Establishing a company in the Dubai Production City Free Zone

١٥ مايو Establishing a company in the Dubai Production City Free Zone

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Learn about establishing a company in the Dubai Production City Free Zone because the Dubai Production City Free Zone was established in 2003 by decision of the Dubai Government. Dubai Production City is considered an incubator for institutions and companies working in the field of artistic, media and film production, the Internet and technology, and it is one of the free zones. A subsidiary of TECOM Group, it is located close to Dubai Airport. It hosts more than 255 companies, and employs more than 6,000 employees from more than 85 different nationalities. The Dubai Production Free Zone Authority offers multiple investment packages for people to choose from that suit their budget on the one hand and their aspirations on the other. We will learn many details about establishing a company in the Dubai Production City Free Zone .

Establishing a company in the Dubai Production City Free Zone

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Steps to establish a company in the Dubai Production City Free Zone

Establishing a company in Dubai Production City Free Zone requires following specific steps to ensure compliance with legal and commercial requirements. Here are the basic steps:

Determine the business activity : Determine the activity you wish to practice, because the type of activity affects the type of license required.
Choose the type of license : Choose between the available types of licenses, such as commercial, industrial, or service, based on your business activity.
Company registration : Submit a registration application with the Dubai Production City Free Zone Authority. You will need to provide required documents such as passport, residence visas, and lease contract for the company’s headquarters.
Preparing legal documents : Preparing the necessary legal documents, such as the articles of association and articles of association, in cooperation with a legal advisor if necessary.
Obtaining a license : After completing the required procedures, the Authority will issue the necessary license to practice the activity.
Opening a bank account : Open a bank account in the name of the company in one of the approved banks in Dubai.
Rent an office : Rent an office in the free zone, as all companies in the free zone are required to have a physical headquarters.
Tax registration : Register with the relevant authorities to obtain a tax number if this is required based on the type of business activity.
Work visas : If you plan to bring on employees, you must apply for work visas for them.
Activating commercial activities : After obtaining the license and completing all procedures, you can start practicing your commercial activities.

Collaborating with local consultants or specialized companies such as Atqan can help speed up the process and ensure all steps are carried out correctly.

Types of companies in Dubai

Here is a table showing the types of companies you can establish in Dubai Production City, which is considered one of the free zones in Dubai:

Type	Description
Limited Liability Company (LLC)	A company wholly owned by foreign investors, and its liability is limited to the invested capital.
Company branch	A branch of an international or local company, which allows the parent company to expand in Dubai while the branch remains legally affiliated with it.
One person company	A one-person company allows one person to have complete control of the company while liability is limited to the capital invested.
Representative office	An office that represents a foreign company without being involved in direct commercial activities, focusing on marketing and research activities.
Trading company	A company specializing in trading activities and selling products, which can be entirely owned by foreigners.
Industrial company	A company that carries out industrial activities, such as manufacturing and production, and benefits from the developed infrastructure in the free zone.
Service company	A company that provides various services, such as consulting or technology, and has the ability to utilize free zone facilities.

Each type of company has specific requirements and establishment procedures, and you can choose the type that suits the nature of your business and your needs.

Advantages of establishing a company in the Dubai Production City Free Zone

Establishing a company in the Dubai Production City Free Zone offers many advantages that make it an attractive option for investors. Among these advantages:

Tax exemptions : Companies in the free zone benefit from tax exemptions on profits and taxes assessed at the corporate level, which enhances their profitability.
Full foreign ownership : Foreign investors can own 100% of a company’s shares without the need for a local partner, giving them full control of their business.
Simplified establishment procedures : The free zone offers easy and fast establishment procedures, which reduces administrative complexities and allows the business to start quickly.
Modern business environment : The free zone provides modern infrastructure and advanced facilities, which supports business operations and contributes to achieving corporate goals.
Freedom to transfer funds : It allows the transfer of funds outside the country without restrictions, which facilitates money management and international investment.
Exemption from customs duties : Companies enjoy exemptions from customs duties on raw materials and goods that are imported or exported.
Ease of obtaining visas : The free zone provides facilities for obtaining residence visas for employees and investors, which contributes to facilitating the employment process.
Intellectual Property Protection : The free zone supports intellectual property protection and trademark registration, which protects companies’ innovations and brand names.
Strategic location : The free zone is located in a strategic location in Dubai, which facilitates access to global markets and enhances opportunities for growth and expansion.
Government support : The free zone provides government support through advisory and guidance services, which contributes to facilitating legal and administrative challenges.

These advantages make Dubai Production City Free Zone an ideal choice for investors seeking success and growth in a supportive and suitable business environment.

How can you establish a company in the free zone?

Establishing a company in a free zone requires following a set of basic steps to ensure compliance with legal and commercial requirements. Here are the detailed steps for establishing a company in a free zone:

Choose a free zone : Select the free zone that suits your business. There can be multiple options depending on the type of activity and location.
Determine the type of company and business activity : Determine the type of company you wish to establish (such as a limited liability company, branch, or representative office) and the business activity you will engage in.
Choosing a company name : Choose a business name for the company that is consistent with local laws. Make sure that the name is not already used and that it complies with the terms of the free zone.
Submit a registration application : Submit an application to register the company with the relevant free zone authority. This usually requires providing information about the company’s activity, name, and details about the founders.
Preparing legal documents : Prepare the necessary legal documents, including the articles of association and articles of association. You may need the assistance of legal counsel to ensure that documents comply with legal requirements.
Choosing an office location : Rent an office in the free zone. Most free zones provide various office options ranging from individual offices to large offices.
Opening a bank account : Open a bank account in the name of the company in one of the approved banks. You will need to provide documents proving the incorporation of the company and details of the owners and directors.
Obtaining a license : After completing registration and submitting the required documents, the Authority will issue the necessary commercial license to practice the activity.
Registration for taxes : Register with the relevant authorities to obtain a tax number if this is required based on the type of activity.
Work and residence visas : If you intend to employ employees, apply for work and residence visas for them. The Free Zone can help you facilitate these procedures.
Activating commercial activities : After obtaining the license and completing all procedures, you can start practicing your commercial activity.

You can benefit from legal and administrative consulting services from specialized companies such as Atqan to speed up the process and ensure compliance with all requirements.

Types of companies in Dubai, the production city

Cost factors for establishing a company in the free zone

The cost of establishing a company in the free zone depends on several key factors. Here are the most important factors that affect the cost of establishment:

Type of license : The cost of the license depends on the type of business activity you wish to engage in. Some activities may require special licenses or additional permits, which affects the cost.
Office size and location : The cost of renting an office depends on its size and location within the free zone. Larger offices or those in prime locations may be more expensive.
Number of visas : The cost of visas depends on the number of employees or investors you will bring. Each visa requires a specific fee, in addition to accommodation and visa renewal costs.
Government fees : There are government fees associated with registering a company and obtaining licenses. These fees may vary depending on the free zone and type of activity.
Legal preparation costs : These include the costs of preparing legal documents such as articles of association and articles of association, which may require legal advice.
Consulting and services costs : You may need consulting services or assistance from companies specializing in establishment, which adds additional costs.
Costs of special permits and licenses : Some activities may require special permits or licenses, such as environmental or health permits, adding to the overall cost.
Insurance : The cost of insurance required for the company’s headquarters, employees, or commercial activities.
Customs duties : If you have an import or export business, there may be customs duties on the goods.
Other operating costs : include operational costs such as utility bills (electricity, water, internet), office supplies, and salaries.

It is important to consult specialized companies such as Atqan or legal advisors to help you estimate the exact cost and ensure compliance with all requirements.

In conclusion, establishing a company in the Dubai Production City Free Zone is a smart strategic move for investors seeking to benefit from the modern business environment and advanced facilities that the region provides. With tax exemptions, full foreign ownership, and simplified incorporation procedures, the free zone provides an environment conducive to success and growth. Moreover, advanced infrastructure and government support contribute to enhancing companies’ opportunities to access global markets and maximize their profits. By choosing the right company type and good planning, investors can make the most of the benefits of the free zone and enhance the value of their business in one of the world’s most prominent business destinations.