Establishing a company in the free zone

Establishing a company in a free zone is considered the dream of every investor and entrepreneur in any country in the world. Dubai is considered the first city to pioneer the concept of free zones, and free zones in Dubai provide many advantages such as: complete tax exemption and freedom to dispose of capital. We will learn about those The article covers the steps for establishing a company in the free zone in Dubai.

Establishing a company in the free zone

The idea of ​​establishing a company in the free zone is considered an important and exciting investment step, as it provides those interested in entrepreneurship with an encouraging environment and opportunities for growth and expansion. This article aims to provide a comprehensive guide explaining how to establish a company in the free zone , focusing on the basic steps, potential challenges, and expected benefits, in addition to practical tips for achieving success in this field.

1. Identifying the opportunity: Before starting the company establishment process, the appropriate business opportunity must be identified. The market should be studied and a pressing need identified that the company can fill. The company’s basic idea must be innovative and in line with the needs of the local and global market.

2. Preparing the feasibility study: After defining the idea, a comprehensive feasibility study should be prepared to evaluate the project’s financial and economic feasibility. This includes estimating the costs needed to start the business, identifying potential risks, and estimating the expected return on investment.

3. Site selection: Site selection is a critical factor for the company’s success. A free zone should be chosen that has a developed infrastructure and provides integrated services for companies. The location must also be in line with the type of business chosen and its requirements.

4. Establishing the company: After choosing the location, the company establishment and registration procedures must be completed in the chosen free zone. This includes preparing the necessary legal documents and submitting them to the relevant authorities, in addition to paying the required fees.

5. Obtaining licenses and permits: Licenses and permits are essential for starting work in the free zone. All necessary licenses must be obtained from the relevant authorities, and ensure that all required conditions and requirements are met.

6. Labor recruitment: Qualified and specialized human cadres must be selected to work in the company, and a stimulating work environment must be provided that encourages creativity and innovation.

7. Developing the strategic plan: A comprehensive strategic plan should be developed that defines the company’s goals and the steps to achieve them, in addition to identifying effective strategies to confront potential challenges and achieve sustainable growth.

8. Marketing and brand building: We must invest in marketing and brand building strategies to attract customers and enhance spread in the local and global market.

9. Compliance with laws and legislation: The company must comply with all local and international laws and legislation related to its commercial activity, and take the necessary measures to avoid any potential legal problems.

Steps to establish a company in the free zone

Establishing a company in the free zone requires several main steps, which are as follows:

1. Type of license and activity

Establishing a company in the Dubai Free Zone varies from one region to another. Each free zone has rules and laws that govern activities. For example, each region has different rules for adding a specific number of activities in one license, and it is also not possible to add a commercial activity with another activity in one license.

Therefore, the type of activity to be practiced must be determined, as well as the type of license.

2. Choose a free zone

As we agreed before, each free zone has a specific list of activities permitted to be practiced within it. The types of offices available in the free zone differ, and the visa quotas differ from each region to another.

3. Determine the company structure 

Establishing a company in the free zone requires defining the company structure, which can be:

• The structure of a new company that includes one or more shareholders.
• A subsidiary company with shareholders in the company.
• A joint venture company is a combination of individual shareholders and shareholders of the company.
• A branch of a local company or a foreign company.

4. Choosing a trade name and preparing documents

The Departments of Economic Development require certain controls for the name, so it must not violate public taste and must be compatible with the nature of the activity.

The documents include the following:

• Passport and visa.
• Proof of residential address and CV.
• Emirati ID

5. Request for initial approval

Initial approval includes the locations of the company name, business activity, and proposed company structure.

6. Signing legal documents

Meet the free zone representative to verify the passport of the final beneficiary or shareholder, then sign documents such as the board of directors’ decision and others.

7. Establishing a work site

A business headquarters must be established for the company, whether by purchase or rent, and it must be a physical headquarters in the free zone appropriate to the nature of the activity.

8. Obtaining licenses

After completing all the previous steps, the investor can receive the license and attach some documents and papers with it, in addition to the economic development steps to pay the costs of the commercial license fees, then register in the UAE Chamber of Commerce as a member.

Advantages of establishing a company in the free zone

Free zones are an ideal haven for companies wishing to grow and expand internationally. It provides a stimulating legislative and economic environment that makes it attractive to investors from all over the world. Establishing a company in a free zone can be a thoughtful strategic decision, as these areas offer many advantages that make them ideal for business. In this article, we will delve deeper into understanding the advantages of establishing a company in a free zone, and how companies can benefit from these advantages to achieve success and growth.

1. Advantages of establishing a company in the free zone:

1.1 Flexible legislation and facilitating regulations:

• Free zones enjoy flexible legislation and easy regulations that help facilitate procedures for establishing and operating companies.
• This legislation allows flexibility in corporate management and reduces bureaucracy, which enhances companies’ flexibility to adapt to rapid changes in the market.

1.2 Tax exemptions:

• Tax exemptions are one of the most important advantages of free zones, as they provide opportunities to reduce tax costs for companies.
• Companies can benefit from income tax exemptions, value-added taxes and customs, which contributes to increasing profits and improving their competitiveness.

1.3 Easy access to global markets:

• Thanks to their strategic location and customs facilities, free zones allow companies easy access to global markets.
• Companies can access international business networks and export to various markets efficiently, enhancing growth and expansion opportunities.

1.4 Advanced infrastructure:

• Free zones provide advanced infrastructure that includes ports, airports, roads and logistics services, facilitating shipping and distribution operations.
• Advanced infrastructure plays a vital role in improving production efficiency and reducing transportation costs, which helps increase the profitability of companies.

1.5 Work and investment facilities:

• Free zones provide a stimulating business environment suitable for investments, while providing facilities for companies to obtain the necessary licenses and permits.
• Businesses can benefit from flexible labor laws and simplified logistics systems, making operations easier to manage and more efficient.

2. Companies benefit from the advantages of the free zone:

2.1 Improving competitiveness:

• Thanks to tax breaks and logistical facilities, companies can improve their competitiveness and increase their market share.
• Companies can offer products and services at competitive prices and high quality, which enhances their attractiveness to customers and increases their revenues.

To know the costs required to establish a company in the free zone, you can contact us and our experts will provide you with all the information, and we have experts to clear all the necessary procedures, documents and papers.

Frequently asked questions about establishing a company in the free zone