How to Start a Business in Dubai Free Zone?
A free zone business setup offers lucrative business opportunities in the UAE. You might think, “how to start a business in the Dubai free zone?” Well, the process to open a company in any of the free zones is straightforward and doesn’t consume much time when you follow the right steps. Moreover, there are countless benefits of establishing your dream venture in these special economic zones.
Each free zone in the UAE has its dedicated jurisdiction. Therefore, the business laws are always in favor of the investors and business aspirants. Another benefit you enjoy with a free zone establishment is 100% ownership of your business. The free zone company formation experts at Shuraa help you start your business in Dubai by providing end-to-end assistance.
What are the Steps to Start a Business in the Dubai Free Zone?
All your worries about how to start a business in the Dubai free zone end here as discuss the detailed steps required to launch such a company:
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Choose the Desired Business Activities
The first step to incorporate your dream venture in the free zone region is shortlisting the desired business activities. You need to make a curated list of activities and send for approval to the concerned free zone jurisdiction. Once done, you need to wait for the department’s response.
It’s vital to cover all the required business activities in your free zone business license. You might come across as a non-compliant legal entity in the UAE if you’re carrying out a business activity in the country without an official permit. Furthermore, investors can apply for external approval to gain consent for business activities not covered under your license.
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Trade Name Reservation
Do you have a preferred set of names that you wish to keep as the official name of your free zone company? If not, compile a list of 3-4 trading names and route the same for the department’s approval. It’s imperative to follow all the naming convention guidelines when creating this list.
Refrain from using insulting words or terms that have a reference to any God or religion. Moreover, remember that you’ll be liable to pay additional charges if you want to leverage a foreign trading name. Lastly, don’t forget to use a person’s full name (and not any nicknames) if you want that to be your legal trading name in the UAE.
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Choose a Free Zone
The decision to choose a free zone for your company’s establishment depends on several factors. Your budget constraints, business activities, target audience, expansion aspirations, and many other variables need to be considered before finalizing the ideal free zone for your venture. Free zones like the DIFC (Dubai International Financial Center), DHC (Dubai Healthcare City), and DMC (Dubai Media City) are called specialized free zones.
These economic zones cater to your specific business needs and encourage you to start a business in the Dubai-free zone at low costs. Moreover, the overall working ecosystem in free zones is competitive, and the same empowers you to bring the best out of yourself. The business experts at Shuraa help you shortlist the ideal free zones for your venture by analyzing your requirements.
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Rent an Office Space
You need to acquire office space in a free zone as it’s your official business address. All the legal communication and letters are sent to this address only. However, this doesn’t imply that you need to invest in a real estate property or have physical space in Dubai. You have several advanced options like flexi-desk, virtual office, etc.
A virtual office space empowers you to launch your company remotely. You can secure physical space once you arrive in the UAE. Investors can collaborate with Shuraa Business Setup and sign a sustainability contract with us to acquire a virtual office in Dubai.
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Apply for a Free Zone Trading License
The next step to start a business in the Dubai free zone is applying for a free zone trading license. Business aspirants can obtain a commercial, professional, industrial, and tourism license based on their business requirements. It’s imperative to possess a valid trading license at all times during your professional tenure in the UAE.
Any company that doesn’t have a valid business license comes under the non-compliant bracket. Repercussive actions from the government include temporary suspension, fines, and even blacklisting of your legal entity. Therefore, maintain a practice of renewing your free zone license annually at least one month before its expiry.
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Manage Visas and Open a Business Account
The best part about launching a company in the free zone is the hassle-free visa management. You can apply for a residential visa for yourself when you submit the business license application. Next, you can get in touch with the concerned governing authority to secure visas for your family members, relatives, and domestic workers as well.
Finally, open a corporate bank account for your free zone company in any of the reputed local or international banks of your preference. Always select a reliable bank to enjoy hassle-free banking facilities.
What Paperwork Goes Into Starting a Free Zone Company?
Here’s a curated list of documents you must submit to the concerned free zone jurisdiction to commence your business activities in the Emirates:
- Trade name reservation document
- Colored photographs of the applicant
- NOC from the sponsor/local service agent
- Registration certificate and contract of association
- Passport copies of all business partners
- Business plan and personal information sheet
- Lease agreement document
- Additional approvals depending on your business type and company structure
Launch your Free Zone Company in Dubai Today!
Free zone business setup is a one-stop solution for your business aspirations in the UAE. You enjoy a low barrier to entry, several tax exemptions, and a lot more in the free zones. Moreover, specialized free zones empower you to define a niche target audience and operate under lenient business laws.
You can connect with the business consultants at Shuraa if you have any clarifications on how to start a business in the Dubai free zone, and we’ll be happy to assist you with the same. Our optimized business solutions are just a call away!
