Setting up a business in Dubai Free Zones Dubai Free Zones are an ideal destination for entrepreneurship and company formation, providing an ideal business environment with many advantages and facilities for foreign and local investors alike. Dubai Free Zones include a variety of economic sectors such as trade, logistics, technology, and manufacturing, making them a very attractive option for new and expanding companies.

Establishing companies in Dubai’s free zones offers investors many advantages, including tax exemption for a limited period, easy access to the local and regional market, customs facilities, and no restrictions on transferring capital or profits outside the country.

In addition, investors establishing companies in Dubai’s free zones benefit from advanced infrastructure, government support, and clear laws that protect investors’ rights and enhance confidence in the market.

However, investors who wish to Establishing a company in the free zones in Dubai To be aware of local conditions and regulations, and to plan carefully to ensure the success of their business in this wonderful entrepreneurial environment.

Advantages of starting a business in Dubai free zones

What is a free zone in Dubai and what are the benefits of starting a business or establishing a company in the Dubai free zone? Simply put, free zones in Dubai are economic zones launched by the government and offer:

• Corporate and personal tax exemptions, customs benefits and other incentives for foreign investors.
• Dispose of the profits in full without any reduction.
• Fully sole proprietorship.
• No restrictions on cash transactions.
• Full exemption from import and export tax.

These special rules and regulations have been set by the government to establish such free zones in Dubai. Apart from all the above, it should be noted that opening a business in non-free zones requires a local sponsor who owns 51% of the business, and although this law was amended in 2018, many investors prefer to set up a company in the Dubai free zone due to the above-mentioned tax benefits.

Establishing a company in Dubai Free Zone

When starting a business in Free Zones in Dubai A number of legal points and steps must be taken into consideration, namely:

• The legal form of the company, whether a company, a branch of a company, or an institution
• Specify the company name
• Choosing a company headquarters within the Dubai free zones
• Obtaining the license and initial approval to practice the work

Types of Free Zones in Dubai

Dubai is known for having many free zones that provide an ideal environment for investment and business. Each free zone targets specific sectors and offers a variety of services and benefits. Here are some types of free zones in Dubai:

1. Jebel Ali Free Zone (JAFZA)

• the site:Near Jebel Ali Port.
• Target sectors: Trade, Industry, Logistics.
• Advantages: 100% foreign ownership, tax exemption, advanced infrastructure.

2. Dubai Internet City (DIC)

• the siteIn Al Barsha area.
• Target sectors: Information and Communication Technology.
• Advantages: A dedicated work environment for technology companies, facilities for establishing companies.

3. Dubai Media City (DMC)

• the site: Near Dubai Internet City.
• Target sectors: Media, media production, marketing.
• Advantages: A dedicated work environment for media and media production companies.

4. Dubai Healthcare City (DHCC)

• the site: Near Downtown Dubai.
• Target sectors:Health care, medical services.
• Advantages: A dedicated work environment for healthcare companies and hospitals.

5. Dubai International Financial Centre (DIFC)

• the site:Downtown Dubai.
• Target sectors: Financial services, banking, insurance.
• Advantages: A dedicated business environment for financial companies, an independent legal system.

6. Dubai Airport Free Zone (DAFZA)

• the site:Next to Dubai International Airport.
• Target sectors: International trade, logistics, light manufacturing.
• Advantages: Quick access to the airport, advanced infrastructure.

7. Dubai Knowledge Park (DKP)

• the siteIn Al Barsha area.
• Target sectors: Education, training, research.
• Advantages: A work environment dedicated to educational and training institutions.

8. Dubai Studio City (DSO)

• the siteIn Dubai Land.
• Target sectors: Film and television production, entertainment media.
• Advantages: Infrastructure dedicated to film and television production.

9. Gold and Diamond Complex (DDE)

• the site:On Sheikh Zayed Road.
• Target sectors: Gold and diamond trading, manufacturing.
• Advantages: Dedicated working environment for gold and diamond traders, secure storage facilities.

10. Dubai World Trade Centre (DWEZ)

• the siteIn the southern region.
• Target sectors: E-commerce, technology.
• Advantages: Facilities for e-businesses, advanced infrastructure.

General advantages of free zones in Dubai:

• 100% foreign ownershipForeign investors can fully own companies.
• Tax exemption: Exemption from personal income and corporate taxes for long periods of time.
• Freedom to transfer profitsProfits and capital can be transferred freely.
• Advanced infrastructureFree zones equipped with the latest facilities and services.
• Ease of proceduresEasy and quick procedures for establishing companies and obtaining licenses.

Investing in Dubai’s free zones is an excellent option for companies looking to expand and reach new markets, thanks to the encouraging investment environment and the many facilities available.

Dubai SME Free Zone

Dubai SME Zone focuses on supporting and encouraging small and medium enterprises in Dubai. This zone provides a favorable environment and flexibility in laws and licenses for startups and small and medium enterprises established in the region.

Dubai SME Free Zone provides support and assistance to companies in various sectors, including:

1. Trade and Distribution: The area provides a conducive environment for small and medium-sized businesses, whether they operate in general trade, e-commerce, or distribution and logistics.
2. Professional Services: The region encourages the establishment of small and medium-sized enterprises in the fields of management consulting, accounting and auditing, marketing and advertising, graphic design, and legal and financial services.
3. Manufacturing and Technology: The zone supports SMEs specialising in manufacturing and technology sectors, such as engineering and general manufacturing, ICT, electronics, printing and packaging.
4. Hospitality and Tourism: The region offers opportunities for small and medium enterprises in the hospitality and tourism sector, such as hotels, restaurants, tourism and travel services.

It is worth noting that these sectors are just examples, and the Dubai SME Free Zone may support companies in other sectors as well. The zone aims to provide a suitable environment for small and medium enterprises in order to promote entrepreneurship and economic sustainability in Dubai.

Cost of setting up companies in Dubai free zones

Establishing a company in the free zones in Dubai It is an attractive option for investors due to the benefits and exemptions it offers. However, costs vary based on several factors including the type of company, the amount of capital, the type of license required, and the specific location within the free zone. Below is an overview of the costs associated with setting up companies in Dubai’s free zones:

1. License fees: Basic licensing fees vary depending on the type of business and the size of the company. These fees include the business license and registration fees.
2. Legal and accounting consulting costs: Companies may need legal and accounting advice to ensure full compliance with local laws and regulations.
3. Real estate and office costs: It depends on the size of the office required and its location within the free zone. There are multiple options such as shared offices or private offices.
4. Visa and residence fees: Includes visa and residency fees for employees and shareholders. These fees vary based on the number of employees and their nationalities.
5. Administrative and operational services costs: These costs cover basic administrative services such as finance and human resources, which may be charged annually.
6. Extra charge: Additional fees may include license renewal fees, utility fees, trademark registration costs, etc.

These costs vary between different free zones in Dubai such as Jebel Ali Free Zone (JAFZA), Dubai Multi Commodities Centre (DMCC), Dubai Internet City (DIC), etc. It is important for investors to contact the management of the chosen free zone to get an accurate and comprehensive estimate of all costs associated with company formation.

Documents and papers required to register a company in the Dubai Free Zone

• The Board of Directors’ decision to appoint a director for the company is officially documented and certified by a notary public.
• A legal agency through which the director is authorized, officially notarized and certified by a notary public as well.
• The company’s articles of association and memorandum of association, notarized and certified by a notary public.
• Officially notarized signature form of the director, certified by a notary public
• Director’s profile picture with white background
• Information about the share capital

Company bank account in Dubai Free Zone

Opening a bank account when establishing a company in the Dubai Free Zone requires submitting some required documents and papers, which are:

• Corporate Bank Account Opening Form.
• A decision by the Board of Directors to approve the authenticated signatures of the partners.
• Company incorporation certificate (copy).
• Company Memorandum and Articles of Association (copy).
• Passports of all partners (copies).
• Some banks also have a minimum cash balance that can range from AED 5,000 to AED 200,000.

Cost of a business license in Dubai Free Zone

The cost of a commercial license in the Dubai Free Zone varies depending on the type of license and the business activity to be established. Generally, it includes: Cost of trading license in free zones Several elements, including:

1. Basic license cost: The initial licensing fee includes the company and the costs of issuing the main license to start the business. These costs vary depending on the type of company and its activity, and may also include the costs of registering and establishing the company.
2. Rental costs: Rental costs for office or commercial space in a free zone are a significant part of the overall cost. Rental costs vary depending on the free zone, the size of the space required and the location.
3. Annual fees: Companies established in Dubai free zones need to pay an annual fee to maintain the validity of the trade license and continue the business activity. The amount of the annual fee varies depending on the type of company, the business activity and the laws in force in the free zone.
4. Administrative costs: Other administrative costs include such fees as document certification fees, legal and accounting service fees, and legal and advisory consultancy costs if required.

The cost of a Dubai Free Zone business license can vary from one free zone to another in Dubai, so it is always advisable to contact the relevant free zone authority or use a company specialized in company formation to get an accurate and detailed estimate of the expected costs.

In conclusion, establishing companies in the free zones in Dubai in cooperation with Etqan Company appears as a vital step towards enhancing economic growth and strengthening Dubai’s position as a major business hub in the region. By exploiting the investment advantages and favorable business environment in the free zone, investors and businessmen can build and develop their projects efficiently and successfully.

By partnering with Etqan, investors can benefit from the expertise and specialized services in establishing and managing companies, which contributes to simplifying operations and reducing risks. In addition, this cooperation provides opportunities for innovation and sustainable growth through the use of the latest technologies and management practices.

Briefly, Establishing companies in free zones In Dubai, in cooperation with Itqan Company, it represents an exciting opportunity for investors to achieve their business goals and benefit from the thriving economic environment in the Emirate of Dubai.

Frequently asked questions about establishing companies in the free zones in Dubai