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Establishing a company in the Free Zone – Dubai Free Zone

٠١ فبراير Establishing a company in the Free Zone – Dubai Free Zone

Establishing a company in the Free Zone – Dubai Free Zone is an attractive strategic step for anyone who desires a successful investment within the United Arab Emirates. Dubai’s free zones are considered an ideal investment environment that provides multiple advantages such as full foreign ownership, tax exemptions, and smooth and flexible procedures for establishing and operating companies. Dubai Free Zone is a global business hub that allows companies of all sizes and sectors to access new markets and achieve sustainable growth in a supportive and stimulating business environment. Establishing a company in the Free Zone is not only limited to facilitating business operations, but also opens wide doors for expansion and innovation in the business world.

Establishing a company in the Free Zone – Dubai Free Zone

Establishing a company in the Free Zone

Establishing a company in Dubai Free Zone requires taking into account some legal principles and points to which institutions are subject, which are as follows:

  1. Legal form of the company.
  2. Choose an appropriate name for the company.
  3. Choosing the company’s workplace, whether rent or purchase.
  4. Obtaining the license and initial approval to start work.

Steps to establish a company in the Free Zone

The first step in establishing a company in the Free Zone is to determine the type of activity to obtain a work license, where the parties associated with the work are identified, and the activities are divided into commercial, industrial, and professional activity, in addition to the following:

  1. Determine the legal form of the company: in terms of the legal form for establishing a company in the Free Zone
  2. Obtaining initial approval: Initial approval must be obtained to practice the activity through the competent authorities.
  3. Some activities must obtain approval from more competent authorities.
  4. Obtaining the license: After completing all procedures, the required documents can be attached to receive the license, register, and join the UAE Chamber of Commerce.

Choose a trade name

The company’s trade name must include a set of rules such as:

  • It does not contain inappropriate words.
  • It should not contravene public taste.
  • To reflect the nature of the company’s activity.

Advantages of establishing a company in the Free Zone

  1. Full tax exemption for companies and individuals.
  2. Giving investors and entrepreneurs the right to dispose of capital and profits.
  3. Full right to sole ownership of the company.
  4. Giving full right and no control over cash transactions.
  5. Complete exemption from import and export tax.
  6. Ease of establishment procedures while reducing costs.
  7. Providing solutions to all problems that may arise when establishing the activity.
  8. Do not hesitate and contact us, and our experts will take care of all the procedures you need to establish a company in the Free Zone.

Types of companies in the free zone

Here is a table showing the types of companies in the free zone in Dubai:

Typethe description
Limited Liability Company (LLC)An independent company can be established with two or more shareholders, with limited liability for shareholders based on their shares in the company.
CompanyA branch of an existing company that wants to expand its business within the Free Zone, relying on the same name and structure as the parent company.
Representative officeAn office that aims to promote the business of the parent company and communicate with customers, without engaging in direct commercial activities.
Branch of a foreign companyA branch of a foreign company that allows it to expand in the Free Zone with the same name and format as the parent company.

This table shows the main types of companies that can be established in the Free Zone in Dubai, as each type of these companies can suit the needs and goals of different investors.

Conditions for establishing a company in the free zone

Establishing a company in the Free Zone in Dubai requires following a set of conditions and procedures aimed at facilitating operations and ensuring compliance with local laws. Here are the most important conditions:

Legal form of the company

  • Limited Liability Company (LLC).
  • Company.
  • Representative office.
  • Branch of a foreign company.

Choosing a suitable name for the company:

  • The name must be unique and not previously used.
  • The name must be appropriate to the nature of the business.
  • You should avoid using names that are prohibited or that violate ethics or laws.

Choosing the company’s workplace

  • You can choose a workplace within the Free Zone, whether by rent or purchase.
  • The headquarters must be appropriate to the type and size of the business.
  • An application must be submitted to obtain the appropriate commercial license for the type of activity.
  • Initial approval must be obtained from the competent Free Zone authority.

Required documents must be submitted, which usually include:

  • A copy of the passport for shareholders and directors.
  • Detailed business plan.
  • Certified copies of business licenses if the company is a subsidiary or branch of a foreign company.
  • Signing the company’s incorporation agreement and articles of association.
  • Submit the directors’ signature form.
  • Submitting the Board of Directors’ decision to appoint directors (in the case of subsidiaries or branches).

 Payment of fees

  • Fees related to establishing the company and obtaining a trade license must be paid.
  • Fees can include rental costs, insurance, and registration fees.
  • After obtaining the license, a bank account can be opened for the company in a local bank.

Applying for work visas

  • Employees can apply for work visas after registering the company and obtaining the license.
  • Compliance with all laws and regulations related to business in the Free Zone.
  • Submit annual financial reports and taxes (if required).
  • The Free Zone in Dubai makes it easier for foreign investors to establish and operate their companies thanks to the encouraging and supportive business environment, and provides them with many advantages that make it an ideal destination for investment and commercial growth.

 

Types of companies in the free zone

Types of companies in the free zone

 

Free Zone Dubai

The Dubai Free Zone , also known as the Free Zone, is designated areas within the Emirate of Dubai that aim to encourage foreign investment and promote commercial activities. These areas offer numerous incentives and benefits to attract companies and investors from all over the world, and are characterized by a flexible and growth-friendly business environment.

The most important advantages of the free zone in Dubai

Full foreign ownership: Free Zone in Dubai allows foreign investors to own their companies 100%, without the need for a local partner. In addition to the following:

  1. Tax exemptions: These exemptions include not being taxed on income or profits for up to 50 years, with the possibility of renewal.
  2. Flexibility in transferring profits: It is allowed to transfer all profits and capital abroad without restrictions.
  3. Simplified procedures: The process of establishing companies in the Free Zone is characterized by speed and ease, while reducing bureaucracy and administrative routine.
  4. Advanced Infrastructure: Dubai’s free zones include modern and advanced facilities that include offices, warehouses, and logistics facilities, making them an ideal destination for companies from various sectors.
  5. Strategic presence: The Free Zone gives companies the opportunity to be present in a strategic location that connects global markets, which enhances their ability to expand and reach new customers.
    The Free Zone in Dubai is diversified to include different fields and sectors such as technology, media, logistics services, and manufacturing industries, allowing investors to choose the area that suits the nature of their business and investment goals.

 

Itqan Company services in Dubai Free Zone

Itqan Company provides a comprehensive range of services to investors wishing to establish their companies in the Dubai Free Zone. These services aim to facilitate the incorporation process and ensure compliance with local laws, and include:

Legal and administrative consulting:

  1. Providing legal advice on the best options for establishing a company.
  2. Assist in preparing and submitting required legal documents.
  3. Providing support in procedures for obtaining the necessary licenses and permits.

Incorporation procedures

  1. Register the company with the competent authorities in the free zone.
  2. Preparing and drafting contracts and founding agreements.
  3. Providing support in choosing the appropriate legal form for the company.

Choose a location

  1. Providing consultations on the best locations within the Free Zone.
  2. Assistance in leasing or purchasing procedures for offices or work spaces.
  3. Supporting clients in obtaining initial approvals and commercial licenses.
  4. Guide clients through the application process and ensure all requirements are met.

Financial and accounting services

  1. Providing accounting and account management services.
  2. Assistance in opening company bank accounts.
  3. Providing tax consultations and preparing financial reports.
  4. Providing support in obtaining work visas for employees.
  5. Facilitating residency procedures for investors and their families.

Logistics support services

  1. Providing integrated logistics solutions for companies.
  2. Assist with shipping and storage operations.
  3. Organizing training programs to develop employees’ skills.
  4. Providing consultations to develop performance and increase efficiency.

Business and marketing support

  1. Providing marketing and advertising services to enhance the company’s presence in the market.
  2. Supporting companies in building marketing strategies and expanding the customer base.
  3. Itqan Company helps investors establish and manage their companies in the Free Zone in Dubai efficiently and easily, which contributes to their success and business growth in an ideal investment environment.

 

Documents required to establish a company in the Free Zone Free Zone

To establish a company in the Free Zone in the UAE, the following documents are usually required:

  • Registration application form: contains information about the proposed company and business activity.
  • Copy of passport for shareholders and directors: This includes passports for individuals who will be part of the company.
  • Business plan: A breakdown of the company’s goals and how to achieve them.
  • Necessary contracts and agreements: such as a lease contract if the company will have an office in the Free Zone.
  • Certificates of necessary qualifications for managers and key employees: proving their necessary qualifications to manage the company.
  • A letter from the bank proving financial capacity: Some Free Zones need proof of the company’s financial capacity to ensure its continuity.
  • Power of attorney form (if necessary): It is used to designate a specific person to act on behalf of the company in legal transactions.
  • A recent photo of shareholders and directors: often requested along with other documents.

You must ensure that the documents are compatible with the requirements of the specific Free Zone in which you wish to establish the company, as the requirements differ slightly between different Free Zones.

In conclusion, setting up a company in the Dubai Free Zone can be an ideal option for many entrepreneurs and startups. Free zones offer significant tax advantages, quick and easy incorporation processes, as well as access to the regional and global market. In addition, Dubai has a central strategic location and developed infrastructure, making it an attractive destination for companies wishing to expand their business internationally. With the regulatory and financial incentives available, establishing a company in the Dubai Free Zone may be the next logical step for ambitious entrepreneurs seeking success in global markets.

 

Frequently asked questions about establishing a company in the Free Zone

What is the Free Zone in Dubai?

Free Zones are special areas in Dubai designed to attract foreign investors by providing benefits such as full foreign ownership, tax exemptions, and advanced infrastructure.

How long does it take to establish a company in the Free Zone in Dubai?

The duration of establishing a company varies depending on the type of activity and procedures required, but the process usually takes from 1 to 4 weeks.

Is it possible to obtain work visas for employees in the Free Zone?

Yes, work visas can be obtained for employees after registering the company and obtaining a commercial license.

Can profits and capital be transferred abroad?

Yes, all profits and capital can be transferred abroad without restrictions.

Is there a minimum capital to establish a company in the Free Zone?

Capital requirements vary depending on the free zone and the type of business activity, so it is recommended to check the specific requirements for each free zone.