A company license in free zones is among the popular and attractive options for investors seeking to start a business in this dynamic environment. This option offers a range of tax and operational advantages that make it an interesting option. In this introduction, we will explore the cost of a Dubai free zone business license, the main advantages of obtaining a business license in Dubai free zones, and the types of business licenses in Dubai.

Itqan Company is known for its experience and specialization in the field of business in Dubai, as it provides accurate and comprehensive information to investors. Our cooperation with this company ensures that reliable information is provided about the costs and requirements for obtaining a business license in Dubai’s free zones , facilitating the decision-making process for potential investors.

Let’s explore together the details of the cost of obtaining a business license in the Dubai Free Zone and how Itqan can provide support and guidance.

Cost of a business license in Dubai Free Zone

Requirements for obtaining a commercial license in the Dubai Free Zone

Requirements for obtaining a business license in Dubai free zones may vary depending on the type of business activity and the specific free zone. However, there are some general requirements that are included in most application processes for commercial licenses in Dubai free zones:

1. License Application Form: You must fill out the license application form provided by the competent authority in the designated free zone.
2. Personal Documents: A copy of the passport or personal ID card of the owner or major shareholders must be submitted.
3. Business Plan: A detailed business plan must be submitted explaining the company’s objectives and the financial and administrative work plan.
4. Work Permit: Non-UAE shareholders must obtain a work permit from the applicable authorities in Dubai.
5. Lease Contract or Property License: A copy of the lease contract for the office or commercial space to be used, or a property license if the space is owned, must be submitted.
6. Registration and license fees: The fees prescribed for the registration and licensing process must be paid.
7. Certificate of Proof of Capital: Companies may be required to submit a bank certificate proving the existence of the capital required for their business activity.
8. Approval of authorities: Some free zones in Dubai may require approval from local authorities or the investment committee before issuing a trade license.

Cost of a business license in Dubai Free Zone

The cost of obtaining a commercial license in the Dubai Free Zone varies based on several factors, including the type of business activity and the proposed size of the business. Itqan Company helps you obtain commercial licenses in the Dubai Free Zone and establish companies in Dubai , in addition to the conditions and requirements specified by Local authorities and regulatory authorities in the free zone. Generally, the costs of obtaining a business license in the Dubai Free Zone can include the following items:

• State licensing fees: These fees vary depending on the type of license and business activity, and are usually part of the basic costs of obtaining a license.
• Consultation and service costs: You may need advice from experts in establishing companies or company establishment offices to help prepare documents and complete the necessary procedures, and these services often incur costs.
• Contract and lease costs: If a company needs a lease for an office or work space in a free zone, there will be costs associated with these contracts and lease fees.
• Municipal permits and licenses fees: Some commercial activities require special permits from the municipality, which results in additional fees.
• Social and health insurance costs: Social and health insurance must usually be provided to employees under local laws, and these expenses must be in addition to the cost of the business.

Differences between a commercial license and an industrial license in Dubai Free Zone

There are several free zones in Dubai where investors can obtain trade licenses to start a business. These areas provide a distinctive investment environment and provide a range of tax, customs and legal advantages for companies residing there. Among the main free zones in Dubai:

1. Jebel Ali Free Zone (JAFZA): One of the largest free zones in the world, it provides a distinctive investment environment and advanced facilities for companies operating in a wide range of sectors.
2. Dubai International Financial Center (DIFC): A global financial and economic center that provides a distinguished environment for financial companies, financial institutions and related companies.
3. Dubai Investments Park (DIP): A free zone that provides space for warehousing, manufacturing, and logistics services, and includes a wide range of industries.
4. Dubai Airport Free Zone (DAFZA): Provides an ideal environment for companies in the fields of aviation, logistics, technology, communications and financial services.
5. Dubai World Trade Center (DWTC): Provides a central business environment for companies in a variety of sectors including logistics, trade and services.

Advantages of obtaining a commercial license in Dubai free zones

Obtaining a business license in the free zones in Dubai comes with many competitive advantages and benefits that make it an attractive option for businessmen to establish and open companies in the free zone in Dubai . Among these main advantages are:

• Full Foreign Investment: In Dubai free zones, foreign investors are allowed to own and operate companies 100% without the need for a local partner.
• Tax exemptions: Free zones in Dubai provide a favorable tax environment, as companies are usually exempt from taxes on profits for a specific period of time.
• Simple registration procedures: Investors enjoy simple and quick registration procedures to obtain a business license in free zones, which helps speed up the process of starting a business.
• Access to the regional and global market: Dubai provides an excellent strategic location that makes it an ideal center to access regional and global markets easily.
• Advanced Infrastructure: Dubai’s free zones provide advanced infrastructure, including logistics and public facilities, making it a convenient place for business.
• Import and export facilities: Dubai free zones provide great facilities for companies in importing and exporting, including exemptions from customs duties and other customs facilities.
• Multiple licenses: Free zones in Dubai allow obtaining multiple licenses for various activities, allowing companies to expand and diversify their business.

Types of business licenses in Dubai

There are a variety of types of business licenses available in Dubai that suit the different needs of investors and entrepreneurs. These licenses offer flexibility and multiple configurations, allowing individuals and companies to operate in a variety of industries and sectors. Let’s take a quick look at some of the types of business licenses available in Dubai:

This table shows the common types of business licenses in Dubai and provides a basic understanding of each type of license as well as the commercial activities that can be practiced with each type of license.

Why start your business and company in Dubai?

Whatever your budget and financial ability, you can start an activity, trade, or provide services in the Emirates, due to the differences in living conditions and requirements, its expenses, and the differences in the costs of establishing companies between each emirate and among the types of companies available.

It is noticeable in the Emirates, especially Dubai, the high human density and the constant influx of people, whether they are capital owners, investors, or skilled workers, which has led to many needs for different projects and an increased demand for products and services. Therefore, it is the best place where you can start your trade or industry or provide your services to users. And the audience is there. Dubai Government supports entrepreneurs and investors and facilitates all services and needs to start a business or activity in the city of Dubai.

How to become one of the largest entrepreneurs in Dubai Dubai’s status as an emerging market makes it an ideal place for investment. With the constant influx of new residents from every corner of the world, new markets are always opening up.

The Dubai government supports entrepreneurs through the Mohammed bin Rashid Young Business Leaders Authority and the Mohammed bin Rashid Al Maktoum Foundation. Both institutions seek to motivate young Arab leaders to become an integral part of their region’s economy. The first step to starting your company is to develop an executable business plan that defines the company’s goals and explains to investors and future customers the reasons why they should work with you.

The government also provides strong support to Emirati entrepreneurs, and there are many grants available for people with a strong business plan. For example, His Highness Sheikh Mohammed bin Rashid Authority provided strong support to Emirati entrepreneurs and others by launching the “Tajer Dubai” program or the Entrepreneurial Development Program to identify young and emerging entrepreneurs who are citizens of the United Arab Emirates and develop their promising ideas.

There are many methods for obtaining financing for new businesses, including business loans from financial institutions and business grants from the Dubai government. Attracting venture capital is an option for seed funding, and is often a vital part of many investors’ businesses. Another manifestation of growth in Dubai and the Arab world is the rise of social entrepreneurs who establish companies not only to make a profit but also to meet a community need or to protect the environment.

Steps to establish a company in the free zone 

Establishing a company in the Dubai Free Zone involves several steps that need to be followed carefully. Here are general steps that can be followed to establish a company in the free zone:

1. Planning and Research: Conduct a feasibility study to understand the market and its needs. Determine the type of company you wish to establish (limited liability company, sole proprietorship, etc.).
2. Choosing a free zone: Research and choose the free zone that suits your company’s activity.
3. Registration and application: Obtain legal advice and prepare the documents required to register the company. Submit the application to the relevant authorities in the free zone.
4. Determine the company structure: Determine the company structure including management and shareholders.
5. Determine capital: Determine the capital required for the company and develop a financing plan.
6. Company establishment: Once the application is approved, complete company establishment procedures such as opening a bank account and signing contracts.
7. Obtaining licenses and authorizations: Obtain the necessary licenses and licenses to conduct your business activity in the free zone.
8. Registration in the Commercial Registry: Register the company in the local commercial registry and obtain a tax identification number and tax registration.
9. Legal Compliance: Ensure compliance with all relevant local and international regulations and laws.
10. Starting to work: After completing all the steps, you can start working in your company in the free zone.

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 full profits without any decrease
• Complete individual ownership
• There are no restrictions on cash transactions
• Complete exemption from import and export tax
• These special rules and regulations have been set by the government to establish such free zones in Dubai.

Can foreigners obtain a business license in free zones?

Yes, foreigners can obtain a business license in the free zones in Dubai. Free zones provide a suitable commercial environment for investment, as they allow up to 100% ownership of the company by foreign investors in some sectors. Foreigners can obtain a business license to conduct business in diverse fields such as services, trade, manufacturing, logistics, technology, and others. Procedures and requirements vary between free zones, so it is recommended to check the conditions and requirements of each free zone individually.

Benefits of investing in free zones

1. 100% complete ownership of the company, as you will be the sole owner of the entire company without the need for a local sponsor.
2. Distinguished by ease of establishment procedures and low costs.
3. Flexible solutions in all areas of business establishment.
4. The possibility of benefiting from the business community through which the services of the free zone authorities can be used in terms of support services, sponsorship, or other services.

In conclusion, the cost of obtaining a business license in the Dubai Free Zone is an important element to consider when thinking about establishing a company in this distinguished economic environment. In cooperation with Itqan Company, we can benefit from experience and specialized guidance to accurately estimate the cost of a commercial license and determine the factors affecting costs.

The cost of a business license in Dubai Free Zone consists of several components, including annual establishment and licensing fees, administrative services, and professional services. These costs vary depending on the type of license and business activities chosen. It is necessary to take all these factors into consideration to estimate the total cost.

By cooperating with Itqan Company, you can benefit from professional and accurate advice to determine expected costs and plan financial resources effectively. The Itqan team provides support in all aspects of the process, from identifying the appropriate license to registration procedures and legal and administrative requirements.

The most important frequently asked questions about the free zone trade license