Business setup in Dubai Free Zone is the dream of many but without knowing the process there is a chance that you may lose investment. This article covers the process of setting up business in the Dubai Free Zone. Actually, Business in Mainland Dubai is a lucrative option but it has many pros and cons with it but the business setup in the Free Zone is the best option to set up business without any hassle. Before proceeding further, we are introducing you to the free zone.
What is a Dubai Free Zone?
A free zone in Dubai is a location that has a fixed boundary and different free zones come under different management bodies. The free zones are actually a special area that is enclosed in a boundary and this area has special economic regulations to start the business with ease. Such areas provide a good base to grow for the startups in the UAE. Since the time the idea of free zones was introduced and the zones are a hot place to start business in Dubai. To make the matter short, the free zones are actually the best places to start the business as an entrepreneur, investor or make a branch of the company. To run a free zone company in Dubai, the rules offer a number of advantages.
The business in the UAE free zone offers 100% ownership and provides the best results. The other features of the UAE business are full repatriation of profits and capital. Such options make the dubai free zone business setup an attractive option for all to invest. The choice to start the business in the Dubai free zone is a lucrative option and it provides the best results for business setup by all means both in terms of profitability and growth. The main free zones in Dubai are IFZA or International Free Zone Authority, DAFZA or Dubai Airport Free Zone, Jabal-e-Ali Free Zone, and Meydan Free Zone.
The Process to Setup Company in Dubai Free Zone
Choose a Business Activity
This is predominantly the first option to start the process. First of all you need to select the business activity you want to start in Dubai. Every business activity in Dubai needs licensing from the authority.
Choose the Free Zone
The next step is choosing the free zone. Every free zone has its pros and cons and you need to select the best one for you. Free zones do offer most of the activities but some free zones have the limitation. The investor must know before finalizing the free zone about the activities that are available over there.
Choosing the Right Legal Structure of the Company is The Key
Choosing the right legal structure of the company is a good idea to proceed with. Actually, the free zones do offer the FZCO, FZE types of companies mainly. So choosing the right legal structure is the great option. Most of the investors go with a FZCO in the Dubai Free Zone.
Choosing the relevant Business Name
The investor must provide 3 business names to the free zone and the free zone will see whichever is available for registration. Every free zone in Dubai has a specific nomenclature for choosing the name of the company and you have to act wisely here.
Make Ready Your Business Documents
Prepare the relevant documents for business registration. Documents like passport copy, business plan, shareholder details (if any) and other relevant documents based on your chosen business activity.
Submit the Application
Now submit the application to the relevant free zone authority with the documents. Before submitting the documents, it is a good practice to double check the documents.
Pay The Fees
Pay the fees for the registration of the company. There is usually no requirement of capital but it is a good practice to submit the capital to the free zone authority.
Lease Office and Warehouse
After the approval of the company, you need to apply for a lease of the office or warehouse in the free zone. The investors have to sign lease agreements with the free zone authority. After signing of the lease agreements you do have the office in possession and start the business in a free zone in Dubai.
Obtain License and Start the business
Finally obtain the license and start the business to grow faster and vertically. This license is the key to success because now you can officially operate from a free zone in the UAE.
