Business Setup In Free zone
A free zone company or a business setup is established and operates in the special economic areas in Dubai called free zones. Establishing a business setup in a Dubai free zone is popular amongst investors globally as Dubai has gained the reputation of being the land of vibrant business opportunities and exceptional economic growth. The Dubai government has implemented business-friendly laws and taxation policies to help entrepreneurs flourish in the various free zones of Dubai. Setting up a free zone company in Dubai has lots of perks and opportunities for businesses, the strategic location of Dubai enables a business setup in a Dubai free zone easy access to regional and international markets thus helping businesses in global expansion and sustainable growth. Additionally, the diverse business community within the free zones of Dubai (UAE) help investors and businesses in networking and business collaborations. An investor of a business setup in a free zone gets complete ownership and control of the business as no local partnership or sponsorship is required to open a freezone company. Businesses in a free zone have the advantage unlike other companies in Dubai to repatriate their capital and profits to their home countries without any restrictions. Dubai free zone companies don’t have to pay any corporate or income tax and enjoy a tax free environment and this tax benefit increases their profitability, helping them to stay ahead of their competition. Additionally Dubai free zone companies don’t have to pay any custom duties on imports and exports, making international trade cheaper compared to their competition. Free zones of Dubai have policies where they offer comprehensive business support services such as legal, administrative and consultancy aid to all the businesses established there, this helps businesses complete their regulatory requirements smoothly. Dubai free zones offer top-notch infrastructure like advanced logistics, fast internet and well-equipped offices to a business setup in free zone thus making business operations seamless for them.
It is recommended for an investor to do a thorough research on the free zone regulations before starting a business setup in a free zone of Dubai so as to ensure compliance with all the legal requirements. This research may include understanding licensing procedures, activities permitted in a particular free zone and ownership regulations. Additionally steps like financial planning, transparent communication with the free zone authorities, adherence to timelines and engaging a reputed consultant company which is familiar with Dubai free zone business set up like ‘GrowBiz’, will help an investor immensely in setting up a free zone business.
It is important for investors to select the free zone best suited to their needs such as location, business activities, community/leisure and cost. The free zones in Dubai offer various legal structures for a business setup in a free zone such as Free Zone Company (FZC), Free Zone Establishment (FZE) etc. Therefore it is important to choose the one that suits the business model of the investor.
The promoter needs to submit a list of names for the business setup in the free zone to the concerned free zone authority, the authorities then check the availability of the appropriate trade name of the business and upon its approval, reserve it for the investor. After the trade name is reserved, the investor must apply for the license and the type of license depends on the type of business activity chosen. The documentation for license may vary between different free zones, but the common documentation includes:
- Passport copies of shareholders and managers.
- Passport-sized photos of shareholders.
- The Business plan.
- No Objection Certificate (NOC) from the sponsor the investor is already on a residence visa in Dubai.
- Memorandum of Association (MOA) and other legal documents.
Dubai Free zone benefits
- Full Ownership
Investors of businesses in a free zone get complete ownership and control of their businesses as no local partnership or sponsorship is required to open a free zone company in Dubai. This gives investors complete independence and full control of their business and its operations. - Repatriation of Profits
Dubai free zone companies have the advantage unlike other companies in Dubai to repatriate their capital and profits to their home countries without any restrictions. - Tax-Free Environment
A business setup in a free zone doesn’t have to pay any corporate or income tax and it enjoys a tax free environment. This tax benefit increases it’s profitability thus helping it to stay ahead of the competition. - Custom Duty Exemption
Companies in a free zone don’t have to pay any custom duties on imports and exports, making international trade cheaper for them as compared to their competition. - World Class Infrastructure
Free zones in Dubai offer top-notch infrastructure like advanced logistics, fast internet and well-equipped offices to the free zone companies, making business operations seamless for them. - Strategic Location
Dubai is the world’s gateway to the Middle East, Africa and Asia and as a result, a Dubai free zone company has easy access to global markets. - Business Support
A business setup in a free zone gets comprehensive business support services such as legal, administrative and consultancy aid to the businesses, helping businesses complete the regulatory requirements smoothly ensuring seamless operations. - Skilled Workforce
Dubai attracts skilled workforce and professionals from across the globe, making it easier for businesses to hire talented employees locally.
How to Set up an LLC in a Free Zone?
- Determine Business Activities:The investor should have a business plan and clear objectives so as to select the free zone that aligns best with the investor’s business plan. Different free zones in Dubai focus on different specific sectors.
- Choose the Company Name: Submit a list of unique and relevant names for the LLC to the concerned free zone authorities and then select a name from the approved list.
- Capital Requirements:To set up an LLC in Dubai the minimum paid-up capital required is AED 150,000. On the other hand, sometimes a FZE may not require a specific capital requirement.
- Necessary Permits and Certifications:Depending on the nature of a business, it is required that the business setup in a free zone acquires relevant licenses and certifications from the concerned authorities. These may include licenses for the industry, health and safety certifications, permits for the environment etc.
- Documentation:Documents required include the completed application form, memorandum and articles of association (MOA and AOA), passport copies of shareholders and any other specific document needed by the particular free zone authority.
- Application Submission:Submission of documents is fairly easy as it includes payment of the application fee and submitting of the application along with the required documents to the free zone authority for review and processing.
- Capital Deposit:If required the client needs to deposit the minimum capital amount in the specified bank account to show their financial commitment to the LLC.
Dubai Free Zone Visa
A Dubai free zone visa is an attractive option for any entrepreneur or professional who wishes to live in Dubai while working or doing business in Dubai. A free zone visa is a route to Dubai’s thriving business and luxurious living environment and a Dubai free zone visa holder enjoys numerous benefits that a normal Dubai visa holder doesn’t get such as 100% foreign ownership, tax exemptions and streamlined business processes that make setting up and doing business easy. The process to obtain a free zone visa starts with choosing the free zone that aligns best with the business plan of the investor and then submitting the necessary documentation to the concerned authorities. Normally the process involves application review, background checks and medical tests. Once the visa is approved, it allows for a residency permit enabling individuals to live and work in Dubai.
Different Freezone Authorities
- Ajman Free Zone
- DMCC Free Zone
- Dubai Airport Free Zone Authority (DAFZA)
- Dubai Media City Free Zone
- Sharjah Media City (Shams) Free Zone
- Dubai South Free Zone (Dubai World Center)
- Fujairah Free Zone (FFZ)
- Hamriyah Free Zone (HFZ)
- Jebel Ali Free Zone
- Rak Free Zone (RAKEZ)
- Sharjah Media City (Shams) Free Zone
- IFZA International Free Zone authority
- KIZAD free zone (Abu Dhabi)