Looking for how to start a business in Dubai free zone? Read this article to get to know more about setting up a business in Dubai free zone.
Before looking for procedures to set up a business in Dubai Free Zones , the first thing you need to figure out is the type of business you wish to start. There are varieties of options available for individuals who want to set up a company.
Dubai Free Zones is a popular destination for company setup. The company registration here is a quite smooth process and entrepreneurs love setting up a business here due to various benefits like tax-free zones, customs tax exemptions, zero currency restrictions.
Most of the Dubai Free Zones are also industry-specific. For a fast and affordable setup process, one really needs the help of an expert team. As with any important business decision, you must seek the best advice before starting the free zone company. If you are planning to set up a company in a Dubai Free Zone, here are a few things you may need to consider.
The first step for Dubai’s free zone business setup is the selection of the business activities you wish to carry out. This act will impact the company registration process. There are different types of licenses for running a business and you need to apply for the license according to your particular business activity.
Specific requirements are needed for specific business activities and to ensure a smooth process of business setup, one needs to work with experts in the field. Many Dubai Free Zones allow multiple business activities under a single license and entrepreneurs can keep in mind this fact while planning their activity.
2. Choose the Right Free Zone
Once you have decided the business activity you want to carry out, the next step is to decide the right free zone. There are several factors you must consider when deciding for a free zone. Sector-specific zones are available for performing business activities like IT, healthcare, commerce, trading, ICT, production, design, outsourcing, media, maritime, etc. So before finding the free zone, proper research must be done.
Apart from that, there are many broader free zone options available also. Some free zones like Dubai South and DMCC are open to a wide range of business activities. Considering the location of your chosen free zone is also an important activity because factors like access to main highways, ports, and airports come into play.
3. Find a Company Name
Finding a name for your business is a difficult task no matter the type of activity or the place of setup. But if you want to start a business in Dubai, before finalizing a name, you need to ensure that your business name is available to be registered. Experts in company setup can help you in this stage.
Apart from that, there are also certain standards that the name must adhere to. One should avoid using any blasphemous language or references to religious or political organizations in the name. Also, if you’ve decided to name your business after an individual, there are few things you need to consider. The individual must be a partner and shareholder in your business and only full personal names are allowed rather than initials or abbreviations.
4. Apply for a License
After choosing the business activity and registering the name at the portal, the next important step is to apply for a license. The type of license depends on the type of your business activity and you need to gather all the documents. You have to fill the application form and gather all the documents, as mentioned in the form.
You can expect to be asked for some or all of the following documents:
Colour copy of shareholder(s) passport and visa if applicable
Memorandum and articles of association
5. Apply for Visa
The next step to start a Business in Dubai Free Zone is to apply for Visa. Visa application is considered during this stage of business setup. You can apply for your visa and those of your employees and other local staff. The process of visa application includes entry permit, status adjustment, medical fitness test, Emirates ID registration, and visa stamping.
6. Open a Corporate Bank Account
In order to conduct business activities, you need to open a corporate bank account. Opening an account in the UAE is not always easy and there are several things you need to consider. You have to gather the documents and your business license and provide it to the chosen financial institution. While applying, you must ensure that you have the correct documentation in place. Some of the documents required are listed below.
A corporate account opening form
A board of directors’ resolution sanctioning the opening of the account, and the signatories to the account
A copy of your share certiﬁcates
A copy of your company’s certiﬁcate of incorporation
Copies of passports for all partners
After this step, you will get a valid license within few weeks, and you can start your business activities.
Benefits of Starting a Business in Dubai Free Zone
Most entrepreneurs favor free zones for their business setup. They are preferred by many because of their state-of-the-art infrastructure, world-class amenities, flexible government policies, tax exemptions. Many other factors make the region a favorable destination for an entrepreneurial journey. Some of the benefits of starting a business in the Dubai Free zone are:
100% repatriation of capital and profits
Exclusion from all import and export duties
100% ownership for investors, regardless of their nationality
100% tax exemption on personal or corporate income or gains
Exemption on corporate tax for 15 years, renewable for another 15 years
Full secrecy of operations
Low renewal charges
Access to international markets
Assistance in housing facilities, staff visas, and other support services
These are some of the things that you should consider while starting your company in Dubai Free Zones. Like any business decision, there are potential challenges that arise while you march forward. But if you seek the right guidance and advice, the journey can be effortless and fulfilling.
Bizvise has all the expertise to help you realize your business dreams without worrying about the red tape, documentation,, and other formalities. The company takes care of all those things and you can give your full focus on your goal of starting a dream business. Contact us if you you require any advice on how to start a business in Dubai Free Zone.