- December 14, 2021
- Posted by: DBS
- Category: Dubai Business Services
Start Business in Dubai Free Zone
What do you need to know before starting a business in Dubai Free zone? Read our ultimate guide and learn what you need to consider when deciding whether or not this is the right place for your company. Businesses who want to start up in Dubai Free zone can take advantage of many benefits, such as tax-free status, no tariffs or quotas on imports, 100% foreign ownership without government approval, and more!
What is a Dubai Free Zone
A Free zone company is a type of business entity that enjoys special economic and tax status in Dubai, UAE. It can be seen as an offshore firm since it’s not subject to local taxes and regulations while operating within the free trade zone. The reason for this lenient regulation is that companies registered under such entities are aimed at foreign investors who are looking to establish business outside of their home country.
The implications of all this are that businesses under Free zone companies enjoy greater flexibility in terms of exporting, importing, hiring, and firing employees without the need for government permissions.
Companies registered with Dubai free zones are given a number of incentives since they’re considered vital towards achieving the goals set forth by the Dubai government to become a leading trade hub. Some of the incentives are tax-free operations, exemption from certain labour laws that apply in Dubai, and access to attractive financing schemes provided by local banks.
How to Choose the Right Free Zone for Your Business
Dubai is home to several free zones which offer the infrastructure and setup that many businesses need. There are a number of things companies should consider before opening up shop in Dubai, including:
– The type of business they operate; for example, retail or technology-based (e.g., e-commerce) firms may be better suited to Dubai Internet City or Dubai Media City
– Which zones are best suited for their target market; since each zone caters to different types of businesses, it is important that they choose one which will be most beneficial
– The number of employees needed for the business
– The amount of capital required by the company. For example, Dubai International Financial Centre (DIFC) is a good choice for those who need to raise capital
– Dubai Knowledge Park, Dubai Studio City, and Dubai Healthcare City are great places for companies involved in the creative sector.
The above list is not exhaustive, but it presents some of the factors that businesses should consider when choosing which free zone would be best for their Dubai venture.
Business Setup Procedure In Dubai
Business setup procedures in Dubai usually include the following:
– Registration of a business name with your Freezone company, branch, or representative office.
– Filing for an Employer Identification Number (EIN) and/or obtaining local licenses and permits as required by law.
– Applying to banks and financial institutions in order to open bank accounts for your business.
– Applying for a local visa if required to live and work in Dubai (work visas are usually sponsored by your employer).
– Registering your business with the Department of Economic Development (DED).
– Obtaining a trade license from Dubai Municipality.
– Applying for a trade license and VAT Number if required in accordance with UAE’s commercial regulations.
– Setting up any other entity types such as Branch, Representative Office, or Freezone Company.
Company Formation Process
Company formation in Dubai is easy and simple. All you need to do are some steps, procedures of company formation in Dubai which include the following:
- First of all, after registration at DED, a Certificate on Trade License should be requested from them for Entrepreneur’s Investment Establishment Department (EIED). This certificate will confirm that your proposed activity does not fall within any of the categories to be prohibited by law.
- Then you will need a trade license from IEIED and an office address (if your company is going to have its own premises).
- After that, the DED should issue-free zone registration letter followed by authorization for E&C establishment, which contains all details related to activities, final approvals as well as the required documents.
Types of Business Entities in Dubai Free Zones
are the most common business structures used in Dubai free zones. The two types of entities we offer our clients are:
– Branch Office
– Subsidiary Office (100% subsidiary)
The branch office business structure is a very common type of business entity used in Dubai free zones. It enables foreign investors to start a trading and commercial company without the need for transferring employees from overseas to work locally, as it can conduct its day-to-day operations through delegation or remote management models. All that is required with this model – in terms of time and cost – is to have a physical presence within the free zone, i.e., office space for its employees.
Subsidiary Office is a much more complex business structure that requires the transfer of all employees from overseas to work locally in Dubai. It is an ideal choice for investors doing long-term projects with a focus on production, management, and sales activities that need direct supervision by their own staff.
The Benefits of Starting Business in Dubai’s Free Zones
If you are considering starting a business in Dubai, the free zones may be an excellent option. Free Zones offer several benefits to businesses looking for an environment with less regulation and more freedom when it comes to hiring foreign employees.
The following are three major advantages of running your company from within one of these special areas:
First, many enterprises choose to incorporate their businesses in Dubai’s free zones for the tax benefits. Companies that are incorporated within one of these areas do not pay taxes on income generated outside of the country or on any imports (Gulf News).
Second, many foreign workers find it advantageous to work from a Free Zone because they can live and conduct business in UAE without having to obtain an employment visa (Dubai Inc.).
Third, Dubai’s free zones are often the ideal location for businesses that rely on international trade. The country has established itself as a major port city and is considered one of the best trading hubs in the world (The National). If you want to start your business with minimal hassle or expense, it may be worth looking into the free zones.
Dubai Free Zone Business Setup Cost
Dubai is known as an international trade and business hub of the Middle East with free zone status. Dubai has seen its fair share of economic turbulence in recent years but remains an important commercial center for many businesses around the world.
With such soaring costs that come with setting up a business there, it’s no wonder why many businesses are looking for ways to cut costs.
The best way of reducing your Dubai startup or expansion costs is getting into a Free Zone Authority in the UAE. This will not only save you money but also time and effort, as many processes like registration and licensing can be completed within an hour or two.
Establishing a business in the free zone is as easy as opening up an office and operating from there. There are no requirements for capital, labour, or even infrastructure. You can start this process by choosing one of these top Dubai Free Zones: Jebel Ali Free Zone (JAFZA), Jumeirah Lakes Towers (JLT), Knowledge Village, Dubai Airport Free Zone (DAFZA).
Dubai free zone business setup cost is typically cheaper than other countries. This makes it a great choice for those looking to start their own company and want to keep the costs as low as possible. The total amount of time that will be needed or invested into setting up Dubai free zone business can vary depending on how much work an individual wants to put into it. It is usually a good idea to have an experienced consultant on your side because they will be able to help you figure out what steps need to be completed and how much time should be allocated for each one of them.
DBS Business Setup
DBS Business Set-up provides all the necessary setup and registration documents for your business. We will take care of every aspect of opening, running, and closing your business in Dubai’s Free Zone. With our expertise, we can help you to find the perfect location, register your company with authorities and provide legal advice as required by law. Contact us today to learn more about how we can start a business in Dubai!
Book a free consultation today!
Call us on +97145667485 or WhatsApp on +971551129344.
You may also chat with a live agent on our website https://www.dubaibusinessservices.com/, request a call back on https://www.dubaibusinessservices.com/contact-us/ or visit our office Clover Bay Tower Office 1111, Business Bay Dubai UAE