Establishing a company in the Free Zone in Dubai (the free zone) is the desire of businessmen and investors from all over the world, thanks to the advantages provided by the UAE government to encourage investors to pump their money and establish a company in the Free Zone in Dubai, which will bring huge profits to investors.
Rules for establishing a company in the Free Zone
Establishing a company in the Free Zone requires taking into account some legal principles and points to which institutions are subject, which are as follows:
- Legal form of the company.
- Choose an appropriate name for the company.
- Choosing the company’s workplace, whether rent or purchase.
- Obtaining the license and initial approval to start work.
Steps to establish a company in the Free Zone
- Determine the type of activity
The first step in establishing a company in the Free Zone is to determine the type of activity to obtain a business license, where the parties associated with the business are identified, and the activities are divided into commercial, industrial, and professional activity.
- Determine the legal form of the company
The legal form for establishing a company in the Free Zone includes the following types of companies:
- Joint liability companies: This type is limited to commercial and industrial activity only.
- Limited liability companies: constitutes commercial, industrial and professional activities.
- Public contribution: includes practicing commercial, industrial and professional activities.
- Private contribution: includes industrial and commercial activities.
- Civil works: includes civil activities only.
- A branch of a Gulf company: This includes the same activity as the parent company.
- Branch of a foreign company: Branches of foreign companies are allowed to engage in professional activities.
- Branch of a free zone company: practicing commercial, industrial, and professional activities as long as the parent company is licensed in the Emirates.
- Sole proprietorship: It allows an individual enterprise to practice commercial, industrial, and professional activities.
- Choose a trade name
The company’s trade name must include a set of rules such as:
- It does not contain inappropriate words.
- It should not contravene public taste.
- To reflect the nature of the company’s activity.
- Obtain initial approval
Initial approval to carry out the activity must be obtained from the competent authorities.
- Preparing a contract of association and a service agent agreement
- Choose a workplace
- Obtaining approval from the relevant authorities
Some activities must obtain approval from more competent authorities.
- Obtaining the license
After completing all procedures, the required documents can be attached to receive the license, registration, and joining the UAE Chamber of Commerce.
Advantages of establishing a company in the Free Zone
- Full tax exemption for companies and individuals.
- Giving investors and entrepreneurs the right to dispose of capital and profits.
- Full right to sole ownership of the company.
- Giving full right and no control over cash transactions.
- Complete exemption from import and export tax.
- Ease of establishment procedures while reducing costs.
- Providing solutions to all problems that may arise when establishing the activity.
Do not hesitate and contact us, and our experts will take care of all the procedures you need to establish a company in the Free Zone.
