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Cost of establishing a company in the Dubai Free Zone

٠٦ فبراير Cost of establishing a company in the Dubai Free Zone

Dubai’s free zones are among the most prominent investment destinations that attract investors and businessmen from all over the world. Thanks to its strategic location, advanced infrastructure, and competitive advantages, Dubai has become a vital hub for global business. Establishing a company in a free zone is an ideal opportunity to benefit from a flexible business environment that supports innovation and growth.

Free zones allow full foreign ownership, which means that investors can fully control their companies without the need for a local partner, which enhances the ease of decision-making and gives greater flexibility in managing businesses. In addition, free zones offer attractive tax exemptions, including no corporate and profit taxes, making them a preferred destination for many entrepreneurs.

The process of establishing a company in a free zone in Dubai includes clear and simple steps, starting from choosing the appropriate type of business activity, submitting the required documents, and obtaining the necessary licenses. Many free zones also provide a comprehensive package of services to investors, including assistance with incorporation procedures, office equipment, and logistical support services.

Investors can also benefit from the global business networks available in Dubai, allowing them to access new markets and enhance cooperation opportunities with other companies. In short, establishing a company in the Dubai Free Zone is not just a business move, but a strategic investment in a promising future, opening doors to countless opportunities.

رسوم وأنواع الرخصة التجارية في دبي

Steps to establish a company in the Dubai Free Zone

When considering establishing a company in a free zone in Dubai, the following steps can be followed:

Choose the business activity: Determine the business activity you want to practice, and make sure that it is compatible with the laws of the free zone.
Choose the type of company: Determine the type of company that suits your business needs, such as a joint stock company or a limited liability company.
Choose the location in a free zone: Find the free zone that suits your business activity and choose the appropriate location within it.
Submit the registration application: You may need to submit an application for registration to the selected free zone authority.
Prepare the necessary documents: Prepare the required documents such as a copy of your passport, personal photos, the lease contract, and any other required documents.
Pay the fees: Pay the fees required to register the company in the free zone.
Wait for approval: After submitting the application and paying the fees, you must wait for approval from the relevant authority in the free zone.
Receiving the trade license: After approval, you will be able to receive the trade license for your company in the free zone.

Opening a bank account: Open a bank account for your company to conduct financial transactions.

Cost of establishing a company in the Dubai Free Zone

The cost of establishing a company in the Dubai Free Zone varies based on several factors, and includes a set of basic fees and expenses. Here are the details of these costs:

Registration and licensing fees: The process of registering a company in the free zone requires paying an initial fee related to issuing a trade license. These fees depend on the type of company and the commercial activity you wish to practice.

Office rent: Investors must rent an office space, as costs vary depending on the location and size of the office. Free zones offer multiple options ranging from traditional offices to shared offices, which affects the total cost.

Support and assistance services: Some companies may require the use of external services such as legal advice, accounting, or recruitment services, which are added to the total cost of establishing the company.

Documents and administrative requirements: Costs also include fees associated with preparing the required documents such as articles of association, legal documents, and translation services costs if needed.
Visa fees: Investors and potential employees are required to obtain work visas, which require additional fees. These fees depend on the number of visas required and the status of each individual.
License renewal fees: After establishing a company, the license needs to be renewed annually, which requires budgeting for the costs associated with this process.
Company insurance: Companies may be required to obtain insurance against various risks, which adds additional costs to the company’s budget.

Documents required to establish a company in the Dubai Free Zone

To establish a company in the Dubai Free Zone, there are a set of papers and documents required. These papers vary depending on the type of company and business activity, but they usually include:

A copy of the passport: A color copy of the passport of all partners and investors must be submitted. The passport must be valid.
Personal photos: A number of personal photos of all partners must be submitted, preferably with a white background.
Incorporation application form: The application form for establishing the company must be filled out, which includes basic information about the company and the proposed activity.
Incorporation contract: The company’s incorporation contract must be prepared, which includes details of the partners and the business activity. A lawyer or consulting office can help prepare this contract.
Choosing a trade name: A list of proposed trade names must be submitted, taking into account that the names are in compliance with the naming laws in the Emirates.
Business plan: You may need to submit a business plan detailing the business activity, target market, and services or products provided.
Proof of office address: A document must be submitted proving the address of the office that will be used, such as a lease or a letter from the property owner.
Approvals from the competent authorities: For some activities, you may need to obtain special approvals from certain government agencies before establishing the company.

No Objection Certificate (if required): If you are already operating in the UAE or have an existing company, you may need to provide a No Objection Certificate from the current company.

Health Insurance (if required): Some free zones require health insurance for all employees, so insurance documents may be required.

In conclusion, we can conclude that establishing a company in the Dubai Free Zone represents a golden opportunity for investors and businessmen seeking to enhance their businesses in a thriving and encouraging business environment. As one of the most prominent global business centers, Dubai offers a wide range of benefits that make establishing companies in free zones an ideal choice.

Free zones are characterized by a number of advantages, most notably full foreign ownership, tax exemptions, and low customs duties, which contribute to increasing profitability and enhancing competitiveness. These areas also provide advanced infrastructure, logistical facilities, and integrated support services, making it easier for entrepreneurs to focus on developing their businesses instead of being preoccupied with administrative procedures.

In addition, free zones have a global appeal, attracting companies from various sectors, creating a vibrant environment for cooperation and business partnerships. The multiple options available for office space and business activities allow investors to choose what suits their visions and goals.

However, investors must be aware of the legal and administrative requirements for establishing a company, and ensure that all necessary conditions are met. Going to specialized consultants or offices may help speed up the procedures and save time and effort.

In conclusion, establishing a company in the Dubai Free Zone is a strategic step that opens up new horizons of opportunities for investors, making it an attractive option for achieving success and growth in the business world.

The most important frequently asked questions about establishing a company in the Dubai Free Zone

What is a free zone?
A free zone is a special area that allows investors to establish companies with full ownership without the need for a local partner, and provides tax benefits and business facilities.

What types of companies can be established in free zones?
Commercial, industrial, service, and professional companies can be established. Some free zones may allow specific activities, so the list specific to the area should be reviewed.

Can foreigners establish a company in the free zone?

Yes, foreigners are allowed to establish companies in the free zones with full ownership without the need for a local partner.

How long does it take to establish a company in the free zone?
The time depends on the completion of the required documents and approvals, and the process can usually be completed in a short period of time.