For an extended portion of recent history, UAE, and especially Dubai, has been the center and the cradle of many businesses and industries that have reached peak fame. Every year, hundreds of entrepreneurs and investors head to UAE and Dubai to kick off their businesses in the middle east region. Why is that? The UAE and Dubai have led the movement of Gulf countries from being dependent on oil for survival to becoming a more diverse and broad economy.
This transition is succeeding in Dubai-UAE because they provide all the essential factors for small, medium, and big businesses to grow further and cross milestones without worrying about the usual drawbacks of owning a business anywhere else in the world.
There are many ways that UAE and Dubai facilitate the operation of businesses, but the most significant one is the convenience of the Dubai Free Trade Zone. This is an area in the country where the company is exempt from usual taxes and customs as well as financial restrictions, which are imposed on businesses in natural areas.
In the UAE, there are several free zones distributed around the country. The most notable ones are in Dubai, Abu Dhabi, and Sharjah, as well as other cities. A free zone can fall into one of three categories depending on where it is: seaport free zone, mainland free zone, or airport free zone.
Each of these free zones might have different regulations based on the area it is in. However, most free zones share a few main principles:
Firstly, free zones allow full foreign ownership of businesses in them, which welcomes foreign investors and encourages new industries to make their way into the economy. Additionally, free zone companies and businesses are entirely exempt from all regular import and export taxes, which makes it a lot easier to import supplies or goods that are not locally available, as well as encouraging local manufacturing and export. Not only that, but free zones allow business owners to quickly return their assets and profits to their country of choice, and they are also exempt from any personal income taxes.
These are only a few of so many ways that free zone regulations support and nurture businesses.
As attractive as may starting a business in a UAE and Dubai free zones be, it’s not a straight forward process, which may lead to failure if the appropriate knowledge is not put in work. This is where we, Dufinco, come in as a consultancy partner to assist our clients through the various steps of starting a business in UAE or Dubai free zones.
Each free zone is governed by what is generally known as a free zone regulation authority, which manages the existing businesses as well as prospective ones. Here is a quick summary of some of the steps that have to be taken to start a business in Dubai or UAE free zone:
1. Specify the type of company
It should be specified the kind of company to be used, for example, a limited liability company or an establishment. An already existing business may also start a new branch of business in a free zone. It’s also necessary to check if the free zone where applicating accepts the kind of company already in use
2. Minimum capital required
This requirement minimum capital varies from one free zone to another, another factor to consider upon the establishment.
3. Trade name
The business name must adhere to specific rules and regulations that are most common to all free zones, like being in accordance with public morals of the country, being not previously used by any other business, and not containing any reference to a government body or religion or external business.
4. Getting a license
Before you start a business, it is first necessary to obtain a business license to carry out the business activities in the designated free zone. Each free zone has a list of events that it supports.
5. Choose the business office space
Most free zones have designated directories in which they list all their available office spaces for prospective business owners to rent or own. There is usually a tasty variety to choose from, and it’s possible to find an option that fits any business requirement and size.
6. Required documents fulfillment
All of these steps are accompanied by a lot of requirements for paperwork that has to be prepared in certain ways and according to specific needs determined by each free zone. The application process is usually divided into three stages: initial approval, registration, and finally, licenses and visas.
Of course, there are so many steps in between the lines as well as many factors and options to consider, which makes clear to see why the role of a consultancy partner is of such importance on the formation of a Free Zone Company in Dubai and UAE. Dufinco can help to successfully launch any business in Dubai and UAE free zones, by providing top-notch consultancy from the very beginning: our team of experts can help to choose the most appropriate free zone for any particular business, find the right trade name, office space, and prepare the required documents.