Dubai is one of the world’s leading business and trade destinations, a status it has established in the past two decades.
The benefits provided in Dubai’s 30+ Free Trade Zones (FTZs) are the main reasons that foreigners have flocked here in the masses to invest. Acquiring your trade license in Dubai free zone grants the following benefits:
- 100% company ownership
- Repatriate all earnings and capital
- Exemption from corporate and import/export taxes
Office in Free zone
How to Set up company in Dubai Free Zone
With the benefits mentioned, here is how you can set up your company in a Free Trade Zone in the Emirate:
1. Select Business Activity and Legal Entity
Prior to anything, you need to be certain of the business activity that your company plans to carry out. You must acquire a trading license according to those activities. For example, for business setup of a car dealership, you will need a commercial license.
You must also choose the legal entity for the business. The legal entities available in free zones are:
- Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
- Free Zone Establishment (FZE)
2. Pick a Company Name
Next, pick a name that is approved of under the government’s regulations. Once that is done, you can reserve the name and wait for initial approval from the DED (Department of Economic Development) and/or the free zone authority.
3. Apply for Trade License
Gather all the documents such as:
- Filled application form
- Business plan copy
- Passport copies of shareholders
Submit it to the respective free zone authority. They will take a little over a week to review and give you an answer. Additional documents may be required according to different free zones.
4. Complete Paperwork and Find Office
You must fill out the complete paperwork and submit it to the free zone authority for the next round of approval. The next step is to find a suitable office space. In free zones, you have the option to either buy or lease an office space.
Pre-Approval Registration and Document requirements
Companies established in free zones are governed by the rules of the respective free zones. These means that different documents will be required for pre-approval and registration in each free zone. In general, the documents required are:
- Completed application form
- Business plan
- Copy of existing trade license/registration certificate
- Colored passport copies of shareholders and managers
- Specimen signature of the company’s shareholder and managers
- 2 years’ audited financial reports for corporate entity or certificate of reference from a personal bank of the individual shareholder
- NOC from current sponsor (for individuals)
After the initial approval, submit the registration fees and license fees. This will require additional documentation. After this, the license will be processed and your business setup in Dubai free zone will be complete.
Voila! These are the steps for business setup in Dubai free zone. Whilst the process may seem relatively simple, there can be parts that will trouble you if you are new here.
For this reason, we recommend the assistance of a business setup consultancy in Dubai. Their familiarity with the laws and regulations makes the process a breeze and allow you to focus on other aspects of your company.
For further information and assistance on how to register your company in the UAE, speak with our experienced consultants. Book your FREE consultation today at +971 558654072, +971 4 3827780 or drop us a line on info@test.companysetup.ae
Company Setup Consultancy Logo
