What is Dubai Free Zone License
Dubai free zone license is a major requirement to register your business in FZE, FZ LLC. Dubai is one of the Middle East’s most financially rewarding and business-friendly destinations. It is an ideal investment hub due to its ease of access to Asia and other countries. Moreover, Dubai free zones provide facilities for the successful launch of new businesses along with the expansion of the existing ones. As a result, Dubai free zone have become the most popular for both aspiring entrepreneurs and established multinational corporations.
Within each emirate is a free zone, also known as a free trade zone, which is a defined geographical area. The absence of duties and all kinds of taxes in the free zone encourages trade, particularly the import and export of a wide range of goods and services.
Dubai was the First Emirate in the UAE to Implement the Freezone Model.
Know More About Dubai Freezone License
All the business under Dubai free zone license are exempted from all forms of taxation, including VAT, income tax, corporate tax, and customs. Additionally, If you have a business setup in Dubai free zone, then business holders have 100% ownership of their companies.
Furthermore, there are more than 20 types of free zones in Dubai, all offering trading, services, and industrial licenses to investors. Free zones in Dubai are one of the biggest contributors to the GDP of the city. They offer notable business freedom and unlimited trade choices. Start with RadiantBiz and get complete assistance for the best business setup strategies in Dubai free zone.
So, why do we need to establish a free zone company? basically, free zones are setup to attract foreign investment and boost economic activity in the city.
Major Authorities for Dubai Freezone LicenseHere’s a list of all the major free zone authorities in Dubai that issues a license for your business.
Documents and paperwork must be kept handy before the establishment of a Dubai Free Zone company. So, the entrepreneur will need to deliver some documents and get them approved by the concerned authority.
- Passport copies of all the shareholders.
- Address of your home country.
- Contact details of the shareholders.
- Passport size photographs of all shareholders.
- 3 options for company name.
Benefits of Business Setup in Dubai Free Zone
Here are the major pointers that convey how beneficial it is to start your business in a free zone in Dubai, UAE
Types of Legal Entities for Business in Dubai Free Zone
Determining the type of legal entity for your business is a crucial step while starting a company in the Emirates.
Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
The FZ LLC allows you to have multiple shareholders in your company (a maximum of 5 shareholders). It ensures flexible ways to be protected from debts and any individual liabilities. Furthermore, it offers several other benefits such as the freedom to conduct business activities in any free zones in Dubai and the UAE. In addition, there are no restrictions on the number of visas in FZ LLC. However, it depends on the office size and you can get visas as the office size grows.
Free Zone Establishment (FZE)
The FZE is a free zone establishment that implies you can have a single shareholder for your company. With FZE in Dubai, you have limited access to operate across all free zones in Dubai and UAE. Moreover, the number of visas is also restricted. When you choose FZE over FZ LLC you increase the chances of being solely responsible for the profits and losses of the company.
How to Get Started for Dubai Freezone License?
Starting a free zone company in Dubai, UAE is an easy five step process, below are all the prerequisites for the same:
Choose the type of company
When deciding to start a business in free zone in Dubai, one must first determine the nature of business. Since there are more than 40 freezones in UAE, So one must choose the best freezone as per his/her requirements.
Set a business name
Once the investors have decided on the business nature, it is time to choose a name for it for Dubai freezone license. It’s always recommended to adhere to the government’s naming conventions while choosing trade name.
Obtaining business license
If you want to start a business in the Dubai free zone, it’s important to have a Dubai Free zone business license. A license is permission granted by the government to conduct your business in the country. It is necessary to carry out various activities for your business throughout the Emirates. Apply for a business license after submitting the required paperwork, paying the license fee, and receiving the initial approval. The concerned free zone authority will issue the business license.
The best thing about freezone license in Dubai is that you don’t need to have a physical office setup. You can simply operate virtually from your home country. You just need to get an office address (lease agreement) and you are good to go.
Authority will issue Dubai free zone license but before that investors must obtain all necessary approvals. The investor can begin the business after getting all the necessary approvals.
How can I get Freezone license in Dubai?
The UAE’s Free Trade Zones are each governed by their own Free Zone Authority. They approve employee visa applications, and provide guidelines for fair business operations, among other things.
How many Freezone companies are there in Dubai?
There are around 40 Free Zones operating in the UAE, with more under construction. Each Free Zone is designed around one or more commercial categories and only offers licences to companies within those categories.
Can a Freezone company own property in Dubai?
All free zone companies in Dubai are permitted to own property in the so-called Designated Areas. The free zones in Dubai include DMCC, Dubai Internet City, Dubai HealthCare City, Dubai South and many more. Free zone companies, which are formed in other Emirates, are not allowed to hold property in Dubai.
How can I start a free zone business in Dubai?
These are the steps to follow while setting up a free zone business in Dubai:
1. Choose the type of company.
2. Set a business name.
3. Get a business license.
4. Set up an office, possible virtually from your home country.
5. Obtain the required approvals from the concerned authorities.
What is the best free zone in Dubai?
There is no such thing as the "best freezone". The best freezone depends on your business needs. Radiantbiz experts help you figure out the best options according to your requirements to help your business flourish.
Can Freezone companies do business in the mainland zone?
Yes, a free zone company can do business in the mainland, by registering their branch with the Ministry of Economy and the DED. But the branch must engage in the same type of business as the parent company and must have the same name as the parent company.
What is the cost of a freezone license in Dubai?
When you are thinking about establishing a free zone company in Dubai, the first step is to know all about the price and how much it would cost you to do so. Fortunately, it is quite simple to get an estimate before setting up your business in Dubai. You can now get an idea of your investment with the help of our reliable cost calculator that gives you an entire estimate of the cost needed to setup your business here
Which is the cheapest free zone in the UAE?