Establishing a company in the free zone in Dubai

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٠٥ يونيو Establishing a company in the free zone in Dubai

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Some investors want to know how to establish a company in the Dubai Free Zone because Dubai is considered one of the leading global destinations in the field of business and investment, and provides a distinctive environment for establishing companies thanks to its advanced infrastructure and encouraging economic policies. Among the options available to investors and businessmen, Dubai’s free zones stand out as an ideal destination for establishing companies. These regions offer unique advantages such as tax exemptions, full foreign ownership, and ease of company formation procedures, making them an attractive environment for diversified businesses. In this article, we will discuss the steps and procedures for establishing a company in the Dubai Free Zone , in addition to reviewing the benefits that companies can achieve through this strategic step.

Establishing a company in the free zone in Dubai

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What is the free zone?

A free zone is a specific geographical area within a country that is designated for specific commercial and industrial operations, and is characterized by a set of special laws and procedures that facilitate business and attract investors. Companies operating in free zones are often exempt from local taxes such as income tax and value-added tax, and are afforded advantages such as 100% foreign ownership, easy repatriation of profits, and the provision of advanced logistics services. Free zones are an ideal environment for international companies seeking to establish a regional or global base of operations without having to deal with the complexities of traditional systems.

In Dubai, free zones are one of the pillars of the local economy, offering many opportunities for startups and small, medium and large enterprises alike. Free zones contribute to supporting economic diversification and enhancing Dubai’s position as a global business center. These regions include diverse sectors such as technology, trade, manufacturing, and logistics, enabling companies to benefit from advanced infrastructure and fast government services. Therefore, free zones are a strategic choice for companies looking for a flexible and supportive business environment that enables them to achieve sustainable growth.

Types of companies in the free zone

Here is a table showing the types of companies that can be established in free zones in Dubai:

Company type	Description
Limited liability company	A company that can be established by an individual or several partners, where the partners’ liability is limited to their shares in the capital. This type of company is most common in free zones.
Sole proprietorship (FZC)	A company is established by only one individual, and the owner is fully responsible for the company’s debts and obligations.
Branch	A branch of a foreign or local company located outside the free zone, which can practice the same commercial activity as the parent company without the need for additional capital.
Free enterprise (FZE)	This institution is established by one person, and the institution is legally independent and has financial liability independent of its owner, and provides the investor with benefits similar to limited liability companies.
Multi-partner company (FZ-LLC)	A company established by several partners (2 or more), each partner having a share in the capital, and the partners’ liability is limited to their shares.

This table provides an overview of the different types of companies that can be established in Dubai’s free zones, helping investors choose the appropriate type based on their business needs.

Establishing a company in the free zone in Dubai

Establishing a company in the Dubai Free Zone requires following specific steps to ensure the success of the process. Here are the most important steps:

Choosing the appropriate free zone : Dubai has many free zones specialized in different sectors. The investor must select the free zone that suits the nature of his business and commercial needs.
Determine the business activity : It is important to determine the type of business activity that the company will undertake, whether it is commercial, industrial, or service. The license that the company will receive depends on the chosen activity.
Choosing a company name : A unique name for the company must be chosen that complies with local regulations and reflects the nature of the business. After choosing the name, its availability is verified and reserved with the relevant authorities.
Submitting an application for incorporation : After completing the previous steps, an application for incorporation of the company is submitted to the relevant free zone authority. The application includes required documents such as passports, business plan, and legal forms.
Obtaining the necessary approvals : It may be necessary to obtain approvals from different parties based on the nature of the business activity. After submitting the documents, they are reviewed and the necessary approvals are issued.
Signing legal documents : After approving the application, legal documents such as the articles of incorporation and the lease contract for offices or facilities are signed.
Receiving the license : After completing all procedures and paying the required fees, the free zone authority issues the commercial license, allowing the company to begin conducting its business.
Opening a bank account : After obtaining the license, the company must open a commercial bank account in one of the approved banks in Dubai.
Registration with government departments : Finally, the company must register with some relevant government departments, such as the Federal Tax Authority if required.

These steps ensure a smooth and legal establishment of the company in the free zone, enabling it to launch into the thriving Dubai market.

Advantages of establishing a company in the Dubai Free Zone

Establishing a company in the Dubai Free Zone offers many advantages that make it an attractive option for investors and entrepreneurs. Here are some of these advantages:

Tax exemption : Companies in free zones are exempt from income tax and value-added tax for long periods that may reach 50 years, which contributes to reducing costs and increasing profits.
Full Foreign Ownership : Foreign investors are allowed to own 100% of companies without the need for a local partner, giving them full control of their business and investments.
Ease of establishment procedures : Free zones provide quick and simple establishment procedures compared to traditional procedures. Companies can be established and start operating in a short time without complications.
Transfer of profits and capital : Companies in free zones are allowed to transfer all profits and capital outside the country without restrictions, which provides high financial flexibility.
Advanced Infrastructure : Free zones provide a modern and advanced infrastructure that includes advanced logistical facilities, office space and fully equipped industrial facilities, which supports companies in their growth and expansion.
Access to global markets : Dubai is located in a strategic location linking East and West, allowing companies to easily access regional and international markets.
Distinctive government services : Dubai free zones provide comprehensive government support, including services to facilitate government procedures such as issuing visas and obtaining work permits quickly and efficiently.
Encouraging business environment : Dubai’s free zones are a business environment that encourages innovation and development, as companies can benefit from the presence of other leading companies in various industries and interact with them.

These advantages make establishing a company in the Dubai Free Zone a strategic step that contributes to achieving success and sustainable growth.

Conditions for establishing a company in the free zone in Dubai

Establishing a company in the Dubai Free Zone requires adherence to several conditions and procedures to ensure compliance with local laws and regulations. The following are the basic conditions for establishing a company in the free zone:

Determine the commercial activity : The type of commercial activity that the company will engage in must be determined, whether commercial, industrial, or service. Some free zones specialize in certain activities, so you must choose the free zone that matches your activity.
Choosing a company name : A unique name for the company must be chosen, consistent with local standards and reflecting the nature of the business. The name must not be similar to the names of other companies registered in Dubai.
Capital : Capital requirements vary depending on the type of company and free zone. In some free zones, there is no minimum capital, while in others a minimum may be set.
Incorporation documents : Company incorporation documents must be submitted, which include copies of passports of shareholders and directors, a signature form, and a detailed business plan.
License approval : After submitting the application, the approval of the relevant authorities in the free zone must be obtained. These approvals include a review of the business and trade name.
Renting an office or work space : The company must rent an office or work space within the free zone. Some free zones offer various workspace options, including virtual offices.
Opening a bank account : After obtaining the commercial license, the company must open a bank account in one of the approved banks in Dubai to manage financial operations.
Obtaining visas : The new company can submit applications for work visas for employees and managers, in accordance with the laws in force in the free zone.
Registration in government departments : Registration with certain government agencies, such as the Federal Tax Authority, may be required if the company’s activity includes paying value-added tax or any other taxes.

Complying with these conditions ensures that your company is established in the Dubai Free Zone legally and smoothly, enabling you to benefit from the unique advantages these zones provide.

The best company for establishing companies in the free zone

One of the leading companies in the field of establishing companies in free zones in Dubai , “Itqan” company stands out as one of the best options. “Itqan” provides comprehensive and specialized services that meet the needs of investors and entrepreneurs wishing to establish their companies in free zones. Here are some reasons why “Itqan” is a great choice:

Extensive experience : Itqan has long experience in the field of establishing companies in Dubai, specifically in free zones, which allows it to provide specialized consultations and integrated services.
Customized services : “Itqan” provides customized solutions based on the type of business activity and the client’s needs, including choosing the appropriate free zone and establishment procedures.
Dealing with government procedures : “Itqan” handles all necessary government procedures, including company registration, obtaining commercial licenses, and issuing visas, which saves clients time and effort.
Integration of services : In addition to establishing companies, “Itqan” provides other services such as providing office space, legal support, and logistical services, which contributes to establishing companies smoothly and efficiently.
Reliable reputation : “Itqan” has a reliable reputation among its clients, as it is known for its professionalism and transparency in dealing with all stages of establishing companies.

Choosing “Itqan” as a partner in establishing your company in the Dubai Free Zone guarantees you a smooth and successful experience in the dynamic business environment in Dubai.

In conclusion, establishing a company in the Dubai Free Zone is a strategic step that opens up wide horizons of commercial and financial opportunities for investors. Thanks to the unique advantages these regions offer, such as tax exemptions, full foreign ownership, and advanced infrastructure, companies can achieve sustainable growth and expand their business with ease. The ease of procedures and continued government support enhance Dubai’s attractiveness as an ideal destination for companies of different sizes and sectors. Therefore, establishing a company in a free zone is not only an investment in success, but it is an investment in the future, putting you on the path to excellence in one of the most dynamic markets in the world.