A flourishing economy, world-class infrastructures, global connectivity, low taxation, etc. are the reasons that make this highly developed city the best for running a business. In case you are planning to start a business in Dubai, it is crucial to identify the option that suits you as well as your business needs.
Advantages of Opening Company in Dubai Free Zones
Among business persons and investors, Dubai freezone companies are the popular choice. Dubai free zones are the economic zones that offer custom duty benefits, tax concessions as well as other incentives. They offer export import tax exemption, sole ownership, zero personal and corporation taxes, and no currency restrictions for foreign investors. If you setup business in Dubai Free Zone, you could enjoy the benefits and repatriate all the profits.
Requirements for Starting Business in Dubai Free Zone
From the selection of company name, free zone to office setup in Dubai, there are plenty of things that need to be considered for starting the business. Therefore, before you plan to set up any business in Dubai freezone, it is crucial to know about the basic requirements. The list of prerequisites for forming a business includes
- Kind of Business License
Before you proceed with the Free Zone business setup, it is critical to identify the business you wish to run. This would help make the most out of the opportunity. Ask yourself, if you want to start a company or be a freelancer. It is important to note that not all free zones in Dubai allow freelancers and applying as a freelancer requires a huge amount.
You would also need to find out the kind of license you would require for your Free Zone company setup In Dubai. Note, the free zones in Dubai permit multi-operations in one license. However, the activities or operations need to come under that license as defined by the license issuing authority.
- Selection of Name for Business
Naming the business/ company is a complex decision. Remember, it could make or break the business. You need to consider the emotional appeal. The name of the company needs to attract the market segment that you wish to target. However, you would need to consider the naming conventions. The first thing you need to do is check if the chosen name is available for Free Zone company registration in Dubai. Remember, political and religious references are not permitted.
- Selection of Free Zone
For the future of the business, the choice of a free zone is critical. After the identification of the kind of business you want to run, you need to determine the free zone suitable to your business. It is important to note that certain free zones permit selected sectors for operating.
It is advised to choose the free zone as per the product/ services you wish to sell. For instance, in case you are looking for a media license, you would need to get in touch with authorities at Dubai Media City Free Zone.
- Documents for Company Registration
Along with acquiring space for office setup in Dubai, you would need to register the business formally. For registering the business, you would need to submit the application. It is important to note that for every license, the free zones in Dubai have certain demands. However, for pre-approval, you need to gather the following documents
- Application form
- Letter of Intent
- Business plan
- Original notarized RIC for Director/ Manager
- Unit title deed
- Specimen signature of Director/ appointed Manager/ Shareholder of the company
- 2 years audited financial reports
After pre-approval, you would need to gather the documents for company registration. The list of documents you need for Free Zone company registration Dubai includes
- Completed application
- Notarised attested board resolution appointing director/ manager
- Notarised attested MOA AOA
- Notarised attested specimen signature of director/ manager
- Notarised attested power of attorney provided to director/manager
- Passport size photo of director/manager with white background
- Information of share capital
- Share Capital
For starting any business, there is a need for money. Every business person has a question in his/her mind that how much money do I require to set up business in Dubai Free Zone. It is important to note that every Freezone has its set of rules for the share capital. However, a company needs to have enough share capital for ensuring funding for the licensed activities.
- Corporate Bank Account
Another significant requirement is a corporate bank account. For opening an account for the company, you would need to submit certain documents. The list of documents includes account opening form, copy of share certificates, copy of incorporation certificate, copy of MOA AOA.
Along with these, you would also need to provide passport copies of all the partners of the company and a resolution by the board of directors sanctioning the account opening. In case you have any doubt, it is advised to consult an experienced business consultant.