Dubai Freezone Company Formation
Dubai freezone company formation is preferred by many business owners. Freezone setup can be a hard nut to crack, but it is way easier in a free zone, and with a helping hand like B2B DOCUMENT CLEARING you can always be sure in achieving whatever you have aimed for your business. There are about 45 free zones in UAE, with 30 free zones in Dubai itself. But before we go into the details “How To set up a company in dubai free zone?” let us understand what a FREE ZONE actually is and what exactly makes it such a lucrative option for setting up business.
A free zone in layman’s language is a definite area with lesser trade barriers for easier trade. Free zones provide various advantages and remove various trade barriers. It provides:
- Tax exemptions,
- Duty free import and exports,
- Infrastructural facilities,
- 100% ownership, etc.
Free trade zone is cost effective. Any company can maintain its office or warehouse over there. Free zones can be in the form of seaports and airports as well. The basic aim of the Government behind the free zone is to boost the economic activity, foreign investments, easier start up processes, etc. in that area.
Free zones are popular because of the lesser paper work involved. There are roughly 6 steps that you need to follow, in order to start a business in a free zone. These steps are:
- Decide the type of LEGAL ENTITY that you wish to form,
- Choose an appropriate TRADE NAME,
- Apply for a BUSINESS LICENCE,
- Select an OFFICE SPACE ,
- Get all your PRE APPROVALS,
- REGISTER your business and get the license
Each step has certain actions to be performed and decisions to be made. Let us take each step in detail
First of all, you have to decide and determine the type of company you want to form. In a free zone the following type of entities can be formed:
- FREE ZONE LIMITED LIABILITY COMPANY (FZ LLC.) or FREE ZONE COMPANY (FZ Co.)
- FREE ZONE ESTABLISHMENT (FZE)
The two types of companies are different from each other. The free zone limited liability company or free zone company is single shareholder limited liability company, whereas, free zone establishment is a multiple shareholder company, the maximum number for which is 5 shareholders.
Before determining the type of company you want to form, check as to which type of company the selected free zone can register.
NOTE: Not all the free zones register both types of companies.
Hence, it is better to probe before deciding on the type.
The next step is to choose an appropriate name for the company. But before zeroing on any name, do the following:
- Check with the free zone authorities about the permitted names.
- Verify the names that have already been registered.
- The name should not hurt or violet the morals, sentiments and order of the country.
- Name should not contain names of any religion, authority or institution of government, etc.
Thus, by keeping the above in mind an apt name can be decided for your company.
For 100% ownership it is important to get a licence for the business. Not only the licence, but the location also has to be decided. The licence type depends on the kind of activity that your company performs. There are about 20 sectors to choose from. Every free zone accommodates specific type of business activities like Software development, TV production, online content production, Content production, Branding agency, etc.
All these and many more options are available.
The legal structure for every company and the rules for each one are different. It also depends on the location and type of business.
It is very important to select an appropriate office space keeping in mind the activity being undertaken, the type of legal entity and number of employees. Companies can buy or lease office spaces in different free zones. Free zones provide infrastructural facilities like electricity supply, water supply, etc. All these help in better and quick selections for office spaces.
Every company being setup in the free zone needs to get certain approvals from the authorities. Every free zone is governed by different set of rules and different authority.
Similar to the usual system, every company in the free zone also needs to get various initial approvals. For this purpose certain documents related to the company (e.g. application form, company licence, certificates, business plan, etc.) have to be applied. These documents depend upon the type of activity which the company undertakes.
The company has to submit the details and documents of the employees and the directors.
Registration and license both are essential for the working of any company. After getting the initial approvals, the company has to register itself. For this purpose the registration fees and license fees have to be paid.
The fees depend on the kind of license that is required. For registration, not only the fees but also certain other documents have to be submitted. These documents include – complete application form (i.e. registration application), MOA (Memorandum of association), AOA (Articles of association), photo of director/manager, specimen signatures, etc.
There are various free zones in UAE. Dubai consists of 30 free zones.There are several activities apart from the above steps that might have to be undertaken in special cases.Every free zone has different rules; hence it is better to check before taking decision.Legal structure of companies differ hence the licence type, fees for registration and licence, and other such details differ.
Every free zone in UAE has a website of its own, which can be checked for getting further details.
Information regarding the share capital requirement depends upon the type of business and legal entity.
Businesses of certain sectors are governed by additional authorities apart from the free zone authorities.
A free zone invites more and more individuals and companies for starting business in these areas. Hence, through its ease and functioning, free zones become good choice for business setup. If you wish to setup your business in Dubai then B2B documents clearing is the best option for you. B2B Document Clearing specialize in providing expert business setup consultants for all document clearing and Government work.
DUBAI INTERNATIONAL ACADEMIC CITY
Dubai International Academic City is world’s largest higher education free zone. It was launched in 2007 and currently serves more than 27,000 students. Here educational institutions get a chance to provide higher education services. Various national and international institutions have been established here. It offers various resources for such institutes to be established in Dubai.
DUBAI GOLD AND DIAMOND PARK
This free zone was established in the year 2011. It is located on the Sheikh Zayed Road. It consists of 118 purposes built manufacturing blocks, retail space for a selling purpose, courtyard, cafes and restaurant. It is an extension of the Jebel Ali Free Zone.
DUBAI CAR AND AUTOMOTIVE FREE ZONE(DUCAMZ)
Launched in the year 2000 the Dubai car and automotive free zone Is one of the largest free zone in Dubai. It is the largest free zone in the world dedicated to automotive industry. Here automobiles can be sold to the local market as well as others can be resold or re-exported to Middle Eastern countries, to African and Asian markets. It is easy to access the airports and seaports from this free zone making it even better.
DUBAI INTERNET CITY
This IT Park was founded in the year 1999. It is located about 25 kilometres south of downtown Dubai City, on Sheikh Zayed Road. This is free economic zone targeting emerging regional markets. It provides various benefits to the IT companies. These benefits have resulted in the setting up of the regional base of many global firms like Microsoft, Google, Tata Consultancy, etc.
DUBAI OUTSOURCE ZONE
Dubai outsource zone or city is a Business park dedicated to out sourcing companies both local as well as international. This freezone was launched in the year 2007 help the market demand for outsourcing companies. It provides purpose built infrastructure made comprehensively.
There are various other free zones which are under construction in Dubai. All these free zones cater to the needs and requirements of various sectors. They provide resources, facilities and infrastructure to companies from all over the world.
DUBAI INDUSTRIAL CITY
Dubai industrial city is one of the largest industrial free zone in Dubai. It is the hub of growth and expansion of the industrial sector in UAE and is appropriate for medium manufacturing sectors.This freezone offers cost effective and efficient business environment. It is located next to Al Maktoum Airport, near Jebel Ali Port. It provides various resources and amenities to the companies.
DUBAI AIRPORT FREE ZONE
DAFZA is one of the most modern free zone in the world which offers world class facilities for setting up business. It was established in 1996 as free economic zone. Currently it is home to more than 1,600 companies from all around the world. This free zone consists of companies and business from different sectors.
DUBAI MEDIA CITY
Dubai media city is the economic free zone founded in the year 2000, with its headquarters in Dubai, UAE. The aim behind setting up this free zone was to boost UAE’s media foothold. It is the nucleus for media organizations including news agencies, publishing, advertising, production, and others. There are more than 1,300 companies being registered under this free zone. It also provides various benefits for companies to set up and function here.
DUBAI DESIGN DISTRICT
This free zone is dedicated to the design community. It is the home for creative thinking community. It is an appropriate place for status, entrepreneur and established international design, luxury and fashion brands.
DUBAI SILICON OASIS
Dubai silicon oasis (DSO) was launched in the year 2004. It is a free zone as well as an integrated technology park. DSO acts as the hub of modern technology based industries. This is an urban master- planned community in an iconic location.
JEBEL ALI FREE ZONE
Jebel Ali free zone was set up in the year 1985, which enables new opportunities for growth. It is grown from 19 companies into a thriving business community with over 7,000 companies and still counting. JAFZA is a dynamic base for thousands of businesses, from 100 countries, sustaining over 144,000 jobs. Earlier it included standard size office units and warehouses to provide ready built in facilities to customers. But later its facilities included light industrial units. It is world’s largest free zone.
DUBAI BIOTECHNOLOGY AND RESERCH PARK (DuBiotech)
If you are a Biotech company then DuBiotech is the place for you. This biotechnology and research park is open for business and good for establishing biotech companies from around the world. They are aiming to become the SILICON VALLEY of BIOTECHNOLOGY. Currently there are about 4,500 resident companies including multinational companies as well.
DUBAI HEALTHCARE CITY
This free zone was launched in the year 2002, as the location for quality healthcare, clinical and wellness services, medical education and research. This free zone is a good choice for setting up healthcare services related companies, as well as medical school and colleges.
DUBAI INTERNATIONAL FINANCIAL CENTRE
According to www.difc.ae “Dubai International Financial Centre (DIFC) is one of the world’s most advanced financial centres, and the leading financial hub for the Middle East, Africa and South Asia (MEASA), which comprises 72 countries with an approximate population of 3 billion and a nominal GDP of US$ 7.7 trillion.”
It facilitates trade and investment and connects growing markets with economies of Middle Eastern countries. DIFC was founded in the year 2002 and operations started in the year 2004.
DUBAI MULTI COMMODITIES CENTRE
This free economic zone was established in the year 2002, to provide the physical, market and financial infrastructure required to establish a hub for global commodities trade. It is one of the leading centre for trading international commodities. DMCC freezone provides world class services and leading infrastructure.
DUBAI STUDIO CITY
This free zone was established in the year 2005, act as a global business community which provides services and facilities to companies involved in Television, music, film production, and entertainment sectors. It supports and provides efficient, easy and innovative production process.