Due to major incentives and laws in place, Dubai has reached the pinnacle of expansion. Moreover, the city’s reputation as an excellent location for businesses and investments is growing. Today, every entrepreneur hopes to set up a business in the Dubai free zone. And why not? The minimal paperwork, no taxation, and fewer complexities make Dubai free zone an ideal location to start any business.
Whether you are a budding entrepreneur or an established company, Dubai offers the best conditions to start a business. However, knowing the key steps for incorporation is essential if you are a potential investor looking to open a company in the Dubai free zone. As a result, we’ve put together a quick guide for entrepreneurs interested in establishing a business in a Dubai-free zone.
The Most Important Steps To Start A Business In Dubai
It is easy to open a company in the Dubai free zone. The authorities of the Dubai free zone need only the bare least of paperwork and time. Yet, know all the prerequisites beforehand if you are planning to set up a business in the Dubai-free zone.
1. Determine The Legal Entity’s Kind
Firstly, you need to decide what kind of legal entity your company will be. Accordingly, you can form one of the below types of businesses in a free zone:
- FZ LLC – Free Zone Limited Liability Company or FZ Co – Free Zone Company.
- FZE – Free Zone Establishment
The main distinctions are the number of shareholders and whether the shareholder is a natural or legal person. Besides, not all free zones may accept both types of businesses. Moreover, you can check with individual free zone authorities to see what kind of businesses they can register.
2. Choose a Business Name
You should choose a trading name while deciding on your company’s type of legal entity. In most cases, businesses should check with the applicable free zone authorities before deciding on a business name. This enables them to see whether trade names are permissible and whether the desired name is already registered.
Read Also: What is Abu Dhabi free zone license cost?
Additionally, for DED to authorize a proposed trade name, it must meet the below criteria:
- The legal form of the corporation, for example, must not offend public morals or the country’s public order (LLC, FZE, DMCC, etc.)
- The trade name should not be registered before.
- It should be appropriate for the specified type of activity and legal status.
- The business name must not contain the names of any religions or governing authorities.
- Get Pre-approvals
Next, you need to get pre-approval from the relevant authorities. Companies operating in free zones are bound by the rules of the free zones they operate in. As a result, you must submit the documents to the appropriate authorities for approval. It takes 2-4 weeks to complete the registration process.
Besides, here is a list of documents needed for the initial approval:
- A filled-out application form
- A business strategy
- A copy of your current business license or registration certificate
- Colored passport copies of the company’s shareholders and company’s chosen Manager/Director
- Specimen signatures of the company’s shareholders and the newly appointed Manager/Director
- 2 years of audited financial records for a business organization. Or, a certificate of reference from an individual shareholder’s bank
- Letter of authorization from the existing sponsor
- Deed of title to the unit
- Letter of Intent
- Manager/Director Registry Identification Code Form (RIC)
- Select an Office Location
Not only you can buy but also lease office space if you wish to set up a business in the Dubai free zone. The size of your office is determined by the number of employees and the nature of your business. Besides, free zone authorities offer flex-desk services to assist start-ups and small businesses. In the Dubai Airport Free Zone, for example, there are three sorts of office packages. You can opt for any of the packages amongst – Office Packages,’ ‘Smart Desk Office Packages,’ or ‘Executive Office Packages.’
Make an Application For a Business Licence.
The sort of business license you are eligible to apply for is determined by your company’s core activity. Furthermore, different types of activities are permitted in different free zones. For instance, at DMCC, you can choose from over 600 business activities across 20 industries. Conversely, you can conduct financial and non-financial businesses in DIFC.
Apart from that, you also need to pay registration fees and license fees at this stage. When applying for a license, you must present the following supporting documentation as well:
- A completed registration application
- Appointment of Manager/Director by Board Resolution
- Articles of Association and Memorandum
- Manager/Director signature sample
- Manager/passport Director’s photo against a white background
- Information on share capital
Dubai Free Zone License Options
A business license is a foundational document to open a company in the Dubai free zone. Consequently, the whole procedure is incomplete without the acquisition of a business license. Hence, applicants in the Dubai free zones can apply for the following types of business licenses:
- Commercial License
It grants authorization to carry the specified commercial activities.
- General Trading License
This license allows businesses to buy as well as sell all kinds of products.
- E-commerce License
It allows you to set up as well as operate your eCommerce business in the MENA region.
- Consultancy Services License
This license enables you to start your consultancy business in Dubai.
- Event Management License
You are entitled to organize leisure and entertainment events through this license.
- Single Family Office
A family entity or a family trust can all benefit from the services of these license holders.
- Multi-Family Office
Under this license, consultants and professional services providers can manage the wealth of many families.
Set Up Your Business In Dubai Free Zone Today!
Dubai has established itself as a global financial hub, offering equal investor access as well as world-class economic freedom. Contact Shuraa experts if you want to Set up a business in the Dubai free zone in the most convenient manner. Not only do we have low prices, but also our quick business setup processes will have you up and running in no time.
Furthermore, the right advice can help you expand your business. Contact our experts by calling +971 44081900 or sending a WhatsApp message to +971 507775554. Also, you can contact us via email at email@example.com if you need any help when you open a company in the Dubai free zone.