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Cost of a business license in Dubai Free Zone

٢٣ فبراير Cost of a business license in Dubai Free Zone

Find out the cost of a commercial license in the Dubai Free Zone because Dubai is considered one of the most prominent economic and investment destinations in the world, attracting companies and investors from all over the world thanks to its vibrant commercial environment and advanced infrastructure. Free zones in Dubai offer many benefits and advantages, including the possibility of full business ownership, tax exemption, and easy access to global markets. Obtaining a commercial license is considered one of the basics of establishing companies in these areas, and the cost of this license varies based on several factors, including the type of business activity, the size of the company, and the location within the free zone. In this article, we will review the most important aspects related to the cost of a commercial license in the Dubai Free Zone , and how to benefit from the services provided to facilitate the establishment process.

Cost

Cost of a business license in Dubai Free Zone

Cost of a business license in Dubai Free Zone

The cost of obtaining a business license in the Dubai Free Zone varies based on several factors such as the type of business activity, the size of the company, and the location within the chosen free zone.

In general, costs can be divided into several basic aspects, including:

  1. License fees : These fees vary according to the type of license required (commercial, industrial, service, etc.) and the size of the business activity.
  2. Office space costs : The cost of renting office space in the free zone, as prices vary based on the location and size of the office.
  3. Registration fees : Includes company registration fees in the commercial registry of the selected free zone.
  4. Visa fees : The cost of obtaining visas for employees and employees of the company.
  5. Additional Services : Additional costs may include such as legal consulting services, assistance with preparing documents, and other administrative services.

To obtain an accurate estimate of costs, it is advisable to contact the responsible authorities in the chosen free zone or to seek the assistance of consulting companies specialized in establishing companies in Dubai, such as Atqan Company, which provides comprehensive services that include assistance in obtaining a commercial license and incorporation procedures.

Types of business licenses in Dubai

Each type of these licenses serves a specific type of commercial or industrial activity, and you must choose the license that suits the nature of the work you wish to practice.

License typeDescription
Commercial licenseIssued to commercial, retail and wholesale activities, including general trade, importing and exporting companies.
Industrial licenseIssued to companies that manufacture or produce, including factories and workshops.
Service licenseIssued to companies that provide specialized services, such as consulting, programming, marketing, and maintenance.
Free business licenseIt is issued to companies in free zones, and provides full foreign ownership, tax exemptions, and additional benefits.
License for company branchesIt is issued to branches of companies based abroad, and allows them to conduct business under the original trade name.
Temporary work permitIt is issued for activities carried out on a temporary basis or for special projects with a specific period of time.
Investment licenseIt is issued for investments that require cooperation with local or foreign companies and targets investment projects.

 

How to renew business licenses in the free zone in Dubai

Renewing commercial licenses in free zones in Dubai requires following a set of steps to ensure the continued validity of the license and its compliance with legal requirements. Here are the basic steps for renewing commercial licenses:

  1. Review renewal requirements : Check the renewal requirements of the free zone in which your company is located. These requirements may vary depending on the free zone and type of business activity.
  2. Gather the required documents :
    • You usually need to provide a range of documents, such as:
      • A copy of the current trade license.
      • A copy of the owners or managers’ passport.
      • A copy of the Emirates ID card (if available).
      • Financial or tax reports, if required.
      • Office or work site lease contract.
  3. Submit a renewal application : Submit a commercial license renewal application to the relevant free zone authority. This can be done online or by visiting the Authority’s office, depending on the system followed in the free zone.
  4. Pay the required fees : Pay the trade license renewal fees. These fees vary based on the type of license and type of business.
  5. Review and prepare documents : You may need to review the documents provided by the Authority to ensure their completeness and correctness. If there is any deficiency or error, the Authority will ask you to correct it.
  6. Receiving the renewed license : After completing all steps and paying the fees, the Authority will issue the renewed commercial license. Make sure you receive the new copy of the license and update your company’s records.
  7. Compliance with rules and regulations : Ensure that all business activities in your company are compliant with the rules and regulations applicable in the free zone after renewal.

Renewing a commercial license in free zones requires adherence to specified deadlines and procedures to ensure the continued validity of your business and that you are not exposed to any violations. It is recommended to contact the responsible authority in the free zone to obtain the exact details and necessary instructions.

 

Steps to establish a company in the free zone 

Establishing a company in the Dubai Free Zone requires following a set of legal and administrative steps and procedures. These steps include:

  1. Choosing a business activity : Determining the type of activity that the company wishes to engage in, as the type of activity determines the legal and financial requirements necessary to establish the company.
  2. Choosing the appropriate free zone : Dubai includes many free zones, such as the Jebel Ali Free Zone, the Dubai Airport Free Zone, and others. You must choose the area that suits the type of business activity and business requirements.
  3. Choosing the company type : Determine the legal form of the company, such as a free zone limited liability company (FZ-LLC) or a branch of a foreign company.
  4. Reserving a trade name : Choosing and registering a distinctive trade name for the company, while ensuring that it complies with the conditions and laws in force in Dubai.
  5. Preparing the necessary documents : Submit all required documents, such as passports, copies of visas (if any), business plans, and other documents that vary according to the type of activity and the chosen free zone.
  6. Renting office space : Obtaining a lease contract for an office in the free zone, as the available spaces vary from small offices to large offices according to the company’s needs.
  7. Applying for a commercial license : Submitting an application for a commercial license, which is the official document that authorizes the company to practice the specified commercial activity.
  8. Opening a bank account : After completing the licensing procedures, a bank account must be opened for the company in one of the approved banks in the Emirates.
  9. Obtaining visas : Depending on the type of activity and the size of the company, it is possible to apply for work visas for employees and employees of the company.
  10. Registration with government agencies : Completing the legal procedures and registering with the competent government agencies, such as the Department of Economic Development and other regulatory bodies.

These steps represent the process of establishing a company in the Dubai Free Zone, and all legal procedures and legislation must be adhered to to ensure the company is established legally and properly.

Advantages of starting a business in Dubai free zones

Starting a business in Dubai’s free zones offers many positives that make it a preferred destination for investors and entrepreneurs. The most notable of these positives are:

  1. Full ownership by foreigners : Foreign investors can own 100% of companies in free zones, without the need for a local partner.
  2. Tax exemptions : Free zones provide complete exemption from taxes on profits and income, which contributes to reducing the financial burdens on companies.
  3. Facilitating establishment procedures : Administrative procedures and licensing in free zones are simplified and quick, which reduces the time and effort required to establish a business.
  4. Financial incentives : Many free zones offer financial incentives such as discounts on rents or financial support for new businesses.
  5. Easy access to global markets : Free zones provide advanced infrastructure, such as ports and airports, which facilitates trade and transportation to international markets.
  6. Work and residence visas : Free zones provide facilities for issuing work and residence visas for workers and investors, which facilitates the employment and residency process.
  7. Flexible office and office space rental : Free zones provide various options for office space, from small offices to large spaces, depending on the company’s needs.
  8. Business support : Free zones provide various support services such as legal advice, assistance in obtaining financing, and providing business management services.
  9. Economic safety and stability : Dubai provides a stable and safe economic environment, which enhances confidence in business investment and reduces risks.
  10. Expansion potential : Dubai’s free zones offer great opportunities for expansion and growth thanks to the advanced infrastructure and extensive commercial networks.

These advantages make Dubai’s free zones an attractive and conducive environment for starting businesses, providing competitive advantages to investors and new companies.

Types

Types of business licenses in Dubai

Why start your business and company in Dubai?

Establishing your activity and company in Dubai offers a range of benefits and advantages that make it a preferred destination for many investors and entrepreneurs. Here are some of the main reasons why you should start your business in Dubai:

  1. Suitable business environment : Dubai provides a prosperous and stable business environment thanks to its advanced infrastructure and laws encouraging investment.
  2. Full ownership by foreigners : You can fully own your company without the need for a local partner, especially in free zones.
  3. Tax exemptions : Companies in Dubai benefit from tax exemptions on profits and income in many free zones, which reduces operational costs.
  4. Easy access to global markets : Dubai’s strategic location between East and West makes it an important center for international trade, with easy access to the markets of the Middle East, Asia and Africa.
  5. Advanced infrastructure : Dubai has a modern infrastructure that includes advanced ports and airports, and integrated transportation networks, which contributes to facilitating business movement.
  6. Incentives and investments : Dubai offers incentives to new investors, including financial support and discounts on rents in free zones.
  7. Diversity of economic activities : Dubai offers broad opportunities across a variety of business activities, from trade and services to industry and technology.
  8. Political and economic stability : Dubai enjoys a high level of political and economic stability, which enhances confidence in the investment environment.
  9. Visas and residence : Dubai provides facilities for issuing work and residence visas, which facilitates the recruitment and recruitment of specialized workers.
  10. Extensive business network : The presence of a strong network of companies and financial institutions enhances opportunities for cooperation, partnership and expansion in the market. Starting your business in Dubai gives you ample opportunities for growth and expansion thanks to its unique advantages in the global business environment.

In conclusion, the cost of obtaining a business license in the free zones in Dubai is a crucial element in the process of establishing and managing a business, as this cost depends on a group of factors that include the type of business activity, the size of the company, and the location within the free zone. Despite the variety of costs, investing in free zones offers many advantages such as tax exemptions, full ownership by foreigners, and simplified procedures. Therefore, it is necessary for investors and entrepreneurs to understand all aspects of costs and look for options that best suit their needs. Through good planning and making use of specialized consultations, it is possible to make the most of the opportunities provided by free zones in Dubai, contributing to the success and sustainability of businesses in a thriving commercial environment.

Frequently asked questions about the cost of a commercial license in the free zone

What factors affect the cost of a business license in the free zone?

The cost of a business license depends on several factors such as the type of business activity, company size, specific free zone, and rental requirements for office space. Each free zone may have different fees and procedures.

Does the cost of the business license include all fees associated with establishment?

No, the cost of a business license usually includes only the fees related to obtaining the license. You may need to pay additional fees such as rent, visa fees, and additional services provided by consulting companies.

Can I get discounts on the cost of the business license?

Some free zones may offer discounts or special offers for new companies or major projects. It is worth checking for any offers or incentives that may be available when applying for a licence.

What additional fees may I need to pay when renewing the license?

When renewing your licence, you may need to pay the annual renewal fee plus any additional fees that may be associated with updating the data, such as changing the business or expanding the office.