Dubai Free Zones Company Setup

October 30, 2018

Setting up a company in a Dubai free zone offers several benefits for businesses looking to establish a presence in the UAE. Free zones are designated areas that offer special incentives, such as 100% foreign ownership, tax exemptions, and simplified company formation procedures.

Here’s an overview of the process involved in Dubai free zone company setup:

• Choose the Right Free Zone: Dubai has several free zones, each catering to specific industries and business activities. Research and select the free zone that best suits your business needs and objectives. Some popular free zones in Dubai include Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), Dubai Silicon Oasis (DSO), and Dubai Internet City (DIC).
• Select the Type of Company: Free zones offer various types of company setups, including Free Zone Company (FZCO), Free Zone Establishment (FZE), and branch offices of foreign companies. Determine the most suitable company structure based on your business requirements and expansion plans.
• Choose a Business Activity: Define the nature of your business activity and ensure that it is permitted within the chosen free zone. Free zones typically support a wide range of activities, including trading, manufacturing, logistics, technology, media, and more.
• Trade Name Reservation: Choose a unique trade name for your company and submit it for approval to the relevant authorities in the chosen free zone. The trade name should comply with the naming conventions specified by the free zone authority and reflect the nature of your business.
• Prepare Legal Documents: Prepare the necessary legal documents, including the Memorandum and Articles of Association (MAA), shareholder agreements, and other incorporation documents. These documents must be duly signed and notarized as per the requirements of the free zone authority.
• Submit Application: Complete the company formation application form provided by the free zone authority and submit it along with the required documents, including passport copies of shareholders, proposed office lease agreement, and business plan.
• Office Space and Facilities: Secure a physical office space or flexi-desk within the chosen free zone. Most free zones offer a variety of office options, including shared workspaces, executive suites, and warehouses, to accommodate different business needs.
• License Issuance: Upon review and approval of the application, the free zone authority will issue the commercial license, allowing your company to conduct business activities within the designated free zone. The license specifies the permitted activities, validity period, and other relevant details.
• Visa Processing: Apply for visas for shareholders, employees, and dependents through the free zone authority’s visa processing department. Visa requirements may vary depending on the company’s size, business activity, and other factors.
• Bank Account Opening: Open a corporate bank account with a local or international bank operating within the free zone. The bank may require copies of company documents, shareholder details, and other supporting information for account opening.
• Compliance and Renewals: Ensure ongoing compliance with the rules and regulations of the chosen free zone, including annual license renewals, visa updates, financial reporting, and other legal requirements.

By following these steps and working with experienced business consultants or PRO services providers specializing in free zone company setup, you can navigate the process of Dubai free zone company formation efficiently and establish a strong foundation for your business in the UAE.