Are you thinking about investing your money but don’t know how to start a business in Dubai free zone? Before getting into business setup procedure let us look at what are free zones and their importance in the UAE. The free zones of UAE are designated areas that offer tax benefits, full ownership, and more.
Dubai free zones have an easy business setup process. The free zones require minimum paperwork and minimal duration. It also offers networking opportunities and modern infrastructure for companies to expand their business, so choosing a free zone in Dubai is one of the best options. Let us discuss in detail the guide how to start a business in Dubai Free Zone.
UAE Free Zone Company Set up
Free zones are designated economic areas in the UAE that offer special regulations for companies to develop business within the country. Many sectors run in a free zone involving logistics, healthcare, media, etc. Let us look at the process of opening a company in the UAE free zone.
Select a Legal Entity
In the free zone of Dubai you can open a Free Zone Company or a Free Zone Establishment.
Choose a Suitable Free Zone
Choose a suitable free zone according to your business’s needs, keeping in mind location, local regulations, and other facilities.
Choosing a Business Activity
Selecting a business activity for your company is also essential as it will help you choose a suitable trade license. You can also select multiple activities under one license.
Select Company Name
It is important to select a name for your company. You can check the availability of your selected name with the free zone authority or other relevant economic department. The selected name should not have been registered before and comply with the country’s regulations and morals.
Obtain Initial Approvals
To get initial approval, you need to submit the following documents.
- Completed application form
- Photocopy of shareholder’s passport
- Photocopy of existing business license
- Two-year audit report (for the company)
- Reference letter from the bank (for individuals)
- Business Framework
- Memorandum of Association
Apply for Trade License
You’ll need a trading license to run your business in the UAE. This license will be applied to the type of business activities you choose.
Workspace Requirement
Getting an office is a must for your UAE Freezone company setup. The company can buy or rent a building for its business operations in free zones. Select an office according to your business’s needs and the number of workers.
Dubai Free Zone Company Setup Cost
The cost of a free zone company setup depends on the free zone, size of company, and the business activities. The company setup cost can be divided into the categories given below.
Cost of Business Registration
The registration cost is between AED 10,000-25,000. This fee is paid once in the beginning.
- License Cost
The license cost is between AED 15,000-50,000. This fee is paid annually and can differ depending on the license type and free zone.
- Visa Expenses
If you need to get a visa for yourself or your employees, you must pay visa fees and other medical checkup fees.
- Additional Costs
Some additional costs are involved in setting up a Dubai Free Zone company, including office expenses, consulting services fees, and translation services.
Allowed Business Activities in UAE Free Zone
In UAE Free zones, you can open the following businesses.
- Digital content & advertising
- Film making
- Graphic designing
- Game designing
- Scriptwriting & printing
- Software development
- Web Designing
- Marketing and media management
- Broadcasting & publishing
These are some of the allowed business activities you can choose for your UAE free zone company setup.
Types of Business Licenses in UAE Free Zone
Here is the list of different types of trade licenses in UAE-free zones.
- Trade or commercial license
- Industrial License
- Consultancy Services
- Offshore license
- Media license
- Educational license
- Manufacturing license
- Freelance license
- E-commerce license
Benefits of Free Zone Business
Starting a company in the UAE free zone is a smart move, as it has many benefits. Here are some of them.
- Proprietorship Rights
- Strategic Location
- Tax Advantages
- Simple Regulations
- Easy startup procedure
Free Zone UAE Business Ideas
Dubai’s modern infrastructure, government regulations, and a business-friendly environment open many opportunities for foreign and local investors. The UAE free zone has a promising range of industries. The following are some of the best business ideas for your UAE free zone company setup.
Tech Company
In UAE free zones, you can start a company related to e-commerce, software and mobile app development, Artificial intelligence technology for the educational, business, and health sectors, and more.
Trade and Logistics Network
Dubai is one of the best trade and supply chain destinations due to its strategic position. You can start a trade and logistics business easily in the UAE.
E-Commerce
E-commerce has become one of the best business ideas that is promising. You can easily sell your products and services through online platforms.
Tourism Business
Due to Dubai’s tourist attractions many people visit the country. The Tourism Business has become in-demand and rewarding in terms of profits.
Real Estate Agency
Many people are interested in buying and selling property in the UAE. Open a Real Estate Agency that deals with property management and buying and selling of property in the UAE free zone.
Final Words
At the end, we hope this article answers “How to start a business in Dubai free zone?”. A UAE company in a free zone comes with many benefits. You can take advantage of these benefits to make your business successful.
Establishing a business in the UAE can be difficult for new entrepreneurs. To overcome your business problems contact Al-Riyady. Our expert team will help you make best decisions and simplify the business setup procedure for you. You can contact us regarding Accounting and Auditing Services, Tax Consultancy, and more.