Guide to free zones in Dubai

The Dubai Free Zones Guide is a vital reference for investors looking for distinct investment opportunities in a dynamic and developed commercial environment. Dubai is one of the most developed and prosperous cities in the world, and it is a city known for its dynamic and diverse commercial environment. One of its most prominent features is the presence of multiple free zones, which play a vital role in strengthening the local economy and attracting foreign investments. These free zones, spread across the emirate, are major attractions for international companies seeking to take advantage of their many advantages, such as tax exemptions, full foreign ownership, and simplified bureaucratic procedures.

Free zones were established in Dubai with the aim of stimulating economic growth and providing a competitive environment for companies from various sectors. The most prominent of these areas are: Dubai Internet City, Dubai Media City, Jebel Ali Free Zone, and the Dubai International Financial Centre. Each of these regions is designed to meet the needs of specific industries and provide services and infrastructure that support their growth and prosperity. For example, Dubai Internet City provides an ideal environment for technology and information companies, while Dubai Media City targets media and entertainment organizations.

Dubai’s free zones enjoy an excellent reputation globally due to their availability of world-class infrastructure, and laws and legislation that encourage innovation and growth. It also provides a multicultural work environment, which enhances cultural and intellectual exchange between different nationalities and professional backgrounds. In addition, the government provides the necessary support to startups and entrepreneurs through various incentive programs and support networks.

Therefore, Dubai’s free zones play a pivotal role in making the city a global economic hub, attracting billions of dollars in investments annually and creating countless job opportunities. These areas reflect Dubai’s ambitious vision for the future, as it continues to innovate and develop to remain at the forefront of global cities that adopt the latest technologies and provide an ideal environment for business.

Guide to free zones in Dubai

Dubai is considered one of the United Arab Emirates and has a number of free zones that are an excellent environment for business and investment. Below are examples of some free zones in Dubai :

1. Jebel Ali Free Zone: It is considered one of the oldest and largest free zones in Dubai. It covers a large area and provides advanced infrastructure and modern facilities. It is famous for sectors such as logistics, technology, manufacturing and financial services.
2. Dubai Internet City: Focuses on the technology sector and provides an encouraging environment for technology and communications companies. The region includes a wide range of technology companies and research and development centers.
3. Dubai Media City: It is considered a major center for the media and advertising industry in the region. The area hosts many media and production companies and advertising agencies.
4. Dubai International Financial District: It is a global financial center that includes many financial companies, banks and other financial institutions. The Dubai Financial District provides an advanced legal and regulatory environment for financial businesses.
5. Dubai Aviation City: dedicated to developing the aviation and space industry in Dubai. The area includes facilities for maintenance, repair, training and logistics related to the aviation sector.

How to establish a company in the free zones in Dubai

To establish a company in a free zone in Dubai , you need to follow several steps and procedures. Here are general steps for establishing a company in a free zone in Dubai:

• Choosing a free zone: Decide in which free zone you would like to establish the company. Dubai includes many free zones such as Dubai Investment City, Jebel Ali, Dubai South, and others.
• Choose the type of company: Decide what type of company you want to establish, such as a limited liability company (LLC), sole proprietorship, partnership, etc.
• Determine the business activity: Select the company activity you wish to practice. You must ensure that the specific activity is permitted in the free zone you have chosen.
• Company Registration: Submit a company registration application to your chosen free zone authority. All required documents must be submitted and related fees paid.
• Obtaining the necessary licenses: After registration, you will need to obtain the necessary licenses and permits to conduct your business in the free zone.
• Opening a bank account: Open a bank account in the company’s name in one of the approved banks in the United Arab Emirates.
• Visas and Accommodation: If you need accommodation for yourself or your employees, you can arrange visa and accommodation applications through the relevant authorities in the free zone.
• Contracts and Agreements: Arrange any customer or supplier contracts or agreements as needed.
• Legal and financial advice: It is best to consult a lawyer or financial advisor to ensure that all steps are done in accordance with local laws and legislation.
• Getting started: After completing all previous procedures, you can start doing your business in the free zone.

Benefits offered by free zones to companies

Free zones in Dubai offer a range of benefits and incentives that make them attractive to businesses and investors. Here are some of the main benefits these areas offer:

1. Full tax exemptions: One of the most prominent benefits offered by free zones in Dubai is full tax exemptions on profits and income for up to 50 years, subject to renewal.
   The absence of taxes on capital or profits makes Dubai an attractive destination for companies that want to achieve significant savings on tax costs.
2. Full Foreign Ownership: Dubai free zones allow full foreign ownership of companies without the need for a local partner.
   This type of policy increases Dubai’s attractiveness as an investment destination for international companies that want to maintain full control of their business.
3. Simple and quick establishment and operation procedures: Free zones in Dubai are characterized by simple and simplified company establishment procedures, which contributes to reducing bureaucracy and accelerating the establishment and operation processes.
   Providing continuous government support facilitates operating procedures and contributes to reducing the administrative burden on companies.
4. Advanced infrastructure and excellent logistics services: Dubai’s free zones offer advanced infrastructure that includes sea ports, international airports, and a developed road network.
   This infrastructure helps facilitate the movement of goods and people, which enhances the efficiency of companies’ operations and reduces logistics costs.
5. Availability of a diverse and qualified workforce: Dubai’s free zones attract a diverse community of qualified workers, providing companies with ease in selecting the competencies required for their business.
   This diversity helps foster innovation and increase productivity in companies.

Documents required to establish a company in free zones

To establish a company in Dubai free zones , the required documents usually vary slightly from one free zone to another and may vary based on the type of company and business activities you intend to undertake. However, here is a general list of basic documents that would typically be required to establish a company in Dubai’s free zones:

1. Application for Incorporation: You must fill out and submit a company incorporation application form that contains basic information about the company such as its name, type, and proposed activities.
2. Board Resolution Form: If there is a director or directors appointed for the company, the free zone may request a form for the Board of Directors’ decision to appoint these directors and authorize them to manage the company.
3. Shareholders and Shares Declaration Form: A form is submitted detailing the company’s shareholders and the shares owned by each shareholder.
4. Proof of Registered Address Confirmation Form: This can include a lease contract or other document proving the address of the company’s approved headquarters in the free zone.
5. Passports and ID Copies: Copies of passports and ID cards of all shareholders, directors and the person authorized to represent the company.
6. Business Plan: Some free zones may ask you to submit a detailed business plan explaining the company’s planned activities and financial projections.
7. Non-Conviction Certificate: Providing a certificate proving that there is no court judgment against any of the shareholders or directors.
8. Special Contracts/Agreements: If there are special agreements with shareholders or partners, the free zone may request copies of these agreements.

Costs associated with establishing a company in free zones

Establishing a company in Dubai free zones involves various costs consisting of company incorporation fees and other administrative costs. The following list shows some of the costs associated with establishing a company in free zones :

• Company establishment fees (Incorporation Fees): These fees include government fees and fees required to register the company in the free zone. The amount of this fee varies depending on the type of company (e.g. sole proprietorship or limited liability company) and your free zone.
• Annual License Fees: Annual license fees are considered part of the costs of establishing the company and range according to the type of company and its activity. This fee is renewed annually.
• Office Rent: Companies must rent an office in the free zone, and rental prices vary based on the location within the zone and the size of the office required.
• Infrastructure and Logistic Services Fees: These fees include the costs of using advanced infrastructure in the free zone, such as roads, ports, and airports.
• Administrative Services Fees: These fees may include services such as security and safety management, and general administrative support services.
• Insurance and Guarantees Costs: Some companies may need to pay insurance costs to maintain assets and cover against potential risks.
• Costs of legal and advisory services: Companies may need legal advice to prepare the required documents and secure the necessary licenses.
• Marketing and Promotion Costs: Companies may need to spend sums on marketing activities to attract customers and increase brand awareness.

In conclusion, it can be said that the Dubai Free Zones Guide represents a comprehensive and necessary reference for any investor or entrepreneur looking for promising investment opportunities in an advanced commercial environment. Dubai, with its advanced infrastructure and flexible economic policies, is an ideal destination to attract foreign and local investments. Dubai’s free zones not only provide a tax-free environment and administrative and legal facilities, but also contribute to promoting innovation and business development through available support and financing services.

Offering free zones in Dubai a variety of benefits that make them attractive to businesses of all sizes and types. From low costs for establishing companies and tax exemptions, to modern infrastructure and excellent logistics services, Dubai outperforms many other cities as a global investment destination. In addition, cultural diversity and openness to innovation enhance Dubai’s attractiveness, making it a vibrant hub for business and startups.

The UAE government’s continued interest in developing and promoting free zones reflects a future vision aimed at diversifying the economy and making it more sustainable. Efforts to attract investments and stimulate entrepreneurship contribute to creating a competitive environment that drives economic growth and enhances Dubai’s position as a global trade hub.

The most important frequently asked questions about free zones