The free zone company in Dubai is one of the popular jurisdictions in the UAE for many foreign investors. The UAE government gives many benefits to local and foreign entrepreneurs who want to start a business in Dubai. One of the major advantages is that company incorporation is simple and rapid. If you are unsure about handling the procedure on your own, then there is a range of company establishment services in Dubai for your assistance.
Free Zone Company Setup in UAE
A free zone is a distinct jurisdiction or region that has been established for a specific business activity or set of activities. It is mostly recognized for the tax and ownership advantages it provides to foreign investors. In the UAE, there are more than 40 free zones, with several more under construction. There are now 30 free zones in the Emirate of Dubai.
Hence, to start a free zone company in Dubai as a foreigner, you need a visa, a license, and a permit. Here are some rules to describe how to launch a free zone company setup in Dubai.
Legal Structure of The Company
Always choose a legal structure for your business. A minimum capital requirement is required in several free zone governments. The requirements vary according to the type of free zone. Certain free zones belonging to other Emirates are exempt from the minimum capital requirement.
Choose A Perfect Trade Name
For the registration of your business in Dubai, you need an appropriate trade name. It is not recommended to select an already taken name. Therefore, focus on selecting a unique name that also depicts the nature of your business. There are some rules to select your trade name, such as
- The legal form of the company (LLC, FZE, DMCC, etc.)
- The trade name has not been previously registered
- It should not contain names of any religion, governing authority, or names or logos of any external bodies.
- Also, it shouldn’t damage the country’s public morality or public order
After verifying your company’s name, you will be allowed to register your trade name on the free zone website.
Get Your Trade License
Free zone company formation in the UAE requires a trade license, which means you have permission from the UAE government to run your business in that particular free zone. Following the registration of your trade name, you are free to apply for a trade license. Your trade license will be issued based on the nature of your business. The free zones of Dubai grant a variety of business licenses, including
- Commercial license
- Warehouse license
- Professional license
- General trading license
- Manufacturing license
You will get your trading license related to your business activity.
Choose An Appropriate Office Location
Depending on their needs,a free zone company set up in the UAE can lease or purchase office space. You can make a decision based on the business activities and the labour needed. Flexi-desk choices may be appropriate for start-up businesses.
Essential Pre-Approvals for a Free Zone Company
Companies operating in free zones are bound by the rules of the free zones. Therefore, to get the necessary approvals, you must apply with all essential papers.
The list of documents varies according to the sort of commercial activity, the type of firm, and the free zone authority’s criteria. However, the actions and documentation required for approvals of free zone company setup Dubai are listed below as a basic guideline.
Obtain the Initial approval
The Initial approval is provided following more scrutiny. After you acquire the Initial Approval, you can register your company legally. For the approval, you need to submit some particular documents
- The application form should be filled out completely
- A business strategy
- A copy of your current business license/registration certificate (if you are an existing company, applicable for a local company only)
- Coloured passport copies of the company’s shareholder(s) and the new company’s chosen Manager/Director
- Specimen signatures of the company’s shareholder(s) and the new company’s designated Manager/Director
- 2 years of audited financial reports for a business entity or a letter of recommendation from an individual shareholder’s bank NOC from the current sponsor (for individuals)
- Deed of title to the unit
- Manager/Director Letter of Intent Registry Identification Code Form (RIC) (Original and notarized)
Read also: Mainland or Free Zone Company Formation-Which is Better for Small Business in Dubai?
Registration Process
You must pay registration and license costs after receiving the first clearance. The type of license required determines the cost of obtaining a license for a free zone company setup in Dubai.
Process of Obtaining a License a Visa
- The authority will produce lease agreements.
- After that, you will get a trading license
- The processing of visas will begin.
Start Free Zone Company in Dubai as A Foreigner
Knowing all the major points about starting a business in Dubai, a foreigner can set up a company in Dubai with the help of experts. Just follow these steps, and you will get a chance to grow in the global market. You can also contact The Trade License Company, a team of free zone professionals who can walk you through the process of free zone company formation in the UAE.
