Establishing a company in the free zone

There are some areas in the UAE called free zones where sales, import and export allow many projects. These areas in the United Arab Emirates include about 40 areas, in addition to some new areas that are being opened and equipped, and many investors are investing. Their money is in the free trade zones because they have many advantages over any area in Dubai because፦

Opening a business in free zones is much easier than in any other region, because it does not require a partner or sponsor with nationality, and the company’s property may be 100% foreign.

– Taxes exempted from goods in free zones.

– No customs duties apply to goods in the free zone.

The company may be affiliated with a large institution outside the country. All these benefits were one of the factors that prompted many people to invest their money in the United Arab Emirates, especially in the free zones, and try to establish businesses there to increase their profits.


What is the free zone?

The term free zone varies in meaning and definition depending on the type of free zone, but most of the time the term free zone expresses a geographical area where goods are stored, stored, manufactured, marketed and re-exported according to a known and defined customs regime, but are not subject to customs. Homeworks. Free zones are also facilities that are completely independent from the country’s laws, which are not subject to the country’s trade laws and do not require a sponsor. A company based in the free zone can be owned by a person of another nationality without the need for a UAE national partner.


Establishing a company in the free zone

The UAE features more than 40 free zones as well as a few built-up areas. Therefore, starting a business in a free zone is one of the difficult things for an investor as it is difficult to choose among many regions and hence our company due to its extensive experience in corporate governance. It helps many investors choose the appropriate free zone for their business activity and helps establish and establish a free zone company in the shortest possible time and at the lowest cost.


Establishing a company in the free zone

Starting a business in Dubai Free Trade Zone is much easier than opening a business in Dubai, as it can be 100% owned by any nationality and UAE nationals do not need any partner or sponsor because the company is registered as an establishment, free zone company in the free zone or branch. Dubai Franca Business District or Representative Office. In this case, the main company can be outside the UAE and does not have to be within the UAE. Companies located in the free zone are regulated by the competent authority in the free zone, which issues company licences. This depends on the location of the free zone and the activity derived from it. The type of license issued by the competent authority varies depending on the business activity. You can set up a company in the free zone by following a few steps, including:

  • Agreeing on the trade name, as it is the name that distinguishes one company from another.
  • Obtaining the company’s business license.
  • Obtaining initial approval to start work.
  • Commercial license registration.
  • Complete the requirements for a commercial license and obtain it.


Advantages of establishing a company in the Dubai Free Zone

There are many features that distinguish companies located in the free zone from other companies, including:

  • The company in the free zone can be 100% owned by a person, even a foreigner.
  • Ownership does not require a partner or sponsor from the Emirates.
  • 100% capital and profits are recovered.
  • Exemption from taxes and customs duties.
  • Raising corporate tax and income tax costs.
  • There are no restrictions or conditions on the use of different currencies.

Types of companies in the free zone

The Dubai Free Zone works to provide different types of companies that can be established in it, and each type has different advantages that suit your business, and you can choose between:

  •  Free zone establishment

This is formed by a company or one person and requires a certain capital, the minimum of which is one thousand UAE dirhams.

  •  A subsidiary of a company

As it is possible for any foreign company to establish a branch in the free zone, and in this case no capital is required


Investing in the free zone:

Before we know and learn about the forms and methods of investment in the free zone, we must first know what the free zone is, as it is the first investment zone in the United Arab Emirates.

The Emirate of Dubai includes many important and distinguished regions that have made it one of the most important emirates for trade and the most attractive emirate for tourists and foreign investors due to the excellent places it contains. The most important of these regions is the Dubai Free Zone. This region also works to provide a work environment that helps in achieving large profits. Without paying any types of taxes and also without the need to have a partner who holds Emirati citizenship.


The free zone also seeks to assist new companies in the process of establishing their companies. The step of knowing the initial costs of establishing companies is considered one of the most important steps to develop a workable business plan. We can help you finance any type of project through investors who have dealt with us before and with the best and most important companies. Investments located in Dubai, you only have to make a project plan and review it to find the appropriate investor with us.

The UAE government always provides adequate support to Emirati entrepreneurs, and there are many grants available for people who have a strong business plan and are foreigners to the UAE, but the government is working to provide many commercial and administrative buildings and free business centers available there for rent in the free zone in order for investment to take place. Within the free zone to suit the volume of business and services they provide while providing appropriate solutions to all investor complaints.


Establishing a company in the free zone:

Companies wishing to establish their businesses in the free zone enjoy greater flexibility in choosing multiple commercial activities or service activities that are compatible with the nature of their work, in addition to the tax exemptions that distinguish the free zone, which are among the biggest factors that attract many new entrepreneurs, which contributes to enhancing the investors’ experience when… Contracting or establishing companies in the free zone and conducting their business there.

Establishing a company in the free zone

Steps to establish a company in the free zone:

Now, regardless of your financial ability or what you set a financial budget for establishing and establishing any investment projects in Dubai or establishing a company in Dubai, you can now establish any project or investment service in Dubai due to the multiplicity of needs of the UAE and also due to the ease of providing methods for establishing investment projects there, but it is necessary to know The appropriate and basic steps in establishing a company in Dubai are as follows:

1- Determine the nature of the company’s activity:

Determining the nature of the company’s activity is considered one of the most important procedures imposed by the UAE Law of 2009 for establishing companies in Dubai. This facilitates the procedures and then determines the parties associated with the company’s activity and the permitted legal forms.

There are approximately 2,000 economic activities permitted in the UAE, and economic activities are classified into three main types: commercial activity (real estate, leasing, transportation, transportation, financial intermediation, wholesale, retail, storage, and communications), professional activity (agriculture, health, social work, education, and various service activities related to In society, any activity that depends on physical and mental activity to practice it), and finally industrial activity, which includes (manufacturing industries such as mining, water, electricity, and quarrying), and there are also some tourism activities.

2- Determine the legal form of the company:

Here we are talking about the legal form of the new company that will be established. This form depends on the nationality of its owners, and the legal form of the company that you plan to establish in Dubai is as follows:

  • Joint company.
  • Limited Liability Company.
  • Public Shareholding Company.
  • Private equity company.
  • Civil works companies.

3- Trade name registration:

The third step of establishing companies is specifying the trade name in establishing a company in Dubai, which is what distinguishes one commercial license from another. Also, the trade name is related to the form and activity of the commercial company and is met with several important conditions that the Department of Economic Development stipulates on the trade name before it approves it. The name is that the company’s trade name does not contain words that are inappropriate for the country, that it does not contravene the public and private taste of the country, and that the trade name reflects the commercial activity accurately and clearly.

4- Obtaining initial approval:

After determining the legal activity of the company and its legal form as well, and registering its trade name, you must now obtain initial approval for the economic activity of the company and follow up in order to obtain the approval of the authorities related to the activity.

5- Preparing the articles of incorporation and choosing a location for your business:

Here comes the moment of concluding or preparing the contract designated for establishing a company in the Dubai Free Zone. The contract of incorporation must be presented in agreement between you and the competent authorities in Jebel Ali. You must also choose a location to establish the company in the free zone or establish a company in Jebel Ali to conduct business. All established companies must It must have a physical address located in the United Arab Emirates, and this headquarters must meet the specified requirements and land allocation regulations previously, in addition to having an existing license.

6- Obtaining approvals from the authorities concerned with the facility’s activity

Some commercial activities and projects require obtaining additional approvals from the competent authorities for those projects and activities concerned with them, such as approval from the Ministry of Economy, or specialized approval from the Ministry of Interior, or specialized approval from the Ministry of Justice, or approval from Civil Defense if the activity, for example, is related to the activities of selling equipment. Firefighting.

7- Obtaining the license

After completing all the previous steps to prepare and establish an investment company in Jebel Ali or establish a company in the Dubai Free Zone, you can now receive the commercial activity license, attach some of the required papers and documents, including also the economic development steps and pay the commercial license fees for establishing the company, then after registration is completed in the Chamber of Commerce. As a member.



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