Getting a Free Zone License in Dubai

Being the business capital of the United Arab Emirates, Dubai attracts a lot of interest from potential investors and industrialists from all over the globe. And to start a business, they have two well-known choices – Dubai Mainland and Dubai Free zones. Although both jurisdictions are lucrative options for setting up a company, Free zones are more popular among business people. The reasons are many, which we will learn about in this article, regarding the Freezone license in Dubai, the procedure, cost, and other significant aspects.

Freezone Company and Freezone License: Overview

Free zones are special economic zones situated across UAE where investors and entities avail special tax-free status and trade conditions. To name a few, International Freezone Authority (IFZA), Dubai Airport Free Zone (DAFZA), Jebel Ali Free Zone (JAFZA), Dubai Multi Commodities Center (DMCC), Dubai Media City (DMC), Dubai World Central (DWC), Dubai Healthcare City (DHA), Dubai International Financial Center (DIFC), Dubai Internet City, Dubai Knowledge Park, and many more.

The entities operating in these zones are called Freezone companies. To operate lawfully in the UAE, these companies are issued Free zone licenses by the respective Free Zone Authorities (FZA) depending on the particular business activity of the company. Moreover, the Commercial laws of UAE mainland companies do not apply to the Free zone companies.

Free zone license in Dubai allows investors to enjoy 100% ownership, monetary benefits like complete tax exemptions, 100% repatriation benefits, etc. To learn about other added benefits, keep reading.

Benefits of getting a Freezone license in Dubai

Dubai has many business advantages to offer. And that is why companies from all around the globe are setting up branches or organizations in the Emirate. The prominent benefits that come with a Free zone license are as follows:

Increase in trade

There are a host of opportunities for manufacturing and importing goods in Dubai. With a free zone license, you can sell as well as export your products abroad and gain profits. On the whole, a free zone permit allows you to trade goods and services domestically as well as internationally more efficiently.

Boost credibility

Organizations often violate laws and regulations with the intention of gaining bigger profits. While companies that adhere to legalities are more likely to gain customer confidence and trust for their products and services. Thus, a license enhances a business’s visibility in the markets and increases the credibility of the brand.

Fewer trade restrictions

Dubai has fewer or no trade restrictions, which eventually makes it an excellent place to conduct business. As long as your products are registered under the regulatory authorities, they are protected against any restrictions.

Easy Formation

Compared to other licenses, Dubai Free zone licenses are easy and much faster to obtain. You can set up your company in a few weeks in any of the free zones if you follow the procedure and maintain proper documentation. Additionally, a Freezone license in Dubai also relieves you from the burden of audit report submission, thereby saving a lot of your time and effort on future paperwork.

Sponsorship opportunities

Once you procure a Free zone license, you can easily sponsor your dependents to bring them with you to UAE. For example, your spouse, children, domestic workers,

If you want more information and assistance regarding the above process, then connect with the business formation specialists of Shuraa.

Types of licenses available in Dubai Freezone

You have the option of selecting from different types of licenses available in the Dubai Free zone.

Commercial license – Entities that want to trade in goods and commodities such as import and export, car rental, real estate, etc. can apply for a commercial license.

Industrial license – Companies participating in manufacturing activities including production, assembling, packaging, and distribution in Dubai can secure an Industrial license.

Professional license – Professional licenses are targeted at people who are engaged in specific professions such as consultancy, IT and technical services, medical services, printing & publishing, etc.

Freelance license – Looking at the growing community of freelancers in the country, the UAE government introduced the freelance license to meet the needs of this sector.

E-commerce license – Individuals or firms that want to engage in online trading or e-commerce activities can obtain an E-commerce license.

Shuraa advisors can help you choose the most appropriate license and activity for your business idea.

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Steps to obtain a Freezone license in Dubai

Dubai government has made it quite easy to form a company in the Free zones with minimum paperwork and duration. Additionally, you just need to follow these steps –

Determine the type of legal entity

Select a trading name

Apply for a business license

Choose an office space

Obtain pre-approvals, get registration, and obtain a license

Documentation

For initial approval:-

Application form

Business plan

Business license/Certificate of registration (if the owners have any existing company)

Passport copies and specimen signatures of the shareholders, company director, or manager

Audited financial reports for the past two years/ Reference certificate from the personal bank of the individual shareholder

No Objection Letter

Letter of Intent

Unite Title Deed

Registry Identification Code Form (RIC) for Director and Manager

Registration:-

Registration application form

Board Resolution appointing the Manager or Director

Power of attorney (PoA) handed over to the Manager or Director

MOA & AOA

Passport-sized photograph of the Manager or Director

Share capital details

Licensing and visa process:-

Lease agreement from the authority

Trade license

Visa application form

In exceptional cases, there might be a requirement for external approval depending on the activities you choose for your company. The document list might seem like a lot, but with the assistance of business formation experts in Dubai, you do not have to worry about this process. The consultants of Shuraa will ensure to gather all the required documents and duly submit them to the concerned officials for approvals and further formalities.

Cost of Free zone license in Dubai

You can determine the Dubai Free zone license cost depending on some factors about your business, including what you are operating in, the number of employees you will need, and the number of visas you would be applying for. Thus, depending on such requirements, the precise cost of a Free zone license in Dubai varies.

Renewal of Freezone license in Dubai

Once you procure your Freezone license in Dubai, it is necessary to renew it regularly to ensure seamless operations across the UAE and around the world. Following the proper renewal procedure makes sure that your business is not penalized, prosecuted, or banned from operations.

Just like the registration, free zone authorities manage the renewal of licenses in the free zone. You can start the process a few days prior to the expiration of your original license.

For a better understanding of the application detais and the overall license renewal cost, contact Shuraa.

Summing up

Since free zone companies are an excellent choice for market access and physical presence in the UAE, it is recommended to get started with a Free zone company setup and establish a place in the market. This would further pave your way towards the mainland and other parts of the UAE.

There are a number of stages and procedures, rules and limitations, and continuing compliance obligations to obtaining a Freezone license in Dubai. So, given this complicated situation, if you are hesitant to start a Free zone company on your own, then Shuraa Business Setup is here to help you. You can consult with them about all your queries and concerns.