From setting up a business in Dubai free zone to how to take advantage of it you will get all the information you need to feel comfortable choosing a Free Zone.
In addition to this, you will have a clearer idea of what business activities you can engage in and the documents needed to complete the process.
Dubai Free Zones
As one of the most successful cities in the United Arab Emirates Dubai has a large market, known for creating opportunities for foreigners wishing to establish a business in the UAE. Entrepreneurs and Investors from all over the world are looking for a stake in the economy of the UAE. The reason behind this is that the country has Free Zones that are tax-free zones.
Additionally, free Trade Zones allow foreigners to keep 100% of their shares, this feature differentiates it from other areas where investors must have a local sponsor who may keep part of the shares.
Benefits of setting up a business in the Dubai Free Zone
Dubai Free Zone has many advantages to start a business. If in doubt, we discuss some advantages of business set up in the Dubai Free Zone:
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- Investors will be able to keep all their properties regardless of their country of origin.
- Those entrepreneurs who decide to establish their business in the Dubai Free Zone will be able to repatriate all their profits and capital.
- They will be able to count on the total exemption of taxes that could be generated by their profits.
- There are no limits on the transfer of funds in the Free Zones.
- Utilities, such as electricity, are inexpensive.
- Office space is readily available.
The procedures for applying for licenses, visas, or bank accounts are much simpler and faster in the Free Zones.
Investors will be able to engage in international business without having to apply for extra permits.
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- The entrepreneur will not be charged any fees for goods.
- Free Zones are free of time restrictions, so you can operate 24 hours a day.
- Due to the business grouping, Free Zones have a great amount of logistic efficiency.
- We can conclude that Free Zones have flexible government policies, good commercial services, and incredible tax exemptions.
Kick off your business in Dubai Free Zones Steps:
Pay attention to the following steps to start your business in Dubai Free Zones; you must follow a specific procedure:
Choose a Business activity and company name
From the beginning, it is important to know what kind of business activity you will develop because the choice of the Free Zone depends on it. Generally, the Free Zones have different requirements according to the commercial activity that the investor decides to develop.
Additionally, it is necessary that you choose the name of the company; it must comply with the established standards. There are several requirements you will need to meet in order to have your name approved. It is worth bearing in mind that the name must be original and unique to be registered.
Next, find the Free Zone that best suits your needs.
Regarding the previous idea, most Free Zones are industry-specific, which means that you should choose the one that best suits your company’s needs.
Apply for the license and gather all the necessary documents.
Apply now for a business license. The duration of this process takes approximately 3 to 4 weeks.
Opening a Bank Account.
Once you have completed the previous steps, you must send all the requirements to the financial institution of your choice. Every business must have a corporate bank account
Documents you need to gather to start a business in the Dubai Free Zone
A series of documents is required to obtain to start your business in the Dubai Free Zone you must first gather. They are listed below:
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- Application form.
- A color copy of your passport.
- A detailed business plan.
- Business card.
- Memorandum of Association.
- Bank reference.
- Copy of the shareholder’s passport, if applicable.
- Free Zones in Dubai Lists and the activities they allow.
Below is the list of the main Free Zones and the activities they allow just to help a little in choosing Free Zones in Dubai to establish your business:
Dubai Airport Free Zone (DAFZA).
For the company’s logistics and transportation operations, DAFZA is the best. It is located next to Dubai International Airport. To help its consumers, they are offering 24-hour customs services.
Jebel Ali Free Zone (JAFZA).
One of the:
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- Largest
- Oldest
- The most expensive free zone in the UAE
- JAFZA is considered one of the great free zones in Dubai.
Dubai Multi Commodities Centre.
Here the exchange of commodities such as gold, pearls, and diamonds abounds. Besides, it promotes agricultural trade and has a coffee and tea center. It has a privileged location in the Jumeirah Lakes Towers area.
Dubai Media City (DMC).
DMC commonly known as Dubai Media City is located at the crossroads of the Middle East, Africa, and South Asia. Because of the support it provides for companies with media-related activities, it has become a global media hub.
One of the reasons why many choose this Free Zone is because it has a state-of-the-art infrastructure. Additionally, they have developed strategies and established centers to promote the country’s talent.
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So, it is quite clear why it hosts global media such as CNN, Showtime, Sony, MBC, Bertelsmann, and more. It is worth noting that the licenses that can be found in this area are stand-alone permits and commercial licenses. The following will name the sectors of companies that can apply to set up in DMC:
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- Advertising and communication sectors.
- For event management and assistance for events.
- Marketing and media.
- Media consulting services.
- Non-profit autonomous companies.
In this list, we must also mention the Dubai Technology Entrepreneurship Center (DTEC).
In this Free Zone, you will only find operations related to IT licensing. It is located in Dubai Silicon Oasis and allows you to include in one license up to 5 commercial activities. It is important to mention that they offer virtual office services, something difficult to find in other Free Zones.
The Dubai South Free Zone cannot be left out.
This Free Zone offers various activities, including logistics operations, trade, education, and aviation, located next to the Al Maktoum International Airport and is very close to the city center.
Dubai International Financial Center (DIFC)
The DIFC offers licenses for companies with financial activities. Those companies that offer services such as:
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- Administration
- Banking
- Legal,
- Strategic development and similar can apply for a license in this Free Zone.
Types of Licenses you can obtain to set up your business in the Dubai Free Zone:
Following are the licenses that are available for commercial setup in a Dubai Free Zone:
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- Commercial License: The commercial license is perfect for those entrepreneurs who want to engage in commercial activities related to buying, selling, importing, and exporting goods.
- Service License: The service license works for those who want to engage in the provision of a service such as consulting, advertising, beauty salons, and accounting, among others.
- General Trading Activities: This license has fewer restrictions than the commercial license and works for commercializing all types of goods, although there are exceptions.
- Industrial License: Ideal for companies wishing to perform industrial activities such as processing, manufacturing, packaging, packing, among others.
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Business Setting up Cost in the Dubai Free Zone:
The total cost to start up my business in a Dubai Free Zone is easy to calculate but without knowing all the details we can’t calculate the exact cost. You must first know the business activity and in which free zone it will be established, among other components to get a proper budget. Seek help from an expert in business formation who can consider your budget and needs so that you can start your business successfully. With over 20 years of experience in Connect Group, we offer you the help you need to successfully meet your business objectives.
Would you like to contact ConnectGroup to receive more useful information and tips about starting a business in the Dubai Free Zone? If you have any inquiries or if you want to get more information, email us at contact@connectgroup.co. You can also call us on +97143316688 and you will talk to one of our representatives.
