In recent years, the United Arab Emirates (UAE) has emerged as a hub for international business, attracting entrepreneurs and investors from around the globe. One of the most appealing aspects of doing business in the UAE is the presence of free zones, which offer a host of benefits to businesses looking to establish a presence in the region.
Allow our team of experts to guide your journey of business setup in UAE free zone. We specialize in free zone company setups, offering comprehensive assistance with location selection, pricing analysis, and ongoing requirements.
In this guide, we'll take a detailed look at how to set up your business in Dubai free zones, covering everything from the advantages of free zone business setup to the costs involved.
Free zones are designated areas within the UAE that offer special incentives and benefits to businesses operating within their boundaries. These benefits typically include 100% foreign ownership, tax exemptions, 100% repatriation of capital and profits, and streamlined processes for business setup and licensing.
Business setup in a UAE Free Zone involves a distinct process overseen by the Free Zone Authorities, separate from the mainland or offshore setup. Each Emirate has its own Free Zone Authority governing these entities.
Free Zones offer attractive benefits for startups, including 0% tax on customs duties, along with complete tax exemption on imports and exports, making them highly attractive to investors. Entrepreneurs seeking to establish a presence in these zones can capitalize on the advantageous facilities available.
Before diving into the specifics of setting up your business in a Dubai-free zone, let's explore some of the key advantages:
100% Foreign Ownership: Irrespective of the investor's nationality, free zones allow full ownership.
Tax Exemptions: Companies in free zones are exempt from UAE corporate income tax, enabling them to maximize profits.
Simplified Setup Process: Setting up a business is swift and straightforward in free zones, reducing administrative hassles.
Ideal for Startups and Small Businesses: Free zones provide an optimal environment for startups and small businesses to thrive.
Operational Flexibility: Businesses can operate round the clock, ensuring adaptability to various market demands.
Maximized Returns: Freezone company setup enjoys 100% returns on capital and profits, enhancing their financial viability.
Tax Exemptions: Free zone entities are fully exempt from corporate, personal, and income taxes, further boosting their profitability.
Streamlined Licensing: Free zones offer easier procedures for startup and licensing, minimizing bureaucratic hurdles.
Residence Visa Benefits: Businesses in free zones can obtain UAE residence visas for up to 3 years, facilitating long-term stays for investors and employees.
Expatriate Employment: Freezone business setup can hire expatriates without restrictions, ensuring access to a diverse talent pool.
For those considering free zone company setup in the UAE, these advantages make it a compelling option to explore.
When initiating a business setup in UAE free zones, securing the appropriate business licenses is essential. Free zone entities have the flexibility to obtain licenses tailored to their specific operations:
General Trading License: Ideal for investors involved in trading diverse products within the free zone.
Trading/Commercial License: Provides a time-bound authorization for industrial, commercial, or consulting endeavours.
Industrial License: Grants permission to import raw materials, manufacture goods, and export finished products internationally.
Service License: Facilitates the operation of law, accounting, and business consultancy firms within the free zone.
Manufacturing License: Allows for the establishment and operation of manufacturing facilities within the free zone for producing goods.
For those interested in freezone business setup, it's essential to consider the cost of establishing a free zone company in the UAE, which varies depending on factors like chosen license type, office space requirements, and additional services provided by the free zone authority.
Setting up a business in a UAE free zone is a straightforward process facilitated by the government's initiatives to allure foreign investors with low capital demands. Entrepreneurs opting for free zone company formation in the UAE have three main entity options:
Branch of a foreign or local company
Free Zone Establishment (FZE) with a sole shareholder
Free Zone Company (FZC) with 2 to 5 shareholders
Now let's walk through the step-by-step process of setting up your business in a UAE free zone:
To set up a business in a UAE free zone, follow these steps:
Select Legal Structure: Choose the appropriate legal entity type based on capital requirements.
Choose Trade Name: Pick a unique and permissible trade name that is not already registered.
Apply for License: Submit the required documents for the relevant business license.
Secure Office Space: Acquire office space through purchase or lease to suit business needs.
Obtain Approvals and Register: Obtain initial and business approvals, then register the company on the free zone authority's portal.
Receive License: Upon completion, expect to receive the business license within 2-4 weeks to commence operations.
Costs for setting up a free zone company in the UAE vary depending on the chosen free zone and business activity.
The cost of setting up a company in a Dubai-free zone varies depending on several factors, including the chosen free zone, business activities, and required facilities. However, here's a rough estimate of the typical costs involved:
Company Registration Fee: This fee covers the initial registration of your company with the free zone authority and can range from a few thousand to tens of thousands of dirhams, depending on the free zone.
Office or Warehouse Lease: The cost of leasing office space or warehouse facilities will depend on the size, location, and amenities offered. Lease prices in Dubai-free zones are generally competitive compared to prime commercial areas.
Business License Fee: Free zone authorities charge a fee for issuing the business license, which varies based on the type of license and business activities.
Visa and Immigration Costs: Visa processing fees, medical tests, and other immigration-related expenses for obtaining residence visas and work permits for yourself and your employees should be budgeted for.
Miscellaneous Costs: Additional costs may include legal fees, government charges, and any optional services or add-ons provided by the free zone authority.
For business setup in a UAE free zone, certain essential documents are required:
For General Setup:
Passport copies and passport-sized photographs of partners and business managers.
Trade names.
For Branches of Companies:
Attested copies of the registration certificate, incorporation certificate, and Memorandum and Articles of Association (MAA).
Original Board Resolution ensures the branch's financial commitment.
Passport copy and passport-sized photograph of the shareholder.
Business setup in UAE freezone are popular destinations for businesses due to their favorable regulatory environment, tax benefits, and simplified business setup processes.
Here are some of the popular free zones in the UAE:
Renowned for its specialized focus on commodities trading and related businesses.
Offers modern infrastructure, business-friendly regulations, and a strategic location in Dubai.
DMCC is one of the largest and fastest-growing free zones in the UAE.
One of the oldest and largest free zones in the UAE, located in Dubai.
Ideal for industrial, logistics, and manufacturing businesses.
Provides excellent connectivity through its proximity to Jebel Ali Port, one of the largest ports in the region.
Positioned as an international financial center and regulatory authority in Abu Dhabi.
Attracts financial services, professional services, and fintech companies.
Offers a common law framework and a robust regulatory environment.
Located adjacent to Sharjah International Airport, providing easy access to air and sea routes.
Known for its cost-effective business setup options and diverse range of industries.
Offers warehouses, offices, and land plots for lease at competitive rates.
Based in Ras Al Khaimah, it is one of the fastest-growing free zones in the UAE.
Caters to a wide range of industries, including manufacturing, trading, and service sectors.
Offers customizable business packages and competitive pricing for startups and SMEs.
We can handle every step, including deciding on a business activity and name, setting up a firm, registering with the appropriate authorities, opening corporate bank accounts quickly, and processing visa applications. Here are a few more reasons to choose us:
Expertise: With experience in freezone company setups in Dubai, UAE, we possess the knowledge and expertise to guide you through every stage of the setup process, ensuring compliance with regulations and maximizing efficiency.
Customized Solutions: We understand that every business is unique, so we offer customized solutions according to your specific requirements, whether you're a startup, SME, or multinational corporation.
End-to-End Support: From initial consultation to post-setup support, we provide comprehensive assistance at every stage of your journey, allowing you to focus on growing your business with peace of mind.
Setting up your business in a Dubai-free zone offers numerous advantages, including 100% foreign ownership, tax exemptions, and access to world-class infrastructure.
At Dhanguard, we understand that setting up a business in a UAE Free zone can be difficult, which is why we're here to make it as stress-free as possible. Our expert team will take care of all the complex processes involved in free zone company setup in Dubai, ensuring that you can focus on building your business.
From the legal requirements to securing necessary permits and licenses, we handle it all. And it doesn't end once your company is established – we provide ongoing support (such as VAT services, Bank Account Opening, Corporate tax, etc.) to ensure your success in the competitive free zone market.
So whether you're looking to establish a free zone business setup in the UAE or anywhere else in the region, count on Dhanguard to be your trusted partner every step of the way.
