Dubai Free Zones

Dubai Free Zones play a critical role in supporting entrepreneurship in the United Arab Emirates. With their low-cost business registration packages and various incentives and privileges, free zones help entrepreneurs on their way to scale.

Dubai Free Zones: What are they, what are their features and benefits?

Dubai Free Economic Zones (FEZs) are separate territories that provide convenient conditions for certain types of activities. They are currently considered a strong driver of international trade and foreign direct investment.

Opening a business in the UAE in one of the Free Zones provides entrepreneurs with the following benefits:

• Specialized assistance for specific industries;
• The ability to register a business quickly with minimal restrictions and bureaucracy;
• The ability for foreign companies to own only shares without involving a local partner;
• Exemption from income and property taxes for a period of time;
• Obtaining residency and opening a current account with a local bank;
• Favorable business infrastructure: providing access to a highly skilled workforce and global markets.

It should be remembered that you can conduct your business only within the FEZ or outside the territory of the country. In order to register a company in an FEZ it is necessary to have a legal address.

What types of legal entities are available in the free zones of Dubai?

The most common types of legal entities are:

• Free Zone Institution - a legal entity established/registered by one shareholder (natural or legal person).
• Free Zone Company - a legal entity established/registered by two or more shareholders (natural or legal persons).
• Joint stock company - a legal entity with several shareholders, whose shares may be publicly traded on the stock exchange.
• A private limited company is a legal entity with limited liability established by a minimum of 2 and a maximum of 50 shareholders. Its shares may not be offered to the public or traded on the stock exchange.
• Representative Office of a local or foreign company - a separate subdivision of an existing local or foreign company established to conduct business in Dubai. It is legally dependent on the parent company.

How to start a business in Dubai Free Economic Zone?

Before you start your business in Dubai Free Zone, you need to go through the following steps:

1. First, decide on the nature of your core business and its legal form of organization, if you have not already done so.
2. Choose a sound and unique name for your company that meets the requirements of the Dubai Department of Economic Development. Then submit it for verification and reservation.
3. Rent an office space in the free zone according to the requirements.
4. Collect the required package of documents, business plan and other approval documents. Submit all documents to the relevant authority.
5. Obtain a UAE Business License.
6. Obtain a UAE Resident Visa.
7. Open a bank account with a local bank.
8. Obtain visas for foreign employees, if required.

Dubai Free Zones: Which one to choose?

Today, Dubai has more than 20 free zones that are home to a wide range of global brands and successful startups. Over the past few decades, they have boosted the country's economy by attracting innovative, scientific and other exceptional talent. Each free zone has its own specialization and focuses on the needs of companies in specific industries.
When choosing a FEZ for your company, you should consider the following factors:

1. The scope of the company's activities: make sure that the chosen FEZ supports your activities.
2. Type of company: not all FEZs support professional activities and offshore companies.
3. Authorized capital requirements: when registering a company in a Dubai FEZ, a minimum authorized capital is required, the amount of which depends on the specific zone.
4. Necessary infrastructure: if your business requires access to ports, warehouses or an airport, then choose a free zone based on these requirements.
5. Visa requirements: visa requirements may vary from one free zone to another.
6. Costs: The amount of registration fees, office rent, housing and food prices may vary from one FEZ to another.
7. Availability of qualified personnel in the zone.

It can be very difficult to choose the right free zone for your business. This is why many entrepreneurs seek the help of professional consultants who specialize in these matters.

Organize a Business in the UAE with StableGrowz

If you want to start a business in the UAE and avoid problems with government authorities - contact StableGrowz! We will give you a free consultation to help you choose the most suitable and profitable Dubai Free Zone and tell you more about its advantages.

Contacts

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