Dubai’s free zones are magnets for global entrepreneurs. These unique economic areas offer a range of benefits for foreign investors, and setting up a company within them can be a strategic decision for expanding your business globally. This article will walk you through the nuances of starting a free zone company in Dubai.
1. Introduction to Dubai’s Free Zones
Dubai’s free zones are special economic areas designed to foster foreign investment. With unique tax, customs, and import/export benefits, these zones are tailor-made for international businesses. There are more than 25 free zones in Dubai, catering to various industries, from finance and media to tech and trade.
2. Ownership
One of the main attractions of free zones is that they allow 100% foreign ownership. This means that, unlike in the Dubai Mainland, where there might be restrictions, in a free zone, you can have complete control over your company without needing a local sponsor or partner.
3. Tax Benefits
Free zone companies enjoy a host of tax exemptions. These include zero corporate tax, personal income tax, tax on dividends, and capital gains. This zero-tax framework is a primary draw for global businesses.
4. Licensing and Regulations
Each free zone has its own regulatory authority and its own set of rules and requirements. Depending on the free zone and the nature of your business, you can apply for a professional, commercial, or industrial license.
5. Physical Location
Most free zones offer flexible office solutions, from flexi-desks to executive offices. Depending on your company size and type, you can choose the best solution that suits your business.
6. Operations and Trade
While free zone companies are primarily set up for international trade, there are ways to conduct business within the UAE. Often, this requires working with a local distributor or using third-party services.
Guide: Steps to Set Up a Free Zone Company in Dubai
Step 1: Choose the Right Free Zone
- Research the various free zones in Dubai to determine which one aligns with your business type.
Step 2: Decide on a Legal Structure
- Depending on the free zone, you can set up as a Free Zone Establishment (FZE), Free Zone Company (FZC), or a branch of an existing company.
Step 3: Choose a Business Name and Reserve it
Step 4: Apply for a Business License
- The type of license (professional, commercial, or industrial) will depend on your business activity.
Step 5: Arrange Necessary Documentation
- This typically includes:
- Application form
- Business plan
- Copies of passports (owners/shareholders)
- No Objection Certificate (if the owner/shareholder is a UAE resident)
- Additional documents may be required based on the specific free zone.
Step 6: Open a Corporate Bank Account
- Most free zones will have affiliated banks, making this process smoother.
Step 7: Process Visa (if required)
- You can obtain visas for your employees and yourself. The number of visas you can get will depend on the size of your office, type of license, and the specific free zone’s policies.
Step 8: Get Started!
- Once you receive your license, you can start your operations.
