How to Form a Free Zone Company in Dubai
Investors from around the world have two outstanding opportunities for business setup in Dubai free zone. And they set up a company on the mainland of Dubai or in one of the free trade zones. Here you can go through the company incorporation formalities related to the incorporation of a free zone company in Dubai. A free trade zone is a designated special jurisdiction or region with a specific business activity or group of activities. It is primarily identified by the ownership and tax advantages it offers to foreign investors. There are more than 40 free trade zones in the United Arab Emirates and some are under construction. The number of free zones in the Emirate of Dubai is currently 30. Let us now turn to the establishment of a free zone company in Dubai.
Procedures for business setup in Dubai free zone
The agency that issues the trade or business license in a free zone is called the Free Zone Authority or FZA. A free zone authority is an independent body that regulates the activities of a free zone company. Your commercial activity must belong to the group of commercial activities assigned to the free zone. Therefore, research the Free Zone jurisdiction carefully and choose the one that best suits your needs.
The rules for incorporating a company are listed below. The legal form of the company: Select the desired legal form of the company. Certain free zone jurisdictions require a minimum capital requirement. The requirement depends on the type of free zone. This minimum capital requirement does not apply to certain free zones belonging to other emirates.
Find a suitable business name – Finding the most appropriate and relevant business name for your business is an important aspect of business registration in Dubai. You should not select names that are already registered. In this regard, please contact the Dubai Free Zone Authority. After verification, you can register the company name on the Dubai FZA website.
Acquiring a trade license:
After registering the trade name, you can apply for a trade license. Now the business license is granted depending on the type of activity. Various business licenses are issued by Dubai Free Zones and are listed below. Business License Industrial License Professional License
- General Business License
- Manufacturing license
- Storage license
A business license is granted if your company is assigned to the service sector such as law firms, consulting firms, etc.
A manufacturing license is granted if the activity involves the manufacture of various goods and products. The business license is granted if the activity involves the import or export of basic products.
A general business license covers multiple business activities. Consider the business and work needs to make a decision. Startup companies can opt for Flexi desk options.
Obtain and register initial approval – Initial approval is granted after additional verification. After receiving the first permit, you can register the business on the FZA website.
Purchase business license: The business license is issued after registration. After acquiring the trade license, you can start operating.