone. More information on this subject can be obtained from the local authorities.
- Shareholders and Directors: The identities of shareholders and directors must be determined and copies of passports and other required personal documents must be submitted.
- Basic Agreement: The basic company agreement (Memorandum of Association) must be prepared and submitted, which is the document that defines the basic purpose of establishing the company and the terms of its operation.
- Licenses and permits: The necessary licenses and permits must be obtained from the competent authorities in the free zone, such as the establishment permit and activity license.
- Bank account: A bank account must be opened in the company’s name to manage financial transactions and financial flows.
Dubai’s free zones are committed to providing an encouraging and flexible environment for business, making them a preferred destination for new companies and investors. It also recommends collaborating with local legal advisors such as Itqan to ensure full compliance with local laws and regulations and simplify the incorporation process.
Procedures for establishing a company in the Dubai Free Zone
Establishing a company in the Dubai Free Zone requires following a series of legal and administrative procedures. Here are key steps to follow:
- Choosing a company type: You must determine the type of company that suits your business, such as a limited liability company (LLC), sole proprietorship, or partnership, according to local laws.
- Choosing a company name: You must choose a unique and appropriate name and ensure that it complies with the conditions of the Ministry of Economy in the Emirates.
- Determine the commercial activity: You must specify the type of commercial activity that the company will undertake, and confirm that it is permitted in the chosen free zone.
- Identify shareholders and directors: The identities of shareholders and directors must be determined and their roles within the company defined.
- Submitting the required documents: This includes submitting copies of the passports of shareholders and directors, a business plan, the Memorandum of Association, and any additional documents upon request.
- Obtaining a commercial license: After submitting the documents, you must wait to obtain the commercial license from the competent authorities in the free zone.
- Opening a bank account: This requires opening a bank account in the company’s name to manage financial transactions.
- Registration in governmental bodies: The company must be registered with the relevant governmental bodies, such as the Tax Authority and other administrative bodies as needed.
- Obtaining residence visas: If the company needs foreign employees, applications for residence visas must be submitted for them.
- Compliance with local laws: The company must comply with all local regulations and laws, and renew licenses regularly.
These steps represent essential starting points for establishing a successful company in the Dubai Free Zone, and it is always preferable to seek help from local legal advisors to facilitate the establishment process and ensure full compliance with laws and regulations.
Fees for establishing a company in the Dubai Free Zone
The costs of establishing a company in the Dubai Free Zone vary based on several factors such as the type of company, the free zone chosen, and the services required from ancillary services companies such as Itqan. These costs typically include registration fees, legal consultation costs, administrative services fees, and additional costs if services such as issuing licenses and permits for the business are needed.
To know the exact costs, it is preferable to contact specialized companies such as Itqan, which provides detailed and transparent consultations on the costs and procedures for establishing companies in the Dubai Free Zone. Because our company includes a number of legal consulting experts and investment experts in the Emirates.
Opening a bank account to establish companies in the free zone
To open a bank account to establish a company in the Dubai Free Zone , you must follow some basic steps. Here are the general procedures to follow:
- Choose a bank: Choose the bank you want to open an account with. It is preferable to choose a bank that deals directly with companies in the free zone in which you want to establish your company.
- Application processing: Based on the documents submitted, it will be reviewed by the bank, and then the bank account will be opened if the application is approved.
- Additional Details: Some banks may require additional details or additional documents depending on their internal policies and the requirements of the chosen free zone.
- Bank Deposits: Some banks may require an initial deposit as a condition for opening a bank account.
- Submitting the required documents: A set of basic documents must be submitted, such as:
- A copy of the passports of shareholders and directors.
- A copy of the Certificate of Incorporation (Memorandum of Association) or the basic agreement of the company.
- Proof of personal address of shareholders.
- Recent financial statements proving the source of invested funds.
- To ensure a smooth bank account opening process, it is preferable to work with local financial or legal advisors who specialize in this field, as they can guide you on the bank best suited to your company’s needs and ensure full compliance with local and international requirements.
Advantages of establishing a company in the free zone
Establishing a company in the free zone provides investors with many advantages and opportunities that make it a preferred destination for business worldwide. Among the main features:
- Full foreign ownership: Dubai’s corporate system allows foreign investors to own 100% of their company’s share in free zones and in some special economic systems, ensuring complete freedom to control the company and make decisions.
- Advanced Infrastructure: Dubai has a modern and advanced infrastructure that supports all types of businesses and services, including transportation, communications, financial, and logistical facilities, which effectively facilitates shipping and distribution operations.
- Tax exemption: Companies in free zones enjoy full tax exemption on income and profits for up to 50 years, with agreed exceptions.
- Easy establishment procedures: Dubai is characterized by fast and easy company establishment procedures, which allows investors to start businesses quickly and efficiently, in addition to the presence of specialized services provided by consulting companies to facilitate these processes.
- Access to regional and global markets: Thanks to its strategic location, Dubai is a gateway to accessing regional and global markets, making it easier for companies to expand their business and achieve growth and profitability.
- Economic Diversity: Dubai includes a variety of economic sectors such as technology, trade, finance, tourism, and entertainment, providing multiple opportunities for investment in various industries.
- Government Facilities: The Dubai Government provides the necessary facilities and support to companies, including incentive programs, financial support, and training programs to develop skills, which helps in the growth and sustainability of businesses.
These features make Dubai one of the best destinations for establishing companies in the world, which attracts investors and companies from various sectors to benefit from the favorable investment environment provided by the city.
Establishing a company in the Dubai Free Zone represents an important strategic step for investors seeking to benefit from an advanced and effectively regulated business environment. Dubai’s free zones offer many investment benefits such as full foreign ownership, full tax exemption, and advanced infrastructure, making it an ideal destination for national and international companies alike.
Embarking on your company formation journey requires careful planning and collaboration with local experts to ensure compliance with legal and administrative requirements. From preparing the necessary documents to opening a bank account and obtaining licenses, the services provided by consulting companies such as Itqan are essential to facilitating these processes.
Frequently asked questions about establishing a company in the free zone
What services do corporate consultants provide in the free zone?
Corporate consultants in free zones provide multiple services, from providing legal and tax advice to assisting in preparing the necessary documents and submitting them to the concerned authorities.
Can I have full foreign ownership of my company in the free zone?
Yes, Dubai’s corporate system allows foreign investors to own 100% of their company’s share in free zones.
What are the approximate costs of setting up a company in the Dubai Free Zone?
Costs vary depending on the type of company and the free zone chosen, and include registration fees, consulting fees, and costs for issuing licenses and permits.
What are the tax benefits for companies in free zones?
Companies in free zones enjoy complete exemption from taxes on income and profits for a period of up to 50 years, with the exception of some specific services and sectors.
What are the differences between the types of companies that can be established in free zones?
Types vary from limited liability companies (LLC) to sole proprietorships and partnerships, each type coming with different capital and liability requirements.