Business Setup in UAE Free Zones
By setting up a business in Dubai Free zone, an investor can enjoy a reduced tax rate and trade circumstances that allow any investment to manufacture. No custom fees are charged in the import and export products. Free zones in Dubai have been developed at transit points such as seaports and airports to assist investors in expanding their trading prospects. They have further been established in a variety of areas, with each free zone dedicated to a specific business activity.
It is no secret that Dubai is now one of the greatest marketplaces available, whether for new enterprises or existing ones. Dubai provides equal access to all investors and has enacted rules that make it easier for anybody to set up a business in the city.
Due to various regulations brought in by the government from time to time, the entire process of forming a business setup in UAE Free zone expense has been made quite straightforward and seamless.
An investor can launch a business in Dubai in a variety of areas, including the mainland and free zones. When it comes to opening a business on the mainland of Dubai, however, the investor must choose a local partner in order to start the business, which is a turnoff for many investors who are uncomfortable with the idea of having to choose a local partner who will allow them to start the business in a Dubai free zone according to the established laws.
Due to the requirement of having to choose a local partner with 51 percent ownership, free zone company registration in Dubai has become quite popular among investors. There are no rules that must be followed when launching a business in a Dubai free zone. As a result, 100 percent foreign ownership is permitted in Dubai’s free zones, making them a popular choice among investors.
Benefits Of Freezone Company Formation In The UAE
- There is no requirement for a local partner, therefore complete foreign ownership is possible.
- Profits can be repatriated in their entirety.
- An investor is not obligated to pay any taxes in the tax-free zones.
- There are no restrictions on foreign currency exchanges, and there are no limits on money transfers.
- No duties have been imposed on any items.
- Energy can be obtained at a low cost in all the free zones.
- Applying for a business license is a simple process.
- Both for sale and for rent, there are plenty of office spaces available.
- Visas for skilled employees are easy to obtain because they have been made very affordable.
- Because there are no time limits, the offices can be used 24 hours a day, seven days a week.
- The immigration process is efficient and fast.
- Office space is available for purchase or lease in a freehold building.
- Facilities of offices, factories, and warehouses are provided
- Simple licensing and startup processes
- Clustering of industries and infrastructure designed specifically for them
- 3-year residency permit in the United Arab Emirates
- There are no limits on recruiting expats.
- Low-cost labor and simple recruitment procedures
- Simple and efficient communication methods and administration that is done through a single window
- Government policies and the legal framework are liberal.
Procedure For Business Setup in UAE Free Zones
- Business type: When opting to set up a business in a Dubai free zone, one must first determine the type of business that will be formed, as well as the free zone in which the investor plans to start the business, as each free zone has its own set of standards that must be met.
- Trade name: Once the investors have decided on the type of business that will be formed in the Dubai free zone, it is time to choose a name for it. It is important to remember that while naming, one must adhere to the government’s naming regulations.
- Business license: After deciding on a name and registering it with the appropriate authority, the investor must apply for a business license. Different licenses are available for specific activities in different Free zones.
- Office space: Once the license for setting up a business in the Dubai Free Zone has been obtained, it is time to hunt for an office space. You have the option of purchasing the space or renting it.
Approvals and Licenses: Before a license can be awarded, the investors must obtain the necessary approvals from various agencies. Once all of the necessary approvals have been obtained, the investor can begin the business. The entire procedure is straightforward and can be completed within 2-4 weeks.
Types Of Licenses Available In Uae Freezones
The foundation of a firm in the UAE free zones is incomplete without the acquisition of a business license. Applicants in the UAE free zones can receive the following types of business licenses:
- Investors can trade in a variety of products with a General Trading License.
- A trading/commercial license authorizes you to engage in industrial, commercial, or consultancy activities for a set period of time.
- Law firms, accounting firms, and business consulting organizations can operate with a service license.
- Industrial licenses allow for the importation of raw materials, the manufacture of items, and the exportation of finished goods across international borders.
- Investors can obtain a warehousing license to rent warehousing facilities for distribution, packaging, and storage of commodities.
- Applicants that apply for a manufacturing license are given permission to manufacture products.
Documents Required For Setting Up A Company In Dubai Freezone
Certain documents that must be produced prior to the set up of a Dubai Free Zone company. The investor will need to present a variety of documents and have them approved by the Gulf Cooperation Council or the Arab embassy:
- Form for requesting a license
- A business card
- Outlay for a business plan
- Passport copies
- MOA (Memorandum of Association) and AOA (Articles of Association).
- If necessary, provide a banking reference and a license for the partners’ current business.
When setting up a business in the Dubai-free zone, an investor must follow the procedures outlined above. The outlaid process is straightforward and has been simplified by the government to make the process more appealing to investors.
The entire procedure has been laid out in simple terms and will take no more than four weeks to complete, allowing the investor to launch a free zone firm in Dubai.