Establishing a company in Dubai Free Zone, Dubai is one of the most attractive destinations for investors from all over the world, and the free zones in Dubai are an ideal choice for establishing companies thanks to the many advantages they offer such as tax exemptions, ease of procedures, and flexibility in business. Among these areas, the Dubai Free Zone stands out, which provides an investment environment conducive to growth and innovation, making it an ideal destination for entrepreneurs and investors. Opening a company in Dubai Free Zone requires a good understanding of the legal and economic procedures that contribute to facilitating this process, in addition to choosing business activities that are in line with the nature of the market. Itqan is a strategic partner in this field, providing investors with comprehensive services starting from providing legal advice to final licenses, which helps speed up the establishment process and ensures compliance with all regulations in force in Dubai. Itqan provides customized solutions that suit the needs of each investor and help them overcome the challenges associated with establishing companies in free zones. With its extensive experience in the UAE market and its specialized teams in various fields, Itqan Company contributes to saving time and effort for investors wishing to establish their companies in the Dubai Free Zone, while ensuring their success and continuity in the market. Whether you want to establish a company in the field of trade, technology or any other sector, Itqan Company can provide you with full support to establish your business successfully and without complications.
What are the free zones in Dubai?
Free zones in Dubai are areas designated for commercial activity that aim to attract foreign investment and encourage the establishment of companies in a flexible environment. Dubai offers a variety of free zones that enjoy unique advantages, making it an ideal destination for both local and international investors. These areas are established with the aim of providing a flexible business environment with tax and financial facilities, making it easy for companies to start their activities quickly and at low costs.
The free zones in Dubai are characterized by providing many privileges to investors, such as tax exemptions on companies and profits, the possibility of full ownership of the company by foreigners, as well as the ease of company establishment procedures. In addition, free zones provide integrated professional services including exemption from customs duties on imported and exported goods, which enhances the competitiveness of companies and stimulates their growth.
Establishing a company in a free zone is an attractive option for investors seeking to benefit from these facilities, as each free zone targets a specific type of business activities such as trade, technology, media, logistics, and consulting. Each free zone in Dubai has its own terms and types of licenses it offers, allowing investors to choose the area that best suits the nature of their business.
Establishing companies in free zones contributes to enhancing the competitiveness of companies and provides them with the ideal environment for growth and expansion, making Dubai one of the leading business destinations in the region.
Types of companies that can be established in Dubai
Dubai is considered one of the most prominent global destinations for investment and trade, and it has many options that allow investors to establish companies according to their needs and business goals. The types of companies that can be established in Dubai vary, whether on the mainland or in free zones, and these types differ based on the business activity, shareholders, and capital ownership. Therefore, it is important for investors to know the available types and choose the most suitable for them, to make the best use of the investment environment in Dubai.
Types of companies that can be established in Dubai:
Limited Liability Company (LLC): It is considered one of the most common types of companies in Dubai, as it is established by local and foreign investors. There must be a local partner who holds 51% of the company’s shares.
Private Joint Stock Company: This company allows the presence of a group of contributing partners who own shares in the company, and requires more capital compared to other companies.
Public Joint Stock Company: Its establishment is similar to the private joint stock company, but with differences in the number of shareholders and capital. The company’s shares can be traded on public stock exchanges after subscription.
Sole Proprietorship: A company owned by only one individual, and the owner is responsible for all operations, profits and losses. This company is common for small businesses.
Free Zone Limited Liability Company: Allows foreign investors to own 100% of the company, and is established within the free zones, and is ideal for companies operating in trade, technology and services.
Branch Office Company: Foreign investors can establish a branch of their parent company in Dubai, where they are only allowed to own a full company in the free zones, and a local agent must be appointed.
Mainland Limited Liability Company: Allows foreigners to establish companies in the mainland if they have a local partner who owns 51% of the shares.
Holding Companies: Allows the establishment of a corporate structure with the aim of owning shares in other companies, and can be in the mainland or in the free zones.
Fully Foreign Owned Companies: These companies can be established in certain sectors either on the mainland or in free zones, such as industrial and logistics activities.
By choosing the right type of company in Dubai, investors can benefit from many advantages such as full ownership, tax exemptions, and excellent infrastructure, which enhances their competitiveness in the market.
Documents required to establish a company in the free zone
Establishing a company in the free zone in Dubai is an attractive option for many foreign investors who seek to enjoy many advantages such as tax exemptions, full ownership of the business, and ease of procedures. To make the most of these opportunities, investors must provide the required documents to complete the establishment process successfully. These documents vary from one free zone to another depending on the type of activity and the legal structure of the company. However, there are basic documents that are required by most free zones in Dubai.
Documents required to establish a company in the free zone:
Company establishment application form: The form must be filled out by the relevant authority in the free zone, as it includes basic data about the business activity and shareholders.
Passport copy: Copies of the passports of the founders and investors, ensuring that they are valid.
Personal photographs of the founders: Recent personal photographs of the founders are usually required, as they are used for permits and ID purposes.
Local address: A local address for the residence or office in Dubai, which can be a company address in a free zone or a residential address for the founders.
Business plan: A detailed business plan must be submitted outlining the business activity, the products or services the company will offer, and the target market objectives.
Local bank letter: A letter from a bank in the UAE confirming the opening of a bank account for the company, which often requires a minimum capital requirement for each type of company.
Regulatory approval (if applicable): In some cases, approvals from certain regulatory authorities may be required before proceeding with the establishment of the company, especially in certain sectors such as health or education.
Partnership or power of attorney agreement: If there are partners, a partnership agreement or power of attorney contract with the local or foreign partners must be submitted.
Copy of lease or office contract: In case of establishing a company that requires a physical office, a lease contract must be submitted proving the company’s location in the free zone.
Work permit (if required): In case the founders or foreign employees require work visas, an application for a work permit is required.
By providing the required documents in full, investors can expedite the process of establishing companies in the free zones in Dubai, allowing them to start their business quickly and efficiently.
Establishing a company in the Dubai Free Zone
Steps to establish a company in Dubai
Establishing a company in Dubai is one of the important strategic decisions that many businessmen and investors from all over the world seek. Dubai provides an advanced business environment and great advantages for investors, making it an ideal destination for starting a business. There are many ways to establish companies in Dubai, whether in the free zones or on the mainland, and each has specific steps and procedures that must be followed to ensure that the business starts smoothly. The process of establishing companies in Dubai requires following several basic steps, starting from determining the type of company to obtaining the necessary licenses to start the business.
Steps to establish a company in Dubai:
Choosing the type of company and business activity: The process of establishing a company begins with determining the type of company you want to establish (limited liability company, branch of a foreign company, sole proprietorship, etc.) and the business activity that the company will practice. This determines many details in the establishment stages.
Choosing the company location: Determining where the company will operate, whether in the free zone or on the mainland. Each option has its own advantages such as tax privileges and various procedures.
Providing the company name: A distinctive trade name must be chosen for the company that complies with the laws and regulations of the country, while ensuring that it is not used by another company.
Preparing legal documents: Submitting a set of required documents such as the passports of the founders, personal photos, and the company address, in addition to agreements and partnerships if there are partners.
Applying for a commercial license: After submitting all the documents, you must apply for a commercial license from the Department of Economic Development in Dubai or the relevant authority in the free zone. The license includes the type of business activity, the company, and details of the operations.
Opening a bank account for the company: Opening a bank account in the name of the company to facilitate payment and receipt operations, and providing proof from the bank of opening the account.
Securing work and residence visas: After obtaining the license, work visas can be applied for for founders and employees, allowing them to work and reside in the UAE.
Signing an office lease: A workplace must be secured for the company through an official lease contract, whether it is an office within the free zone or on the mainland.
Establishing a company in Dubai is an organized process that requires the completion of several legal and administrative steps. By following these steps carefully, investors can start their business in Dubai easily and smoothly, and benefit from the efficient business environment and the many advantages that this emirate offers.
Our company’s role in establishing a company in Dubai
In conclusion, it can be said that establishing a company in the Dubai Free Zone is an ideal investment option for many entrepreneurs and foreign investors who wish to benefit from the dynamic business environment and facilities offered by Dubai. The many advantages provided by free zones such as tax exemptions, flexibility in company ownership, and ease of procedures, make it an attractive environment for investors from all over the world. However, establishing a company in the Dubai Free Zone requires adherence to legal procedures and ensuring that all the necessary requirements are met to achieve success in the local and international market. Hence the importance of cooperating with Itqan Company, which provides integrated services that help investors speed up and facilitate this process. With its extensive experience in the UAE market, Itqan provides legal consultations, licensing services, assistance in choosing the most appropriate business activities, in addition to support in administrative procedures. By choosing Itqan Company, investors can obtain accurate and strategic advice to ensure that the establishment process proceeds properly and efficiently. Itqan also helps investors deal with all the details related to taxes, visas, and employment procedures, which contributes to reducing the challenges that any investor may face. Ultimately, working with Etqan contributes to the rapid and sustainable success of companies in Dubai, enhancing opportunities for growth and expansion in multiple markets.
Frequently Asked Questions about Starting a Business in Dubai
What are free zones in Dubai?
Free zones in Dubai are designated areas for businesses where investors enjoy tax exemptions and the flexibility to own 100% of companies. These areas aim to attract foreign investment and promote economic growth in Dubai.
What are the benefits of free zones?
Key benefits include long-term corporate tax exemptions, flexibility to own 100% of companies, exemption from value-added tax (VAT) in some cases, and the ability to transfer profits abroad without restrictions.
What are the different types of companies that can be established in free zones?
There are many different types of companies that can be established in free zones, such as limited liability companies, joint stock companies, or sole proprietorships, depending on the type of business activity.
Can foreign investors establish companies in free zones?
Yes, foreign investors can establish companies in free zones with 100% ownership, as the Free Zone Law allows them to own companies entirely without the need for a local partner.
Do I need an office in the free zone to establish my company?
Yes, in most free zones, new companies are required to rent an office or workspace as part of the incorporation process, as this space allows you to conduct your business.
What documents are required to establish a company in the free zone?
The process of establishing a company in the free zone requires the submission of documents such as a passport, residence visa (if applicable), business plan, and office lease. Requirements may vary by free zone.
Can I employ foreign employees in my company?
Yes, investors can employ foreign employees in their companies in the free zone, including obtaining work visas for the employees.
