Find out the cost of establishing a company in the Dubai Free Zone because in recent years, Dubai has witnessed remarkable growth in the business and investment sector, and has become an attractive destination for companies wishing to establish and expand their business in the Middle East and the entire world. Dubai Free Zone is one of the most important centers that offers an advanced investment environment and resources that facilitate the process of starting a business.
Establishing a company in a Dubai free zone provides investors and contractors with an unparalleled opportunity to benefit from modern infrastructure, flexible investment laws, and easy access to new markets. The free zone offers a variety of services and incentives that include tax exemptions, full ownership by foreigners, and easy bureaucratic procedures, making it an ideal choice for entrepreneurship.
This article aims to explore how to start a company in the Dubai Free Zone, from the basic procedures to the benefits a company can achieve in this advanced investment environment.
The cost of establishing a company in the Dubai Free Zone
The cost of establishing a company in the Dubai Free Zone
Establishing a company in the Dubai Free Zone involves several cost factors that an investor must be aware of before starting. Here are the most important cost factors to consider:
- Incorporation and license fees : Incorporation and license fees vary depending on the type and size of the company. For example, there may be fees for registering the company, and fees for obtaining the necessary licenses from local authorities and regulators.
- Rental fees and contracts : Companies are required to pay rental fees for their offices or work spaces in the Dubai Free Zone. This fee varies based on location, space size, and company type.
- Required Capital : Some types of companies in the Dubai Free Zone may require a specific capital as a basic condition for their establishment. This can vary based on the type of license and business activity.
- Additional services fees : Establishing a company in a Dubai Free Zone may include additional fees such as fees for logistics services, legal, accounting, consulting, insurance, and others.
- Labor and staffing costs : If a company uses local or international labor, it must be prepared for the costs of salaries, benefits, health insurance, social security, and more.
- Administrative services fees : Some companies may require the payment of annual or periodic fees for administrative services and company maintenance within the free zone.
- Taxes and additional fees : Although Dubai Free Zone offers significant tax exemptions, there are local fees and taxes that may apply to some commercial activities or services.
These are some of the key cost factors that you should take into consideration when setting up a company in Dubai Free Zone. It is important that you plan well and calculate the costs of each item to ensure the stability and success of your business in this dynamic investment environment.
Types of companies in the free zone
The types of companies in Dubai Free Zone can be classified into several main types based on the type of business activity and conditions of incorporation. Here is a table showing some of the common types of companies in Dubai Free Zone:
| Type of Company | the description |
|---|
| Limited Liability Company (LLC) | It is fully owned by foreigners and requires a local partner for establishment. Suitable for small and medium companies. |
| Public Joint Stock Company – PJSC | A company is listed on a stock exchange and can have a large number of shareholders. Enjoys the minimum capital and expansion into local and international markets. |
| Private Joint Stock Company | It has the same financial characteristics as a joint stock company but is not listed on the stock exchange. Requires a minimum number of shareholders and capital. |
| Sole Establishment | A company owned by one individual, who has sole responsibility for the business and debts. It has a simple organizational structure and speed of establishment. |
| Free Zone Company | It enjoys tax and customs exemptions and allows full ownership by foreigners. Subject to the laws and regulations of each Dubai Free Zone. |
| Branch of a Foreign Company | A branch of a foreign-owned company operating in the Dubai Free Zone. Subject to local laws, but the parent company must be registered in a country other than the United Arab Emirates. |
These common types reflect the wide variety of options that investors can choose to establish and operate their businesses in the Dubai Free Zone, allowing the needs of different companies and investors to be effectively met.
The importance of establishing a company in the Dubai Free Zone
Establishing a company in a Dubai Free Zone carries great importance and offers many benefits and advantages to investors. Among the importance of establishing a company in a Dubai Free Zone we find:
- Advanced investment environment : Dubai Free Zone is an attractive destination for companies thanks to its advanced infrastructure and flexible laws that facilitate the process of starting and operating businesses efficiently.
- Full ownership by foreigners : It allows foreign investors to fully own their businesses in the Dubai Free Zone, allowing them to control the management of their companies without the need for a local partner.
- Tax and customs exemptions : Dubai Free Zone provides tax and customs exemptions, which reduces operational costs and increases companies’ profitability.
- Easy access to the regional and global market : Thanks to its strategic location in the Middle East, investors in Dubai Free Zone enjoy easy access to the markets of the Middle East, North Africa, South Asia, and even Europe and Africa.
- Facilities for SMEs : Dubai Free Zone provides support programs and facilities specifically designed to support SMEs, helping them grow and expand quickly.
- Modern infrastructure and integrated services : Dubai Free Zone ensures the provision of advanced infrastructure and integrated services that include all the facilities and services investors need to facilitate their operations.
In short, establishing a company in a Dubai free zone represents a unique opportunity for investors to benefit from an advanced investment environment, access new markets, and enjoy tax and customs facilities, making it an ideal destination for entrepreneurship and expanding commercial activities.
The Dubai Free Zone is a special economic zone focused on encouraging local and international investments by providing an advanced and suitable investment environment for companies. These areas are considered groups of isolated lands or economic establishments within the emirate, characterized by their own legal sovereignty, different from the rest of the lands in the country in terms of commercial, tax and customs laws.
Dubai free zones provide several advantages to investors, such as:
- Full ownership by foreigners : Foreign investors are allowed to fully own their companies without the need for a local partner.
- Tax and customs exemptions : Provides exemptions from personal and corporate taxes, and customs on import and export, which reduces the operational costs of companies.
- Advanced legal and regulatory environment : Free zones in Dubai foster an advanced legal environment that facilitates procedures for establishing and managing companies, which increases business efficiency.
- Advanced infrastructure : Ensures the presence of a modern and integrated infrastructure that includes world-class facilities such as communications centers, ports, airports, and logistics services.
- Easy access to global markets : Thanks to its strategic location in the heart of the Middle East, Dubai’s free zones provide easy access to the markets of the Middle East, Africa and South Asia.
In addition, Dubai’s free zones feature a diversity of sectors in which companies can invest, making it an ideal destination for investments in a wide range of industries including trade, manufacturing, logistics, technology, financial services, tourism, and hospitality.
Legal procedures for establishing a company in the Dubai Free Zone
Establishing a company in the Dubai Free Zone requires following several legal and administrative procedures. Here are the basic steps to take to establish a company in Dubai Free Zone:
- Choosing the type of company : You must first determine the type of company you wish to establish, such as a limited liability company (LLC), a company in a free zone, or a branch of a foreign company, according to the planned business activity.
- Submitting an application for incorporation : An official application for incorporation must be submitted to the competent authorities in the Dubai Free Zone. The application includes information about the proposed company such as the company name, type of activity, shareholders and authorized directors.
- Preparing legal documents : Legal documents such as articles of incorporation, company articles of association, agreements between shareholders, and any additional documents required must be prepared and submitted based on the type of company.
- Determining the workplace : The procedures for leasing the office or commercial space required for the company within the free zone must be determined and completed.
- Payment of fees and costs : The required establishment fees and administrative fees are paid to the local authorities in the Dubai Free Zone.
- Obtaining the necessary licenses and permits : Once the company is established, the necessary licenses and permits must be obtained from the relevant government agencies, such as commercial licenses, work licenses, and any activity-specific permits.
- Tax Registration : In some cases, a company may require registration with the tax registry and compliance with local tax regulations.
- Registration in the Commercial Registry : After completing all procedures, the company is registered in the Dubai Free Zone Commercial Registry, which confirms its legality and readiness to start work.
It should be noted that specific procedures may vary slightly from one free zone to another in Dubai, and investors should familiarize themselves with the regulations of the free zone in which they intend to invest to ensure full and proper compliance with all legal and administrative procedures.
Dubai Free Zone
Itqan Company services in establishing companies in the free zone
Itqan Company offers a wide range of services for establishing companies in the Dubai Free Zone , facilitating the process of starting a business and ensuring full compliance with legal and regulatory requirements. Here are some of the services provided by Itqan Company:
- Business Consulting and Strategic Planning : Itqan Company provides comprehensive business consulting that helps clients understand the requirements for establishing companies in the Dubai Free Zone, and provides strategic plans to achieve financial and operational goals.
- Establishing companies and preparing legal documents : The company provides company establishment services, including preparing and submitting all legal documents required for registration and licenses in the free zone.
- Project Management : Itqan provides project management services to ensure the process runs effectively, including coordination with relevant government agencies and legal review of documents.
- Corporate secretarial services : The company provides corporate secretarial services such as records management and general and administrative meetings for shareholders and managers.
- Post-incorporation services : Itqan provides integrated services including office leasing, accounting and financial services, human resources management, and marketing, to support the growth and sustainability of new companies.
- Mediating with local authorities : Itqan Company mediates with local authorities and regulatory authorities to speed up the regulatory process and ensure legal compliance.
In short, Itqan offers a comprehensive solution for establishing companies in Dubai Free Zone, from strategic advice to implementation services, helping clients achieve their business goals efficiently and successfully.
In short, establishing a company in a Dubai Free Zone represents an important strategic step for investors seeking to benefit from an advanced and suitable investment environment. These free zones offer diverse opportunities and attractive legal and tax benefits that contribute to business growth and business expansion, both locally and internationally.
By enjoying full foreign ownership, tax and customs exemptions, and advanced infrastructure, companies in the Dubai Free Zone can benefit from a business environment that is stimulating and supportive of innovation and economic growth. Adherence to strict legal procedures and cooperation with local authorities ensures the success and stability of the company in this dynamic environment.
Therefore, establishing a company in a Dubai Free Zone represents a thoughtful strategic investment that opens the doors of great opportunities and possibilities for investors to achieve success and sustainable growth in a competitive global market.
Frequently asked questions about establishing a company in the free zone
What are the main advantages of establishing a company in Dubai Free Zone?
Establishing the company in the Dubai Free Zone allows full ownership by foreigners without the need for a local partner.
Can I establish a sole proprietorship company in Dubai Free Zone?
Yes, it is possible to establish a sole establishment company in the Dubai Free Zone, where the individual is solely responsible for the business and debts.
What are the expected fees and costs for establishing a company in the Dubai Free Zone?
Fees vary depending on the type of company and the chosen free zone, and include establishment fees, management fees, licensing fees, and leasing fees.
What laws and regulations must companies adhere to in the Dubai Free Zone?
Companies must comply with local laws and regulations of the free zone, including annual financial reporting and tax and regulatory compliance.
