15 Feb Incorporation of a company in the free zone in Dubai
Establishing a company in the free zone in Dubai is an excellent investment opportunity due to the low costs required for establishing a business in the free zone. for example: Tax and customs exemptions, facilities and other vital advantages enjoyed by the various free zones in Dubai.
Despite the vitality of free zones in Dubai and the many privileges for establishing a business, However, not every free zone in Dubai is suitable for all investment activities.
In this article, we discuss the advantages and costs of establishing a company in the free zone in Dubai. In addition to the types of free zones suitable for the nature of your business activity in Dubai, to obtain all the services, needs and facilities suitable for the growth of your activity.
Incorporation of a company in the free zone in Dubai
The Emirate of Dubai is considered the investment business center in the United Arab Emirates and the first investment destination for anyone wishing to invest in various activities and establish investment projects or expand existing projects for investors and entrepreneurs. The UAE government provides all the necessary support to achieve the greatest benefit for investors and entrepreneurs.
Despite Dubai’s reputation for luxury, sophistication, skyscrapers, hotels and resorts, However, the establishment of investment businesses and the establishment of a company in the free zone in Dubai does not require exorbitant costs. Rather, the UAE government provides assistance and support to investors coming to the free zones in Dubai to work and provides many packages for establishing companies at reasonable costs for different sizes of companies and capitals.
Free zones for establishing companies in Dubai
There are two types of free zones in Dubai for establishing companies and investment businesses. They are as follows:
- Free Zone Company – Limited Liability.
- Free Zone Corporation.
The types of free zones in Dubai differ according to the number of shareholders. Their legal status and the regulations and laws regulating the investment process in each type of free zone.
Every investor must ensure that the company’s position is in compliance with the laws and regulations of the free zone in which he will work. The city of Dubai includes dozens of distinctive free zones that attract investors from all over the world to invest. In the following points, we discuss the most famous free zones in Dubai:
- The comfortable area in Jebel Ali.
- Dubai Airport Free Zone.
- Dubai Multi Commodities Centre.
- Dubai Design District.
- Dubai Healthcare City.
- Dubai Media City.
- Dubai International Academic City.
- Dubai Internet city.
- Dubai International Financial Centre.
- Knowledge Park in Dubai.
- Gold and Diamond Complex.
- Dubai Silicon Oasis.
- Dubai Production City.
- Dubai South.
- Dubai Studio City.
Advantages of free zones in Dubai
Free zones in Dubai offer many advantages to investors and entrepreneurs. Each free zone in Dubai has what is suitable for a specific economic activity to the exclusion of other activities. Therefore, the economic activity must be carefully chosen to suit each free zone in Dubai to determine the most appropriate area for the growth of the company’s activity.
Each free zone in Dubai is also governed by regulations and laws that regulate the progress of the investment process, steps to establish a company in the free zone in Dubai, and legal procedures. Here are the advantages of establishing companies in free zones in Dubai:
- diversification of economic activities
One of the most important points that must be taken care of while choosing the free zone, It is the nature of the activity in which the company will operate. There are different economic activities for which licenses are granted by free zones in Dubai.
Each free zone in Dubai offers commercial licenses for specific activities. Which helps to facilitate the necessary procedures for establishing companies and businesses for those activities.
The advantage of determining the appropriate free zone in Dubai to obtain a license for your business, It revolves around avoiding the dilemma of obtaining a license in a free zone that does not support your economic activity. It does not provide you with the services you need to grow your business.
- Bank accounts
The ease of opening a bank account in Dubai is one of the advantages of establishing a company in the free zone in Dubai. This is unlike what happens in any other area outside the free zone in Dubai.
for example: The process of opening a bank account in one emirate with a license from another emirate is a problem because some banks have requirements for opening the account.
- Being in the center of business activity
One of the advantages of establishing a company in the free zone in Dubai, being in the center of business activity, Because establishing businesses outside the free zones requires a physical presence in the free zone and the company having a private office.
This can cause missed profits from the networks and clusters that are the center of business activity, This is the opposite of the free zone in Dubai.
What do you benefit as an investor from working in free zones?
- Tax exemptions for companies and income for individuals.
- Customs exemptions on some imported goods.
- Freedom to dispose of the capital and profits in full.
- The right to complete foreign freedom without the need for an Emirati sponsor.
- There are no restrictions on monetary transactions.
- Constantly evolving strong infrastructure.
- Ease of required legal procedures.
- The availability of electronic platforms to obtain commercial licenses in minutes.
The costs of setting up a company in the free zone in Dubai
The costs of establishing a company in the free zone in Dubai vary from one free zone to another, according to the nature of economic activity, trade license, office space, and others, as follows:
register fees
Registration fees for establishing a company in the free zone in Dubai are a one-time fee that varies from one free zone to another and starts from about AED 3,500 according to the type of company in the free zone.
License fees
The licensing fees for establishing a company in the free zone in Dubai, according to the type of activity in which the company will operate, are between AED 10,000 and AED 50,000 annually (commercial, industrial, Service) The commercial license is renewed annually, and the license renewal fees may differ from the first year fees.
Residence visas
The cost of obtaining a primary residence visa is paid once, The cost of obtaining a visa is between AED 3,000 and AED 6,000 per person.
The owner of the company can apply to the responsible authority to obtain a residence visa. Once a company is incorporated in the free zone in Dubai.
office spaces
In the free zones in Dubai, the government provides work offices of various sizes for different sizes of small, medium, large or emerging companies for rent or purchase. The UAE government supports companies to grow, so it provides all the facilities and services that make work in these offices flexible.
The cost of offices varies from one region to another and according to the space as well and the number of employees. Full-service or non-full-service offices are available, furnished or unfurnished, and the cost starts from 15,000 AED annually.
An investor and looking for help to set up a company in Dubai Free Zone?
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For more information about establishing a company in the free zone in Dubai, and to request assistance in obtaining commercial licenses and dealing with government agencies to complete all procedures and papers, contact our team now and book your consultation with us.
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