New Business setup in Dubai’s Free Zone: Things to know

Posted by Socialite Consultancy Services on March 25th, 2020

Setting up a new business in Dubai’s free economics zones offers a lot of benefits including geographical advantages, easy company regulations, and tax relaxations to the business owners. These benefits encourage startups and entrepreneurs to set up new trades and economic activities in the country. Free zones or free economic zones are governed and handled under specific regulations with an exemption on tax rules to promote businesses. They are designed to encourage foreign investors to boost international trade and business in any country.

Benefits of New Business setup in Dubai’s Free zones

• 100% ownership of your business
• No need of local investors to start your company
• Keep 100% repatriation of capital and profits
• No currency restriction for the business operation
• 0% corporate and personal tax
• Register for a new business online
• Conduct operations both inside and outside the country
• Operated and governed by their own framework of regulations with the exception of UAE criminal law

If you are looking for a new business setup in Dubai, there are many free zones are available for promoting different kinds of business activities. Depending on your business activity, you can choose a free zone in Dubai for company formation. Some of the most popular Dubai Free Zones are:

• Dubai Airport Free Zone
• Dubai Auto Zone
• Dubai Design District
• Dubai Healthcare City
• Dubai Industrial City
• Dubai International Financial Centre
• Dubai Internet City
• Dubai Knowledge Park
• Dubai Logistics City
• Dubai Textile City
• Energy and Environment Park

Type of Business entities and trade licenses allowed for new business setup in Dubai

In Dubai’s free zone, anyone can register a new company under three categories – Free Zone Establishment (FZE), Free Zone Company (FZC), and Branch Office of an existing business. Apart from this, one also needs to get a trading license to operate their business activities for the various incentives that free zones in Dubai provide for license holders. For the various trade activities, authorities offer following trading licenses for new business setup in Dubai:

• Trading License: For trading activities like buying, selling, and import & export, of a limited number of commodities
• General Trading License: For the trading of all types of goods
• Service License: For activities like consulting, accountancy, and advisory services
• Industrial License: For industrial activities like consulting, accountancy

Registration & License Fee

For new business setup in Dubai, you need to pay a one-time registration fee. Depending on the company type and the free zone selected, Dubai company registration cost can take around AED 10,000 to AED 50,000. Apart from this, you should also have to pay for the trading license you get for the business activities. Depending on the trading license type, it can cost around AED 10,000 to AED 50,000 annually.

Documents Required

For setting up a new business of company formation, as a business owner, you have to submit the following document during the company registration process.

• Copy of shareholder(s)’ passport and visa
• Duly filled application form
• Memorandum and Articles of Association (MAA)
• Copy of Board Resolution

Company formation or new business setup in Dubai can be an exhausting process for startups or business owners. It is always a great idea to get the help of professional business consulting services in order to go through the complete registration process smoothly. Their business setup experts can help you with all the legal and registration process in the most efficient way.