What is a Dubai Freezone?
A freezone is a designated area within Dubai where businesses can operate with specific advantages not available outside these zones. These zones are designed to boost international business by offering attractive incentives. Some of the most popular freezones in Dubai include Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), Dubai Silicon Oasis (DSO), and Dubai International Financial Centre (DIFC).
Benefits of Setting Up a Freezone Company in Dubai
100% Foreign Ownership: Unlike mainland companies, where foreign investors require a local sponsor holding 51% of the shares, Mainland Company Setup in Dubai freezone companies allow full ownership by foreign nationals.
Tax Benefits: Freezone companies enjoy 0% corporate and personal income taxes, as well as no import or export duties.
Repatriation of Profits and Capital: Business owners have the freedom to repatriate 100% of their profits and capital back to their home countries.
Streamlined Processes: Freezone authorities offer a simplified process for company registration, licensing, and visa issuance, making it quicker and easier to start operations.
Strategic Location: Freezones are typically located in key areas close to airports, seaports, and logistics hubs, facilitating global trade and business activities.
Types of Licenses Available in Dubai Freezones
Depending on the nature of your business, freezones offer various types of licenses:
Trading License: For businesses involved in importing, exporting, or trading goods.
Service License: For businesses offering services like consultancy, IT, or marketing.
Industrial License: For manufacturing or production activities.
E-Commerce License: For businesses involved in online trading or digital services.
Steps to Set Up a Dubai Freezone Company
Select a Freezone: Choose a freezone based on your business activities and requirements. Each freezone specializes in certain industries, so it’s essential to select one that aligns with your business goals.
Choose a Business Activity and License Type: Determine your business activities and obtain the appropriate license. The freezone authority will guide you on which license best suits your needs.
Decide on a Legal Structure: You can establish either a Free Zone Establishment (FZE), Free Zone Company (FZC), or branch office. FZE and FZC are for single shareholders and multiple shareholders, respectively.
Submit Your Application: Provide all required documents, including passport copies, visa details, and business plan, to the freezone authority.
Lease Office Space: Freezones typically require you to lease office space. Dubai Freezone Company Setup Options range from flexi-desks to full-fledged offices.
Obtain Visas and Bank Accounts: Once your company is registered, you can apply for visas for employees and open a corporate bank account.
Complete Registration and Begin Operations: Once all formalities are completed, you will receive your trade license and can officially begin business operations.
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