UAE Freezone company formation – Benefits and process
For startup entrepreneurs as well as those looking to expand their established business, UAE offers the perfect business landscape. Especially its thriving freezones, that help firms belonging to diverse sectors flourish. Dubai freezone company formation offers significant advantages including full foreign ownership, tax exemptions, and streamlined business setup processes.
In this helpful guide, you will get to know about the step-by-step procedure of establishing business in UAE freezones along with some other related information such as its benefits, costs, and document requirements.
Understanding freezones UAE
Freezones refer to dedicated economic zones in UAE where businesses can be established and run. Each freezone operates independently and is governed by its owned authority, sperate from that of other freezones and UAE mainland.
These freezones have their own area of focus when it comes to industries and allowed business activities. Businesses and companies who wish to operate in a UAE freezone must seek permit and license from its respective governing authority.
You must be wondering that how many freezones does UAE actually have where you can start your venture. For your knowledge, there are more than forty freezones that are currently present in the nation and are hosting thousands and thousands of companies already.
Some of the renowned names include jebel Ali Freezone (JAFZA), Internation Freezone Authority (IFZA), Sharjah Media City (SHAMS), Ajman Freezone, Dubai Media City, Dubai Multi Commodities Center (DMCC), etc.
Benefits of UAE free zone company formation
There are many advantages of Dubai freezone company formation, including:
Complete ownership: Enjoy 100% ownership of business without need of local sponsor.
Tax savings: No personal income tax along corporate and import/export tax exemptions.
Complete repatriation: Full repatriation of capital and profit.
Latest infrastructure: Access to one of the most advanced infrastructures in world.
Streamlined process: Simple administrative processes for establishing businesses.
Strategic location: Proximity of ports and commercial areas giving access to broader markets.
Global access: Easy access to international markets.
Process of starting business on UAE freezone
What makes UAE freezone company formation attractive is the ease of setup. Here is the step-by-step guide on how to register business in Dubai freezone:
- Choose your business activities: Your business operations also decide the type of license you will need. Here are the three broad types of licenses in UAE freezones:
Commercial license: For retail, wholesaling, trading, importing and exporting of products in freezone, you will need commercial license.
Industrial license: Industrial license in freezone lets you carry out manufacturing and industrial activities such as production of textile, food, etc.
Professional license: Delivering services based on expertise, knowledge, and skills, needs a professional license such as beauty salons, consultancy, etc.
- Pick your preferred freezone: Next, you must choose the freezone where you would like to start your business. While picking the one for you, make sure to check out if that freezone supports the activities you intent to pursue and what are the legal requirements and cost of setup in the freezone.
- Select your business’s structure: Determine the type of legal form for your business. It can be a limited liability company, a sole proprietorship, branch, joint stock company, or other type as may be permitted in your selected freezone.
- Register trade name: Find a suitable name for your business and get it registered with the freezone authority. The name must be in compliance with the naming rules of UAE.
- Documentation preparation: Prepare the documents for license application such as your visa and passport copies, initial approval certificate, business plan, lease agreement, and other paperwork as may be needed.
- Get the initial approval: For Dubai freezone company formation, you must first get initial approval from the respective freezone authority.
- Lease office space: Whether a physical office would be needed or not depends on the type of business license you need.
- Get additional permits, if needed: For some type of business operations, additional approvals from some government body may be needed.
- Obtain business license: Finally, with all approvals and documents ready, you must apply for the business license with the respective freezone authority. Fill out the application form carefully and pay the necessary fees. Your application will be reviewed by the authority and once approved, you can collect your freshly granted license.
- Get visa and corporate bank account: Finally, you can go ahead with the visa processing and along with that you must also open a business bank account for your business.
What are documents needed for UAE freezone business license
You must keep the following documents ready for Dubai freezone company formation:
- Copt of shareholders passport
- Visa copy or entry stamp
- Trade name reservation
- Passport size photograph
- Tenancy contract
- Business plan
- Bank reference
- Additional documents as may be asked by government
Please note that you may need to submit varied documents based on your business activity and requirements.
Cost of starting a business on Dubai freezone
The cost of Dubai freezone company formation depends upon a lot of factors such as your visa requirements, license type needed, office space requirements and more. As a starting price, you can expect the UAE freezone license cost to be around AED 16,900*.
For more detailing on costs, we recommend getting in touch with professional business setup consultants.
Start your business in UAE freezone
With careful planning, informed decisions and the right guidance, business formation in freezone of UAE can be hassle free and rewarding. The business atmosphere of the freezones makes the conduct of operations very smooth and profitable.
If you are also looking to establish your venture in one of the amazing freezones of UAE, get in touch with Dubiz Business Setup. Their industry experience and end to end company formation services won’t let you down. Their experts can handle the complete legal setup of your business in Emirates while making sure you stay updated throughout the process.
Contact them today to explore opportunities!
