Dubai Free Zones
Company Formation in Dubai Free Zone would undoubtedly give your firm the push it needs. UAE is ideally positioned with a sophisticated supply of raw resources and highly skilled labor.
Aside from this, businesses operating in free zones can benefit from improved infrastructure, duty exemptions, and first-rate amenities. Foreign business owners launching any kind of enterprise in Dubai must adhere to the criteria of the company law, which stipulates and covers all the procedures that must be followed to start a business. Here are some legal definitions and information you should familiarize yourself with if you plan to start a business in the Emirate.
All About Company Registration in Dubai Freezones
Each free zone has its own set of rules and guidelines for conducting business. Businesses registered in a free zone are prohibited from operating on the mainland.
The businesses may cater only to consumers in the free zone, imports, or exports. However, some free zones, like Dubai Multi Commodities Center (DMCC) let businesses conduct transactions on the mainland with a dual license. However, certain conditions and rules of DED will apply to the mainland operations covered under the dual license.
Some Principle Free Zones & Their Licensed Activities
Most free zones in Dubai are designed to support a particular industry with infrastructure and permits.
For instance, the Dubai Multi Commodities Centre (DMCC) is a collection of businesses that trade in commodities, including coffee, gold, silver, etc. The main goal of Dubai Silicon Oasis (DSO) is to promote investments in the ICT sector.
JAFZA caters to manufacturing, logistics, and industrial businesses. The first e-commerce free zone in the UAE is Dubai Commerce City.
As its name implies, Dubai International Financial Centre (DIFC) focuses on the financial services sector, including banking, insurance, Fintech, etc. Then there is Dubai Media City, a free zone for media enterprises; Dubai Design District (D3), a free zone for designers and design firms; and Dubai Internet City, a free zone for tech firms.
Dubai Healthcare City grants licenses for enterprises, clinics, and physicians involved in healthcare. Dubai Cars and Automotive Zone support the automotive industry (DUCAMZ). These free zones offer licenses for various industries in addition to their primary emphasis on business.
Dubai has a general-purpose free zone called the International Free Zone Authority (IFZA).
VAT for a Dubai Freezone Company Setup
Value Added Tax (VAT), which the government imposes at a nominal rate of 5% on taxable goods and services. Certain free zones have been designated as Designated Zones by the Federal Tax Authority (FTA), which are governed by unique VAT regulations.
The free zones that are not included on the FTA's list of approved zones are known as non-designated zones. The sale of items inside designated Zones is not subject to VAT.
Similar to this, the transfer of products from one Designated Zone to another is similarly exempt from the VAT.
Nonetheless, VAT is charged on items that are shipped from a non-designated zone to a designated zone.
Moreover, VAT is charged on products that are moved from a Designated Zone to a Non-Designated Zone.
Type of Company Structures for a Business Setup in Dubai Free Zone
The following company structure types are available in the Dubai free zones:
1. Free Zone Establishment
A sort of legal organization with just one individual stakeholder is known as a Free Zone Establishment (FZE).
2. Free Zone Company
A sort of business structure known as a Free Zone Company (FZCO) can be created with two or more shareholders.
3. Branches of Existing Businesses
A corporation based in the UAE or one that operates in another nation may open branches there. The branch company should engage in similar operations to the main organization.
Key Business Licenses for a Dubai Free Zone Business Setup
The most crucial need for starting a business in a free zone in Dubai is a business license. The majority of the free zones in Dubai offer the following as some of the most popular trade permits.
- General Trading
- Commercial/ Trade
The list of business licenses granted by Dubai free zones is not all-inclusive. Several unique rights are offered by many free zones depending on the activities.
Speak with Dubai business setup specialists to give the business owners a list of the permits each free zone authority has issued.
How to Proceed with Company Registration In Dubai Free Zone?
The Freezone Company Formation in Dubai consists of six easy stages.
Choose the type of license you want to apply for by deciding on the type of business activity you want to conduct. They have a wide range of options to consider because several zones in Dubai permit numerous economic operations.
Choosing the best free zone for your business is the next step after choosing a business activity. Do your homework before selecting a sector-specific zone because there are ones for IT, healthcare, business, trading, and other industries.
Make sure your company name is available for registration on the Dubai Free Zone Authority portal before finalizing a name. The name must also comply with certain requirements, such as staying clear of any allusions to political or religious organizations or foul language.
Take advantage of our offers and start your business in Dubai! Prepare the Cost of Setting Up a Company in a Dubai Free Zone beforehand.
The critical next step is to submit an application for a license after choosing the business activity and registering the trade name at the portal. The kind of license you need depends on your line of work.
The process of opening a free zone company business bank account in UAE is simple. Nevertheless, to achieve this, you must reassemble the paperwork and your business license and hand them to the selected banking institution.
Some other essential documents are as follows:
- A form for opening corporate accounts
- Board of Directors' resolution authorizing the activation of the account and its signatories
- A photocopy of the incorporation certificate for your business
- A photocopy of your stock certificate
- A photocopy of the company's articles of incorporation and memorandum
- Copies of each business partner's passport.
List of the
List Of Free Zones to Open a Free Zone Company in Dubai
More than 30 free zones in Dubai offer a variety of company creation activities, including:
Why Choose Gryffin Capitalist?
Due to the less strict requirements established by each free zone administration, the process for forming a corporation in the Dubai free zone is rather straightforward. Entrepreneurs may consider starting a firm on their own due to simple business setup procedures in Dubai-free zones. Nonetheless, accepting full responsibility increases the workload because choosing the ideal free zone from a list of more than 40 free zones is a tiresome undertaking in and of itself.
To reduce risks, it is advised to work with the top company setup experts in Dubai, like Gryffin Capitalist, rather than going for it alone. Our firm formation consultants are highly skilled and knowledgeable about the specifics of UAE immigration and labor law.
Our help will make procedures like applying for a license, getting a visa, preparing documents, renewing a license, etc. simpler. So, reach out to us, and we'll be glad to assist.
Strong belief in long-term client relationships
Competitive Market Pricing
Efficient and Transparent Process
What our clients say
Very Prompt Service
"Gryffin Capitalist has assisted us with the opening of an offshore bank account without much hassles. I have faced issues with other companies regarding the required documents and process"
Seamless company Incorporation process
"I contacted Gryffin Capitalist to incorporate my company in the British Virgin Islands. The consultants were proactive in explaining the process and getting necessary documents in a single go thereby avoiding any resubmission and saving a lot of time."
Great Service by the team
"The team at Gryffin capitalist was very helpful in my company incorporation in the UAE. After the sales, the operations team was proactive and followed up regularly to get the company registered."