Establishing a company in the Free Zone in Dubai (Free Zone) is the goal of businessmen and investors from all over the world, thanks to the advantages provided by the UAE government to encourage investors to invest their money and establish a company in the Free Zone in Dubai, which brings 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 principles and legal points to which institutions are subject, which are as follows:
- Legal form of the company.
- Choosing a suitable name for the company.
- Choosing the company’s workplace, whether renting or buying.
- Obtaining the license and initial approval to start work.
Steps to establish a company in the free zone
- Specify 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 work license, where the parties associated with the work are determined, and the activities are divided into commercial, industrial and professional activities.
- Determine the legal form of the company
The legal form for establishing a company in the Free Zone includes the following types of companies:
- Solidarity companies: This type is limited to commercial and industrial activities only.
- Limited Liability Companies: 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.
- Branch of a Gulf company: It 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 UAE.
- Sole Proprietorship: It allows the sole proprietorship to engage in commercial, industrial and professional activities.
- Choosing a trade name
The company’s trade name must include a set of rules such as:
- It does not contain inappropriate words.
- It does not violate public taste.
- To reflect the nature of the company’s activity.
- Get initial approval
Initial approval to practice the activity must be obtained from the competent authorities.
- Preparing a memorandum of association and a service agent agreement
- Choosing a workplace
- Obtaining approval from the relevant authorities
Some activities must obtain approval from more competent authorities.
- Get License
After completing all procedures, you can attach the required documents to receive the license, register and join the Emirates Chamber of Commerce.
Advantages of establishing a company in the free zone
- Full tax exemption for companies and individuals.
- Giving investors and businessmen the right to dispose of capital and profits.
- Full right to sole proprietorship of the company.
- Giving full right and no control over cash transactions.
- Full exemption from import and export tax.
- Ease of establishment procedures with reduced costs.
- Providing solutions to all problems that may arise when establishing the activity.
Do not hesitate to contact us and our experts will take care of all the procedures you need to establish a company in the free zone.
