Free zones in the UAE are strategic geographical areas facilitating specific business sectors or industries. Dubai has more than 40 free zones, which have gained enormous popularity among foreign entrepreneurs, for the abundant advantages these offer. The free zones have started playing a crucial role in the economic growth of the UAE, with the Jebel Ali Free Zone (JAFZA) itself boasting a 30% increase in customer registration during the last year.
The main reason for this success is the flexibility and advantages free zones have to offer. Entrepreneurs can enjoy 100% foreign ownership, zero taxes on income and profits, and total repatriation of earnings. So, in this blog, Step-by-Step Process to Obtain a Free Zone License in Dubai we will discuss why Getting a freezone license in Dubai is an incredible way to enjoy these benefits and run a successful business in one of the most portable global markets.
How to Get a FreeZone License in Dubai?
Let’s discuss the steps to get a free zone license in Dubai.
Step 1: Select a Free Zone.
The first step for a Freezone Company Setup In Dubai starts with selecting the zone. Choose the one that suits your objectives and company operations. Also choose factors such as each zone’s unique incentives, infrastructure, and location.
Step 2: Decide on a Business Structure
Choose the right legal form for your company
- Establishment of a Free Zone (FZE) for a single stakeholder.
- An FZC is a business with two or more shareholders.
- Branch Office: if you wish to open a branch of an already-existing business.
Step 3: Choose a Business Name
Provide a company name that adheres to UAE naming standards. Steer clear of insulting language or allusions to political, religious, or governmental organizations.
Step 4: The Paperwork
Arrange and complete the necessary paperwork/ leasing agreements/ business plans,/financial statements/ passports, and certificates of company registration.
Step 5: Submit the license request
Submit your application to the appropriate free zone authorities. As requested, submit all the necessary paperwork and data.
Step 6: Pay the license fees
Pay the required payments. The kind of license, office space, and services selected all affect the price.
Step 7: Obtain Your License for the Free Zone
Your business license will be issued by the free zone authorities once your paperwork and fees have been processed. You can lawfully run your company in the free zone with this license.
Step 8: Create a Business Bank Account
Create a corporate bank account in Dubai using your Free Zone company license.
Step 9: Submit the Application
You can apply for resident visas for your families, staff, and yourself when your license has been granted. The office space you lease determines how many visas you are eligible to apply for.
Popular Free Zones in Dubai
Here’s a list of popular free zones in Dubai :
- IFZA (International Free Zone Authority)
- JAFZA (Jebel Ali Free Zone)
- RAKEZ (Ras Al Khaimah Economic Zone)
- DMCC (Dubai Multi Commodities Centre)
- Dubai Silicon Oasis (DSO)
- Dubai Airport Free Zone (DAFZA)
- Dubai Media City (DMC)
- Dubai Internet City (DIC)
- Dubai Healthcare City (DHCC)
- Meydan Free Zone
Documents Required for Free Zone License Application
Following are the documents needed for the license application.
- Passport copies ( Company’s shareholders, directors, and general manager)
- Company registration certificate (if the company is already established)
- Business plan
- Memorandum of Association (MOA)
- Recent passport-sized photographs
- NOC (No Objection Certificate), if required
- Proof of funds to support the business operations
Types of Free Zone license in Dubai
Commercial License
The businesses engaged in trading activities either within the UAE or outside the country, shall necessarily seek a commercial license. One very favorable provision for acquiring a commercial license is to conduct up to 10 different activities under a single license. Some of the activities permitted under a commercial license in the Free Zone include:
- Computer Software Trading
- Plastic Bags & Containers Trading
- Medical Gas Trading
- Agricultural Pesticides Trading
- Chemicals Trading
- Wooden Products Trading
- Pipes & Fittings Trading
- Food & Beverages Trading
- Audio-Visual, Recording Equipment & Accessories Trading
- Perfumes & Cosmetics Trading
Industrial License
Industrial licenses are suitable for businesses engaged in manufacturing, production, and assembly. Those with this license are entitled to manufacture, package, and assemble products within the confines of the Free Zone. Some of the sectors benefiting from an industrial license are:
- Garments Manufacturing
- Pastry & Sweets Manufacturing
- Fabrics & Textiles Embroidery
- Carpets Manufacturing
- Mineral Water Bottling
- Fishing Net Production
- Uniforms Manufacturing
Service License
People providing intellectual expertise services in fields such as consultancy or engineering will need a service or professional license. This license is relevant for those who provide services based on intellectual skills. An expatriate having technical qualifications can own 100% of the business under a professional license. The following mentioned services are settled under this license:
- Electronic Engineering Consultancy
- Mechanical Engineering Consultancy
- Science & Technology Consultancy
- Immigration Consultancy
- Corporate Services Provider
- Educational Consultancy
- Health Awareness Consultancy
- Marketing Research & Consultancy
- Project Management Consultancy
- Media Consultancy
- Event Management Consultancy
- Travel and Tourism
- Freelance License
The freelance license is meant for individuals who seek to work independently in specific areas like media, technology, design, or consulting. This license allows individuals to operate as freelancers within the Free Zone.
Damaar Business Setup
One of the smart ways to take advantage of the entrepreneur-friendly environment is to set up a business in a Dubai-free zone. With excellent locations and tax incentives, Dubai has become a hotspot for entrepreneurs who are aiming to grow their businesses.
At Damaar Business Setup, we make it easy and stress-free for you to get your free zone license. After document preparation through licensing support, our experienced team can take care of everything from A to Z to suit your specific needs.
When you choose Damaar for your business setup in UAE Freezone you’ll have expert guidance on how to navigate local regulations and find the full potential of your business in Dubai. Let Damaar Business Setup be your trusted partner as you start your journey in this dynamic city.