Step-By-Step Guide for Dubai Freezone Business Setup

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There is no secret that currently Dubai has one of the best markets for budding entrepreneurs as well as established businesses. It boasts several advantages for the companies as well as businesses looking to succeed and connect with the rest of the world. For opening a company in mainland

Steps to Set up Business in Dubai Freezone

Business Setup in Dubai free zone could make you enjoy some attractive perks. First, you retain 100% ownership of the company as you don’t require a local promoter or sponsor. You could establish the company solely without hassles. Second, you could either lease or purchase the business-related assets. Dubai provides the flexibility that business owners require to get their business off the ground.

Moreover, when you open company in Dubai Freezone you get a tax exemption. You could pocket all your business profits. And, there is 100% repatriation of profits and capital invested. In case you wish to set up business in the free zone, consider following the given steps

  • Decide the Business Activity

The first step for starting the business as well as getting the license is to finalise the venture’s nature. There are around 2100 business activities to choose from. All these activities fall into different categories within the professional, tourism, commercial, and industrial space. You could check the list on the DED website.

  • Decide on the Freezone

Around 30 free zones are located in Dubai. It is important to understand that the nature of the business could affect the selection of the free zone. Generally, it makes sense to opencompany in Dubai Freezone that is close to the businesses in the same sector.

  • Select the Company Name

While selecting the name for the business, it is crucial to ensure that it conforms to the naming conventions of the UAE. Names having offensive language could be supposed offensive to the religion, refer to mafia or political groups are prohibited. In case you are naming the company after any person, you would need to prove that person as the owner or partner of the company.

It is worth noting that abbreviations or initials arenot allowed. In case naming the business seems complicated, consider consulting experts having experience with company registration in Dubai. The expert could help in saving time and effort by making you follow the conventions and get the name approved.

  • Apply for the Approval

For ensuring that Dubai DED doesn’t have any objection to you starting a company, you would need to apply for the initial approval. You could apply for the initial approval in person, online, or through a third party. The documents you would require for this would depend on the nature of your business. However, generally, the list of the required documents includes

  • Company registration licensing form
  • Copy of residence permit or visa
  • Project’s feasibility study
  • Copy of passport or ID
  • The AOA (Article of Association) of the company

In case you find it difficult, you could take the help of a reputed expert who could guide to through the process. The expert would help you ensure you have filed and prepared documents correctly.

  • Open a Bank Account

Once you get the approval and receive the necessary documents back, it is time to open a corporate bank account. From local to international, the UAE has several banks. You could choose from HSBC, Abu Dhabi Commercial Bank, Barclays, Commercial Bank of Dubai, Citibank, and many more.

  • Set up Office Location

After opening a bank account, the next step in the Dubai Freezone business setup process is setting up the office location. In Dubai, it is obligatory for businesses to have a physical address. Based on your budget and requirement, you could either purchase a space or hire the one on rent. You could also take the help of a business consultant for identifying as well as finalising the office space in a suitable location.

  • Apply for Final Approval

For final approval, you would need to prepare all the documents, legal information, and location addresses. In certain circumstances, you would need to apply for licensing approval as well. After it is ready, you would need to submit

  • All the documents you submitted earlier along with the initial approval receipt
  • The lease contract given by the RERA (Real Estate Regulatory Agency)
  • Approval from other concerned government entities
  • An attested service agent contract

Along with these, you would need to make payment for the license via approved payment channels. After that, you are ready to run the business.

It is important to note that free zones are attractive; however, the intricacies of new laws could be confusing. Even if you have a minor doubt or you are unsure, consider taking the help of business consultants for freezone company formation in UAE. The experts could help you at every step like drafting documents, managing the submissions, setting up bank accounts, etc.