What Are Free Zones in Dubai?
Dubai’s free zones are specialized areas designed to attract foreign investment by offering a range of business-friendly incentives. These zones provide an ideal environment for companies to operate with minimal restrictions, making them highly desirable for entrepreneurs.
Tax Benefits
Companies benefit from tax exemptions, making it cost-effective.
100% Foreign Ownership
Entrepreneurs from any country can fully own their business.
Simplified Setup
The setup process is generally faster and more streamlined setups.
Expert Auditing and Advisory Services
With years of experience in the Dubai market, our team of expert auditors provides valuable insights into business setup, compliance, and financial auditing. We help you avoid common pitfalls and ensure that your business is fully compliant with local regulations.
Why Choose Capital Plus for Free Zone Company Formation?
At Capital Plus, we offer expert guidance and comprehensive support throughout the Free Zone company formation process. Here’s why you should choose us:
Comprehensive Support
From helping you select the best free zone location to ensuring all your documents are in order, we handle the entire company formation process. Our team also provides continuous support, from obtaining your license to setting up your business premises.
Trusted by Clients
With a proven track record of success and a strong reputation in the Dubai business community, Capital Plus has earned the trust of countless clients. Our satisfied customers have praised our reliability, professionalism, and transparent pricing.
Benefits of Setting Up a Free Zone Company in Dubai
100% Ownership for Foreign Nationals
Free zones allow complete ownership for foreign investors, eliminating the need for a local sponsor.
Tax Exemptions
Companies in free zones enjoy corporate and personal income tax exemptions for a specific period, often ranging from 15 to 50 years.
No Currency Restrictions
Free zone companies are not restricted by currency regulations, making it easier to deal with international clients and markets.
Easy Access to Global Markets
Dubai’s strategic location makes it an ideal hub for accessing global markets, with proximity to Europe, Asia, and Africa.
Modern Infrastructure and World-Class Facilities
Free zones offer cutting-edge office space, warehouses, and logistics facilities, which support business growth and development.
Types of Licenses Available in Free Zones
When setting up a business in a Dubai Free Zone, one of the key decisions you’ll need to make is the type of license that suits your business activities. There are several types of licenses available depending on the nature of your business:
Commercial License
A Commercial License is ideal for companies engaged in trading activities. This license allows you to import, export, and distribute goods and services. It's commonly used by businesses involved in retail, distribution, and wholesale trade.
Consultancy/Service License
A Consultancy/Service License is for businesses offering professional services, such as consulting, legal, or IT services. If you are planning to offer advisory services, this license is perfect for you.
E-commerce License
An E-commerce License allows businesses to engage in online retail and sales activities. If you're looking to set up an online store or platform for digital services, this license is suitable for you.
Media License
A Media License is for companies involved in media-related activities, such as publishing, broadcasting, and advertising. This license is ideal for those looking to start a media-related business in Dubai's free zones.
Industrial License
An Industrial License is required for businesses involved in manufacturing, production, and assembly of goods. Free zones like Dubai Industrial City offer licenses for industrial activities, providing space and resources for operations.
Identify Your Business Activity
The first step is to select the business activity you intend to pursue. This choice is crucial because it determines the type of license you will need. It's important to choose the activity carefully to ensure full compliance with regulatory requirements.
Choose a Free Zone Location
Selecting the right free zone location depends on your business needs, so it's essential to consider factors like proximity to markets, infrastructure, and industry focus.
Select a Company Structure
Free Zone Limited Liability Company (FZ-LLC): Offers limited liability protection and is ideal for small to medium-sized businesses. Free Zone Establishment (FZE): A sole ownership structure for individual entrepreneurs. Branch Office: For companies wishing to establish a branch of an existing foreign company in a free zone.
Open a Bank Account
Once your company is approved, you’ll need to open a corporate bank account in Dubai. The process involves submitting the company’s documents to the bank, and the bank may request additional verification before opening your account.
Finalize Registration and Obtain Licenses
With all approvals in place and the bank account opened, you’ll be ready to finalize your company registration. Once the process is complete, you’ll receive your business licenses, allowing you to legally operate in Dubai’s free zone.
Required Documents for Free Zone Company Registration
Setting up a company in a Dubai Free Zone requires submitting several essential documents. These documents ensure compliance with the legal framework and facilitate a smooth registration process. The key documents required ar
Passport copies of shareholders and directors
Clear copies of the passports of all company shareholders and directors.
Proof of address
A utility bill or other proof of the residential address of shareholders and directors.
Memorandum of Association
Legal documents that define the company’s structure, purpose, and operational rules.
Business plan
A detailed business plan, outlining the company’s objectives, activities, and projected financials. This may be required depending on the business activity.
Facilities and Services Provided by Free Zones
Free zones in Dubai offer a variety of facilities and services designed to support business operations and provide a seamless experience for entrepreneurs. These services include:
Fully equipped offices
Free zones provide modern office spaces that come with essential amenities like furniture, internet access, and telecommunication facilities.
Warehousing and storage options
If your business involves storing goods, free zones offer warehousing solutions at competitive rates.
Visa and immigration services
Free zones assist with the issuance of UAE residence visas for employees and business owners, as well as work permits and dependents’ visas.
Administrative support
Services such as legal, secretarial, and HR support are available to help businesses navigate compliance and operational challenges.
Timeline for Free Zone Company Formation
The timeline for setting up a Free Zone company in Dubai depends on various factors, but the typical process involves the following steps
- Business Activity Selection and Free Zone Selection
- Document Submission and Approval
- License Issuance
- Visa Process and Office Setup
Frequently Asked Questions
Yes, free zone companies can conduct business internationally. However, they are restricted from directly trading within the UAE mainland unless they partner with a mainland company or set up a branch there.
Free zone companies are generally limited in the following ways:
- They cannot trade directly in the UAE mainland.
- They must operate within the scope of their approved business activity.
- Restrictions may apply regarding the number of employees or the types of services offered, depending on the free zone.
The cost of setting up a free zone company in Dubai varies depending on the free zone, business activity, and size of the company. On average, fees can range from AED 10,000 to AED 50,000, including licensing, registration, and office space.
Yes, free zone companies can open branches in the mainland, but they must adhere to the specific requirements and regulations. The process involves obtaining additional approvals and meeting certain legal criteria.
