Free Zone company in the UAE is a business established in a special economic area, known as a "Free Zone," where companies operate with certain tax, customs, and import benefits. Primarily aimed at foreign investors, these zones offer a more flexible environment for business setup in Dubai Free Zone. Establishing a Freezone company in Dubai means entrepreneurs can enjoy full ownership and various incentives, making it a popular choice for international business activities.
A Free Zone License in the UAE is a special permit allowing businesses to operate within a Free Zone, a designated economic area with unique benefits. Primarily appealing to foreign investors, this license is a gateway to establishing a business in Dubai dynamic market.
Holding a Dubai Free Zone license means enjoying 100% ownership of your company, a privilege not commonly available outside these zones in the UAE. It also brings notable tax advantages, including exemptions from corporate and income taxes, enhancing profitability. The license simplifies the process of setting up a business, offering a more streamlined and efficient approach. Additionally, it provides customs duty benefits, aiding in cost-effective import and export activities. Essentially, a Dubai Free Zone license is a key to unlocking a world of business opportunities in one of the most vibrant economic hubs in the Middle East.
There are six different types of business licenses available in the UAE, as well as the requirements for getting them.
Free zones are the best locations for company setup since they provide a range of activities for your business needs.Some of the activities are:
It’s important to keep in mind that each free zone may have different restrictions on the businesses activities that can operate there, and that companies must abide by such rules and laws in order to operate there.
Registering a UAE Free Zone company is a straightforward process. Here is a step-by-step guide:
Opening a company in a Dubai Free Zone varies in cost, depending on several factors. On average, the cost ranges from AED 15,000 to AED 50,000. This range includes several key expenses:
RadiantBiz is a trusted business setup consultants based in Dubai, UAE. We’ve been assisting people with Dubai free zone company setup for over 15 years and have made a name as a trustworthy source of guidance and assistance for anyone planning to start a business in the United Arab Emirates.
Some of the most skilled and knowledgeable individuals in the business setup industry make up the RadiantBiz team. We are experts in setting up all different types of businesses, including offshore companies, free zones, and mainland company registration. Given that the professionals in the RadiantBiz are fully aware of the legal and regulatory landscape in the UAE, they can offer personalised services to clients from various sectors of the industry.
We have established a strong reputation for providing clients from all around the world with outstanding outcomes. RadiantBiz takes great pride in being one of the most reliable and effective company formation agents in Dubai and offers amazing customer service. You can relax knowing you’re in excellent hands with RadiantBiz on your side.
It is important to decide the legal structure of your business before you start the business setup in any of the Dubai free zones.
You can have several shareholders in your firm after setting up a FZCO (a maximum of 5 shareholders). The characteristics of a business with FZCO business entity are as follows:
The FZE is a free zone establishment, which indicates that your firm can have just one stakeholder. The characteristics of setting up a FZE business are as follows:
In Dubai, there are over 20 different types of free zones, all of which give investors trading, service, and industrial permits. One of the largest contributors to the GDP of the city of Dubai are the free zones. They provide significant business flexibility and a variety of trading options. The cost of a free zone company setup varies depending on numerous criteria, including the free zone chosen, the type of licence, and the unique needs of your firm.
Dubai Multi Commodities Centre (DMCC):– Known for its world-class facilities, DMCC is ideal for businesses in commodities trading and related sectors.
Jebel Ali Free Zone (JAFZA): Perfect for logistics and trade, JAFZA offers access to one of the world largest ports and a major trading hub.
Dubai Internet City (DIC): Tailored for tech companies, DIC provides a thriving ecosystem for IT and telecommunications businesses.
Dubai Media City (DMC):A hub for media and marketing agencies, offering state-of-the-art facilities for creative enterprises.
Sharjah Airport International Free Zone (SAIF Zone):Offers versatile office and warehouse options, great for a wide range of businesses.
Ras Al Khaimah Economic Zone (RAKEZ):Known for its cost-effectiveness, RAKEZ is suitable for SMEs and startups across various sectors.
Abu Dhabi Global Market (ADGM): Focused on financial services, ADGM provides a robust legal framework and global business environment.
Ajman Free Zone (AFZ):Offers competitive pricing and is ideal for small to medium-sized enterprises.
Fujairah Creative City: Catering to media and creative industries, it is designed for freelancers and smaller creative businesses.
Dubai South- Dubai South has Al Maktoum International Airport as the centre of the city. It has created new prospects for many industries to establish enterprises at low cost.
Gathering these documents is a crucial step in establishing a Freezone company in Dubai, ensuring a smooth and compliant setup process.
Provide clear copies of passports for all shareholders and the company manager.
Residence Visa/UAE Entry Stamp:
If applicable, include a copy of the residence visa or entry stamp to the UAE.
Submit a comprehensive business plan, outlining the company objectives, strategies, and financial projections.
Complete the Free Zone company setup application form accurately.
No Objection Certificate (NOC):
If you’re a UAE resident employed elsewhere, an NOC from your current employer is required.
Proof of Trade Name Reservation:
Provide evidence of your trade name reservation with the Free Zone authority.
Proof of Initial Approval:
Include the document showing initial approval for your business activities from the Free Zone authority.
Bank Reference Letter:
For existing companies, a bank reference letter is often needed.
A signed lease agreement for your office space within the Free Zone, if applicable.
Company formation in Dubai Free Zone offers immense benefits, including corporate tax exemptions. The corporate tax in the UAE free zone is set at 0% .
The UAE has many rules and regulations that a business has to comply with in order to get started with their business setup in one of the Dubai Free Zones.
Employers need to follow employment laws which may be set by the UAE government or those set by individual free zones.
Register your company to get started with your business setup in one of the Free Zones. Get the permissions needed from the authorities.
Ensure that you are financially transparent and comply with the rules when it comes to your business’s operations.