All investors who have set up their companies in a Dubai free zone have accomplished their goals successfully. You can also be one of them and establish your business in favorable locations such as these free zones. But first, you need to learn about these places in Dubai and what they offer to you.
In this article, you will learn everything you need to know about the free zones located in Dubai. For example, here you will find information about some of the available free zones and their benefits. Besides, you can also discover how to complete the company setup process and what you need to do so. Let’s observe:
- What do you need to know about the emirate of Dubai?
- How many free zones can you find available in Dubai?
- What benefits do these free zones offer to investors and entrepreneurs?
- How many types of licenses are available in the Dubai free zones?
- Types of entities that investors can establish in a Dubai free zone.
- Steps to complete the company setup process in a Dubai free zone.
- The required documents to establish a business in a free zone in Dubai.
- Disadvantages of setting up a free zone company in a Dubai free zone.
- How can Connectfz help you set up your company in a free zone in Dubai?
1. What do you need to know about the emirate of Dubai?
Dubai is the most famous city in the UAE and one of the most popular globally. It is popular among two main kinds of people; tourists and business people. For many investors and entrepreneurs, Dubai is the perfect place to start building companies. However, you must know that here you have three main options; mainland, offshore, and free zone company.
Here we will take a look at the free zone option and its basic information. Keep reading this article to find the information you need regarding starting a free zone company in this emirate.
Here you can learn about some excellent small business ideas to set up a company in Dubai.
2. How many free zones can you find available in Dubai?
Currently, you can find 45 free zones all across the UAE, and approximately 28 of them are located in Dubai. However, not all of them are popular among foreign investors. Therefore, we will only mention some of the most outstanding locations in Dubai. Among these free zones, you can find the following ones:
2.1. Dubai Airport Free Zone (DAFZA).
This popular location is home to more than 1600 companies from all around the world. Since 1996, it has served as a beneficial area in which different types of industries develop their activities. For example, engineering, aviation, telecommunications, logistics, food, beverage, and many other business sectors are operating in DAFZA.
2.2. Dubai Multi Commodities Centre (DMCC).
Since its foundation in 2002, DMCC provides the necessary physical and financial infrastructure to run a commodities market. Nowadays, you can find more than 12000 companies operating in the free zone successfully. This location is also known for winning the title of Global Free Zone of the Year for 3 years.
2.3. Jebel Ali Free Zone (JAFZA).
It was established in 1985, and since then, it’s served as a favorable place in which all kinds of companies can succeed. In this location, investors can have access to a consumer market of over 2 billion. Besides, there are land, warehousing, and office spaces available. You can obtain many benefits and facilities here.
2.4. Dubai Silicone Oasis Authority (DSOA).
Due to many factors and advantages, this free zone has an excellent reputation across the country. This free zone is a global initiative that promotes modern-based industries in the Middle East. It provides world-class innovation, design, and development in many fields related to technology. Here you can access different facilities and use their advantages too.
2.5. Dubai International Financial Centre (DIFC).
Since 2004, DIFC has been serving as one of the most important financial centers between Western Europe and East Asia. With financial sustainability and a unique legal framework, investors can develop their companies with guaranteed success. Besides, you can obtain many other useful benefits and services. However, this place is only recommendable for finance-related businesses.
2.6. Other popular free zones in Dubai.
If you’re interested in knowing about other free zones, here are the names of some other outstanding locations:
- Dubai Healthcare City (DHCC).
- Dubai South Free Zone.
- DMC (Dubai Media City).
- Dubai Multi Commodities Centre (DMCC).
- DWTC (Dubai World Trade Center).
- Dubai Internet City (DIC).
- Dubai International Academic City.
- International Free Zone Authority (IFZA).
Here you can learn about the cost of setting up a business in a Dubai free zone.
3. What benefits do these free zones offer to investors and entrepreneurs?
If you decide to establish your company in a Dubai free zone, you will obtain certain benefits. You can use these benefits as advantages to boost your business effectively and make it more profitable. All free zones in Dubai will offer you the following benefits for your business development:
- 100 percent of ownership for all investors. It is the same rule for all investors, including foreign investors.
- 100 percent of repatriation of profits and capital.
- Full exemption on personal and corporate income tax. Besides, the exemption on corporate tax is for 15 years. And it is renewable for another 15 years.
- Full exemption from all import and export duties.
- Free zones in Dubai provide flexibility to engage in international business.
- All investors can hold properties, participate in multiple activities, and open a bank account in any local bank.
- As an investor, you can get easy access to handy offices, warehouse facilities, and many other similar services. Also, you can receive assistance in housing facilities, staff visas, among other support services.
Here you can learn about the export and import procedures in Dubai free zones.
4. How many types of licenses are available in the Dubai free zones?
Before you set up a company in a Dubai free zone, you must choose your business activities. After that, you can apply for any of these business licenses:
- Trading license: it is also known as a commercial license. With this license, investors can obtain the required authorization to perform certain business activities. For instance, they can perform commercial, industrial, or consulting activities. Moreover, other activities can be carried out with this license. For example, importing, exporting, and selling goods. You can also use this license to obtain the general trading license.
- General trading license: it allows you to trade any kind of goods and products. These goods do not need to be related to each other. Besides, this license makes easier the process to get employee visas. Therefore, it could count as one of the Dubai free zone visa benefits for employee.
- Industrial license: on the other hand, this license permits all investors to perform industrial activities. For instance, if you obtain this document, you can import raw material to manufacture goods. Exporting finished products is also an activity that you can perform with an industrial license.
- Service license: companies that carry out certain business activities need this license. For example, accounting, business consultancy, and law firms, among other similar companies, can operate legally under this license.
- Other available licenses: you can also find the professional license in Dubai. Other ones could be the warehousing license, the manufacturing license, the food license, and many others.
5. Types of entities that investors can establish in a Dubai free zone.
In any Dubai free zone, investors like you have the opportunity of setting up any of these types of entities:
- Free Zone Establishment: in this case, an FZE is a business that an individual or corporate shareholder can register.
- Free Zone Company: on the other hand, two or more shareholders can register an FZC. Also, a shareholder can be whether an individual or a company.
- A branch office of a foreign or local company: if you already possess a company, you can establish a branch in a Dubai free zone.
6. Steps to complete the company setup process in a Dubai free zone.
If you have decided to establish your business in a Dubai free zone, here’s what you need to do:
- Firstly, you must select the business activities that you want to carry out. Choosing the nature of your business will allow you to continue with the next step.
- Secondly, you will have to choose one of the available free zones. It is recommendable to select a free zone that fits your business.
- Thirdly, formulate a proper name for your company. Remember to follow certain rules when choosing the name. It must not contain sensitive content.
- Gather all the required documentation and submit it to the pertinent authorities. During this process, you will apply for your business license and visa.
- And finally, you must open a corporate bank account. After these steps are done, you will be able to start operating your company.
Here you can learn how to register a new company in a Dubai location successfully.
7. The required documents to establish a business in a free zone in Dubai.
In order to establish your company in a Dubai free zone, you will need to submit certain documents. Some of them are necessary to obtain your business license, and some others are for opening a bank account. Let’s take a lot at these requirements for both cases:
7.1. Documents to obtain a business license.
- A color copy of the shareholders’ passports and visas, if it is applicable.
- A business plan.
- The application form.
- Board resolution.
- The Memorandum and Articles of Association (MAA).
7.2. Documents to open a bank account.
- A corporate account opening form.
- A copy of the investor’s share certificate.
- A copy of the company’s MAA.
- Copies of the company’s partners’ passports.
- A copy of the company’s certificate of incorporation.
- A board of directors’ resolution sanctioning the opening of the account. Also, the signatories to the account.
Here you can learn about the DED initiative and how it allows Dubai free zone companies to do business in Dubai mainland.
8. Disadvantages of setting up a free zone company in a Dubai free zone.
You can find many benefits to boost your company, but also some disadvantages are present. However, if you compare the number of advantages and disadvantages of free zone companies in Dubai, you’ll find more advantages. But in this case, we’ll see some disadvantages of establishing a free zone company in Dubai:
- The main disadvantage that you’ll find is restrictions. For instance, expanding your company into other UAE markets is restricted. You can only perform your business activity in a particular free zone.
- Free zone companies in Dubai also have limitations on business activities. Since companies must be set up within the free zone jurisdiction, their activities are limited.
9. How can Connectfz help you set up your company in a free zone in Dubai?
Requesting the services of a business setup partner can make the setup process easier. With the Connectfz team’s support services, you’ll be able to save both time and money during the process. Besides, you’ll receive the professional guidance you need to enter the UAE market after setting up your business.
Most importantly, you can make necessary improvements in your company with our other services. For example, you can hire the staff you need by requesting our recruitment or staff outsourcing services. On the other hand, you can also request our visa and government services, among many others you might need.
Would you like to contact Connectfz to know more about the business setup process in free zones located 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.