How To Set up A Free Zone Company
The main attraction of establishing an entity in one of the free zones of Dubai is that there are no foreign ownership restrictions and companies are governed by an independent free zone authority, which is responsible for issuing operating licenses and regulating the activities of companies within the free zone. The whole process of starting a Dubai Free zone company setup cost has been made very easy and smooth due to different provisions brought in by the government from time to time.
An investor can start a business in Dubai at various locations, be it mainland Dubai or Free zone Dubai. However, when it comes to opening up a business set up in Dubai, the investor has to choose a local partner in order to be able to start the business, which eventually becomes a turn-off for various investors as they are not comfortable with the idea of having to choose a local partner which will allow them to start the business in Dubai as per the established laws. Creating free zone areas was aimed to promote the UAE’s expanded economic growth. They made it possible through a favorable company set up in each of these special economic areas. They also offer some fantastic incentives for foreign companies to come and operate in the UAE.
Benefits of Business Setup in the UAE Free Zones
Benefits for free zone Dubai are:
- Tax benefits
- Import and export tax exemption
- Easy setup
- Foreign ownership
- Privacy protection
Types of Licenses Available in the UAE Free Zones
There are many types of licenses available in the UAE free zone which are
- Commercial licenses
- Professional licenses
- Industrial licenses
Any company engaged in any type of commercial activity is issued a commercial license. In addition to regulating and protecting trading companies, a commercial trade license serves as a legal document. Apart from applying for a license for retail, construction, or real estate businesses, they must also apply for a license for their business. It allows commercial license holders to participate in general trading activities. Any activity in which you gain financial gain by using a product or service is considered a commercial use. In other words, whenever you use software to create marketing materials, those materials are intended to increase sales for your business. The commercial license in the UAE is for companies involved in buying and selling goods, Dubai allows companies to conduct trade in the UAE or even outside the UAE.
Benefits of a Commercial License:
- To perform a maximum of ten activities in one commercial trade license;
- Several options for the type of company to register;
- Several similar business activities can be undertaken under one license;
- Secure business engagement with ded and Registrar of Companies;
- Residence visas for employees and company management
- Assistance with opening of corporate bank accounts
- Cost-effective ways for the renewal of a commercial trade license in the UAE
Professional license is for those who share their expertise as a service. Any individual or company related to the utilization of the intellectual abilities of the individuals is mandatory to have a professional license for operating their services in Dubai and the rest of the UAE.
Businesses involved in the industrial and manufacturing activities in Dubai are awarded an Industrial license. It is mandatory for the company to have a physical office in the UAE to issue an Industrial License. An Industrial License is essential to set up an industry specialized in manufacturing, casting, molding, assembly, or processing activities including any production from raw materials to semifinished goods and supplies. The organization plans to set up operations focused on performing the activities mentioned above according to the statutory requirements that must be registered in the UAE under the Department of Economic Development Dubai and the Chamber of Commerce and Industry with an Industrial License.
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