Dubai is one of the most preferred business locations by entrepreneurs all over the world. Its low taxation policies, world class infrastructure, global connectivity and futuristic government policies attract many businessmen to its shores. There are two popular ways for investors from around the world to start a business in Dubai, they are establishing a business on Dubai Mainland or on the Free zones. The company incorporation procedures involved in establishing a free zone company in Dubai will be covered in this blog.
A free zone is a unique jurisdiction or area reserved for a specific type of commercial activity or set of related activities. It is mostly recognised by the ownership and tax advantages it provides to foreign investors. In the United Arab Emirates, there are more than 40 free zones, some of which are being built. There are now 30 free zones in the Emirate of Dubai. Now let’s see how to start a free zone business in Dubai. If you need any assistance in company formation and licensing in dubai then contact UBL Business setup in dubai for professional service.
Steps to start your freezone company
The Free Zone authority, or FZA, is the regulating agency that grants a business or trade license in a free zone. Your business must fall under the category of commercial pursuits designated for the Free zone. As a result, thoroughly analyse the free zone jurisdiction and choose the one that best suits your requirements.
The following is a list of the laws governing the incorporation of businesses in the free zone
Choose the company’s legal structure – Choose the business’s legal structure as you see fit. There may be a minimal capital requirement in some free zone authorities.There might be specifications depending on the type of free zone. This minimal capital requirement does not apply to certain free zones owned by other Emirates.
Find a suitable trade name – A crucial part of company registration in Dubai is determining the most appropriate and pertinent trade name for your organisation. Selecting names that are already registered is not permitted. In order to discuss this, speak with the Dubai Free Zone Authority. You are able to register the trade name on the Dubai FZA website after verification.
Obtain the trade licence – Following the registration of your trade name, you may submit an application to do so. Now, the nature of activity determines which trade licence is provided. The following is a list of the several business licences that the Dubai Free zones issue.
- Commercial License
- Industrial License
- Professional License
- General Trading License
- Manufacturing License
- Warehousing License
Choose an appropriate office location – Depending on the needs, businesses are permitted to lease or buy office locations. To make a selection, you might take into account the business activity and the labour demand. Flexi-desk alternatives may be chosen by startup businesses.
Obtain the initial approval and complete the registration process; the initial approval is given following more examination. You may register the business on the FZA website after receiving the Initial Approval.
Obtain a business licence – A licence is issued upon registration. You can start operations once you’ve obtained a business licence.
If you have any confusion regarding starting your free zone business in dubai contact UBL Business setup for professional service at an affordable rate.