Dubai is well known for having one of the best business environments. Advanced infrastructure, constant government support, and top-notch facilities, along with the ease of doing business, make Dubai one of the most renowned places on the planet for doing business.
So, if you are planning to start a new business, Dubai is the perfect place! To be able to do that, you must know how to open a company in a Dubai free zone. Before that, let’s understand what is a free zone company in Dubai.
What is a Free Zone Company in Dubai?
A free zone company is one that is formed within a special jurisdiction that comes under a particular Emirate. As of now, there are 40 Free Zones in the UAE as a whole. Free zone jurisdictions have their own rules and regulations. Moreover, they have a government regulatory body called the Free Zone Authority.
Every free zone company needs to take permission from the Free zone Authority to get their trade license. A Dubai-free zone offers ample benefits, like 100% foreign ownership and tax concessions. However, a free zone company can trade only within the free zone and local markets.
What are the Necessary Steps to Open a Company in Dubai Free Zone?
It is a very straightforward process if you are wondering how to open a company in Dubai free zone. Although, you need to be very careful and vigilant with paperwork and a couple of other necessary steps involved in the registration process. You must complete the following steps while planning to open a company in Dubai free zone:
1. Legal Structure of the Company
What type of legal structure do you want for your company? An LLC, a branch office for an existing foreign company, or maybe a public partnership? The first step is to decide on the legal structure of your business and register your company with DED (Department of Economic Development). Once done, you can then think about the activities you want to conduct.
2. Business Activities
Once you register with DED, select the business activities you want to execute. The DED (Department of Economic Development) provides a list of over 2000 business activities to choose from. You can select up to 10 activities on one trade license. If, by any chance, the activity that you want to opt for is not on the list, you can simply apply for external approval for the same.
3. Company Name Registration
Now you must select a suitable name for your free zone company and register it with DED. It is essential to meet all the legal requirements and comply with all regulations while deciding a name for your company. A few of the important ones are to avoid the use of abbreviations, strictly avoid any abusive words, no mention of any religion, and use a person’s full name; if naming it after one. Moreover, do not use words that could hurt anyone’s sentiments.
4. Initial Approval
This is one of the crucial steps. In order to obtain your trade license, it is highly important to obtain an initial approval certificate from the DED or any other concerned authority. Without that, the government will not issue your license.
You must present the payment receipt for the company name registration, national ID, and a few other documents while applying for the initial approval. If the authorities are convinced, they will approve your documents and grant an initial approval certificate. The initial Approval certificate states that the government has no problem with your company set up in Dubai free zone.
5. Rent an Office Space
Once you’ve completed the above steps, you can now focus on renting an office space in Dubai. It is mandatory to have a physical office (official address) if you want to open a company in Dubai free zone. All your legal notices, documents, and other business-related information will be delivered to this address. Choose a location that is in favor of your business activities. Moreover, make sure it complies with all the measurements and property regulations and is spacious enough to conduct business activities efficiently.
6. Tenancy Contract Registration
After you’ve rented an office following your business activities, you must get a tenancy contract. In order to do that, you need to register your office online with Ejari. Ejari is an online platform to keep a record of all the lease contracts in the emirates. Hence, it is compulsory to register with Ejari. Moreover, you must not forget to obtain your unique Ejari number for future references and inspections.
7. Conclude The Paperwork
The next step is to finish the related paperwork as soon as possible. Collect all the important documents, submit them to concerned authorities and wrap up all the necessary paperwork. Get the Articles of Association and Memorandum of Association signed by all the business partners.
Keep all the identity proofs handy and make sure to check all the papers twice before submitting them to the concerned authorities and the DED. Once all your papers are approved, the DED will allow you to conduct business in the Dubai-free zone. Next, you can apply for and acquire your business license.
8. Business License
Once you complete all the steps to open a company in Dubai free zone, you must apply for a business license. Submit all the necessary, relevant documents along with an application form. Once the papers are approved, complete the required payment. The DED will send you an e-mail with a payment voucher attached to it.
All you need to do is pay the one-time required license fee through that link to acquire your business license. You must complete the payment within 24 hours of collecting your license. If you fail to do so, the government might cancel your license, and you will have to re-apply.
Here are the key steps to Register a Company in Dubai Free Zone
Determine the type of legal entity.
Choose a trade name.
Apply for a business license.
Choose an office space.
Get pre-approvals, register your business and get your license.
Open Your Company in Dubai Free Zone with UAE Expansion
As mentioned above, the process of how to open a company in the Dubai free zone is straightforward. The best part? You can acquire your business license within a maximum of 5 to 7 working days. So, if you have decided to start a new business in a Dubai free zone, you’re on the right path. But, if you’re still confused about what is a free zone company in Dubai and its benefits, you can seek help from company formation experts.
Experienced company formation consultants at UAE Expansion India Branch will answer all your questions, clear all your doubts, help you out with the paperwork, and registration, and acquire your license at the lowest possible cost. All you need to do is call us and we will take care of the rest.