Dubai Free zone Company Formation: Costs and regulations in 2020

Do you intend to start a business in Dubai? If so, the first step is to research the free zones of the emirate thoroughly. Thorough research will make you realize the range of benefits they offer for the companies working within them.

The most prominent advantage is being in a highly strategic global location, with the benefits of doing business in the UAE, also with 0% tax on both personal and corporate income.

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There are still more features like 100% exemption on import duty, nil currency restrictions, a wide range of business support services, etc.

One must be fully informed about the local business set up practices if intending to form a company in Dubai. The stepwise guide to set up a company in Dubai is as follows.

Understand the free zones

Free zones allow exemption of duty and taxes on the handling, manufacture, and trade of goods and services. These economic areas also permit storage.

There are many free zones across Dubai like Jebel Ali free zone, Dubai South, World Trade Centre, Dubai Science Park. Still, most free zones are found at the proximity of airports, and seaports. The proximity to these makes export/import businesses feasible to conduct international trade.

How to form a Dubai free zone company

Setting up a free zone company involves five steps.

Choose your activity

The first step is to mention the kind of business you intend to perform. There are many options from all sectors provided by the Dubai Department of Economic Development (DED). You must be clear in mentioning every single step that you intend to carry out while making your application.

Instead of going through the variable options, it is advisable to seek the help of a company set up to assist you in this step.

Choose your company name

The next step before moving on is to select an appropriate name for your company complying with the UAE’s naming criteria.

If you wish to include your name in the company name it should be done in full, not just surname or initials. The company name should not contain any profane language or any offensive references. It is better to check beforehand if the selected company name is already registered.

License application

This is the most important step in your company registration process.
It is advisable to take help from a company formation expert who will help avoid costly delays.

Application for free zone license is made directly to the managing authority of the chosen free zone.

While making your application, you will have to provide the complete business plan with a completed application form and your passport copy.

Visa application

You can make your visa application at the same time as your license application. You can take help from the company formation expert for this process too as part of the business incorporation process. The better part is that you can also sponsor your parents, partners, and children for their UAE visas.

Open a corporate bank account

Before trading in Dubai, it is mandatory to open a corporate bank account. Dubai homes different banking institutions, both local and international ones. However, opening bank accounts is a complex process, and you won’t want to waste your time applying to a bank that does not suit your need. It is better if this process is handed over to an expert.

Cost of free zone company formation

This is much difficult as the final cost is made of several components. You will have to consider the costs of premises, visa costs (if applicable) along with the cost of free zone license itself.

There are also Dubai free zone packages which include trade license, workspace, and one or more visa for you and employees.

Here too, you can seek the help of a company formation expert who understands your needs, and budget before finding a package that fits your budget.

Starting a free zone company in Dubai

The process of setting a company in Dubai free zone is easy. At the same time, it does take some in-depth knowledge of the customs and regulations prevalent in the UAE.

Hence, the better option is to rely on a business set up company. This company can advise you on the process and also help you procure the most suitable license for the type of your business fitting into your budget.

Using a business set up service puts you at ease as your license, and visa applications are free of errors, both of which may result in delays or rejection. With a company formation expert, all you need to provide is some basic documentation and little information about your business. The experts will take care of your license and visa applications by timely communication with all relevant departments and authorities. It is that simple when you seek the help of a company formation expert.