Located next to the coast of the Arabian Gulf; Dubai was previously famous largely for its oil industry; but the situation has changed in the last two decades. Dubai is now a global city and a popular business center at par with western nations; due to its different business model which drives the economy in the area. In order to attract overseas investment and make powerful the economy; Dubai freezone company formation have been form in Dubai; which reward expat with high incentives for opening their business in the UAE.
The Free Zone Authority in Dubai is the gov’t organization which deals registration formalities; as well as issues license to non resident companies; or in an other word overseas own businesses for free zone company formation in Dubai. So set up a business in Dubai free zone brings a chain of opportunities for networking; and collaborating as well as extensive development in the business. The pleasing tax regime and also many other incentives offers by the free zone authorities; make Dubai the most favorite place for a Dubai freezone company formation.
Dubai freezone company formation
Let is go to the core of how to do Dubai freezone company formation. First things first, you need to decide on the nature of the business which you desire to run. That is to say, will you open as a freelancer; or you want to start a fully functional firm; where you want to employee others.
A freelance Dubai freezone company setup can be a cheaper choice for you; but however not every Dubai free zone issue a freelance permit; so in this case you are some what bound to decide where you call home. However, with so many free zones present in Dubai, you are will get one that suits your requirements. Plus, some free zones are open to a wide range of business activities; Dubai Airport Free zone (DAFZA) as well as DMCC free zone welcome the majority of DED trading activities.
Whichever option you pick, Dubai freezone company formation is generally fast as well as trouble free. So following are the main steps to get your license in any of Dubai free zone.
Choose a business activity for Dubai freezone company setup
First thing first, the first step for Dubai freezone company setup is to decide on the activity; which you desire to perform. And this is very important as this will impact on where you can register your company. The nature of license you apply for will also depend on the activity you hope to perform; such as services, commercial as well as trading etc. There is no need to bind you too much here; a lot of Dubai free zones allow you for multiple activity using only one license. But it is also vital to remember that Dubai has some requirements about what activities are allowed under what license; so it is worth looking for advice from a UAE company set up specialist at this stage.
Select a free zone for Dubai freezone company setup
Now the second step is to select a free zone for your Dubai freezone company setup; UAE is the only country in the Middle East where a large number of Free Trade Zones are available; that is for investors who wish to get more from their investment. The first Free Zone form was Jebel Ali in Dubai in 1985; that witnessed a marvelous development in the years to come by way of bigger number of investors. Many have open their offices, factories or warehouse a s well as invested millions; that in turn had given them massive returns from the UAE Free Zones; which is specifically the reason why even more expat investors are being want to open company in free zone.
There are a lot of thing you need to consider when selecting a free trade zone; you need to decide whether you want to open it in a sector specific free zone. Like health care, an ICT, a design, a production, outsourcing; a maritime, media, science as well as finance; these are some of the industries for which Dubai has created a specific free zone; including Dubai Outsource City (DOC) and Dubai Science Park (DSP); as well as Dubai Maritime City Authority (DMCA) and several others.
If your industry is not covered by one of the industry specific zones; or you just do not wish to form in one these free trade zones; then there are several other options available. As I have already discuss on free zones; such as DWC free zone and DMCC free zone are open to a large range of activities.
Facility of a free zone for Dubai freezone company setup
Next thing which you must consider is the facilities that you need in your free zone. Many offer meeting room access, desk space as well as use of equipment; but if you have some other requirement such as warehousing; then you’ll require seeking out a free zone which meets these requirements. But don’t worry; there is abundance available that will offer it.
Finally, you need to consider the location of your free zone for free zone for Dubai freezone company setup. As well as taking in considerations such as entree to main highways; if you depend on global trade; then you must try to find some thing close to both sea ports and air ports. Dubai Airport Free Zone and Dubai Maritime City are big examples of it; being directly connected or adjacent to Dubai International Airport as well as to Port Rashid respectively.
Benefits of Dubai freezone company formation
Free zones are the most useful locations for Dubai freezone company formation ready with state of the art infrastructure; duty and tax exemptions, flexible government policies, world-class business amenities as well as unmatched facilities.
These are not the only factors which drive Dubai freezone company formation; there are several more advantages of forming a company in Dubai, like:
- 100% ownership for investors, apart from their nationality and country of origin
- 100% tax exemption on personal or corporate income or profits
- Option for a company formed by an individual
- 100% repatriation of investment and profits
- Exclusion from all sorts of import and export duties
- Handy office and warehouse facilities
- Exemption on corporate tax for 15 years and renewable for a further 15 years
- inclusive secrecy of operations
- Flexibility to engage in international business
- smaller amount of renewal charges
- Flexibility to hold properties, participate in multiple activities and opening a bank account in Dubai
- The option of liquidating anytime
- help in housing facilities, staff visas and other support services
Choose a Dubai freezone company formation name
Deciding on a name for your business is hard no matter where in the world you prefer to form. There is abundance of factors to think from the emotional to the practical. Does your name call to mind an emotional response, for example? And if so, what does it say? Is it Reliable? What is High class? As for the realistic side of things, you’ll also require to consider how your selected name will look on your branding, whether the domain is obtainable and whether it will place the test of time. ABC Computers would soon become dated if you branch out into another market for instance. Here in the UAE, there are also other naming conventions to consider. First of all, you need to make sure your business name is available or not.
A company formation specialist can easily check this for you. There are also certain standards which the name should adhere to; counting avoiding every blasphemous language or references to religious or political organizations.
Finally, if you choose to name your business after a person; then there are a couple more considerations; which person should be a partner and shareholder in your business; and only full personal names are allowed rather than initials or abbreviations.
Get your documents in order and apply for Free zone company formation in Dubai
Now you are ready for what you are going to set up; where you want to do it and under which name you will trade; it is now time to apply for your Dubai freezone company formation. The accurate documents obligatory for Dubai freezone company formation; but it will depend on the nature of license you are applying for and on a chosen free zone. As a universal rule of thumb, when going to open a Dubai free zone company; you can expect to be asked for some or all of the bellow mentions:
- Color copy of shareholder(s) passport as well as visa if applicable
- Application form
- Business plan
- Board resolution
- Memorandum and articles of association
You can also make your visa application at this stage, must you need one. The process here is very easy: status adjustment, entry permit; medical fitness test and then Emirates ID registration as well as visa stamping. Once again, a company formation specialist can lead you through this stage.
Limitations of Free zone company formation in Dubai
The owner of a Free zone company formation in Dubai is not allow to trade directly with the UAE market. A free zone company can only trade in the main land market through a local distributors. But note that custom Duty of 5% will be apply to each trade in the main land. Even though all free zones offer various attractive schemes for the profit to the investors; not all are the same when we think about the facilities offer by them. Therefore it will be useful to have a quick look over the facilities; that is of each and every free zone, one by one.
Opening your bank account for Free zone company formation in Dubai
Finally, let me tell you one more thing; which is the most important thing for company set up; that is opening a corporate bank account in the UAE; Now a day it is very difficult to open a bank account for a free zone company; but there are still a number of chief thing to keep in view. First of all, you will require ensuring you have the accurate documentation in place. As well as your business license, you are likely to need:
- A corporate account opening form
- Board of directors resolution sanctioning the opening of the account as well as the signatories to the account
- A copy of your company’s certiﬁcate of incorporation
- copy of your share certiﬁcates
- A copy of the company’s memorandum as well as articles of association
- Copies of passports of all partners in the company
Once you are prepared to apply, it is time to make a decision on a financial. There are many things to remember here; not least each bank’s eligibility criteria. Some have need of all shareholders to have UAE residency visas; whereas others insist on a minimum cash balance; often in the area of AED 5,000 to AED 200,000.