Establishing a company in one of Dubai’s free zones has become one of the most popular choices for both global investors and entrepreneurs. This is due to their favorable business environment, complete with unique regulations and attractive incentives. In this guide, we will take you through all the essential details you need to know when business setup in dubai free zones. Specifically, we will cover the advantages you can expect, the processes involved, and key considerations that should not be overlooked.

 

What Are Dubai Free Zones?

They are areas with special regulations that allow businesses to operate within the free zones of Dubai. These zones are designed to promote foreign investment and business development. Companies founded in such zones are entitled to tax exemptions, 100% foreign ownership, and fewer administrative difficulties.

Dubai has more than 30 free zones, each designed for a specific industry, including media, technology, healthcare, logistics, and trade. These zones are strategically located to provide connectivity and infrastructure tailored to the respective business requirements.

 

Key Benefits of Business Setup in Dubai Free Zones

100% Foreign Ownership

A key benefit of establishing a Dubai-free zone is allowing foreign investors to own 100% of their business. Unlike in the mainland UAE, where you need a local sponsor, free zones allow 100% ownership of your business. It provides international entrepreneurs with tranquillity and complete operational authority.

Tax Exemptions and Other Financial Incentives

The free zones in Dubai are very tax-heavy. Depending on the free zone, companies established in these zones usually offer tax holidays of 15-50 years. In addition, they are free from import and export duties. As a result, businesses, especially those engaged in international commerce, now have to be loath to spend money, making it an extremely cost-friendly environment.

 

In most cases, businesses operating in free zones don’t pay VAT (Value Added Tax) or corporate tax, resulting in significant financial savings.

Capital and Profits Fully Repatriated

100% of the profits and capital is permissible for repatriation in free zones. Such a level of flexibility is important for overseas investors who may require their funds to be sent abroad.

Simple and Fast Setup Process

Launching a business in a Dubai free zone can be quicker and easier than doing so within mainland Dubai. It can take just weeks to set up (some free zones offer express setups). Free zones facilitate business establishment with little red tape, enabling entrepreneurs the opportunity for start-ups to happen in a short period of time.

A Designed Infrastructure of Elevation

Dubai paired free zones equipped with modern facilities and infrastructures such as offices, warehouses, and advanced telecommunications networks. Most of these zones are situated around major transportation centers (airports and seaports), which is beneficial for establishing international trade and logistics companies.

No Currency Restrictions

In addition, businesses established in Dubai free zones can open their accounts in any currency and freely move their funds across the borders. This is especially beneficial to companies that have foreign customers and suppliers.

 

How do you set up a business in Dubai’s free zones?

Here are the steps to establish a business in Dubai’s free zones. Here is a general overview of how this process works:

Choose the Right Free Zone

Dubai is home to a plethora of free zones, each with its own related industry پوهه. Below, we list some of the most common:

Dubai setup types in Freezone: Jebel Ali Free Zone (JAFZA): It is best suited for trading and manufacturing companies.

Dubai Airport Freezone (DAFZA): Ideal for businesses needing access to international airports.

Dubai Multi Commodities Centre (DMCC): Ideal for businesses dealing in commodities (gold, diamonds, and other precious materials).

Dubai Silicon Oasis (DSO): Technology and innovation.

With each free zone having its specific activities, rules, and facilities, selecting the right free zone is crucial based on the type of your business and its requirements.

Select Your Business Activity

Decide on the business activity you want to undertake before applying for a business license. Dubai free zones issue licenses for a wide range of business activities, such as commercial, industrial, and professional services. Certain activities may be restricted in some free zones, so it’s important to check whether your zone has permitted your type of business.

Choose a Business Name

Choose a business name that fits the free zone/ license rules. The name can not be similar to an existing business name. No foul language, religion, or possible confusing terms.

Submit an Application

Finally, once your business name is decided, apply to the free zone authority. This may include personal identification documents, proof of financial capability, and a description of the intended business activity.

Obtain the Required Licenses

Once Approved for Your Application, the Next Step is To Get The Required Licenses to operate. Every business requires a specific type of license, which could either be a commercial, professional, or industrial license.

Lease Office Space

For most free zones, companies have to occupy a rented office or commercial facility inside the zone. Office needs vary by zone but typically are from small offices to large industrial spaces for manufacturers.

Visa Process

The free zone also allows residency visas for business owners and employees. (the number of issued visas depends on the rented office space and policies of a particular free zone).

Open a Corporate Bank Account

Once you’ve been issued your business license, you must open a corporate bank account. Due to Dubai free zones partnerships with registered banks, it is easier than ever for businesses to open their accounts and manage their finances.

 

Popular Free Zones for Business Setup in Dubai

Jebel Ali Free Zone (JAFZA): The largest free trade zone in the world, is a perfect choice for logistics, manufacturing, international trade, and trading companies.

Dubai International Financial Centre (DIFC): A top-rated financial center providing a strong ecosystem for banking, insurance, and other financial services companies.

Dubai Media City: This is the go-to free zone for media companies, such as publishing, advertising, and broadcasting, among others.

Dubai Healthcare City: Dubai Healthcare City integrates a specialized zone for hospitals, clinics, and medical research-related businesses.

 

Costs of Business Setup in Dubai Free Zones

The cost of establishing a company in Dubai-free zones can vary depending on the area/zone, the kind of business you want to establish, office space, and the number of employees. The setup cost in regulating a small business in a free zone can vary; however, an estimated cost of between AED 15,000 and AED 50,000 (including license fees, office rental, and other administrative costs) may be anticipated.

 

Conclusion

There are many advantages to setting up a business in Dubai’s free zones, such as tax exemption, 100% foreign ownership, and a business-friendly environment. Choosing the perfect free zone and taking the required steps and cost considerations means setting up a successful business in Dubai.

To learn more about setting up your business in the Free Zones of Dubai, log on to globalbusinesssetup.com and go step-by-step through the whole process with the help of experts.

 

Frequently Asked Questions

Can Foreigners Have 100% Ownership of a Free Zone Business?

Indeed, this is one of the benefits of setting up a business in Dubai’s free zones : foreign investors can own 100% of their companies without a third partner.

Have I to Employ a Local Sponsor?

Are Local Sponsors Required In Free Zone Business? This is one of the major benefits of establishing a presence in such zones.

Do You Train within the Free Zone?

Free zone companies can solely conduct their activities in the free zone. Nevertheless, certain free zones provide the opportunity for a dual license, which permits some limited activities outside the zone.

How Long Does it Take to Set Up a Business in a Free Zone?

Freezone setups in Dubai usually have 1 to 4 weeks lead time to have your business up and running as per the zone and business you plan to set up. Certain zones have fast pathways to rapid deployment.

Can Free Zone Help Me Get UAE Residency?

Yes, you can get a UAE residency visa as a business owner or employee via the free zone.