Free zones in the Emirates are an ideal choice for investors seeking to establish their companies in a flexible and stimulating business legislation environment. One of the most prominent of these areas is the Dubai Airport Free Zone, which offers attractive tax breaks and full foreign ownership of companies. This region features advanced infrastructure and easy access to a diverse global market. In this article, we will take a comprehensive look at how to set up a company in the Dubai Free Zone. We’ll start by discussing the basic steps in preparing and submitting an application, and also go over the necessary legal requirements and administrative procedures. We will also highlight the strategic advantages of the Dubai Airport Free Zone that make it an ideal destination for international business and investments.
How to establish a company in the free zone in Dubai
Establishing a company in the free zone in Dubai
In Dubai, Dubai Free Zones are an ideal opportunity for investors seeking to establish their companies in a business environment that is conducive and open to foreign investment. These areas are characterized by facilitating legislation, tax exemptions, and developed infrastructure that supports all types of businesses. In addition, Dubai free zones offer extensive possibilities to reach new markets and promote international trade, making them an attractive option for companies that want to grow and expand globally. From choosing the appropriate free zone to obtaining licenses and registration, these zones provide an efficient operating environment that contributes to the success and sustainability of businesses in Dubai.
How to establish a company in the free zone in Dubai
To establish a company in a free zone in Dubai , the process requires following specific steps and ensuring that all legal and regulatory requirements are met. Here’s a quick guide on how to set up your company in the Dubai Free Zone:
- Choosing a company type: Before starting, choose the right company type for your business, such as a private equity company (LLC), a limited liability company (LLC), or a sole proprietorship.
- Feasibility study and free zone search: Conduct a feasibility study to ensure that the business activity you wish to engage in is compatible with the local or global market. Find the right free zone in Dubai that supports your activity and meets your business needs.
- Identify a consulting company or legal office: It may be beneficial to contract with a local consulting company or law office in Dubai for legal advice and support during the company formation process.
- Submitting the application and determining the location: Submit an application to establish the company in the selected free zone, and specify the exact location within the free zone according to your commercial and regulatory needs.
- Submitting the required documents: This may include documents such as passports of shareholders and directors, personal photographs, organization contracts, and any other documents required by the free zone authority.
- Obtaining the necessary approvals: Make sure to obtain the necessary governmental and regulatory approvals from the Dubai Free Zone Authority, before proceeding with the establishment process.
- Company registration and obtaining licenses: After all conditions are met, the company is officially registered and the necessary licenses are obtained to start business operations.
- Commencement of Operations: Once all procedures are completed, you can begin implementing your business plans and start business operations in the Dubai Free Zone.
Fees for establishing a company in the free zone
Fees for establishing a company in the Dubai Airport Free Zone vary based on the type of company and services required, and may include the following fees:
- Registration and licensing fees: These fees include the costs of submitting a registration application and obtaining a commercial license from the competent authorities in the free zone.
- Administrative and service fees: These fees include the costs of support services provided by the free zone, such as logistics services, legal support, and office space.
- Additional service fees: Establishing a company may involve additional fees such as the costs of opening a bank account or using the services of lawyers and financial advisors.
- Annual Renewal Fee: There is an annual renewal fee to maintain business license status, which varies depending on the type of company and its location.
Tax and legal advantages of free zones
Dubai’s free zones offer a range of tax and legal advantages that make them attractive to international investors and local businesses alike. Here are some key advantages:
- Tax exemptions: Tax exemptions are one of the most prominent attractions of free zones in Dubai, as they allow companies not to pay income taxes for up to 50 years, depending on the free zone and the type of activity.
- Full Foreign Ownership: Foreign investors are allowed to own and fully control their companies without the need for a local or national partner, with the exception of some private sectors such as real estate.
- Easy access to the regional and global market: Free zones are located in strategic locations such as ports and airports, making it easier for companies to access the regional and global market faster and more effectively.
- Facilitated administrative procedures: Free zones provide a facilitating legislative environment and simple administrative procedures, which helps speed up the establishment and operation processes without major legal complications.
- Flexible practical legislation: Free zones are characterized by practical and flexible legislation that suits the needs of international business, which makes it easier for companies to develop and implement their business strategies effectively.
- Legal and security protection: Free zones guarantee legal and security protection for companies and investors, with strict legal procedures to protect property rights and commercial transactions.
Steps necessary to open a bank account for the company in the free zone
To open a company bank account in a free zone in Dubai, several basic steps must be followed. Here’s a quick guide to the necessary steps:
- Choosing a bank: Research and choose the bank that meets your company’s needs and deals with free zone customers in Dubai.
- Collect the required documents: Make sure to collect the necessary documents such as passports of shareholders and directors, personal photos, institution contracts, and any additional documents required by the bank.
- Submitting the application: Submit a request to open a bank account for the company in the chosen bank, fill out the required forms and submit the necessary documents.
- Approval and examination: After submitting the application, the bank will review the application and documents submitted. A background check may be required on shareholders and directors.
- Signing the agreements and specifying the services: After approval, you will be invited to sign the necessary agreements with the bank, and specify the banking services you wish to use, such as international transfers and electronic services.
- Receive bank card and account details: Once the account opening is confirmed, you will receive the company bank card and account details you need to manage money transfers and bank transactions.
- Start using the account: After receiving the account card, you can start using the account to manage the financial operations of your company in the Dubai Free Zone.
Establishing a company in the free zone
Documents required to establish the company in the free zone
To establish a company in the Dubai Airport Free Zone , the following documents are usually required:
- Copy of passport: for foreign shareholders and directors, including a clear copy of the personal data page and visa page if applicable.
- Copy of national ID card: for local shareholders and directors.
- No objection certificate: If a shareholder or director is currently working with a government entity or another company, they may be required to obtain a no objection certificate.
- Business Plan: A detailed document detailing the business activities planned to be undertaken by the company.
- Partners Agreement (if any): A document that specifies the rights and obligations of each partner in the company.
- Lease contract or office license: They need proof of the company’s address, whether it is via an office lease or using shared services in the free zone.
- Company registration form: This is a form that is filled out and submitted to the relevant authority in the free zone.
- Certificate of incorporation of the company (Memorandum of Association): A document that explains the organizational structure of the company, its objectives, and the terms of its establishment.
- Additional documents that may be required: Local authorities in the free zone may require additional documents depending on the type of business activity chosen and local laws.
At the conclusion of this article, we find that establishing a company in the free zone represents an important strategic step for ambitious entrepreneurs who seek to benefit from an encouraging and developed business environment such as the one at Dubai Airport. Economic Freedom Zones provide a range of competitive advantages that include tax exemptions, advanced infrastructure, and streamlined regulatory procedures, which facilitate the establishment process and enhance opportunities for growth and international expansion.
In addition, establishing companies in these regions provides opportunities to attract foreign direct investment and enhance transparency and efficiency in business management. With comprehensive support services such as integrated logistics and legal support, this allows companies to focus their efforts on innovation and growth rather than routine administrative understandings.
The most important frequently asked questions about establishing a company in the free zone
What types of companies can be established in the free zone?
Limited liability companies, sole proprietorships, one-person companies, and others can be established according to the laws of the free zone.
Can companies in the free zone deal with the local market?
Yes, companies in the free zone can deal with the local market in the UAE, while adhering to some rules and conditions.
What are the expected costs of establishing and operating a company in the free zone?
Costs vary based on the type of company, location and services required, with costs including licensing fees, rent, logistics, and administration.
Is it possible to transfer the company from the free zone to the mainland or vice versa?
Yes, the company can be transferred provided that the required legal and regulatory procedures are complied with.
What are the legal and regulatory procedures that must be taken into account when establishing a company in the free zone?
Companies must adhere to local and international laws and legislation applicable in the free zone.
