Dubai is one of the most prominent economic and commercial centers in the world, offering an ideal environment for business and investment thanks to its advanced infrastructure, strategic location, and open economic policies. Among the many options available to foreign and local investors, Dubai free zones stand out as a preferred destination for establishing companies. These regions offer many unique advantages that make them an attractive option for international companies seeking to capitalize on growth and expansion opportunities in the Middle East and North Africa region. Establishing companies in free zones in Dubai represents a smart strategy to benefit from tax privileges and advanced administrative and logistical facilities. Dubai has more than 30 free zones, each designed to meet the needs of specific sectors such as technology, financial services, heavy industry, trade, and logistics. The most famous of these areas are Jebel Ali Free Zone (JAFZA), Dubai International Financial Center (DIFC), Dubai Internet City, and Dubai Media City.

The free zones in Dubai are characterized by offering a convenient tax system that includes full or partial tax exemptions on profits, customs duties, and taxes on personal income. This easy tax system is considered one of the biggest attractive factors for multinational companies looking to reduce their operational costs and increase their profitability. In addition, Dubai’s free zones provide strong intellectual property protection, enhancing investors’ confidence in protecting their innovations and technologies.

Advantages of starting a business in Dubai free zones

Starting a business in Dubai’s free zones represents a strategic step with many positives that make it an ideal choice for global and local investors and companies alike. Here are some of the major pros of starting a business in these areas:

1. Tax concessions:
In Dubai’s free zones, companies enjoy full or partial tax exemptions on profits for specified periods of time, which helps reduce operating costs and increase profitability.

2. Legal protection:
Free zones in Dubai provide a stable legal environment and clear laws that protect the rights of investors and companies, including the protection of intellectual property and commercial transactions.

3. Advanced infrastructure:
The free zones in Dubai include advanced infrastructure that includes logistical facilities, commercial centers, information technology facilities, and transportation services, which supports commercial activities and facilitates supply and distribution operations.

4. Easy access to regional and global markets:
Dubai is a gateway to regional and global markets thanks to its strategic location and international airports, which makes it easier for companies to access networks of international customers and partners.

5. Administrative Facilities:
Dubai free zones offer simple and quick establishment procedures, including ready-to-use offices, flexible visa services, and comprehensive administrative support that makes it easier for companies to start operations effectively.

6. Innovation and development:
Free zones in Dubai encourage innovation and development by providing an encouraging environment for startups and technology companies, which enhances opportunities for growth and sustainability in the long term.

 

Steps to establish companies in free zones in Dubai

Establishing a company in the Dubai Free Zone requires following specific procedures to ensure legal compliance and successful start of business. Establishing companies in free zones in Dubai includes the following steps:

1. Choosing the appropriate free zone:
Before embarking on the incorporation process, investors must choose the appropriate free zone that suits the type of business activity planned, such as Jebel Ali Free Zone (JAFZA), Dubai Media City, or Dubai International Financial Center (DIFC). .

2. Preparing the business plan:
A comprehensive business plan must be prepared that includes the vision, objectives, and financial and marketing strategies for the company to be established. The business plan is an essential tool to attract investors and confirm the feasibility of the project.

3. Determine the legal type of the company:
Investors must determine the legal type of the company, whether it is a joint stock company, a limited liability company, or a sole proprietorship, based on the business needs and financial expectations.

4. Collect the required documents:
The required documents include passports, personal photos of shareholders and directors, proof of address, business plan, and any other documents that may be required by the local authorities in the free zone.

5. Appointment of a local agent (if necessary):
In some free zones, it may be necessary to appoint a local agent for the company, especially if a local partner is required by local law.

6. Submitting the application and registration:
The establishment application must be submitted to the competent authorities in the free zone and the required fees must be paid. The company is then officially registered after the application is reviewed and approved by the local authorities.

7. Obtaining the necessary licenses and permits:
After registration, the company may need to obtain additional licenses and permits depending on the type of business activity, such as industrial or commercial licenses or building permits, and this is done through dealing with the relevant government agencies.

Types of free zones in Dubai

Types of free zones in Dubai represent an essential part of the advanced economic infrastructure that the Emirate of Dubai offers to local and international investors. These areas have unique characteristics and benefits that attract a variety of industries and companies. Here are some of the main types of free zones in Dubai:

1. Jebel Ali Free Zone (JAFZA):

• Advanced Industries: JAFZA attracts international companies in the fields of heavy and advanced industries such as engineering and manufacturing industries.
• Logistics: Thanks to its strategic location next to Jebel Ali Port, JAFZA offers advanced logistics facilities to companies dealing with transportation and distribution globally.

2. Dubai International Financial Center (DIFC):

• Financial Services: DIFC is a world-leading platform for financial services and banking, making it a hub for financial and investment businesses in the region.
• Consulting and Legal Firms: DIFC attracts consulting and legal services firms and companies to do business with, thanks to its advanced legislation and regulatory environment.

3. Dubai Internet City (DIC):

• ICT: DIC is an ideal destination for technology companies specializing in information and communications technology (ICT).
• Innovation and R&D: DIC provides an encouraging environment for innovation and R&D, making it a leading hub for start-ups and innovative companies.

4. Dubai Media City (DMC):

• Media and Media Production: DMC attracts media production and digital media companies, and provides an advanced infrastructure for media and creative production.
• Global Media Companies: DMC is a destination for global media companies that want to expand their operations in the region.

5. Dubai Free Trade Zone (DFTZ):

• E-Commerce: DFTZ focuses on supporting e-commerce and digital marketing, and provides infrastructure for companies operating in the online retail space.

Costs of establishing companies in free zones in Dubai

Establishing a company in the Dubai Free Zone is an attractive option for investors due to the tax advantages and favorable business environment it provides. However, investors should be aware of the costs associated with the incorporation process. Here’s an overview of the costs of setting up companies in free zones in Dubai:

1. Incorporation and registration fees:
These fees include expenses related to submitting an application for incorporation and registering the company in the selected free zone. These fees may vary based on the type of company and the amount of capital invested.
2. Costs of contracts and legal documents:
Establishing a company requires preparing the necessary incorporation contracts and legal documents, and you may incur additional costs to obtain specialized legal advice in this field.
3. Consulting and administrative services fees:
You may need to pay consulting fees to obtain advice in the incorporation process and provide necessary administrative services, such as office rental or logistics services.
4. Necessary capital:
Investors must provide the necessary capital to start the company’s operations in the free zone. Capital requirements vary based on the type of company and local laws.
5. Additional services fees:
The incorporation process may require paying additional fees for services such as financial services, insurance, registering with the local chamber of commerce, and obtaining various licenses.
6. Annual and administrative costs:
After incorporation, you may incur annual and administrative costs including administrative fees, taxes (if applicable), and costs related to renewing licenses and permits.

The right choice for Dubai Free Zone

The right choice of Dubai Free Zone is essential for the future of business. The first step is to determine the type of business you want to operate. Accordingly, the second step is to identify one of the free zones in Dubai that is most suitable for this work, with the need to note that some free zones in Dubai only allow selected business activities. Therefore, the choice is made according to the product or service to be used and introduced into the market.

We at our company will help you determine the most suitable and cheapest free zone in Dubai that precisely suits your needs and future aspirations for growth and prosperity. This point alone could cost you the loss of your investment as a result of not choosing the free zone correctly from the start of establishing your project, which will waste your time, effort and money in a free zone that was not prepared specifically for your business. Contact us.

For example, if the company’s business direction is in the field of advertising, the most suitable free zone to embrace it is Dubai Media City. Dubai Free Zones are characterized by being located in the middle of residential areas in the emirate. Dubai Silicon Oasis is a free zone in Dubai that contains many properties for rent, and it is a 20-minute drive from the Dubai Airport Free Zone. While we find that Jebel Ali Free Zone includes a group of warehouses for rent as well.

Cost of a business license in Dubai Free Zone

Obtaining a business license in the Dubai Free Zone represents an essential step for those wishing to establish their businesses in this economically developed country. The costs of obtaining these licenses vary based on several factors, including the type of business activity and the size of the company to be established. These costs typically include registration and licensing fees, along with administrative fees related to issuing the license itself.

In addition to the direct financial aspects, the costs of obtaining a business license in the Dubai Free Zone may also include the costs of legal consultations or management consultations that may be necessary to complete the procedures correctly and efficiently. Some commercial activities may also require hiring employees or renting space, which increases the practical costs of establishing the business.

Among the positive aspects of investing in a business license in a Dubai free zone are the advanced infrastructure, a supportive business environment, and ample opportunities for growth and expansion. These costs reflect the initial investment necessary to build a strong foundation for business activity in the Emirate of Dubai, which is one of the most prominent economic centers in the region and the world at large.

Our company’s role in establishing companies in free zones

Establishing companies in free zones in Dubai represents an important strategic option for investors seeking to grow and prosper in an advanced business environment. In cooperation with Itqan Company, investors can benefit from experience and deep knowledge in establishing and managing companies in Dubai, as the company provides the necessary advisory and legal support to facilitate the establishment and operation processes efficiently and effectively.

Thanks to the advanced infrastructure and legal flexibility provided by Dubai’s free zones, investors have the ability to achieve their business objectives in an innovative and profitable way. Establishing companies in these areas enhances investment opportunities and reflects Dubai’s commitment to supporting innovation and sustainable economic development.

In this way, those who desire advanced and sustainable investments in the United Arab Emirates can find in establishing companies in the free zones in Dubai a strategic and fruitful partnership with Itqan Company.

Frequently asked questions about establishing companies in free zones in Dubai