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open a free zone company in Dubai – Each Free Zone is managed by an independent Free Zone Authority (FZA), which is in charge of giving the appropriate operational permits for companies doing business within.

In the United Arab Emirates, there are over forty Free Zones, each offering unique possibilities and benefits to both domestic and foreign businesses. If you want to form a Dubai firm, the type of business you want to start will determine which Free Zone you should select.

For example, DAFZA is meant for enterprises that import and export commodities while the business activities authorized under TECOM include “design, development, usage, and maintenance of everything essential to Information Technology, E-commerce, and Media”.

How can I open a free zone company in Dubai? how much of the Dubai Free Zone company setup cost? these questions are the most frequent among the investors who have the ambition to set up a business in UAE, our commercial lawyers in UAE will show the importance of setting up a company in Dubai and the main steps and required documents to open a free zone company in UAE.

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Why open a free zone company in Dubai ideal?

Many people are attracted to Dubai as a place to live, work, and invest. Dubai, a worldwide hub at the intersection of Europe, Asia, and Africa, is well situated. The country’s rapidly expanding economy has combined Arabia’s long-standing history of adventure with the finest levels of luxury and ease.

Due to its excellent geographic position and strong economy, Dubai is now regarded as the best location for doing numerous commercial operations. However, there are many additional factors that attract international investment to open a company in dubai free zone, such as:

  • Excellent Connectivity and Strategic Location
  • Tax-Free Policy
  • An ecosystem that is business-friendly, a multi-national hub,
  • A Good Investment Climate

Read more about How Many Visa I Can Get in Free Zone?

How can I open a free zone company in Dubai?

How to start a business in Dubai free zone? this is the most popular question in Dubai, The procedure for forming a company in a free zone is simple, quick, and easy. Once they have met all the requirements and received their company license from the relevant agency, prospective investors can start a company in Dubai free zone within a set amount of time. The free zone administrators will just require the absolute least amount of documentation and time.

The processes for starting a company in a free zone are listed below.

  • Determine the legal entity’s commercial activity.
  • Choose a name for the company that will be operating in the free zone.
  • Fill out a business license application.
  • The agreement and the articles of association must be ready.
  • Determine the geographical location of your company.
  • Complete the application and present your business plan.
  • Fill out the application, then bring it to the meeting along with your business plan.
  • Before registering your company and submitting a license application, get approval from the authorities.

What are the benefits of establishing a business in a Free Zone?

  1. 100% business ownership: If you start a company in the UAE outside of the Free Zones, you must have a local partner who owns 51% of the company shares. In contrast, in a Free Zone, you have complete control of your firm and are not required to have a local partner.
  2. setting up a company in Dubai free zone will be no taxes on either personal or company income (guaranteed for 15 to 50 years, depending on the area).
  3. There are no taxes on investment income or business profits.
  4. Streamlined bureaucracy: Dubai not only makes it easy to start a business, but it also makes it easier to employ partners and staff members with less complicated processes, which helps the business expand.
  5. There are no limits on monetary movements.
  6. There are no taxes on the repatriation of invested capital.

In fact, business Setup in Dubai—or in another United Arab Emirates state is favorable from both a cost and a bureaucratic perspective.

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How much does it cost to open a free zone company in Dubai?

You will need to consider a lot of criteria when you think of UAE Free Zone Company Formation, in addition to the cost of renting or buying an office and location, as well as any professional guidance.

Firstly, it is important to know that a certain minimum quantity of investment must be deposited in the UAE bank. Then, depending on the Free Zone and the type, it will be necessary to open an account and deposit an amount ranging from zero to a few tens of thousands of euros.

Despite this, opening a business in one of Dubai’s Free Zones still has cheaper startup expenses than doing so elsewhere in the city. In this scenario, you will additionally need to spend money for bringing on a local partner (required outside of free zones) and account for a 20% tax, in addition to the minimum share capital.

The cost of VAT is 5% in free zones. Gaining access to beneficial tax rates is another benefit of starting a business in a free zone. You can benefit from the fact that essential needs can be purchased tax-free in the Free Zones if you decide to move to one of these areas.

The cost of a set up business in Dubai in a free zone license in Dubai ranges from AED 5 750 to AED 35 000; however, the price may change based on your industry, business operations, size of the company, number of visas, and other factors.

Documents needed for pre-approvals to start a company in the free zone in Dubai

In addition to renting office space in a free zone in Dubai, you would also need to apply to officially register your company. Dubai Free Zones have distinct requirements for each license. However, generally speaking, the following paperwork is needed for pre-approval:

  1. A color copy of the shareholder(s)’ passport and, if necessary, their visa
  2. Form of Application Business Plan
  3. a duplicate of the current trade license or registration document (if you are an existing company, applicable for a local company only)
  4. signature samples from the company’s shareholders and the newly appointed management or director
  5. 2 years’ worth of audited financial statements or a letter of recommendation from a shareholder’s personal bank, NOC from the present sponsor (for individuals)
  6. property title deed
  7. Manager/Director Letter of Intent Registry Identification Code Form (RIC) (Original and notarized)
  8. Different standards apply to freelancers. Only the application form, RIC, CV, and bank reference letter must be sent.

frequently asked questions | law firm in dubai

1- How long does it take to set up a business in Dubai?

After submitting the required documentation, you will be able to receive the appropriate visas to establish your company in Dubai within a few working days. There may be some occasional delays, but only on holidays. Only during vacations like Ramadan can certain delays happen.

2- What Are the Different Types of Freezones in the UAE?

  • Free Zone LLC Company (FZ LLC): 50 stockholders maximum.
  • Free Zone Establishment dubai (FZE) is a limited liability corporation that only has one shareholder and is run by that shareholder.
  • Branch Business: It must be a domestic or international company with a local branch or franchise.

3- What are the free zones in Dubai?

FreeZones Dubai are areas where business owners can operate without restriction. Each Free Zone targets a certain activity and provides particular licenses connected to a particular sector.

Setting up a Free Zone Firm (FZCO) or a Free Zone Establishment (FZE), or a branch of the international parent company, is quite simple when starting a business in Dubai’s free zones.

4- Can a free zone company do business in Dubai?

Yes, a free zone company can do business in Dubai, but it is subject to certain restrictions. Free zone companies are allowed to operate within their designated free zone, but to do business outside of the free zone, they must have a local distributor or sponsor to act as their agent in Dubai.

5- what is the cost of opening a company in dubai free zone

The cost of dubai freezone company setup can vary depending on the type of company, the size of the business, and the specific free zone is chosen. Generally, the cost includes fees for business registration, licensing, visa processing, and leasing of office space. These costs can range from around AED 15,000 to over AED 50,000.

It is recommended to consult with a business consultant or free zone authority when you want to starting a business in dubai free zone for more accurate and detailed information on the Open a company in Dubai costs.

6- What is the Cheapest free zone in UAE?

The cheapest free zone in UAE depends on the type of business and its requirements. However, some of the most cost-effective free zones in the UAE include Shams Free Zone, Ajman Free Zone, Umm Al Quwain Free Zone, and Ras Al Khaimah Economic Zone. These free zones offer affordable business setup costs, low annual fees, and other incentives to attract businesses.

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Last words

From this point of view, Khairallah Advocates & Legal Consultants offers the best benefits of opening a company in Dubai free zone because we are able to provide the best options and services for your company while also shortening the time due to our knowledge.

for more information, we are honored to introduce our best lawyer Ahmed Abdel Rahman a graduate of the University of Alexandria in Egypt 2010 (English Department). He works as a legal assistant at Khairallah Advocates and Legal Consultants and has extensive experience in the practice of law and the Law codes in the United Arab Emirates. Ahmed appears before courts, as well as before Governmental and non-governmental authorities. He has experience in handling all court procedures including execution and criminal cases.

He is responsible for registering and following all types of cases in Dubai Courts, he Investigates and gathers the facts of a case, maintains and organizes files updates files with case status and information and Maintain documents received from clients, conducts research for lawyers, retrieves and organize evidence for use at depositions and trials, and draft settlement agreements.