How to set up a company in the free zone

٠٤ يناير How to set up a company in the free zone

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Dubai is one of the world’s leading business destinations, thanks to its strategic location and dynamic economy. Dubai’s free zones offer a unique opportunity for investors and entrepreneurs to set up their businesses in an environment that encourages growth and innovation. Setting up a company in a free zone not only benefits from trade and tax facilities, but also extends to obtaining full ownership of the company, which provides investors with greater freedom to make strategic decisions.

Dubai Free Zone offers many benefits such as full tax exemptions, no need for a local partner, and special customs facilities. These areas also provide a business environment equipped with the latest infrastructure and technologies, making them ideal for small, medium and large enterprises alike. However, the procedures and legal details may seem complicated to those who do not have previous experience in setting up a company in Dubai .

This is where cooperation with specialized companies such as Itqan comes in, which contribute greatly to facilitating this process. Itqan offers a comprehensive range of services that include incorporation consultations, guidance on choosing the appropriate free zone, and preparing the necessary legal documents. Thanks to its extensive experience and specialized team, Itqan can ensure that the incorporation process is accelerated and simplified, allowing investors to focus on developing their business instead of worrying about bureaucratic procedures.

How to set up a company in the free zone

To establish a company in a free zone in Dubai, you usually need to follow the following steps:

Choose the type of company: You must choose the type of company you want to establish, such as a limited company, a sole proprietorship, or a partnership.
Choosing a Free Zone: Select the free zone that suits your company’s activity and matches your business requirements.
Determine the capital: Determine the amount of capital required to establish your company according to the requirements of the free zone.
Obtain prior approval: You may need to obtain prior approval from the Free Zones Regulatory Authority.
Prepare the necessary documents: Prepare the documents required to establish the company, such as the necessary contracts and agreements.
Submit Registration Application: Submit the registration application for your company in the selected free zone and provide all required documents.
Get your license: After your registration application is approved, you will be granted an operating license that allows you to start working.
Open a bank account: Open a bank account for your company so that you can manage financial transactions efficiently.
Residence and work visas: You may need to arrange residence and work visas for the foreign employees you intend to employ.
Compliance with legal controls: Ensure compliance with all local legal controls and regulations in the free zone.

Free Zone Company Formation Fees

When setting up a company in Dubai’s free zones, there are a number of basic fees that you may need to pay. These fees include:

License Fee: Paid to obtain the license that allows you to practice business in the free zone. Fees vary depending on the type of business and company.
Registration fees: These include fees associated with registering the company and issuing the legal papers necessary for its establishment.
Rental Fees: Relates to the rental of office or commercial space in the free zone. Varies depending on the size and location of the office.
Visa fees: Includes fees related to issuing work and residence visas for employees and investors.
Support Services Costs: Includes fees for consulting services, assistance with legal procedures, and administrative support.
Bank Account Opening Fees: Includes fees associated with opening a business bank account in the company’s name.
Insurance fees: relate to insuring the company and its assets, such as property and liability insurance.
Additional fees: may include any additional fees imposed by the free zone’s governing body, such as renewal or compliance fees.

Types of companies that can be established in free zones

In Dubai’s free zones, you can establish several types of companies, each of which meets specific needs and is subject to specific laws and regulations. Here are the most prominent types of companies that can be established in free zones:

Limited Liability Company (LLC): Allows individuals or companies to form a separate legal entity with limited liability for shareholders. These companies usually require a local partner in the UAE, but in free zones, they can be fully owned by foreigners.
Branch of an International Company: International companies are allowed to open a branch in the free zone. The branch can carry out the same activities as the parent company, but is not considered an independent legal entity.
Holding company: Manages equity interests in other companies. These companies can be used to invest in and control subsidiaries.
Sole Proprietorship: Owned and operated by just one person. This type of company is preferred for individuals who want to start a small business or private enterprise.
General Partnership: This involves companies owned by more than one person who share the liability. This type of company is relatively rare in free zones but may be available depending on the specific regulations.
Limited by Shares Company: Used for investing in shares and managed by a group of shareholders. This type of company varies depending on its size and the nature of its business.
Investment company: Focuses on investment activities such as buying and selling assets and real estate. These companies can be wholly owned by foreigners in free zones.
Trading Company: Includes companies that buy and sell goods and services. They can be local or international trading companies targeting the regional and international market.
Service Company: Provides specialized services such as consulting, accounting, and training. Focuses on providing intangible services to clients.
Industrial company: It is engaged in manufacturing and production. This type of company includes companies that convert raw materials into finished products.

Best Free Zones to Set Up a Company in Dubai

Dubai has many free zones that offer various benefits to investors, each of which is suitable for different types of business activities. Here are some of the best free zones to set up a company in Dubai :

Dubai International Financial Centre (DIFC): DIFC is one of the most prominent free zones that focuses on the financial and banking sector. It provides advanced infrastructure, an advanced business environment, and tax exemptions for financial institutions.
Jebel Ali Free Zone (JAFZA): One of the largest free zones in Dubai, known as a commercial and industrial hub, JAFZA offers excellent logistics, shipping and warehousing facilities.
Dubai Multi Commodities Centre (DMCC): DMCC is one of the best free zones for companies operating in the commodities, precious metals, and energy sectors. It is distinguished by its strategic location and modern infrastructure.
Dubai World Trade Centre (DWTC): DWTC is an excellent choice for companies focused on international trade and exhibitions. It offers a wide range of services to support commercial and business activities.
Dubai Media City (DIC): DIC provides an ideal environment for media and advertising companies, including production studios and publishing companies.
Dubai Healthcare City (DMC): Dedicated to medical and healthcare activities, including hospitals, clinics, and medical companies. DMC provides advanced medical facilities and a supportive environment for healthcare.
Dubai Industrial City (DIS): Focuses on heavy industries and manufacturing, providing ample space and advanced facilities to support industrial companies.
Dubai South: Located near Al Maktoum International Airport, it is a logistics and industrial hub. It offers ample space and advanced facilities for businesses.
Dubai Design City (D3): Targets companies working in the fields of design, fashion and arts. It provides a creative and supportive environment for designers and artists.
Sharjah Free Zone (SAIF Zone): Although located in Sharjah, SAIF Zone is close to Dubai and offers similar benefits, including tax exemptions and ease of incorporation.

In conclusion, setting up a company in Dubai free zones is a strategic move with many advantages that enhance the chances of success and growth in a global business environment. Dubai free zones provide an ideal environment for businesses by offering tax benefits, customs exemptions, and opportunities for full company ownership by foreigners. These advantages make Dubai an attractive destination for investors and entrepreneurs from all over the world.

Establishing a company in a free zone requires a thorough understanding of the procedures and requirements, from choosing the right area to completing all the necessary documents and obtaining the necessary licenses. This process can be a bit complicated, but working with a specialized company like Itqan can make it much easier and smoother.

Itqan Company provides integrated services to support investors in all stages of the establishment process. With its deep experience in dealing with legal and administrative procedures, Itqan provides professional consultations that help in choosing the most appropriate among the various free zones, achieving full compliance with legal requirements, and ensuring the company’s registration quickly and efficiently.

Your cooperation with Itqan is not limited to accelerating the establishment process, but extends to providing continuous support and guiding you towards making the most of the opportunities available in the market. With their support, you can focus on growing your business and achieving your business goals with greater confidence.