How to start a business in Dubai Free Zone
Entrepreneurs know what is best for their businesses. They are determined to succeed and provide quality input to the country’s economy. To provide a good and business nurturing environment to the entrepreneurs, it is a wise decision to start a business in the UAE. There are various emirates in the UAE which all have their own benefits and regulations when it comes to business set up. It is therefore important to understand what is best for you and get started accordingly.
The UAE is divided into many jurisdictions. These include, Free Zone , Mainland and Offshore company set ups. All these areas function under different authorities and follow different rules.
It is essential to know about them completely to start a business here. In cases like these, you should seek guidance from a business setup consultant.
In this blog, we will be taking a look at business setup in Dubai free zones, one of the most sought after regions for business setup in the UAE.
What is a Free Zone?
A free zone is a zone that is exempt from custom duties. They are also known as free trade zones and provide exemptions on import and export taxes. The businesses in these zones are tax efficiently run. However, the people who are operating in a free zone cannot do their business anywhere else.
What are the documents that are required for business setup in a free zone?
The documents that are required for business setup in the freezone are as follows-
- Copy of the passports of all the shareholders
- Passport size photographs
- Duly filled application copy
- Business plan
- NOC from the sponsor (if any)
What are the steps to follow if you are setting up a business in a UAE free zone?
Following all the steps when setting up a business in the UAE is essential. Skipping even a single step can lead to the rejection of the application. Including all the documents when setting up is also essential for the approvals. The steps to follow to set up a business in the UAE free zone are as follows-
- Choose the activity for your business- The activity for your business determines the zone where you can do your business. Selecting the activity for your business decides what services and goods you can provide through your business legally. It also decides the type of license that you will be requiring for the business. When choosing the activity for your business, also decide the legal entity of your business so that you can apply for the license with the concerned authorities accordingly.
- Select your trade name – Select the name of your business wisely. Ensure that you follow all the rules and regulations for the naming of the business. Ensure that the name is available and is also related to your business and business activity. The name should not be an abbreviation or related to any well known brands, names or companies. The name should also not translate to anything offensive in other languages or be related to god.
- Apply for a business license – Apply for your business license. The license depends on the activity that you have selected for your business. This is done with the approval of the respective free zone authorities, in this case, DMCC. The documents need to be submitted along with the filled form and the license fee has to be paid. Once the approvals are provided, the license will be issued and the entrepreneur will be able to do their business. The license also lets you sponsor your family and workers for their visa.
- Select a space for your business – Selection of office space is essential for any business. The space decides the number of employees that it can accommodate. The office space is important to give a professional feel for the business. The business space should be selected based on your choice after taking into account the pros and cons of the concerned area. This could be a flexi desk or a traditional office. You can also opt for an e-working space which is quite famous in the UAE currently. Choose the space according to your budget and needs.
- Getting the approvals, register and get your license- Obtaining the approvals from the concerned authorities is an essential step. Once all the pre approvals and approvals are done, you can get your company registered and get your license. Once you have your license, you can get started with your business setup.
- Open a bank account- Open a bank account for your business in the bank of your choice. You can choose from local banks or one of the branches of an international bank. Submit the required documents and open your bank account to get started.
What are the benefits of setting up a business in the Dubai Free Zone?
The benefits of setting up a business in Dubai Free Zone are as follows-
- 100% business ownership
- A variety of business activities to choose from
- Tax efficiency
- 100% repatriation
- Great connectivity
- No currency restrictions
- Hassle free company setup process
How can RadiantBiz help you in setting up your business in the Dubai Free Zone?
Setting up a business in Dubai Free Zone is one of the best options for an entrepreneur. The benefits of a company set up in a free zone are quite high and make it an ideal place to start. To get started, it is however important to ensure that all the steps are followed properly in order to get the company setup approved. To avoid the hasslesome task, you can get help from the experts.
We at RadiantBiz are determined to help you set up your business in a Dubai Free Zone with years of experience. Our experts analyze your needs and wants while taking in account the various factors essential for your business setup. You can kick start your business today with the right support from our experts. Book an appointment with RadiantBiz today to get started.