Company Formation in Dubai Free zone

The free zone, a jurisdiction or geographical region in the United Arab Emirates, is designated for conducting a predefined trading activity or set of activities. When setting up a business in Dubai Freezone, acquiring a license is necessary. Moreover, Freezone licenses in Dubai and the United Arab Emirates are specifically issued for the particular business activity of the company.

The Dubai Free Zone issues licenses for the company’s business activity. Additionally, they are constructing new free zone regions, so the count of free zones will increase in the upcoming years.

Free Zone Authority can be the governing body for the activities that relate to Free Zone Company for license issuance and operation. Commercial laws can govern mainland companies in the UAE but are not applicable to free zone companies. Foreign investors can have complete ownership while operating a business in the Dubai Free Zone. Besides complete ownership, monetary benefits such as complete tax exemptions, absence of foreign exchange restrictions, and 100% repatriation benefits serve as extra benefits of Dubai free zone company formation.

Company Formation in the Dubai Free Zone: If your company secures approval for Free Zone business, it acquires Dubai Free Zone licenses such as an Industrial License, a Trade License, a National Industrial License, or a Service License from the Free Zone Authority. Additionally, UAE’s free zone licenses undergo annual renewal as part of the lease agreement.

Select your free zone jurisdiction according to your business type. Business activity must match the category of your free zone. Though offshore companies share the benefits of free zone companies in Dubai, they can’t be identical.

In the free zone jurisdiction, business entities form, and entrepreneurs as well as investors rely on three different business entities to establish companies in the Dubai Free Zone. They are:

• Free Zone Company – the business entity having more than two shareholders.
• Free Zone Establishment – business entity having a single shareholder.
• Branch Office – Investors form a business entity serving the branch office of the parent company. Overseas companies, or UAE, can be included in the parent’s concern.

Free Zone Company Formation Steps

• Choose your preferred business entity: The business category of free zone jurisdiction must be understood to select your legal entity or desired business.
• Pick a relevant or appropriate trade name: Planning to set up a business in the Dubai Free Zone? Start by selecting a relevant trade name for the business concern. Subsequently, contact the Free Zone Authority to verify the availability of the chosen trade name. It’s important to avoid selecting an already-listed trade name, as the trade name can then be registered through the Free Zone Authority.
• Applying license: Determine the license category based on the business activity. The documentation needed for license applications can vary with license type. For instance, the documentation to acquire a professional license can be different from the industrial license. The relevant license can be applied.
• Sufficient office space: The category of business and number of staff can determine the office space area. Multiple options, such as office space for lease and flexible spaces, are available for startup investors.
• Initial approval: Obtain the approvals from concerned agencies and departments.
• Registration: You can register the business on the official website of the Free Zone Authority after getting approvals.
• Business License: If you complete office formalities on time, you can obtain the business license within a month.