The cost of establishing a company in the Dubai Free Zone

 Dubai is one of the most important countries that finance projects, especially investment ones, and due to this advantage it offers, many entrepreneurs and investors are now looking for the costEstablishing a company in the Dubai Free Zone. To learn all aspects of undertaking an investment project in the free zone, one of the largest economic zones.


The cost of establishing a company in the Dubai Free Zone


Advantages of Dubai Free Zone

The Dubai Free Zone is one of the economic zones that brings together nearly 19,000 companies, and there are about 170 companies joining monthly, due to the following features:

  • One of the best features that the free zone offers you is the tax exemption for 50 years.
  • The free zone is considered one of the most important business centers, as it is considered a network that includes more than 180 countries.
  • If you are an expatriate and want to establish a company in the free zone, you can benefit from 100% ownership of the company.
  • The strategic location of this area, as it is located next to the most prestigious areas that include tourists.
  • The free zone consists of 87 towers, including restaurants and hotels, in addition to educational and health facilities.
  • The multiplicity of goods in all areas of commercial activities, in addition to the presence of all government services.
  • Easy access to the necessary materials you need to start your own company.
  • Rapid response to all requests from each member of the free zone.
  • You can have an organized immigration process.
  • The free zone operates seven days a week.
  • Equipped with warehouses and ready-made warehouses.
  • There is a possibility of employing expatriates.
  • The cost of establishing a company in the Dubai Free Zone is considered lower than other countries, despite the huge advantages that the country offers to investors.


Conditions for choosing a trade name for the company

Before asking aboutthe costof establishing a company in the Dubai Free Zone you may first need to know what are the conditions that must be met. Applying them, including choosing the trade name according to the following conditions:

  • The trade name must be followed by the abbreviation Legal Form, which means the legal form of the company.
  • The name must not contain any words contrary to public morals and ethics.
  • The trade name must reflect the company’s economic activity.
  • One of the conditions that must be applied is that the name does not contain the word God.
  • The trade name must be free of the names of government agencies or external names.
  • The trade name must be unique and not duplicated.
  • The Department of Economic Development must approve the trade name.
  • The name certificate is subject to renewal every period.


Costs of establishing a company in the free zone


  • First, the company must pay entry fees into the free zone. This fee amounts to 7.5% of the value of the company’s lease contract.
  • The fees for obtaining licenses are part of the costs of establishing a company. The fees for obtaining a license for a company amount to 10 thousand UAE dirhams, while for an institution it is 15 dirhams.
  • Market entry costs that follow the local law system are 5% of the lease value.
  • The residence fee for a foreign investor in Dubai is 5% of the rental contract.
  • Other fees such as waste fees may apply, but are estimated by the UAE government.
  • The cost of obtaining a license to practice the profession is 600 UAE dirhams the first time, and upon obtaining the second license, its value is 500 dirhams.
  • You can choose a company name and register for only 210 AED.
  • If you do not have an Emirati partner, which is one of the most important conditions, you can obtain it by paying a fee of 500 AED.
  • The fee for hiring a state-accredited agent is 700 dirhams.
  • Obtaining a professional or commercial license, or any type, by adding its printing costs 50 UAE dirhams.


Dubai Free Zones Law

A special law was issued for free zones in Dubai, which includes a group of topics, including the following:

  • Article (3) stipulates financial and administrative independence, in addition to the independence of the legal capacity necessary for the free zone in the Emirate of Dubai.
  • Article (4) stipulates that the Council’s main headquarters is in the emirate, but branches may be established in the region.
  • Article (5) stated the Council’s objectives, including the attempt to develop free zones by rehabilitating them to attract investors.
  • Raising the level of coordination between free zones is one of the features that may affect The cost of establishing a company in the Dubai Free Zone due to the presence of all needs there.
  • Ensuring free zones compete to continuously attract investment, in addition to enhancing the emirate’s strategic plans.
  • Among the Council’s objectives while developing the free zone law in Dubai is to enhance the role of that zone by adopting some flexible policies such as facilitating licensing.
  • Article (16) stipulates the cancellation of Decision No. (10) of 2011 by the Chairman of the Economic Development Committee.


Government approvals to establish the company in the free zone

Some types of commercial activities require special licenses from government agencies, which are included in the cost of establishing a company in the Dubai Free Zone, including the following:

  • Once the registration documents are signed, initial approval must be obtained.
  • Signing the necessary legal documents to incorporate the company.
  • Special licenses include the certificate of incorporation, in addition to the certificate of incorporation and also the articles of association.
  • The lease contract is one of the special licenses that must be available.
  • Registering the company’s banking structure and obtaining residence visas in the United Arab Emirates.
  • If you work in the food sector, you may need additional licenses from the Abu Dhabi Agriculture and Food Safety Authority and the Municipality of Dubai, in addition to a license from the Municipality and Planning Department. .
  • The media field is also subject to some special licenses from the National Media Council, Sharjah Media Council, in addition to a license from the Fujairah Culture and Media Authority.
  • You also need a manufacturing license, a warehouse license, an external companies license, in addition to a consulting license, which licenses each field separately.


UAE laws and regulations for investors

The UAE government has set some regulations governing the establishment of companies and clarified some points, including The cost of establishing a company in the Dubai Free ZoneIn addition to the following points: /span>

  • Some activities that foreign companies cannot invest in have been banned, including finance, aviation, media, heavy metals, and oil and gas.
  • The laws state that there are some permitted activities, including general trade and commerce of various kinds, in addition to business management, auditing, accounting, and reporting.
  • The regulations set some conditions for establishing a company in the free zone, including first determining the company’s structure, and second obtaining initial approval.
  • Obtaining the approval of the concerned authority is one of the conditions following initial approval.
  • You must ensure that you obtain the commercial license by following its conditions, including paying its fees, in addition to submitting all documents to the Department of Economic Development.
  • The conditions also apply in the case of obtaining an industrial, tourist, and professional license.

CostsEstablishing a company in free zonessuch as capital and licenses, is one of the advantages offered by the UAE in application of the principle of flexibility in the policy used to attract investment. Therefore, based on the mentioned advantages that characterize free zones, all the basic costs that must be available during the establishment process have been mentioned.



WhatsApp Chat