04 Jun Looking to Setup Business in Dubai Free Zone?
UAE is an investor-friendly country and invites foreign investors as well as entrepreneurs who aspire to expand their business overseas and locally. Various companies from diverse sectors have established their base in UAE free zones.
In Dubai itself, there are over 50 free zones to choose from. These free zones promote foreign investments by providing benefits like 100% foreign company ownership, import and export tax exemption, exemption from business and personal income tax, 100% repatriation of capital and profits and many other benefits.
With numerous advantages like these, setting up a company in Dubai free zone is an appealing option. Moreover, Dubai offers the most liberal working environment, state-of-the-art infrastructures, diversified economy, ample support from the government, etc. to foreign investors dreaming to start their business journey in Dubai.
So if you too are planning for new company formation in Dubai free zone, this article will tell you how to go about it.
How to Set up a Company in Dubai Free Zone?
Business setup in Dubai free zone is pretty easy and quick. Free zone authorities in Dubai require minimum paperwork and time. The steps for company setup are as follows:
- Determine the Type of Legal Entity
Identifying the type of legal entity your business would take up is the very first step in the process. You can either register a new company in the form of a Free Zone Limited Liability Company (FZ LLC) / Free Zone Company (FZ Co.) or Free Zone Establishment (FZE). Each free zone has its own restrictions regarding company structure and allows registration of a specific type of company. So you need to enquire with the individual free zone authorities or look these up on the official website of the zone.
- Reserve a Trade Name
Choosing a trade name is a very important part of the legal procedure. Your trade name should indicate the nature of the business you are going to do. You need to enquire about free zone authority regarding the availability of trade name you intend to take.
- Apply for a Business License
Depending on the primary activity or the type of your business, apply for a business license. Few types of business licenses are commercial, professional, consultancy, educational, industrial, manufacturing, etc. However, certain activities like legal consultancy, food trading, jewelry trade, etc. require additional government approvals.
- Choose your Office Premises
Depending on your requirements, either choose to buy or lease your office premises. It is easy to get assistance to find premises, set up internet, electricity, water and other amenities in the free zone.
- Get Initial Approvals
Next, you need to get the pre-approval for business set-up from the respective free zone. Depending on the type of business setup, type of business activity and requirements of the free zone, you need to furnish certain documents in order to get approval from the free zone. These documents include an application form, business plan, passport copies and specimen signature of the shareholders and directors, letter of intent, past 2 years audit report, etc.
- Get Business Registration and License
Next,you need to get your business registered. It usually takes around 3 weeks for company registration. Pay registration fees and license fees. At this stage, along with the application for registration, you need to submit notarised and attested copies of documents like board resolution appointing director or manager, Power of Attorney given to director or manager,Memorandum of Association, Articles of Association, details of share capital, etc.
After submission of the above documents, free zone authorities will prepare the lease agreement and thereafter you will get your trade license.
However, one important thing to note here is procedures, rules and laws for the business set up in Dubai free zone differs from zone to zone. Therefore, it is advisable to seek professional help from experts like Intuit Management Consultancy who can help you with all the legal formalities and get your company incorporated seamlessly.
Start your business journey in the UAE with Intuit Management Consultancy.