Establishing a company in the free zone in Dubai

Establishing a company in the Dubai Free Zone represents a strategic step towards achieving success and prosperity in the business world. Dubai, thanks to its strategic geographical location, advanced infrastructure, and encouraging economic environment, is considered one of the most attractive destinations for investors and entrepreneurs from all over the world. Establishing a company in one of the free zones in Dubai gives investors many unique advantages such as full ownership of the business, tax exemption, easy transfer of profits, in addition to an integrated work environment that supports growth and innovation. In this article, we will review in detail the steps and procedures necessary to establish a company in the Dubai Free Zone , focusing on the advantages that make Dubai an ideal destination for investment and business.

Establishing a company in the free zone in Dubai

Establishing a company in the Dubai Free Zone with the help of “Itqan” Company represents a smart choice for investors seeking to benefit from the great economic opportunities in the emirate. “Itqan” provides integrated and comprehensive services that facilitate the process of establishing a company, starting with initial consultations on choosing the most appropriate legal structure and commercial activity, through legal and administrative procedures, and even obtaining a commercial license and registering the company. Thanks to its deep experience and solid understanding of local legislation and market requirements, “Itqan” ensures that the company establishment process is smooth and free of complications, allowing business owners to focus on achieving their goals and growing their business in a stimulating and prosperous work environment.

What is a free zone?

The meaning and definition of the word free zone varies depending on the type of free zone, but in most cases the word free zone expresses a geographical area in which goods are preserved, stored, manufactured, traded and re-exported according to a known and specific customs system, but it is not subject to any customs duties.

The term free zones is also considered to be entities completely separate from the laws of the state, as they are not governed by the trade laws of the country and do not require a sponsor. Likewise, the company that is established in the free zone can be owned by a person of another nationality without the need for a partner who is a UAE citizen.

The free zones in Dubai  and in the Emirates in general are not subject to the general laws set by the Ministry of Economy to regulate the commercial activities of companies, as this free zone in Dubai works to provide ownership freedom for businesses, in addition to tax exemption and exemption from any customs duties. These advantages in the free zones make them An ideal and honorable face for international companies that carry out many commercial activities. One of the advantages is that opening and establishing a company in Dubai and in the free zone does not require the presence of a partner or sponsor who is a citizen of the Emirates.

Types of free zones in Dubai

Steps to invest in Dubai

Investing in Dubai requires following a set of systematic steps to ensure compliance with local laws and regulations, and achieve commercial success. Here are the basic steps to invest in Dubai:

1. Market research and study: Before embarking on any investment, it is necessary to conduct comprehensive market research to understand the demand for the products or services you plan to provide.
Study competitors and identify available opportunities and potential risks.
2. Choosing a business: Determine the type of business you want to invest in. Dubai provides a wide range of commercial, industrial and service activities.
3. Choosing the appropriate area: Dubai is characterized by the presence of many free zones, in addition to traditional commercial areas. You must choose the area that suits the nature of your business and your investment requirements.
Free zones offer advantages such as full foreign ownership, tax exemption, and easy repatriation of profits.
4. Determine the legal structure of the company: Choose the appropriate type of company, whether it is a limited liability company (LLC), a free zone company, or a branch of a foreign company.
5. Obtaining approvals and licenses: Submit an application to obtain the necessary approvals from the relevant government agencies. You can also obtain the appropriate commercial license for your business.
6. Preparing the necessary documents: Preparing all required legal documents such as the articles of association, articles of association, and passports for investors.
7. Company registration: Register the company with the Dubai Economic Development Department (DED) or the selected free zone authority.
8. Finding a business location: Renting an office or headquarters for the company according to the requirements of the free zone or the Department of Economic Development.
Signing and registering lease contracts if necessary.
9. Opening a bank account: Opening a commercial bank account in the name of the company to manage financial operations. The required documents can also be submitted to local banks.
10. Labor recruitment: If necessary, recruitment of the labor necessary to operate the company can begin. And adherence to local laws related to labor and employment.
11. Compliance with tax and financial requirements: Compliance with tax and financial requirements imposed by the government. Regular financial reporting and compliance with accounting standards are also provided.

Steps to establish a company in the free zone in Dubai

Now, regardless of your financial ability or what you set a financial budget for establishing and establishing any investment projects in Dubai or establishing a company in Dubai,  you can now establish any project or investment service in Dubai due to the multiplicity of needs of the UAE and also due to the ease of providing methods for establishing investment projects there, but it must Knowing the appropriate and basic steps in establishing a company in Dubai are as follows:

Determine the nature of the company’s activity

Determining the nature of the company’s activity is one of the most important procedures imposed by UAE law when establishing companies in Dubai. This facilitates procedures and then determines the parties associated with the company’s activity and the permitted legal forms. There are approximately 2,000 economic activities permitted in the UAE, and economic activities are classified into three main types: 

Commercial activity, which includes real estate, leasing, transportation, transportation, financial intermediation, wholesale, retail, storage, and communications. Professional activity, which includes agriculture, health, social work, education, and various service activities related to society. Any activity that depends on physical and mental activity to practice it. Finally, industrial activity includes transformative industries such as mining, water, electricity, quarrying, and there are also some tourism activities.

 Determine the legal form of the company

Here we are talking about the legal form of the new company that will be established. This form depends on the nationality of its owners, and the legal form of the company that you plan to establish in Dubai is as follows:

• Joint company.
• Limited liability companies.
• Public joint stock company.
• Private equity company.
• Civil works companies.

Trade name registration

The third step of establishing companies is specifying the trade name in establishing a company in Dubai, which is what distinguishes one commercial license from another. The trade name is also related to the form and activity of the commercial company and is met with several important conditions that the Department of Economic Development stipulates on the trade name before it approves it. The name is that the company’s trade name does not contain words that are inappropriate for the country, that it does not contravene the public and private taste of the country, and that the trade name reflects the commercial activity accurately and clearly.

 Obtain initial approval

After determining the legal activity of the company and its legal form as well, and registering its trade name, you must now obtain initial approval for the economic activity of the company and follow up in order to obtain the approval of the authorities related to the activity.

 Here comes the moment of concluding or preparing the contract designated for establishing a company in the free zone in Dubai. The contract of incorporation must be presented in agreement between you and the competent authorities in Jebel Ali. You must also choose a location to establish the company in the free zone or establish a company in Jebel Ali to conduct business. All Established companies must have a physical address in the United Arab Emirates, and this headquarters must meet the specified requirements and land allocation systems previously, in addition to having an existing license.

 Obtaining approvals from the authorities concerned with the facility’s activity

Some commercial activities and projects require obtaining additional approvals from the competent authorities for those projects and activities concerned with them, such as approval from the Ministry of Economy, or specialized approval from the Ministry of Interior, or specialized approval from the Ministry of Justice, or approval from Civil Defense if the activity, for example, is related to the activities of selling equipment. Firefighting.

Obtaining the license

After completing all the previous steps to prepare and establish an investment company in Jebel Ali or establish a company in the free zone in Dubai, you can now receive the commercial activity license, attach some of the required papers and documents, including also the economic development steps and pay the commercial license fees for establishing the company, then after registration is completed in the chamber. Business as a member.

Costs of establishing a company in Dubai

The costs of establishing a company in Dubai are mainly limited to several expenses, which are as follows:

• Cost of commercial license expenses (license to practice business)
• The price of purchasing the office location or the company through which you conduct your business, whether renting or purchasing.
• The price of purchasing furniture and decor for the office in which you conduct your business.
• The price for obtaining work permits for sponsored employees and the required visas for them under the name of your current company.
• The price of opening a new account in the name of the company in a bank and depositing the minimum capital according to the type of business activity.
• The amount of the cost of the company’s legal form plays a fundamental role in the increase or decrease in the cost of establishment. The costs of establishing industrial companies are higher than the cost of establishing commercial and professional companies in Dubai. Finally, the price of the commercial license.

In conclusion, establishing a company in the Dubai Free Zone is a strategic step that meets the ambitions of investors and entrepreneurs who seek to expand and grow in a stimulating and supportive business environment. Thanks to the many facilities and benefits provided by free zones, such as full foreign ownership, tax exemptions, and advanced infrastructure, companies from various sectors can achieve high levels of success and prosperity. Whether you are planning to launch a new venture or expand your existing business, Dubai provides you with the ideal platform to achieve your business vision and goals. Investing in Dubai is not just a financial decision, but rather an investment in the future, where opportunities meet potential and creativity meet innovation, in a city considered one of the fastest growing and most dynamic cities in the world.

Frequently asked questions about establishing a company in the free zone