Firms operating in free zones are permitted to transact with other firms there as well as internationally, but they are not allowed to transact with clients in Dubai or the rest of the UAE.
Top 4 Cheapest free zones in Dubai
- International Free Zone Authority (IFZA) Located in the Dubai Silicon Oasis
- Ras Al Khaimah free zone (RAKEZ)
- Sharjah Media City free zone (SHAMS)
- Ajman Free Zone – AFZA
- Sharjah Publishing Free Zone-SPCFZ
The process to establish a company in Dubai is simple and straightforward and involves only a few simple steps, in all the seven emirates of the UAE. The process involves applying in person at the Department of Economic Development in the respective emirate where you plan to establish your business. Additionally, entrepreneurs & Investors can also apply through business setup professionals or designated companies offering complete business establishment services. The company formation in Dubai typically involves identifying the office location, specifying the business activities, and paying the required fees, for the issuance of a commercial business license. One can establish a company in either Dubai mainland or Dubai
free zone area.
Establishing your company in Dubai’s mainland
Establishing your company in UAE-free zones
01 Decide the Nature of Your Business Activity
Depending on the type of business, UAE free zones provide investors and entrepreneurs with a variety of business licenses.
02 There are 3 legal forms of businesses in UAE Free Zone
A company’s legal framework is determined by the needs of the business and its type. The rules and legislation that businesses must follow are outlined in this document.
03 Register the Trade Name
The corporate name is referred to as the trade name. It must be distinctive and different from any existing registered company name. Through the relevant departments of economic development’s websites or mobile applications, you can submit an application to get a trade name.
04 Select Business Space and Location
In the UAE, there are more than 40 free zones. You can choose a free zone that is appropriate for the type of business activity you will be conducting.
05 Obtaining the Initial Approval
To get the preliminary clearance to start a new business, you must fulfil all conditions and submit the required paperwork. Additional government approvals are needed for some operations, such as tourism, travel, and health, and they must be secured from the appropriate authorities.
06 Registration and Payment of Fees
- Pay fees and get the company license
- Fees include company license issuance fee, which depends on the type of license
Even non-residents can set up their company in the UAE remotely and manage their company from any location in the world with the right assistance.
In the UAE, there are no limitations on foreign ownership of firms. This implies that regardless of your nationality, you can own 100% of your company. Dubai is a major center for trade and business worldwide.
A local sponsor is not mandatory to start a business in Dubai mainland. This means local UAE national is no more required to set up business in Dubai mainland. Additionally, the foreign national can own a full 100% of the company’s stock.
A Free Zone company cannot conduct business outside of its jurisdiction without the assistance of a local agent, whereas a mainland firm is free to conduct business wherever it chooses in the United Arab Emirates. This is the main distinction between
mainland and Free Zone corporations.
Freelancers can live and work in Dubai with a Dubai freelancing visa. A freelance permit must also be obtained prior to submitting an application for a freelance visa. Work as an independent freelancer is possible in Dubai or the UAE.
This visa offers many important advantages, including 0% personal income tax, 0% dividend tax, a 2-year validity period, and the ability to enter and exit UAE airports without presenting your passport.
IFZA (International Free Zone Authority) is the most affordable Free Zone in Dubai. For AED 11,900, IFZA provides low-cost company licenses in Dubai without requiring visas.
The best and most affordable Dubai free zone license option for 2023 is this one.
Online application forms and the required paperwork must be completed in order to open a business bank account in the United Arab Emirates. Visit a local branch of a bank in the UAE and follow the instructions provided by the banking specialist to open a corporate account that best suits your company’s needs.
Opening a bank account is one of many legal and administrative procedures needed to establish a business in Dubai. The procedure of obtaining a new business bank account in Dubai, however, may be challenging and time- consuming.
Setting up a free zone firm with the appropriate authorities is the first step in starting a free zone company in Dubai. Depending on the free zone you choose, the registration costs can vary, but they normally fall between AED 5,500 and AED 50 000. The registration of the business and acquiring the required licenses are covered by this price.
- Dubai is a hub for commerce!
- Huge tax benefits,
- Excellent business opportunities in Dubai.
- Access to the international market and friendly business setup procedures
- Seamless aviation connectivity and first-rate commercial premises.
- World-class infrastructure and strategical location
A platform for online sales, Online goods sales and purchases are permitted in the UAE with an e-commerce license in a free zone. Free zones do have their own rules, therefore businesses are not allowed to undertake operations outside of the free zone.
- Travel & Tourism
- Digital Marketing
- Event Management
- Education & Training
- Digital Payments
- E-commerce and online business
- Real Estate Brokerage
- Health & wellness
- Pet Care and grooming
- Food & Beverage Trading