The possibility of starting your business in Dubai is very appealing to investors since Dubai has various benefits for businesses that operate within the Free Zones. A Free Zone or free trade zone (FTZ) are economic zones created to provide tax concessions and customs duty advantages to investors from abroad.
There are around 30 Free Zones within Dubai, and more are in construction. This is the sole reason that has made UAE and Dubai are important business hubs and perfect locations to set up a company or representative office.
Some of the reasons these free Zones attracted investors include:
- 100% foreign ownership (no need for a local partner or sponsor)
- No tax
- Easier to employ staff No restrictions on labor on the mainland
- Document clearance speedy
- 100 % repatriation of capital as well as profits
- Modern, efficient communication and more.
In addition, while establishing an enterprise within the Free Zone is relatively easy, some aspects need to be considered.
What are the requirements to start an enterprise?
A brand new company may be registered in the form of a Free Zone Establishment (FZE) or a Free Zone Company (FZC). An FZE is owned by one shareholder, whereas an FZC could have more than one shareholder or could be a representative office of their current or parent company located within the UAE or overseas. An FZE and an FZC are limited liability entities managed according to the laws and guidelines in the Free Zone within which it was founded. The UAE Commercial Companies Law (CCL) rules do not apply to the businesses located in the Free Zone.
To begin the process of setting up a Free Zone Company, you will be required to submit the following documentation and due diligence from all shareholders/directors of the proposed new company:
- A certified passport copy as well as UAE Entry stamp for Visa/UAE (if non-resident)
- Address proofs (dated within the last 3 months)
- Professional or bank reference letter
- Curriculum Vitae (summary of professional experience)
- Application for a company
Things to take into consideration before you begin your Free Zone business
Location
One of the main factors to think about before setup your business in Dubai, Finding the ideal site. Specific Free Zones are situated near the airport, others are a portion of the Port, and several others have accessible roads to access. Consider your needs when deciding on the best location for your business.
Facilities and infrastructure
Efficient infrastructure and modern facilities can propel your business to higher levels. For example, some Free Zones provide accommodation and workspaces to help you work from home, while others offer a full-on technology experience. Be sure to get the best deal from many.
The process of licensing
In some Free Zones, you can receive a license within a few weeks; you could need to wait at least a month in other places. In addition, some Free Zones have an investment requirement, while others do not.
Other necessities include:
Here are a few additional steps that need to be taken in the process of setting up free zone businesses in Dubai:
- Apply for the approval of the name of your business
- Prepare the legal documents of the free zone company.
- Put a solid enterprise plan
- Rent office space that will serve as the registered address of the company
- File for registration of the company and license
It is vital to know that each free zone is governed by its authority to impose the rules for opening free zone businesses in Dubai. Therefore, additional rules may be in place.
