Several businesses shy away from investing in the UAE because of the compulsion of having a UAE citizen as a partner with 51% stakes owned by them. Due to this, the free zone has become the very famous structure of business registration in the country. The freezone company setup in uae can be very beneficial because a free zone is a location with a particular tax-free position and low trade limitations where goods can be manufactured, managed, without paying any customs duty.
The Steps for Free zone Company Setup in UAE
Free zone company setup in Dubai is not subject to commercial corporation law. Free zones are outside the UAE jurisdiction and have rules and regulations specified by relevant free zone departments. These free zones provide an outstanding business possibility for business people from every corner of the globe and give a liberal working atmosphere and easy process for company formation.
- Determine the Type of Legal Entity
Decide which kind of unit you wish to form any of the free zones. The capital need for such a unit is based on that specific free zone where you wish to build a corporation, for instance, there is no need for minimum capital for forming a corporation.
- Choose a Business Name
Once you have decided the kind of legal unit, select a business name for your corporation. Remember that you ought to examine properly with the relevant free zone official about the given allowed business names and whether the decided name has been already registered.
- Apply for Business License
Once you have chosen the business name and registered it in the free zone entity portal, you require to make an application for a business license for free zone company setup in Dubai. The kind of business license is based on the primary activity for your venture. You have to present the supporting papers while making an application for a business license.
- Select an Office Space
Free zone officials give Flexi-desk office service to help startups. You can rent or buy office spaces in the free zones. Office needs based on the number of workers and kind of commercial activity of your corporation.
- Get Approval, Register Your Business
You have to obtain the initial approval and the relevant business permissions from the particular authorities, register your firm at the free zone portal, and collect your business license for free zone company setup in Dubai. This would merely take two to four weeks to complete the procedure. After getting the business license, you are ready to run your venture.
Benefits of Free zone Company Setup in UAE
- Full overseas ownership for the company
- Full repatriation of profits and capital
- Full exemption from personal, corporate, and income taxes
- Exemption from export and import duties
- Abundant and low-cost energy
- Low-cost workforce, and smooth recruitment processes
- Effective communication processes and single-window administration
- The streamlined and timely immigration procedure
- Freehold offices obtainable for lease or sale
- Unique industry clustering and purpose-built infrastructure
- No limitations on appointing expats
Documents Required for Free zone Company Setup in UAE
- Properly filled application license form
- Business card of the contact person
- Business plan copy
- Verified and notarized Memorandum of Association and Article of Association
- Copies of passports of the business managers and partners
- Original bank reference letter