Business people throughout the world have two prominent choices to build a company in Dubai. And they are establishing their company in the free zone or the mainland. Here we discussing for the company incorporation formalities related to the Freezone Company Formation in Dubai. A free zone is a special region or jurisdiction designated with specific business activity. If you are interested and want to know the process then consult with the Start Any Business UAE Professionals who will help you in establishing your business or company in free zone easily and effectively and complete it as soon as possible.
Several businesses shy away from investing in Dubai because of the compulsion of having a UAE national as a partner with 51% stakes possessed by them. Because of this, free zones have become a famous kind of business formation in Dubai, where 100% overseas ownership is permitted. A free zone is a sector with special tax-free positions and low business barriers where goods can be manufactured, imported and exported, controlled, or reconfigured without paying any customs duty. Free zones are usually situated in strategic geographical locations such as national borders, international airports, and main seaports, to maximize trading benefits.
The government of the UAE has established several free zones in the Emirates, every created for a particular activity for a business. The free zones of Dubai give attractive features for non-resident corporates, such as the availability of single-window administration, no bureaucratic red tape, and 100% ownership. There are around 44 free zones located throughout the UAE that have allured overseas direct investment in the sort of 200,000 companies contributing to the growth of the GDP. The free zone differs in their attention, establishment costs, and documentation required, but the basic needs are the same.
The Process for Free zone Company Formation in Dubai
- Determine the Type of Legal Entity
Determine what kind of unit you wish to establish in any free zone. The need for capital for such a unit is based on the special free zone where you wish to form your company. For instance, there are no requirements for minimum capital for establishing a business.
- Choose the Trade Name
After deciding the kind of legal unit, select a business name for your company. Keep in mind that you should cross-check with the relevant free zone authority regarding the permission for the business name and whether the proposed name has been already registered.
- Apply for Business License
After selecting a business name and registering it in the portal of the free zone official, you need to apply for a trade license in Dubai. There are various trade licenses granted by the free zone officials, the different license has a different cost, to know Business Setup Consultants in Dubai contact business setup consultants. The kind of trade license is based on the primary business activity. You will require to present the supporting documents when applying for a business license.
- Choose an Office Space
Free zone officials give Flexi-desk office service to assist startups. You can either rent or purchase office space in free zones. Office needs based on the number of staff and kind of business activity of your company.
- Get Approval, Register Your Business, and Get the License
Receive initial approval and the relevant business approvals from particular authorities, register your venture on the portal, and receive your business license in Dubai. This process would only take 2 to 4 weeks to complete. Once you are licensed, you are good to go.
Documents for Free zone Company Formation in Dubai
There are some documents that you will have to arrange for the formation of free zone companies in Dubai. A set of documents would require to manage by the business people and get sanctioned from the relevant authority are listed below –
- Completely fzlled application form for a business license
- Business card
- Business plan
- Notarized and verified Memorandum of Association and Article of Association
- Copies of valid passports of the business managers and partners
- Bank reference letters and license of the existing company of the partner.
Benefits of Free zone Company Formation in Dubai
- 100% business ownership
- 100% free from taxation
- Facilities of import and export activities
- Three years visas for business people, employees, and family members
- Higher growth probable because of the strategic location
- Well-settled road connectivity and transport network
- Affordable rate for high-quality labor
- 100% repatriation of investments and profits
- Independent bank account sustaining
- Facilities of warehouse and virtual office
Why Setup a Business in Dubai Free zone
Companies registered outside the Dubai free zone can’t be owned individually by an overseas citizen, which is one of the preliminary reasons why business people throng to Dubai free zones for business investment. In addition, there are several benefits for forming Hamriyah Company Setup Attractive incentives and the broad spectrum of possibilities given to business people are what make free zones the most demanding places for establishing a business. There are some reasons why you should establish a business in Free zones.
- A Wide Range of Business License and Activities
The companies in the Dubai free zone are allowed to involve in different many business activities with multiplicity in the kind of business license. The only thing is the Dubai free zone companies are not permitted to involve in the insurance business.
A free zone company is secured by the strong privacy adopted in Dubai about the identity of its owner, and activities within acceptable international norms.
- Bank Account and Registered Office
The free zone company is permitted to avail the facility of a registered office at the spot of the free zone sector this is licensed under. Furthermore, you can open a bank account elsewhere outside Dubai to manage your company’s financial transactions and to secure your monetary asset.
The process of free zone company formation takes around one week to accomplish, and almost 2 to 3 weeks to get a residency visa when you consult with Start Any Business UAE for support. We will help you from documentation to licensing and bank account opening. Our best and most suitable business setup services will surely delight you.