A company set up in Dubai’s free zones is one of the best options for investors. They can make lots of profits from the business assistance provided by the authorities of free zones. As the name suggests, investors are free to operate and expand their business in UAE free zones.
The economy of the United Arab Emirates is stable due to its prosperous free zones. It is a prime location for international companies for their business setup UAE.
The popularity of this region is due to its tax policies, recovery of income and profits, opportunity to make new contacts and a versatile lifestyle.
What is a UAE-Free Zone Company Setup?
A free zone company in Dubai is a registered organization in one of the free trade zones. One of the most common business setups is a free zone establishment (FZE), which requires one shareholder. On the other hand, a free zone company (FZ Co.) has more than one shareholder. Company formation in the UAE free zone paves the way for trading and other affairs.
A UAE free zone company setup brings many benefits to the sponsor, including cost-effective payments and the option to choose suitable workspace for your company in the local area. In the upcoming lines, we will discuss the complete setup and procedure in detail.
Company Formation in UAE Free Zone
Company formation in UAE free Zone is easy, as it takes less time and requires less documentation. The detailed steps for Setting up a Company in the UAE free zone are discussed below.
Decide The Type Of Legal Entity
In a free zone, there are two types of legal companies that you can select for your business setup UAE, a free zone company (FZ Co.) or a free zone limited liability company (FZ LLC) and a free zone establishment (FZE). In an (FZC) the number of shareholders can be more than one, while in an (FZE), the number of shareholders is one.
Select a Trade Name
While selecting a trade name for your business setup UAE, it is important to keep in mind that the name should not be plagiarized, must comply with the morals of society, and should be according to the type of your business setup and activities. After selection, it must be approved by the Department of Economic Development.
Get a Trading License
Apply for a trading license according to the type of business you want to undertake. Different types of trading licenses are available for a UAE free zone company setup, including a General Trading License, a Commercial License, a Services License, a Manufacturing License, a Warehouse License, and an Industrial License.
Select a Workplace
For your UAE Free Zone company setup, you will need a workplace where you can run your business without any hassle. You can either buy or lease a workplace. Select your office according to the type of your business and the number of workers.
Get Initial Approvals and Register your Company
Submit an application form, your business plan, passport copies of shareholders and directors, NOC of current sponsors, and a bank statement to get initial approval from free zone authorities. After getting approval, pay the registration fee and license fee to register your company.
Apply for Visa
Applying for a visa is another important step. You can apply to get a visa for yourself and your employees.
Open a Corporate Bank Account
Opening a Bank Account is crucial for tracking your business’s financial transactions in the UAE. You can open your Free Zone business bank account in one of the banks in Dubai that offers online banking, mobile banking, check services, debit cards, and other facilities.
Required Documents for Business Setup UAE
Certain documents are required to be submitted for company formation in UAE free zone. These documents include are,
- License application form
- Capital information
- Initial Approval Certificate
- Well-prepared Business Plan
- Memorandum of Association
- Articles of association
- Photocopies of passport
- Reference letter from your current bank
The investors need to submit all of the documents mentioned above to the authorities to get their company certified.
Features of Company Formation in UAE Free Zone
The Free Zone Company setup is one of the prominent choices of foreign investors due to the various benefits discussed further down.
- Complete Ownership
- No income or import/export tax
- Complete repatriation of capital and profits
- Hassle-free immigration process
- No currency restrictions
- Assets confidentiality
- Quick business registration with a few documents
- Approach to the prime architecture and office facilities
- Three-year long residence visa and trading license for several years
- Access to international markets
Apart from that, the UAE free zone company setup connects you to the global market through its airports and seaports, the opportunity to advance your business in the flourishing market of UAE through its social network and trading policies.
Cost of Free Zone Company Registration
The cost of company formation in UAE free zone varies according to the type of business and business activities. Generally, it is between AED 9,000 and AED 10,000.
What is a UAE Free Zone License, And How Do You Get It?
In the UAE, a license is an official document that permits investors to operate their business legally. Different license options are available according to the designated free zones. After registering the company, the corresponding Free Zone Authority issues the free zone license.
It is vital to select your business activity as you’ll only be able to conduct the business activities mentioned in the issued license. Under one license, you can conduct ten business activities. The fee structure, however, will be different according to the number of activities selected.
Wrapping up
Finally, you will have a full understanding of business setup in UAE Free Zones. The main highlight of company formation in the UAE free zone is that foreign ownership is allowed without any restrictions.
These companies are under the control of separate Free Zone authorities, which are responsible for their regulations and license provisions. In essence, the UAE free zone company setup is the most beneficial way to advance your business in the Middle East region.
Alriyady Auditing & Accounting is a certified company that specializes in auditing and accounting in the UAE. We provide Auditing, taxation, and Accounting Services to private and public firms in Dubai. For a smooth business setup in Dubai, we suggest that you contact our professional team at aauditing.com.
