Establishing a company in the Dubai Production City Free Zone

Establishing a company in the Dubai Production City Free Zone is considered a strategic and very important step for investors seeking to benefit from investment opportunities and the thriving economic environment in the UAE. The Freedom Zones spread across Dubai are ideal for companies operating in the fields of production and manufacturing due to the attractive advantages they provide. The free zones in Dubai Production City vary between zones for heavy and light industries, providing multiple opportunities for companies in various sectors.

In this article, we will explore the process of setting up a company in the Dubai Production City Free Zone, from the required procedures and legal requirements to the competitive advantages and benefits this zone offers to investors. We will take a look at the basic steps that must be followed to create a successful company in this free zone, as well as tips and guidance that may help investors achieve their goals and achieve success in the UAE market and beyond.

What is Dubai Production City?

Dubai Production City is one of the innovative free zones developed to meet the needs of the media and entertainment industry in the UAE. This city is located in the heart of Dubai, and is considered one of the most prominent global centers for media production, making it a favorite destination for many companies and workers in this sector. Established in 2000, Dubai Production City, part of the Dubai Investments Group, aims to support and enhance the growth of the media and entertainment industry in the region by providing an integrated and supportive business environment.

The city offers a wide range of services and facilities that include studios equipped with the latest technology, offices, production facilities, and logistical facilities. The city also provides integrated business support through facilities related to licensing, customs procedures, and visas, making it easier for international and local companies to establish their operations smoothly.

Dubai Production City is a vital center for media and marketing projects, attracting television production companies, the film industry, advertising, and radio networks. The city also provides a stimulating environment for creativity and cooperation between companies, which enhances its ability to attract large projects and new innovations.

Moreover, Dubai Production City plays a pivotal role in supporting the local economy by creating new job opportunities and developing the infrastructure of the media industry. The city also contributes to strengthening Dubai’s position as a global center for innovation and media production, which contributes to achieving the UAE’s vision of strengthening its position as a leading center in the media and entertainment industry globally.

Steps to establish a company in the Dubai Production City Free Zone

Steps to establish a company in the Dubai Production City Free Zone usually include the following steps:

1. Market study and planning: Before starting the establishment process, a feasibility study must be conducted to determine the availability of demand for the products produced by the company in the local or international market.
2. Choosing an economic activity: The company’s activity must be determined in accordance with local laws and legislation, and this can include the production of goods or the provision of specific services.
3. Determine the legal structure: The legal structure of the company, whether it is a sole proprietorship, joint stock company, or limited liability company, must be determined according to business needs and investment trends.
4. Choosing a trade name: You must choose an appropriate name that is not similar to other companies, and ensure that it is compatible with local laws and company registration regulations.
5. Submitting the application: The application to establish the company is submitted to the relevant authorities in the free zone, and all required documents must be submitted correctly and completely.
6. Providing capital: The necessary capital to establish the company must be provided in accordance with the requirements of local authorities.
7. Obtaining approvals and licenses: The incorporation process may require obtaining special approvals or licenses from relevant authorities, such as government agencies or regulatory bodies.
8. Legal Registration: After the application is approved, the process of officially registering the company and obtaining a business license and tax registration is completed.
9. Opening a bank account: A bank account is opened in the name of the company to manage financial and commercial operations.
10. Starting work: After completing all legal and regulatory procedures, the company can officially start conducting its business activity.

Advantages of establishing a company in the Dubai Production City Free Zone

• 100% retransfer of capital and profits abroad
• 100% exemption from import and export duties
• No tax is imposed on corporate gains or personal income in most cases
• No restrictions on the use of currency
• Low cost of operations
• Pre-built offices, factories and warehouses
• Fast procedures for establishment and licensing
• Single window for customs clearance; That is, multiple administrative services in one station
• Provides labor recruitment assistance and additional support services, such as sponsorship and on-site housing
• Abundant and inexpensive energy
• Excellent infrastructure, communications, and attractive work environment

The most important licenses to establish a company in the Dubai Production City Free Zone

When you establish a company in the Dubai Production City Free Zone, you will typically need to obtain a range of necessary licenses and permits to operate your business legally and efficiently. The basic licenses and permits you may need include:

1. Business License: This license is an official permit from the relevant authorities in Dubai that allows you to practice your specific business activity in the free zone.
2. Manufacturing and production license: If your company operates in the field of heavy or light industry, you may need a special license that allows you to manufacture and produce your products in the free zone.
3. Building and construction license: If you intend to build production facilities or company buildings, you may need a special building and construction license.
4. Environment, Health and Safety Permit: This permit is required to ensure that the company’s operations are conducted in a healthy and safe manner and meet specified environmental standards.
5. Defense Safety Permit: If your company handles hazardous materials or operates sensitive equipment, you may need a defense safety permit.
6. Labor License: You must obtain a license to employ local and expatriate workers, and the company must comply with laws and regulations regarding labor rights and employment.
7. Lease License: Businesses must obtain a lease license for the office or industrial space they use as a headquarters for business operations.
8. Export and Import Permit: If your company intends to engage in international trade, you may need a license that allows you to export and import to and from the free zone.
9. Shipping Licenses and Customs Clearance: If you intend to import and export goods, you will need customs clearance licenses from the relevant authorities in Dubai.
10. ICT License: You may need a special permit if your company relies heavily on ICT.

How can you establish a company in the free zone?

Establishing companies in the free zones in Dubai is much easier than establishing a company inside Dubai, as it can be 100% owned by any nationality, and the presence of a partner or sponsor who is a citizen of the UAE is not required, as the company is registered as a free zone establishment or it is a company belonging to The free zone or a branch or representative office in the free zone in Dubai. In this case, it is possible for the main company to be outside the Emirates, and it is not required to be inside the Emirates. The companies located within the free zone are regulated through the authority responsible for the free zone, which is the one that issues any licenses to the company. This depends on the location of the free zone and the activity it carries out. The type of license issued by the responsible authority varies according to the commercial activity. A company can be established in the free zone by following some steps, including:

• Choose the company’s location
• Agreeing on the trade name, as it is the name that distinguishes one company from another.
• Obtaining the company’s business license.
• Obtaining initial approval to start work.
• Commercial license registration.
• Complete the requirements for a commercial license and obtain it.

Fees for establishing a company in the Dubai Production City Free Zone

Fees for establishing a company in the Dubai Production City Free Zone vary according to the type of company and the size of its business, and usually include the following fees:

1. Company Registration Fees: These fees are charged to register and officially establish the company in the free zone.
2. Service fees: These fees include the costs of services provided by the free zone, such as obtaining permits and licenses.
3. Contract Fees: If contracts are signed with other parties, additional fees may be involved for issuing contracts.
4. Legal advice fees: If the company needs legal advice during the incorporation process, fees may have to be paid to legal advisors.
5. Administrative fees: These fees include administrative expenses associated with managing the company in the free zone.

Establishing a company in the free zone

Establishing a company in the Dubai Production City Free Zone is considered a strategic step for companies wishing to grow and expand in the UAE market and the surrounding region. This region provides advanced infrastructure and distinguished financial and administrative facilities that make it an ideal place for attracting investments and business development. In addition, the region offers diverse manufacturing and production opportunities in a wide range of sectors, making it a preferred destination for companies looking for a dynamic and innovative business environment. Establishing a company in this region requires following specific regulatory and legal procedures, but with government support and facilities provided, companies can achieve success and sustainable growth in this thriving investment environment.

Documents necessary to establish a company in the free zone

To establish a company in a free zone in Dubai, you need to submit a set of basic documents. Details vary slightly depending on the specific free zone and company type, but generally include the following documents:

1. Passports: Copies of passports of all shareholders and directors.
2. Personal photos: Recent personal photos of shareholders and directors.
3. Articles of Association: The articles of association or articles of association of a company, which define the objectives and organizational structure of the company.
4. Address confirmation certificate: a lease contract for the company’s headquarters in the free zone, or proof of ownership if the headquarters is owned.
5. Business Plan: A detailed business plan that includes a description of the business activity, objectives, and market strategy.
6. Financial documents: Financial statements or proof of funding sources, if necessary.
7. Details of business activities: An accurate description of the business activities that the company will undertake, including industrial or commercial activities.
8. Establishment application form: The establishment application form that is submitted to the relevant authority in the free zone.
9. Signature Authorization: A document stating who is authorized to sign documents on behalf of the company.
10. Permits and Approvals: In some cases, you may need additional permits or approvals based on the type of business.
11. Copies of legal documents: such as previous business licenses, if any, and any other relevant documents related to business activities.
12. Security approval: It may be necessary to obtain approval from local security authorities, especially if the business activity requires it.
13. A copy of the commercial register of the parent company: If you are establishing a branch of an existing company, you must submit a copy of the commercial register of the parent company.

Tips for establishing a company in the Dubai Production City Free Zone

When considering establishing a company in the Dubai Production City Free Zone, here are some tips that may be useful:

• Market Study: Conduct a thorough study of the market and industry you intend to enter, analyzing demand, supply and competition.
• Choosing an activity: Determine the type of business you want to engage in based on market needs and potential growth areas.
• Consulting specialists: Collaborate with local legal and accounting consultants to understand local legal, tax and financial requirements and ensure compliance.
• Choosing a legal structure: Decide whether you want to create a sole proprietorship, a limited liability company, or a joint stock company, according to your business needs and goals.
• Obtaining the necessary licenses: Submit applications to obtain the necessary licenses from the relevant government agencies, such as commercial activity licensing, building permits, and health and safety.
• Geolocation: Choose a suitable location in the Dubai Production City Free Zone, considering its proximity to markets, suppliers and transportation hubs.
• Preparing infrastructure: Within your plans, prepare the necessary infrastructure such as offices, factories, production facilities, energy security and communications.
• Marketing and Customer Building: Develop an effective marketing strategy to attract new customers and build strong relationships with them.
• Commitment to Compliance: Ensure compliance with all local and international business and labor regulations and legislation.
• Connect with the business community: Join local and global business networks and participate in business events and opportunities to build your network and increase your chances of success.

At the conclusion of our article about establishing a company in the Dubai Production City Free Zone, we find that this region provides an ideal environment for investors and entrepreneurs seeking to expand their business in the Emirate of Dubai. Thanks to the benefits offered by the Free City, such as tax exemptions, full foreign ownership, and advanced infrastructure, Dubai Production is a strategic destination for businesses of all sizes.

Establishment procedures in this region are straightforward, making it easier for new companies to enter the market quickly and efficiently. By providing the necessary support to investors and providing the necessary facilities, Dubai Production City contributes to enhancing economic growth and stimulating innovation in various sectors.

Choosing Dubai Production City as a location to establish your company represents a strategic step towards achieving your business goals thanks to the supportive business environment and great potential it provides. We advise all investors and entrepreneurs to take advantage of the unique opportunities offered by this free zone, and invest in growth and expansion in one of the most dynamic markets in the world.

The most frequently asked questions about establishing a company in Dubai Production City