Last updated on December 27, 2021
Dubai free zone company formation
If you have spent some of the time in searching how to do Dubai free zone company formation; then you will know that there are many free zones in Dubai. The main purpose of this free zone is to catch the eye of overseas searching to set up here. Dubai free zone company formation get zero corporate as well as zero per cent personal tax; 100% company ownership and 100% repatriation of capital as well as profits; no currency limitations, and 100% import as well as export tax exemption. But there is more to it than that.
Dubai free zone company formation also brings a lot of opportunities; for networking, collaborating as well as at last growth. Take some examples of Dubai’s sector specific free zones. Setting up Dubai Media City and Dubai Healthcare City or Dubai International Financial City; presents you the headline profit mentioned above along with a unique opportunity; to work side by side with businesses which compliment yours.
It is little surprising that the UAE free zone are so popular; that its profit for around one third of the Emirates total non oil trade. If state like this attract you to take the thrust; and launch your own company in the UAE; then below are the thing you require to know to get your business setup in Dubai free zone.
Benefits of Dubai free zone company formation
Free zone are the very much favorable locations for business setup; equipped with state of the art infrastructure, duty as well as tax exemption; world class business services as well as flexible government policies along with unmatched facilities.
These are not the only factors which drive Dubai free zone company formation; there are much more benefits of starting a company in Dubai, like:
- 100% ownership for investors, despite of their nationality as well as country of origin
- 100% tax exemption on personal or corporate income or gains
- Exclusion from all import as well as export duties
- Handy office as well as warehouse facilities
- Option for a company establish by an individual
- 100% repatriation of investment and profits
- Exemption on corporate tax for 15 years, renewable for another 15 years
- inclusive secrecy of operations
- Flexibility to engage in international business
- Fewer renewal charges
- Flexibility to hold properties, participate in multiple activities, and open a bank account in Dubai
- The option of liquidating all the time
- support in housing facilities, staff visas and other support services
How to get your business set up in a Dubai free zone
Let’s find the root of the matter; what you have to do to obtain your free zone company formation in Dubai? First things, you require to decide on the sort of business you wish to run. That is to say, will you form as a freelancer; basically a business in your own name – or you wants Dubai free zone company formation and employs others?
setting up your company as a freelancer can be a little cheaper option; but not every free trade zone allow freelance permits.
Setting up as a freelancer can be a to some extent cheaper option; however not all of Dubai free zones issue freelance permits, so you are somewhat restricted in where you call home.
When you go for Dubai free zone company formation; your selection of free zone will depend on the kind of business activities you hope to carry out; as a lot of are sector specific. However, with so many free zones present in Dubai; you will definitely get one which suits your requirements. Plus, some free zones are open to a wide range of business activities; like DAFZA free zone and DMCC free zone welcome the majority of DED trading activities.
Whichever option you prefer, Dubai free zone company formation is generally speedy and simple. So below are the five stages in getting your business set up in a Dubai free zone.
Limitations of Dubai free zone company formation
A Dubai free zone company formation is not permitted to trade directly with the UAE market. The Dubai free zone company formation can undertake the local business only through in the neighborhood appointed distributors. Custom Duty of 5% is valid for the local business. Even though all free zones offer a lot of attractive schemes for the assistance of the investors; not all are the same when we consider the facilities offered by them. Therefore it will be valuable to have a glance over the facilities offered by them, one by one.
The following details are for the guidance of the investors; and the facilities may be subject to change from time to time; when such decisions are being taken by the Free Zone Authorities. It is important for you to get in touch with our consultants for most recent details; before you plan a business setup in UAE Free Zone.
Choose a business activity for your free zone company formation in Dubai
The first step in free zone company formation in Dubai; is to decide on the business activities you desire to carry out; as this will impact where you can register your company. The kind of license you apply for will depend on the activities you desire to carry out; such as professional services, trading and commercial etc. There is no need to restrict you too much here; many Dubai free zone allow you for multiple activities, that is in one license. But it is important to remember that Dubai has some requirements; that is about what activities are allowed under what license; so it is worth seeking advice from a Dubai free zone company formation specialist at this stage.
Find a free trade zone for free zone company formation in Dubai:
Once you done with your business activity; the next step for Dubai free zone company formation is to decide which free zone is accurate for you. There are a number of factors you need to consider when making such decision; starting with whether you wish to form in a sector specific free zone. Healthcare, ICT, production, outsourcing, design, media, maritime science as well as finance.
If your industry is not covered by one of the city’s industry specific zones – or you just do not wish to set up in one – there are a lot of other options available. As I’ve already touched upon, free zones such as Dubai south free zone as well as business setup in DMCC free zone are open to a large range of activities.
Next step you must consider the facilities that you need in your chosen free zone. Many present meeting room access, desk space and use of equipment, but if you have all specialist requirements such as warehousing then you’ll require to seek out a free zone which meets these requirements. But don’t worry; there is abundance available that will offer this.
Finally, you require considering the location of your chosen free zone. As well as taking into account considerations such as access to foremost highways, if you rely on international trade you must also be mindful of proximity to both ports as well as airports. Dubai Airport Free Zone and Dubai Maritime City are huge examples of it; being directly linked or adjacent to Dubai International Airport and Port Rashid respectively.
As well as taking into account such as entrance to main highways; if you depend on international trade or travel you must also be mindful of proximity to both ports as well as airports.
Choose a company name for free zone company setup in Dubai
Choosing a name for your business is not an easy task. There are plenty factors to consider from the emotional to the practical. Does your name remind an emotional response; for example And if so, what does it say? Reliable? High class? As for the realistic side of things; you will also need to consider how your name will look to your branding; whether the domain is available and whether it will stand the test of time. ABC Computers would soon become dated if you diversify into another market for instance.
Here in the UAE, there are also other naming conventions to think. Firstly, you need to make sure your desire name is available or not. Our company set up expert can easily check it for you. There are also certain standards that the name should adhere to; as well as you need to avoid any offensive language or references to
organizations.
Finally, if you choose name of a person; then there are a couple of more considerations; that person should be a partner as well as shareholder in your business; and also you need to take a complete names rather than initials or abbreviations.
You can also visit How to start a business in UAE free zone
Get your documents in order and apply free zone company setup in Dubai:
Now you have a clear idea, that what you are searching for; where you want it to do it and under which name you will trade; it is time to submit an application for your free zone company setup in Dubai. The documents need for Dubai free zone company formation will rely on the nature of the license; which you are applying for and the nature of your chosen free trade zone. As a general rule of thumb; when you are going to start a Dubai free zone company formation; then the you need the following documents:
- Color copy of shareholder(s) passport and visa if applicable
- Application form
- Business plan
- Board resolution
- Memorandum and articles of association
You can make your visa application too at this stage, should you require one. The process here is easy: entry permit, also medical fitness test; status adjustment, then Emirates ID registration as well as visa stamping. Once again, a company formation expert can guide you through this stage.