Dubai is one of the world’s leading business and investment destinations, thanks to its dynamic economic environment and the unique benefits it offers to investors. Among the options available for setting up a business in Dubai, free zones stand out as an exciting option that attracts many entrepreneurs and investors from all over the world. Setting up a company in Dubai’s free zones offers excellent investment opportunities thanks to the incentives and exemptions these zones provide.

Dubai’s free zones offer businesses a range of unique benefits, including 100% tax exemption on profits, 100% foreign ownership without the need for a local partner, and simplified customs and registration procedures, which speed up the process of setting up a business and reduce administrative complexity. In addition, companies in free zones enjoy access to world-class infrastructure, which enhances their ability to grow and expand in the global market.

The steps to establish a company in the free zones include a set of important procedures, starting from choosing the appropriate type of license, through collecting the necessary documents, and completing the registration procedures and obtaining the required licenses. Cooperating with companies specialized in providing establishment services, such as Itqan Company, is an essential step to ensure the success of the process and avoid any potential obstacles. With its extensive experience, Itqan Company contributes to simplifying these procedures and providing comprehensive support to investors, making establishing companies in Dubai’s free zones a smooth and fruitful experience.

Basic steps to establish a company in the free zone

Establishing a company in Dubai’s free zones requires following a set of basic steps to ensure the process runs smoothly. Here are the main steps to follow:

1. Choosing a Free Zone: Select the free zone that best suits your business and needs. Free zones in Dubai vary in terms of specialization and features.
2. Determine the type of company: Choose the type of company that is appropriate for your business, such as a limited liability company (LLC), a branch of an international company, or a holding company.
3. Prepare a business plan: Prepare a detailed business plan that outlines the company’s goals, type of activity, and market strategies.
4. Gather the required documents: Gather all the necessary documents such as passports, articles of association, business plan, personal photos, proof of residential address, and other required documents.
5. Choosing a company name: Choose a company name that complies with local laws and reflects the company’s activity. Make sure the name is not duplicated and is available.
6. Submit a license application: Submit an application for the appropriate license from the administrative authority of the free zone. The application includes the details of the company, its activity and the founders’ data.
7. Sign a lease: Sign a lease for an office or warehouse space in the free zone. Rent varies depending on location and size.
8. Open a bank account: Open a business bank account in the name of the company. You will need to provide company documents and proof of the required capital.
9. Issuance of licenses and permits: After completing and approving all documents, you will receive the necessary licenses and permits to operate the company.
10. Hiring and Visa Procedures: If you plan to hire employees, apply for work and residence visas for the employees.
11. Trademark Registration: Register your company’s trademark to protect your intellectual property rights.
12. Starting a Business: After obtaining the license and all necessary permits, you can start the business and operate the company.

Documents required to establish a company in the free zone

To set up a company in Dubai’s free zones, you will need to submit a set of basic documents. The documents vary slightly depending on the type of company and the specific free zone, but generally include the following documents:

1. Passports: Copies of passports of founders, investors and directors.
2. Portraits: Recent portraits of founders and directors.
3. Business Plan: A detailed document that outlines the business’s activity, goals, and business strategy.
4. Articles of Association: A legal contract that specifies partners, ownership percentages, and roles and responsibilities.
5. Licenses and Permits: In some cases, additional permits may be required depending on the type of business activity.
6. Proof of residential address: A document proving the residential address of the founders and directors, such as a utility bill or lease.
7. CVs: CVs for founders and managers to illustrate their professional backgrounds.
8. Powers of Attorney: If a legal representative or advisor is handling the registration process, you may need to provide legal power of attorney.
9. Proof of Capital: In some cases, proof of the source of capital or the amount of the required deposit may be required.
10. Feasibility Study Report: In some free zones, a feasibility study report may be required to show the economic viability of the project.
11. Additional Documents: There may be additional documents required depending on the type of company and planned activities, such as commercial contracts or shareholder documents.

Types of licenses that can be obtained in free zones

In Dubai’s free zones, you can obtain different types of licenses depending on the type of business you intend to do. Here are the most prominent types of licenses that can be obtained:

1. Business Licenses: Issued to companies that carry out business activities that include selling goods or services. These licenses are necessary to trade and sell products in the market.
2. Industrial licenses: These are granted to companies that engage in industrial activities, such as manufacturing and production. These licenses include companies that convert raw materials into finished products.
3. Service licenses: Issued to companies that provide specialized services such as consulting, accounting, marketing, and other intangible services.
4. Professional licenses: granted for professional activities that include providing specialized professional services, such as law, engineering, medicine, and education.
5. Service Business Licenses: Combine commercial and service activities, and are granted to companies that provide specialized business services such as event management and training.
6. Investment Licenses: Issued to investors who intend to buy or sell assets, real estate, or shares. These licenses are suitable for companies that focus on investment activities.
7. Technical Licenses: Granted to companies working in the fields of technology and technology, including software development, technical consulting, and technical innovations.
8. Tourism Licenses: Issued for tourism-related activities such as travel, entertainment, and hotels. Includes companies that provide tourism and recreational services.
9. Media Licenses: Granted to companies working in the media and publishing field, including the production of media content and advertising.
10. Logistics and Transport Licenses: Issued to companies that provide transport, shipping and logistics services, such as land, sea and air transport companies.

Basic costs of setting up a company in the free zones

When setting up a company in Dubai free zones , there are several basic costs to consider:

• Licensing fees: include the fees required to obtain a commercial, industrial or service license depending on the type of commercial activity carried out by the company.
• Office Rent: The costs of renting office space or warehouse space in the free zone, which vary depending on the size of the office and its location within the zone.
• Registration costs: These include fees associated with registering the company and issuing the legal papers necessary to establish the company.
• Legal fees: include the costs of legal advice and the preparation of contracts and other legal documents.
• Visa costs: Includes fees related to issuing work and residence visas for employees and investors.
• Office equipment: Includes the costs of purchasing or renting furniture and equipment needed to operate the office, such as computers, printers, and office furniture.
• Support services: costs of consulting services or assistance with registration procedures, and providing support at all stages of establishment.
• Bank Account Opening Costs: Includes fees associated with opening a business bank account in the company’s name.
• Insurance: The costs of insuring the company and its assets, which may include property insurance and liability insurance.
• Additional Government Fees: Includes any other fees that may be imposed by government agencies or the Free Zone Administration to meet certain requirements.

In conclusion, establishing a company in Dubai’s free zones is a strategic move that contributes to achieving success and growth in a dynamic and thriving business environment. Dubai’s free zones offer many advantages such as tax exemptions, 100% foreign ownership, and customs facilities, making them an ideal destination for investors and entrepreneurs seeking to take advantage of global business opportunities.

Establishing a company in a free zone allows you to benefit from a business environment free of administrative complications, with simplified and fast procedures. Free zones also give you access to vast global markets thanks to Dubai’s strategic location. However, success in this field requires a deep understanding of the requirements for incorporation, including choosing the right type of license and submitting the required documents accurately.

Etqan is an ideal partner in this journey, offering integrated services that help simplify all aspects of the incorporation process. By leveraging its extensive experience and in-depth knowledge of procedures and requirements, Etqan provides the necessary support to ensure a smooth and efficient incorporation process. From providing professional advice to handling legal and administrative procedures, Etqan helps save investors time and effort, helping them achieve their business goals quickly and efficiently.

The most important frequently asked questions about establishing companies in the Dubai Free Zone