Selecting a suitable free zone as your business location is the first step to set up a company. However, it is important to take into consideration the licenses that are available in that location. For instance, if you want to open your company in Dubai, make sure to check on the free zone business license in Dubai UAE.
In this article, you will learn everything you should know about the most popular business licenses in Dubai free zones. Besides, you will be able to find a detailed comparison between these free zone business licenses. After analyzing each option, you can select the license you need to cover your activities. Let’s observe:
- What is a free zone business license in the UAE?
- Which business licenses are available in Dubai free zones?
- A brief comparison between the available free zone business licenses in Dubai.
- How can investors apply for any of these business licenses in Dubai?
- What documents will you need to complete the license application process?
- Tips to select the free zone and the business license that you need.
- How can Connectfz help you to obtain a free zone business license in this emirate?
1. What is a free zone business license in the UAE?
If you desire to start a business in this country, and specifically in a free zone, you’ll need this element. A free zone business license in Dubai UAE is a required legal document that allows investors to operate a company. Therefore, it is a key element you should obtain before opening your business.
Besides, you may have to face certain difficulties and legal issues if you don’t obtain it before running a business. Also, you will have many restrictions and additional fees to pay as penalties for not having a proper business license. On the other hand, you can get many benefits by having a business license for your company.
Nonetheless, it will be always important to take a look at all options before making a decision. The main reason for this is that there are many available licenses, but you must know what each license offers. Therefore, keep reading this article to find more information about the available licenses in Dubai free zones.
1.1. What benefits can you obtain from having a business license in Dubai?
If you are interested in the advantages of business licenses, you should know about them. Here’s a list of some benefits of a free zone business license in Dubai UAE:
- Business licenses allow you to trade within the country and, in some cases, internationally.
- Depending on the business license you choose, you’ll be able to trade a larger number of goods (general trading license).
- The application process is for obtaining these licenses, and it’s a simple and fast process.
- Each license can cover a wide range of business activities related to the chosen sector or type of business.
1.2. What benefits do free zones in Dubai offer to investors like you?
Besides getting advantages with a license, you can also get some others just by setting up in a free zone. For example, if you decide to set up your company in Dubai, you’ll be able to enjoy these benefits:
- You can have 100 percent of ownership of your company.
- There is a full exemption from corporate and personal tax.
- Similarly, there is a total exemption from import and export customs duty.
- Investors can also enjoy 100 percent of repatriation of profits and capital.
- Also, they can have access to world-class infrastructure and advanced facilities (which include warehousing services, office space, and more).
- There is access to a large pool of talent in all locations. In other words, investors can easily find and hire high-qualified professionals as employees.
- Building a company and doing business in Dubai is easy due to the business-friendly rules and regulations.
Here you can learn about the new resolution that the UAE government issued to reduce tax penalties in the country.
2. Which business licenses are available in Dubai free zones?
Depending on the location you choose, you’ll find several types of free zone business license in Dubai UAE. Each of these business licenses is available in most free zones in this emirate. But you may also find other types of licenses in certain business locations. For now, let’s see the most common licenses available in Dubai free zones:
2.1. Commercial or trading license.
This license allows investors to carry out commercial, industrial, and consulting activities within the free zone. Besides, it’s also an authorization to carry out other business activities, including exporting, importing, selling products, and many more. In addition, you can obtain other licenses under a commercial license, like a general trading license.
2.2. General trading license.
As we mentioned before, you can obtain this type of license under a commercial license. The main difference between these licenses is that a general trading license allows you to trade more products. Besides, it also provides the advantage of trading different kinds of products at the same time.
2.3. Industrial license.
In this case, an industrial license will allow you to carry out industrial-related business activities. For example, if you want to set up a factory, you’ll need this free zone business license in Dubai UAE. Among the activities that this license covers, you can find importing raw materials to manufacture goods.
2.4. Professional license.
As for this type of license, you can apply for it if you want to offer individual services. For instance, it allows you to carry out consultancy services as an individual service provider. Besides, many other professionals can apply for it, including artists, lawyers, educators, doctors, and many more.
2.5. Service license.
On the other hand, this one is for those companies that provide different kinds of services within the free zone. For instance, this type of business license is for business consultancy agencies, shipping companies, freight forwarding businesses, and many others. However, keep in mind that your license will specify your activities.
2.6. Other business licenses available in Dubai free zones.
Under one of these licenses, it is possible to apply for another free zone business license in Dubai UAE. For example, you can apply for a restaurant license, a software development business license, a freelancer license, etc. Make sure to find the right information before applying for a license.
Here you can learn about everything you must know about the commercial license in Dubai and how to get it.
3. A brief comparison between the available free zone business licenses in Dubai.
A free zone license UAE can have different features according to the location, and here we’ll see some of them. A vital element you should compare is the cost of each free zone business license in Dubai UAE. In some free zones located in Dubai, the costs of a business license can start from:
- Dubai Airport Free Zone Authority (DAFZA): AED 50,000.
- Dubai Internet City: AED 7,500 (it applies for freelancer licenses).
- DMCC (Dubai Multi Commodities Centre): AED 50,000.
- Dubai Media City Free Zone (DMCFZ): AED 7,250.
- Dubai Silicon Oasis Authority (DSOA): AED 70,000.
- Jebel Ali Free Zone Authority (JAFZA): AED 50,000.
If you desire to obtain more information, you can contact your partner or the free zone authorities. Take into consideration that these prices will vary depending on other details, such as facilities, visas, etc.
4. How can investors apply for any of these business licenses in Dubai?
Before getting started, you should know how to apply for a free zone business license in Dubai UAE. Let’s take a look at the steps that you must follow to complete the process:
- Firstly, you must make sure to select the business activities you want to perform. After doing this, you’ll be able to choose the right license for your business.
- Secondly, it is mandatory to submit all required documents when applying for a license. You’ll see some of them below.
- And lastly, you must make the required payment and wait for the authorities to issue your license. After that, you’ll receive your desired license.
Here you can learn about the main reasons why you should become an entrepreneur in a country like the UAE.
5. What documents will you need to complete the license application process?
Firstly, these are the documents that you’ll need:
- A duly filled application form that includes the company’s name.
- A passport copy of the owner(s).
- Colored passport-size photographs.
- Original lease contract for the company’s registered address.
- A permit that mentions the use of the office space.
- And lastly, proof of paying the necessary fee for the license’s issuance.
However, remember that you might need additional documents according to your type of license and business location.
Here you can learn about the professional license available in Dubai and how to apply for this license.
6. Tips to select the free zone and the business license that you need.
Before you start operating your business, make sure to choose the options that will make your business thrive. For example, you must find a location in which you can find potential customers or the necessary conditions for it.
On the other hand, you must also select a business license that covers all activities you want to carry out. In order to do this, you will need to examine all available options first. Nonetheless, remember that you can always consult with your partner.
Here you can learn about all different types of business licenses that are available in the emirate of Abu Dhabi.
6.1. How many free zones are available in Dubai?
You will be able to find more than 20 free zones available in this popular emirate. However, you must select the one that fits your kind of business better and allows you to develop it. Let’s take a look at some of the most successful free zones that you can find in Dubai:
- Dubai Airport Free Zone Authority (DAFZA).
- Jebel Ali Free Zone Authority (JAFZA).
- Dubai Multi Commodities Centre (DMCC).
- Dubai Internet City.
- DSOA (Dubai Silicon Oasis Authority).
- Dubai South Free Zone (DWC).
- Dubai International Financial Centre (DIFC).
- International Free Zone Authority (IFZA).
Remember that each of these locations may have different additional benefits and available licenses. Besides, the cost of setting up a company can also vary according to the free zone you choose. If you find a location that fulfills your requirements, it could be the best free zone in UAE for you.
Here you can learn how to apply for a trading license and a general trading license in the UAE.
7. How can Connectfz help you to obtain a free zone business license in this emirate?
Making the right choice is the key to reaching success in the short or long term. And as you can see, you will have a wide range of options to choose from when opening your business. In case you cannot make a decision easily, you can count on us to guide you during the process.
With Connectfz by your side, you can obtain the information and tips you need to make the right decisions. After selecting a free zone, you can choose between the several packages we offer, which contain licenses, visas, etc. Moreover, you’ll be able to save time and money with our services during the setup process.
After building your company, you can operate it easily with more of our support services. For example, you can develop and make improvements in your HR department with our HR consultancy services. Among other services, you can request recruitment, payroll, banking, and many other services to help your company be more efficient.
Would you like to contact Connectfz to obtain more information and tips regarding the available free zone business license in Dubai? If you have any questions, call us on +97143316688. You can email us at firstname.lastname@example.org, and you will talk to one of our representatives who will answer your questions.