Last updated by TechPrate on March 28th, 2021 at 11:21 am
UAE has long been an attractive goal for entrepreneurs throughout the world. Offering low taxes, strategic locations in the heart of the largest and fastest-growing developing countries, and the government helps maintain and support the business. It is not difficult to see the reason.
But while this might be the factors that get headlines, there are other main reasons why so many flocks to the UAE coast to do a free business zone.
What is Dubai Freezone?
Free zones are geographical areas where goods, services, and commodities can be traded without strict customs regulatory interventions. In most free zones, companies are subject to minimal taxes or even wholly released to encourage economic activities.
Over the years, the UAE free zone has evolved to offer advantages that continue to increase for business. Many free zones serve specific industries or business types – for example, Dubai Healthcare City helps those in the health care industry. In contrast, Jebel Ali’s free zone authority is directly related to the region’s largest port and therefore preferred by those in import/export.
Best Freezones for Company Formation in Dubai
There are many Freezones in Dubai for starting your new business, and every free zone has a different set of advantages. Some of the expected benefits that every Freezone offers are 100% foreign ownership, Exemption for corporate tax, Repatriation of profits and capital, and support service availability.
Five Best Freezones of Dubai are-
- DMCC Authority Free Zone
- Creative City Fujairah
- Dubai South
- UAQ FTZ
Why Should You Start New Business in Dubai Freezones?
Company formation in Dubai Free zone is a perfect decision for foreign investors because Freezone brings along various benefits. The free zone area in the UAE is a part that is geographically distinguished and participated in in-laws and regulations that are very different from the laws that regulate the company in the UAE. Companies that operate in a free zone are considered as foreign companies or companies operating outside the UAE.
There are plenty of reasons to open a business in Freezone Dubai-
Easy Business Setup Process
The setting process in most free zones is straightforward. The right application process will depend on your business activities and the selected free zone. You must only provide some essential documentation, such as copies of passports and business documents in many cases.
Get 100% Foreign Ownership
You can maintain 100% foreign ownership in the UAE free zone, so there is no need for local pairs or sponsors. You can also repatriate 100% of capital and profit, with complete autonomy to liquidate your company anytime. And because there are no currency limits, the movement of funds is effortless.
0% Corporate Tax
Companies that start in Dubai free zones get benefits from corporate and personal income tax. It also includes services from a dual taxation avoidance agreement. Besides, it is possible to get a 3-year residency visa for investors, staff, and family members.
Support and Assistance
The freezones supports the business owners by registering the visa for their shareholders and other dependents like spouse, children, domestic helpers, etc. They also assist in bank account opening and helps you select the best bank that best suits your needs.
Carry Out Wide Range of Activity and Hold Properties
Companies can do various activities. It includes business and international import/export. You can save property and have full freedom to open a bank account in the UAE.
How to Start New Business in Freezone Dubai?
Some of the critical points of setting up a business in Dubai Freezone are as follows-
Select a Business Activity
The first step in getting the Dubai free zone business settings you decide on the business activities you want to do because this will impact where you can register your company. The type of license you apply for will also depend on the activities you want to do – such as professional, commercial, trade, etc.
Dubai does have some specific requirements about what activities are permitted under what license, so the best advice is to work with a company formation specialist at this stage to ensure a smooth process.
Set a Trade Name
Deciding the company name can be a challenge anywhere globally. Still, here in the UAE – with its specific rules regarding the naming convention – this is the task you want to tick as early as possible. There are several things to remember here: Offensive language is prohibited, the company name cannot contain religious references or references to any organization known (anything from ‘FBI’).
Because there is some other satisfaction for the UAE naming process, it is best to work with a company formation specialist to help you decide on an obedient name and check whether it is available to register.
Finalize a Freezone Location
Once you have finalized the trade name, the next step will be to complete the business location for doing business. There are many factors you should consider while finishing a freezone. Like which Freezone have access to the main highway, proximity of airports, what type of activities is permitted in that free zones, etc.
Complete the Paperwork and Issue Your Business License
There are some standard documents required for issuing a license for company formation in Dubai-
- Complete Application Form
- Shareholder Passport Copies
- Business Plan, etc.
The documents may vary from Freezone to Freezone. Submit all the required documents properly to get your license application approved.
Bank Account Opening
After you get your trade license, the next step will be to open a corporate bank account. The free zone you choose can also help you find the right bank, or you can visit the bank of your choice to open a bank account.
- Bank account opening form
- copy os share certificates
- MOA and Article of association
- Passport copies
- Resolution from the board of directors who allows the bank account opening.
Apply for Visa
At this stage, you can complete your visa application. You can apply for a visa for yourself, your employees, your family, etc. It is the final stage of business setup in Dubai, Freezones. Just a few steps and you are ready to set up your new business in Dubai Freezones.
There are some challenges associated with new company formation, but the right guidance and help can save you and make your work easy. Hire a professional business setup consultant and get hassle-free business setup in Freezone Dubai.