What are The Benefits of Free Zones Company Incorporation in Dubai

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What are The Benefits of Free Zones Company Incorporation in Dubai

Dubai has always set the standards when it comes to the economic market. Reaching Asian customers is easy from here which makes it an ideal choice for investors. The country has always adopted innovative methods to match the growth of the economic and business industry. 

However, Dubai set free zones for foreign investors and give them multiple benefits to encourage foreign trade. Let’s understand how to start a company in Dubai free zone and what benefits investors get. From this article, you get all the information regarding free zone companies in Dubai.

What are Free Zones in Dubai?

Dubai Freezones are some areas where goods, services, and commodities can be traded without any strict regulations. The Emirates of Dubai has 30 freezones which are managed by their respective authority. These companies pay no tax or very low tax, depending on the category. 

It has dedicated free zones for specific businesses based on core activities. Therefore, it attracts international investors. These companies are permitted to own their businesses in a free zone. 

Starting a business in Dubai doesn’t require much effort. Out of 40 plus free zones in UAE, most of the free trade zones are located in Dubai. Benefits that Dubai Freezone companies offer because of which it acts like a commercial and financial hub are the following:

Benefits of Free Zone Company  in Dubai

The establishment of Dubai free zones has many advantages, including:

1. Complete Foreign Ownership

With freezones formation of a company by foreign investors becomes easy. Now they don’t need a Dubai national sponsor to start a company because they have complete ownership of the company in Freezone. For all nationalities business ownership is possible.

2. Company Incorporation in Dubai

The company incorporation in Dubai is straightforward and the licensing process is easy as compared to other jurisdictions. It takes a few days to complete the licensing process.

3. No Currency Restriction

Different governments imposed currency-related restrictions on the transaction of foreign currency. In Dubai, there is no restriction on foreign currency in freezones. Thus, the financial transaction process becomes a lot easier for foreign traders.

4. Import/Export Exemption

No import and export duties are imposed in the free zone jurisdiction in Dubai. This is a great benefit to save costs and to attract import and export businesses. 

5. Easy Labour Recruitment

The companies in the free zone can conduct labor recruitment in a cost-effective way. These companies are allowed to recruit foreign nationals.

6. Full Repatriation Benefits

The companies are eligible for full repatriation benefits including profits and financial assets. This means the traders are allowed to take all the profit of the business to their home country. 

7. No logistical Issues

Free zones in Dubai have several warehouses and office spaces which are best for SMEs and start-ups. In addition, the procedure to form a company in Dubai is easy and straightforward. The immigration facilities are more efficient and save time.  

Some other benefits are as follows:

• Exemption from corporate tax for 15 years and for another 15 years also after renewal.
• No capital deposit needed
• Ready customer market across MENA and Asia regions
• Low operational cost
• Access to world-class infrastructure with an efficient communication system.

Free Zone Company Registration in Dubai

How can I register my company in Dubai free zone? Most business owners asked this question, so here is a complete step-by-step process of company registration in Dubai to register a company in the free zone.

Step 1: Choose the Type of Company

Before starting a business in Free Zone Dubai, one has to choose the type of business because different free zones have different requirements that need to be fulfilled. The business entity can register in the form of any of the following:

1. Free Zone Limited Liability Company (FZ LLC)
2. Free Zone Establishment (FZE)

The difference between the above two companies will depend on the number of shareholders. It can happen that all free zones will not register both the company, it depends on the free zone.

Step 2: Selecting a Trade Name

The name on which promoters need to carry their business should be chosen after deciding the type of company. The promoters must check the decided name from the free zone authority or the Department of Economic Development that the name is already taken by someone else or not. 

According to the Department of Economics Development, the following things should be checked before finalizing a name:

1. must not violate public moral
2. must be in the legal form of the company
3. must not be registered previously
4. must be compatible with the legal status and business activities
5. Neither contains the name of any religion, governing authority, name, or logo of any external body.

Step 3: Applying for Business License

The type of license depends on the business activity. Different free zones are centered on promoting different business activities so the promoters should set up a business in any of the free zones depending on the business. The business can be initiated in fields such as education, finance, retail, hospitality, etc.

Step 4: Choosing Office Space for Business

The promoters have two options, one is to buy office premises or lease in free zones. Premises depend on the type of business activity and number of employees.

Step 5: Final Submission

Any business starting in the free zone must obtain some necessary approvals. The followings are the steps and documents that a promoter need to follow respectively:

To get initial approval, the following documents need to be submitted to the authority:

1. Complete application form
2. Business plan
3. Copy of business license or registration certificate
4. Passport copies and specimen signatures of the company’s shareholder, director, and manager 
5. Audited financial reports of the past two years of corporate entity and certificate of reference from a personal bank of individual shareholders.
6. No objection certificate, letter of intent, unit title deed, and registry identification code.

Once the promoters get approval from the authority, they need to pay the registration fees along with license fees. The license fee will vary as per the type of business entity. 

Note: For some exceptional cases, approval from external authorities is required.

Conclusion 

Starting a free zone company in Dubai is one of the best decisions an entrepreneur will make. We at Registrationwala, help entrepreneurs to set up the company smoothly in the Dubai. Our experts will help you in:

• registering your business
• understanding free zone license cost
• complete documentation

Reach out to us to know more about free zone company formation in Dubai.

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