Formation of a Company in Dubai’s Free Zone
A free zone is a jurisdiction or geographical location in the United Arab Emirates (UAE) that makes it easier for certain commercial activities or a group of activities to take place. Free zones are also known as economic free zones. When starting a business in a free zone in Dubai, it is necessary to first obtain a licence, which is granted according to the type of economic activity that will be conducted by the company.
Within the confines of the Dubai Free Zone, businesses are required to get permits in order to engage in any kind of commercial activity. In the years ahead, it is anticipated that new free zone territories will be developed, which will result in an increase in the total number of free zones.
The Free Zone Authority acts as the governing authority for the Free Zone Company’s operations, including the distribution of licences and the supervision of those operations. Free zone businesses in the UAE are exempt from the application of the country’s commercial regulations, in contrast to mainland businesses in the UAE, which must comply with these restrictions. In the Dubai Free Zone, potential investors from outside the region have the possibility to acquire full ownership of a business there. In addition, forming a corporation in a Dubai free zone allows for entire ownership of the company, as well as financial perks such as full tax exemptions, no restrictions on the use of foreign currency, and benefits related to repatriation of one hundred percent of earnings.
When a new firm is established in the Dubai Free Zone, the Free Zone Authority will issue a particular licence to reflect the nature of the enterprise. These licences may include an Industrial Licence, a Trade Licence, a National Industrial Licence, or a Service Licence. Every year, the parties to the leasing agreement for free zone licences in the UAE must go through the renewal process.
Choose a tax-free zone jurisdiction that corresponds with the kind of business that you run. It is important that the category of the free zone you select be appropriate for the kind of company you run. Offshore companies cannot be placed in the same category as businesses operating in the Dubai Free Zone even if they have the potential to enjoy some of the same benefits.
Under the authority of a free zone, legal entities for conducting business may be constituted. When it comes to founding a firm, entrepreneurs and investors that rely on the authority of the Dubai Free Zone have the option of selecting one of three separate corporate organisations. Their names are as follows:
The Benefits of Establishing a Business in a Dubai Free Zone
Free zone enterprises are the greatest solution for international investors wanting 100 percent foreign ownership. Tax savings are available in free zone regions. There are no personal, business, or income taxes. In free zone countries, there will be no constraints on foreign exchange.
Business Licenses in Dubai Free Zone
To conduct business in a free zone, the business premises must be of legal size and structure, as well as obtain a trade license.
The following formats are available for Dubai Freezone Licenses:
Warehousing Licence
Firms in Dubai’s free zones may conduct business both inside and outside of the zone. Free zone enterprises with commercial licenses must employ the distributor’s services for local operations.
Black Swan will take you through the complete process of creating a business in the Dubai Freezone. Black Swan has been servicing customers for nearly a decade. We are a respected business consultant in Dubai, and we operate with a team of consultants.
Estimated Budget for Dubai Freezone License / Company Formation
The entire cost of a Dubai Freezone company includes registration costs, license fees, and government-imposed visa fees. The fees for forming a company in Dubai stated below are mainly for reference purposes. Please contact us to understand the cost of a recent Dubai free zone license.
The free zone is managed by regulations and laws. The Free Zone establishes the validity of a business license and its conditions. The Freezone license in Dubai is good for three years.
