Establishing a company in Dubai Free Zone

Establishing a company in Dubai Free Zone

Establishing a company in the Dubai Free Zone. In the contemporary business world, the Emirate of Dubai in the United Arab Emirates is one of the most prominent destinations for establishing companies in the free zone, as it provides an ideal investment environment that attracts entrepreneurs and investors from all over the world. Itqan stands out as a strategic partner in this process, offering a range of integrated services to facilitate the establishment of companies in the Dubai Free Zone.

As a global center for trade and investment, Dubai features advanced infrastructure and favorable investment policies, making it an ideal place for startups, medium and even large companies to grow and prosper. Itqan Company provides extensive experience in the field of establishing a company in the Dubai Free Zone , with a deep understanding of local legislation and legal requirements, which helps its clients make the right decisions and achieve full compliance with the laws.

By providing specialized financial and legal advisory services, and support in the incorporation and licensing processes, Itqan ensures that its clients have a smooth and successful company creation experience in Dubai. In cooperation with Itqan, investors can explore and exploit the vast opportunities available in the Dubai Free Zone, enhancing their business growth opportunities and achieving sustainable success in a market characterized by dynamism and innovation.

Establishing a company in Dubai Free Zone

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Types of companies that can be established in the Dubai Free Zone

At the beginning of the conversation about the possibility of establishing a company in the Dubai Free Zone , this region is distinguished by being one of the most prominent investment destinations in the world, as it provides an ideal environment for business that combines commercial freedom and advanced government facilities. Investors can establish several types of companies in Dubai Free Zone, allowing them to choose the structure that best suits their business needs and goals. The main types of companies that can be established in Dubai Free Zone include:

Limited Liability Company (LLC): This is the most common option, as shareholders can be of different nationalities, but there must be a local partner who owns a share of no less than 51% of the capital.
Sole proprietorship: An individual can be the sole owner of the company, and it is suitable for individuals who want to start their own business in a simple and direct way.
Personal Company: Allows a group of individuals to cooperate in establishing and managing a company under a partnership agreement.
Joint stock company: This structure allows companies to raise capital by selling shares to shareholders, and is considered suitable for companies seeking to expand and attract investments.
Real Estate Company: Specializes in investment and management of real estate in the free zone, with the ability to rent and sell commercial and residential properties.

By choosing the right type of company and taking advantage of the flexible investment environment in the Dubai Free Zone, investors can achieve success and growth in an international market full of opportunities and challenges.

Tax benefits available to companies in the Dubai Free Zone

The Emirate of Dubai is one of the most prominent global destinations for business and investments, as it combines modern technology and advanced infrastructure with a stimulating business environment and appropriate investment policies. In this context, the Dubai Free Zone contributes significantly to supporting business growth and stimulating innovation, making it an ideal destination for companies wishing to grow and expand. Tax advantages of establishing a company in the Dubai Free Zone:

No income taxes: Companies located in the Dubai Free Zone are not subject to any taxes on the profits made from their activities in the emirate, which contributes to increasing net profits and enhancing financial liquidity.
No taxes on capital: Dubai does not impose taxes on capital, which helps companies save costs and stimulate domestic and foreign investments.
No customs duties on import and export: Dubai Free Zone allows companies to manage import and export operations easily and without additional costs resulting from customs duties.
Financial confidentiality and legal protection: Dubai provides a stable and respectful legal and financial environment for businesses, which enhances investor confidence and attracts more international investments.

By benefiting from these distinct tax and financial advantages, the Dubai Free Zone contributes significantly to enhancing the global competitiveness of the companies located there, and achieving success and sustainability in its business in the long term.

Steps necessary to obtain a work license in the Dubai Free Zone

To obtain a business license to operate in the Dubai Free Zone, the process usually requires several steps that include the following:

Choosing the type of company: You must decide the type of company you intend to create, such as a limited liability company (LLC), sole proprietorship, joint stock company, etc., in accordance with local laws and legislation.
Determine the business activity: The company’s activity must be precisely defined, as there may be different licenses for different activities.
Choosing a company name: A unique and appropriate name for the company must be chosen, approved in accordance with local laws.
Identification of shareholders and directors: The shareholders (if the company is joint-stock) and the directors who will manage the company must be identified.
Determine the location and area: The location of the company’s headquarters in the Dubai Free Zone must be determined, and the space required for the commercial activity must be determined.
Submitting the application: An application for a work license must be submitted to the competent authorities in the Dubai Free Zone, accompanied by the required documents such as the registration certificate, identity documents of shareholders and directors, the lease contract, and other documents as needed.
Approval and payment: After reviewing the application and submitted documents, and if approved, the required fees are paid and the final license is issued.

Obtaining a business license in Dubai Free Zone is an essential step in starting a business. The company must carefully follow established legal and administrative procedures to ensure compliance and successful start-up of business.

Legal and administrative requirements for companies in the Dubai Free Zone

Dubai Free Zone is one of the most prominent special economic zones in the United Arab Emirates, as it has an advanced legal structure aimed at supporting investment and encouraging business. Companies operating in this region must adhere to a set of administrative requirements that include, but are not limited to:

Company Registration: Every company must be officially registered in the Dubai Free Zone, by submitting the required documents and paying the prescribed fees to the competent authorities.
Determine the management structure: Companies must determine the internal management structure, including appointing managers and determining their powers and obligations.
Legal Compliance: Companies must comply with local and international laws and regulations applicable in the Dubai Free Zone, including tax, labor and other laws.
Financial reports: Companies must prepare and submit annual financial reports in accordance with internationally recognized accounting standards, to the competent authorities and concerned parties.
Leases and Contracts: Companies must secure contracts for their offices and facilities, including leases and agreements related to other services.
Corporate Governance: Companies are required to implement good corporate governance practices, in order to ensure effective and transparent management that achieves the legitimate interests of all shareholders and related parties.

These points represent part of the basic administrative requirements that companies must adhere to in the Dubai Free Zone, and every company must follow them carefully to ensure compatibility and success in the local and global market.

The importance of establishing a company in the Dubai Free Zone

Dubai’s free zones are of great importance to investors and entrepreneurs, due to the many benefits they offer. Here are some points that highlight the importance of establishing a company in the Dubai Free Zone:

Full foreign ownership : Foreign investors can own 100% of the company without the need for a local partner, providing complete freedom to manage the company and benefit fully from the profits.
Tax exemptions : Free zones provide tax exemptions that include not imposing a tax on personal income or corporate profits for up to 50 years, which enhances profitability and reduces operational costs.
Customs facilities : Free zones provide customs facilities that include exemption from customs duties on imports and exports, which helps reduce costs and improve the efficiency of logistical operations.
Advanced infrastructure : Dubai’s free zones contain advanced infrastructure that includes modern facilities and offices equipped with the latest technology, in addition to distinguished transportation and communications networks.
Access to global markets : Dubai provides a strategic location that enables companies to easily access regional and global markets, facilitating business expansion and growth.
Fast procedures : Free zones are characterized by fast and flexible procedures for establishing companies, which saves time and effort and allows companies to start their business quickly.
Economic Diversity : Dubai embraces a diverse economic environment that includes sectors such as trade, logistics, technology and creative industries, providing broad opportunities for cooperation and investment.

By establishing a company in the Dubai Free Zone, investors can benefit from these advantages and enjoy a business environment conducive to growth and prosperity.

The necessary papers to establish a company in the Dubai Free Zone

To set up a company in the Dubai Free Zone, there are a set of basic documents that must be submitted. Requirements vary slightly depending on the type of activity and company chosen, but in general, the necessary paperwork includes:

Registration application form : Fill out and submit the registration application form available at the competent authority in the free zone.
Business Plan : Submit a business plan detailing the proposed business activity, objectives, strategies, and financing.
Copies of passports : Provide copies of passports to all relevant shareholders and directors.
Personal photos : Providing recent color personal photos of shareholders and directors.
Copy of CV : Provide a copy of CV to shareholders and directors to show their professional and educational background.
Proof of Address : Provide proof of current address for all shareholders (such as a utility bill or bank statement).
Board of Directors Decision : If the company is already established, submit a Board of Directors decision approving the establishment of a subsidiary in the free zone.
Articles of Association and Articles of Association : Submit copies of the Articles of Association and Articles of Association of the parent company, if there is a parent company.
Legal power of attorney : Providing a legal power of attorney to the company’s legal representative, if required.
Certificate of good standing : Some free zones may require the submission of a certificate of good conduct from the competent authorities in the shareholders’ country of residence.
No-objection certificate : If shareholders are residents of the UAE and work in other companies, a no-objection certificate from their current employer may be required.
Lease contract : Submit a lease contract for offices or industrial units in the free zone, if required.

It is important to check the specific requirements of the free zone in which you wish to establish your company, as there may be additional requirements depending on the type of business and company. Collaborating with a specialized company like Atqan can help simplify procedures and ensure that all requirements are met correctly.

Our company’s role in establishing a company in the Dubai Free Zone

At the conclusion of the discussion about establishing a company in the Dubai Free Zone in cooperation with Itqan Company, we find that this experience represents a decisive strategic step for investors seeking to benefit from the wide opportunities available in the Emirate of Dubai. Dubai is a gateway to global business, as it combines advanced infrastructure, appropriate investment policies, and a business environment that supports innovation and growth.

Itqan Company plays a vital role in enabling investors to achieve their vision and goals in establishing and establishing companies in the Dubai Free Zone. Thanks to its deep and comprehensive experience in the field of legal and financial consulting, Itqan provides the necessary support during all stages of the establishment process, from strategic planning consultations to completing legal procedures and licensing.

In cooperation with Itqan, investors can build strong foundations for their business in Dubai, and benefit from the facilities and investment opportunities available in the free zone. This partnership enhances the ability to achieve sustainable success and strengthen the company’s position in the local and global market.

In short, establishing a company in the Dubai Free Zone in cooperation with Itqan Company is an excellent opportunity for investors who are looking for a suitable investment environment and promising opportunities for growth and expansion. This step represents the beginning of a successful journey towards building and developing sustainable businesses in one of the most important economic centers in the world.

Frequently asked questions about setting up a company in the Dubai Free Zone

What types of companies can be established in Dubai Free Zone?

Companies can be created in various forms such as limited liability companies (LLC), sole proprietorships, personal companies, as well as stock companies and partnerships.

What tax benefits are available to companies in the Dubai Free Zone?

Companies in Dubai Free Zone enjoy no income taxes, no customs duties on import and export, and no taxes on capital, making it an ideal environment for business.

Does establishing a company in the free zone require a local partner?

In many Dubai free zones, setting up a company does not require a local partner, especially in limited liability companies where a foreign investor can be the sole owner.

What are the necessary steps to obtain a work license in the Dubai Free Zone?

The steps include submitting a license application, specifying the type of business activity, establishing a company, providing the required documents, and paying the applicable fees.

What are the expected costs of establishing and operating a company in the Dubai Free Zone?

Costs vary based on the type of company and business activity, and include establishment fees, licensing fees, rental and staff costs, but in general the free zone offers competitive and business-friendly costs.

What are the legal and administrative requirements for companies in the Dubai Free Zone?

Requirements include preparing and submitting annual financial reports, complying with local laws and government regulations, and maintaining accurate company records.