A free zone is a geographic area or territory within the United Arab Emirates that allows engaging in a specific commercial activity or group of activities. Launching a business in the Dubai Free Zone requires obtaining a license first. Which is granted based on several factors. Licenses to establish a company in the free zone are granted on the basis of the specific business activity of the company. The Free Zone Authority is the body that controls the issuance of the license. However, the commercial laws that apply to mainland UAE companies do not apply. Therefore, we present to you this example, in which we will show you how to obtain a free zone license in Dubai?
in Dubai Free Zone, Foreign investors can own 100 percent of the company’s shares without the need for an Emirati partner. And apart from the many benefits of ownership, You also enjoy simplified tax deductions from the government. You can obtain several licenses in the Dubai Free Zone such as the trade license, and industrial license, service license, etc. As long as the lease is valid, These licenses can be renewed annually.
Benefits of obtaining a free zone license in Dubai
Once the investor obtains the license, the investor enjoys many benefits that come with the license. The most important of them:
The free zone is ideal for foreign investors seeking 100% ownership.
The free zone has the benefits of tax exemption. It is free of corporate tax, income tax, as well as personal taxes.
Free Zone jurisdictions do not restrict wire transfers, The banking system is very convenient because of government support.
The recruitment process is not complicated
Strong logistics system and advanced infrastructure.
Ideal for small and medium business enterprises. The free zones are equipped with offices and full spaces.
Well-equipped and ample communication facilities.
Free zone licensing costs in the United Arab Emirates, specifically in Dubai:
The cost of establishing a business in one of the free zones in Dubai varies according to the nature of your company’s commercial activity. The cost of a free zone license increases with the services you need, the size of your office, and the number of employees you have. The cost of a free zone license starts at around AED 18,000 annually.
Commercial license for free zones
A commercial license in a free zone allows you to enter several commercial fields, Here are some of the activities permitted under a trade license in the Dubai Free Zone:
Computers trade – plastic bags and cargo containers – medical gases trade – agricultural pesticides – wooden products for trade – pipes trade – food and beverages – audio-visual activities, recording and accessories – perfumes and cosmetics.
Industrial license in the free zone
The industrial license is granted to various sectors in the free zone. Here are some of them:
Clothing industry – pastries and sweets – embroidery of fabrics and textiles – carpet manufacturing – mineral water bottling.
Professional license in free zones
Here are the activities permitted under a professional license:
Electronic engineering consulting – Mechanical engineering consulting –
Science and technology consulting – Immigration consulting offices – Educational consulting – Marketing research and consulting – Project management consulting – Media consulting – Event management consulting – Tourist trip offices.
The process of obtaining a commercial license in Dubai free zones is not easy at all and you may need professional support. You can get help from the experts of Itqan Company. Our consultants will help you get started with your full procedure. Contact us now!
