Are you a stranger who wants to start a business in Dubai? In Dubai’s free zones, getting in is easy and there are a lot of benefits and exclusions.
What are free zones in Dubai? This piece will explain them to you and show you how to set up your business in one.
What are the Free Zones in Dubai?
The UAE government set up free zones in Dubai as special economic areas to bring in foreign business owners and investors. A Free Zone Authority (FZA) is in charge of each free zone. The UAE has more than 45 free zones, with 26 of them in Dubai. A lot of the time, these free zones are sector-specific, which means that they only allow certain types of businesses and build the right facilities for them.
In this case, Jebel Ali Free Zone (JAFZA) is known for its shipping and transportation, and Dubai Healthcare City (DHCC) is for the healthcare industry.
The following are some reasons why people choose to open a business in Dubai free zones:
- The company can be owned by anyone from another country
- There are no taxes on business or personal gains
- There are no customs duties
- The company doesn’t need a real office
- It’s easy to set up
One bad thing about setting up a business in a Dubai free zone is that you can’t do business straight on the Dubai mainland. In this case, if you run a clothing business, you can’t sell your clothes on the island. To do that, you need to either work with a company on the mainland or ask for an extra license.
Business Types in a Dubai Free Zone
Infographics:
Types of businesses in Dubai Free Zone:
- FZE (Free Zone Establishment)
- FZ Co/ Free Zone LLC
- Branch office
In a Dubai free zone, you can set up three different kinds of businesses:
– A Free Zone Establishment (FZE) is like a sole proprietorship because it only has one owner.
– Free Zone Company (FZ Co)/Free Zone LLC: An FZ Co is a business with two or more owners. There are two kinds of shareholders: people and businesses.
– Branch Office: For companies from outside the UAE that do business in the UAE country.
What You Need to Start a Business in a Dubai Free Zone
To start a business in a free zone in Dubai, you only need a few simple documents. However, depending on the main activity of the business, the free zone authorities may ask for more.
On the other hand, if real estate is your major business, you need permission from the Real Estate Regulatory Authority in the UAE.
Want to start a business in a Dubai free zone? Here are the things you will need:
- A filled-out application form
- Copies of all owners’ passports and CVs
- Three possible business names or trademarks
How to Start a Company in the Dubai Free Zone
- Figure out what the business does
If you want to start a business in a Dubai free zone, the first thing you need to do is decide what you will be doing. Each free zone has a clear list of business tasks that investors are allowed to do. For example, DMCC gives more than 600 business activities, ranging from making software to working with the media.
Before you can choose the right business license for your business, you need to decide what it does for a living. Service licenses, trade licenses, industry licenses, and other types of business licenses are among these.
- Pick your emirate
The UAE is made up of seven emirates. These are Fujairah, Dubai, Sharjah, Abu Dhabi, Ajman, Ras Al Khaimah, and Umm Al Quwain. All of these emirates are good for business in some ways. For example, Dubai is a global business hub with state-of-the-art facilities, while Sharjah is known for having cheap housing and labor.
It is very important to pick the right state for your business goals. Don’t forget that you have to get your Emirates ID and visa in the emirate where you plan to open your business. But your ID and visa are good all over the UAE.
- Pick the right free zone to set up your business.
There are benefits to all free zones in an emirate, but some are better for certain hobbies than others. For instance, if your company imports and sells goods, Jebel Ali Free Zone (JAFZA) has good rates and lots of options. Or, DMCC free zone is great if you deal in goods or valuable metals.
There are many free zones to choose from, so it’s important to think about what you need.
- Get a business license and reserve trademarks
Make sure your business name or trademark is available once you’ve chosen the free zone. You can find out this online or by calling the free zone’s officials and reserving your trademark. Pick out either a flexi-desk or a single-room office. Then, fill out an application for a business license and send in all the required paperwork. The free zone authorities look over the application, give the original go-ahead, and then issue the license.
- Fill out a Visa Form
An Immigration Establishment Card is given to you when you set up your business in a free zone in Dubai. The people in charge of the free zone will give you an e-visa that lets you come to Dubai and continue the process.
People who depend on you or work for you can also apply for visas after you get your Investor Visa. When you apply for the Emirates ID and get your medical test, you have to go to Dubai.
- Open a bank account for your business in Dubai
Dubai’s financial firms have to follow strict rules and do more due diligence. As a business owner, you need to follow certain rules about paperwork and other things. Get together all the paperwork that will make starting a business account easier.
You can get help from a few experts in the field to open a bank account in Dubai. Experts like those in DXB-VIP can help you open a bank account for your business and take care of all the documentation required.
How Much It Costs To Open A Business in Dubai Free Zone
How much it costs to start a business in Dubai’s free zones depends on a number of things, such as the type of business you want to run and how many visas you need. In Dubai free zones, a company license and a shared desk lease can cost up to AED 12,500 per year. You only have to pay this license fee if you don’t need any visas.
The cost of giving you a visa is added to your total costs immediately if you only need one. Then you pay:
- The cost of the license is about AED 12,000.
- Â It costs about AED 1,850 per year to give out visas on top of the cost of a license for each visa.
- Â The fees for immigration cover an Establishment Card, an Investor Visa, an Emirates ID, and medical care.
There is an extra cost for each new visa if you want a company with more than one visa.
Talk to experts to get personalized help on how to get a more accurate cost estimate based on your needs.
There are many benefits to starting a business in a Dubai free zone, such as the fact that it can be owned by anyone from outside of Dubai and that there are no taxes on profits or customs fees. If you follow the steps given, the process will go easily.
For people who want professional help, DXB-VIP offers expert advice and support throughout the whole process. Get in touch with us or leave a comment below to let us know what you think and to start setting up your business in Dubai.
