Before we know the forms and methods of investment in the free zone, we must first know what the free zone is, as it is the first area for investment in the United Arab Emirates. The Greater Dubai Emirate includes many important and distinctive areas that have made it one of the most important emirates for trade and the most attractive for tourists and foreigners investing in it, and this is due to In addition to the excellent and distinguished places that this emirate contains, the most important of these areas are the Dubai Free Zone, the Jebel Ali region, the Sharjah region, and many, many more. The Dubai Free Zone works to provide a suitable work environment that helps in achieving large profits without paying any kind of taxes and without the need or Also resort to having a partner who holds Emirati citizenship.
There are also some private companies in the free zone that work to help new companies in the process of establishing their companies. The step of knowing the initial costs of establishing any company is considered one of the most important steps in developing a workable business plan, and it can help you finance any of the different types of projects through client investors. With them before and with the most important investment companies present in Dubai, you only have to make the project plan and review it to them to find the appropriate investor for them. The UAE government also provides sufficient support to Emirati entrepreneurs, as there are many grants available for people who have an excellent business plan and are foreigners to the UAE. The government is working to provide many commercial and administrative buildings and business centers that are also available for rent in the free zone, in order for investment to take place within the free zone to suit the volume of business and services they provide, while providing appropriate solutions to all investor complaints.
Establishing new companies in the free zone:-
New companies wishing to establish their businesses in the free zone enjoy greater flexibility in choosing their own and multiple commercial activities or service activities that are compatible with the nature of their work. This is in addition to what distinguishes this region (Dubai Free Zone) in terms of tax exemptions, and this is one of the biggest attractive factors for many new contractors. This contributes to revitalizing investors’ experience and motivating them when convening or establishing companies in the free zone and conducting their business there.
How to establish a new company in the free zone:-
It is now possible for any person, regardless of his financial ability or who sets a financial budget for him, to establish and establish any investment project in the free zone or establish a company in Dubai. He can now establish any project or provide any investment service in the free zone due to the multiple needs of the UAE and also due to the ease of Providing the requirements and methods for establishing investment projects there, but it is necessary to know the basic steps in establishing a company in the free zone, which are as follows: –
Determine the nature of the company’s activity:
Determining the nature of the new company’s activity in the free zone is considered one of the most important procedures imposed by the UAE law regarding the establishment of companies of 2009 in Dubai. This is based on facilitating the procedures. It also determines the parties associated with the company’s activity and the legal forms allowed within the new company.
There are approximately twenty thousand economic activities permitted in the UAE. Economic activities are classified into three main types: –
- Commercial activity (real estate, leasing, transportation, transportation, financial intermediation, wholesale, retail, storage, and communications).
- A professional activity that is specific to (agriculture, health, social work, education, and various service activities related to society, that is, any activity that depends on physical and mental activity to practice it).
- Industrial activity specializes in (transforming industries such as mining, water, electricity, and quarrying). There are also some tourism activities.
Determine the legal form of the company:
Here comes the role of determining the legal form of the new company that will be established, but this form depends on the nationality of the company’s owners, and the legal form of the company that you plan to establish in Dubai, which are as follows:
- Joint companies.
- Limited liability companies.
- Public joint stock companies.
- Private equity companies.
- Civil works companies.
Trade name registration:
The third step of establishing companies is determining the trade name in establishing a company in the Emirates, which is considered what distinguishes a commercial license from another license. The trade name of the new company is also related to the form and activity of the commercial company, and this is achieved by several important conditions stipulated by the Department of Economic Development. Before her approval of the name, the trade name must be that the company’s trade name does not contain inappropriate words, that it does not contravene public and private taste, and that the trade name reflects the commercial activity accurately and clearly.
Obtaining initial approval:
After determining the company’s legal activity, determining its legal form, and registering its trade name, it is now necessary to obtain initial approval from the competent authorities for the company’s economic activity and follow up to obtain the approval of the authorities related to the activity.
Preparing the articles of incorporation and choosing a location for your business:
Here comes the moment of preparing the contract designated for establishing a company in the free zone. This is done by bringing the incorporation contract in agreement between you and the competent authorities in the free zone. You must also choose a location to establish the company in the free zone or establish a company in Jebel Ali to proceed.
Obtaining approvals from the authorities concerned with the facility’s activity:
Some commercial activities require obtaining some additional approvals from the competent authorities for those projects concerned with them, such as approval from the Ministry of Economy, or approval from the Ministry of Interior, or from the Ministry of Justice, and specialized approval from Civil Defense if the activity, for example, is related to firefighting equipment activities, etc….
Obtaining the license:
After completing all the previous steps to prepare and establish a company in the Dubai Free Zone, you can now receive the commercial activity license and attach some papers and documents related to the company and to you, including the steps for economic development and paying the company’s commercial license fees, and then after registering in the Chamber of Commerce as a member.
Costs of establishing a company in the free zone:-
The costs of establishing a company in the free zone are mainly limited to several expenses, which are as follows:
- The cost of commercial license expenses to practice legal activity (license to practice business)
- The cost of purchasing a site or office space or the company through which you conduct your business, whether renting or purchasing.
- The cost of purchasing furniture and decorations for the office where you do your business.
- The cost of obtaining permits (work permits for sponsored employees) and visas required for them under your current company name.
- The cost of opening a new account in the name of the company in a bank to deposit the minimum capital according to the type of commercial activity of the company.
- The cost of determining the legal form of the company plays a fundamental role in whether the cost increases or decreases.
- Finally, the cost of the commercial license.
