Entrepreneurs and businesses often choose to establish a presence in the United Arab Emirates (UAE) by setting up a free zone company in Dubai. This option provides several advantages, such as full foreign ownership, tax benefits, easy registration procedures, and access to various business support services. The following are the main steps involved in establishing a free zone company in Dubai.
Steps to Set Up a Free Zone Company in Dubai
Choose the Right Free Zone
Conduct research to find the Dubai-free zone that is most suitable for your business requirements. Dubai has over 30 free zones, each catering to different industries such as technology, media, logistics, finance, etc.
Business Activity
Decide on the specific business activities you intend to participate in. Different free zones have different regulations and rules concerning the activities that are allowed.
Choosing a License Type for an LLC
You need to choose the legal structure for your company, such as a Free Zone Limited Liability Company or a Branch of a Foreign Company. Each structure has its own requirements and advantages. Select the appropriate license type based on the activities of your business.
Trade Name Registration
Select an original trade name for your company and make sure it complies with the regulations of the free zone authority you have chosen. Secure and officially register the trade name.
Apply for License
Choose a unique name for your company that follows the rules of the free zone authority you have selected. Safeguard and officially register the chosen name.
Memorandum of Association (MOA)
Create and finalize the MOA and other legal paperwork, which includes providing specific information about the shareholders, share capital, and management setup.
Office Space
In certain free zones, it may be necessary to rent actual office space. However, some free zones provide the option of virtual offices or flexi-desks to fulfil the minimum office space criteria.
Visa and Bank Account opening
- To hire employees, you must obtain employment visas and work permits from the relevant free zone authority, with the specific procedure differing across different free zones.
- To simplify business transactions and fulfil financial obligations, it is advisable to establish a corporate bank account with a bank in the United Arab Emirates.
To ensure a successful company setup, it is important to work with a local business consultant or legal advisor who understands the specific requirements of the selected free zone. It is also important to stay informed about any changes in procedures and regulations by regularly checking for updates from the relevant free zone authorities and government agencies.