Dubai Freezone Company Setup Cost
COMMERCIAL LICENSE
Pay attention that:
- Foreign investors are allowed to hold only up to 49% equity ownership in UAE companies
- 51% of shares must belong by one or more UAE nationals
- 2 to 50 shareholders can be included
- The minimum recommended share capital is AED 300,000
- Multiple business-related activities under 1 trade license can be provided
- No corporate taxes, no income taxes
SOLE ESTABLISHMENT
The features of such company type include:
- Do not require any form of local ownership
- 51% of shares must belong by one or more UAE nationals
- 100% foreign ownership
- No requirement for minimum capital
- The UAE National will act as an agent with 0% ownership
- Set up through a national service agent
- One shareholder only
- No corporate taxes, no income taxes
CIVIL COMPANY
- Local service agent owns 0% of business shares and profit, whereas foreign partner or a company owns 100% of business shares
- Local service agent main task is to perform a role of a signatory for fulfillment of all government related tasks
- Local service agent has no administrative powers and is only entitled to annual payment for government services
- For certain activities professional qualification of local service agent is required
What is UAE Free Zone?
UAE Free Trade Zones (FTZ) are determined geographical areas where UAE mainland taxes, employment and import-export restrictions on business don’t apply, as well as bureaucratic requirements, are lowered what makes them the desired destination for foreign investors.Starting a business entity in one of the UAE’s Free Trade Zones can be a very attractive option for foreign investors, but choosing the right Free Zone for your business requires deep knowledge of the market.
More than 50 different Free Zones are located in UAE, accordingly, we can recommend the right Free Zone, depending on business conditions, visa and office requirements, and, certainly, investment budget. Business Setup Experts at BizVibez always carefully consider all factors to recommend the best place to register your business in UAE to enable its economic growth. Contact us today to get an insightful kind advice on company formation in UAE Free Zones.
HOW TO REGISTER A UAE FREE ZONE COMPANY?
CHOOSE A FREE ZONE
Each UAE Free Zone has its list of allowed activities that can be performed within the particular Free Zone; types of available facilities and visa quotas can also vary from one Free Zone to another. That’s why it is highly recommended to get a professional consultation at this stage to choose the best Free Zone for your business.SELECT A CORPORATE STRUCTURE
The corporate structure can be one of the following: a New Company with individual shareholder(s), a Subsidiary Company (with a corporate shareholder(s)), a Joint Venture Company (a mix of the individual and corporate shareholders), Branch of a Local or a Foreign Company. Some business activities are allowed only for Branch Companies; therefore, you should check it with a Free Zone of your choice.APPLY FOR INITIAL APPROVAL
Initial approval usually includes approval for the company name, for the chosen business activity(ies), and the proposed company structure.ESTABLISH BUSINESS LOCATION
To move to the final stage of licensing, you should find a commercial property for your company located within the chosen Free Zone. Once you found a suitable option, you must sign a Tenancy Contract (for a minimum of 1 year), and obtain the Ejari Certificate. Both to be provided to the Free Zone, based on what your license will be issued with the address from your Tenancy Contract. Depending on the type of facility (flexi-desk, business center office, physical office, warehouse, retail space), there might be some additional documents required, like for example AOFC Certificate from Concordia, or Third-Party Liability Insurance.SELECT A LICENSE TYPE AND BUSINESS ACTIVITY
Each Free Zone has different rules for the number of activities that can be added in one license. However, no commercial activity can’t be mixed with service activities in one license is the general rule for all the Free Zones. Thus, anything to do with trading must be in a Trading/Commercial License and providing services or consultations must be in a Service License. If you plan to produce or manufacture anything, then you will require an Industrial License.SELECT TRADE NAME & PREPARE DOCUMENTS
List company name options (3 proposed names are required) in order of preference and prepare the list of documents required by the chosen Free Zone. For new company formation, the standard list of documents includes passport, visa, EID (if applicable), NOC for UAE Residents (for specific Free Zones), proof of residential address, professional CV. The list of documents required for Branch companies’ registration is relatively different.SIGN LEGAL DOCUMENTS FOR COMPANY INCORPORATION
Once the initial approval is obtained, a face-to-face meeting (or a video call) with a Free Zone representative to be arranged. Sometimes it can be avoided by providing a Power of Attorney to your representative and notarized documents. During the meeting, there will be passport verification of the shareholders/or UBOs, and signing of documents such as Articles of Association (AOA), Board Resolution, Specimen Signature Form.COLLECT BUSINESS LiCENSE
Once the registration documents are signed, all approvals are obtained, and all payments are made. The license will be issued along with other corporate documents.
