Considering starting a business in Dubai? Setting up your business in the Dubai Free Zone area could be the ideal choice. Freezones offer a streamlined process for company registration and a complete business setup. Avyanco UK is your go-to partner for Free Zone Company Formation in Dubai. These zones are the world’s most renowned economic hubs and most popular among foreign investors. Benefit from the special advantages that come with owning a company in a free zone and expand your business without the restrictions of mainland trading.
Overview of Free Zones in the UAE
Free zones, or special economic trade zones, provide investors and business owners with a host of advantages. Foreign business owners and investors are entitled to 100% foreign ownership and profit repatriation. Companies operating in free zones also benefit from favorable tax laws, which increase their profitability.
Every free zone has been created with a particular industry in mind. Some are more suitable for starting an e-commerce company, while others are ideal for manufacturing, logistics, retail, professional services like HR and digital marketing, and more. The correct advice is needed to determine which free zone is best for registering a company, taking into account many aspects such as the size and type of business.
Types of enterprises suitable for Free Zone business setup
The process of Free Zone Company formation in Dubai is created to accommodate a variety of commercial ventures. Companies that engage in international trade, media and entertainment, financial services, e-commerce, IT and technology services, and consultancy would reap the most from them. In addition, because Free Zones are easy to administer and have no customs costs, they are especially invaluable for companies that import and export a lot of goods and services.
Types of Dubai Free Zones
There are various renowned free zones in Dubai, such as the International Free Zone Authority (IFZA), the Ras Al Khaimah Economic Zone (RAKEZ), the DAFZA free zone, the DMC free zone, and the Jebel Ali free zone, which provide a number of benefits to business owners, such as hundred percent ownership, tax exemptions, liberty in operations, etc.
International Free Zone Authority (IFZA)
A range of adaptable free zone business setup options is provided by IFZA with the goal of maximising the UAE’s advantageous location, first-rate infrastructure, and business- and tax-friendly climate.
As one of the most reputable independent free zones in the United Arab Emirates, IFZA offers tailored services to support the expansion of businesses. Its unrivaled focus on customer satisfaction has made it popular. Professional, commercial, and industrial licenses are among the thousands of business activities that IFZA offers in four different categories that are precisely meant to identify your client’s business function. Additionally, they provide branch office registration.
You can benefit from remote business formation flexibility no matter where you are in the world thanks to their extensive global network of professional partners.
Specializations offered by other free zones in Dubai
Ras Al Khaimah Economic Zone (RAKEZ):
RAKEZ, one of the largest economic zones in the region, was established by the Ras Al Khaimah government and provides startups, entrepreneurs, SMEs, and industrialists with support for their business establishment requirements. They provide business licenses for the following:
- commercial licenses,
- educational licenses,
- e-commerce licenses,
- industrial licenses,
- freelancer permits,
- media permits.
Jebel Ali Free Zone (JAFZA):
More than 7,000 businesses from more than 100 countries are based in this free zone. These businesses are involved in a wide range of sectors, including electronics, food & beverage, textiles, chemicals, pharmaceuticals, and automobiles. Due to its advantageous position and first-rate infrastructure, Jafza is a well-liked option for companies wishing to grow in the Middle East. This free zone provides three types of trade licenses, such as:
- Commercial license
- Industrial license
- Service license
Dubai Multi Commodities Centre (DMCC):
Numerous business structures appropriate for a wide range of business types are permitted in the DMCC Free Zone. This promotes efficient business operations and legal transparency for firms. The DMCC Free Zone supports your success in the dynamic business environment, regardless of how long your company has been in operation. It is a wise decision for businesses because it fosters innovation and growth. With a primary focus on commodities and associated areas, DMCC provides a specialized range of commercial activities.
Advantages of setting up business in Dubai Free Zones
Establishing a business in the UAE Free Zone has several advantages. Setting up a Freezone corporation has the following primary advantages:
- Economical: Reasonably priced, no minimum investment needed, and adaptable workspace choices.
- Tax-friendly environment: There is no corporate tax inside the zone; outside, UAE general tax is applicable.
- Foreign-owned: No local sponsor for setting up your business is required; 100% ownership is permitted for the free zones in the United Arab Emirates.
- Mix and Match Business Activities: Free zones, in contrast to the UAE mainland, allow you to combine different business activities under your trade license, allowing you to customize your operation to your specifications.
- Enterprise liberty: They provide extensive operations and an efficient setup procedure.
- Strategic location: free zones are located in excellent positions close to ports and airports, with excellent connections to the rest of the world.
- World-class facilities: free zones are known for cutting-edge information technology, and specialized business services make up the supportive infrastructure.
- Government incentives: An emphasis on innovation and a varied society all contribute to a pro-business atmosphere, which is provided by the government by providing numerous incentives.
Steps to set up a company in Dubai Free Zone
Step 1: Select a legal structure
From the three company structures we covered above—a Free Zone Limited Liability Company, a Free Zone Establishment, or a Branch Office—select the one that best suits your needs.
Step 2: Choose a trade name
Select a distinctive trade name for your company. It must be in line with your business activity and adhere to the company name restrictions in the United Arab Emirates.
Step 3: Apply for the business license.
Select the licensing that best fits your line of business, then submit an application for it. Avyanco can help you select and acquire the appropriate licensing for your business.
Step 4: Select an office space
Select an office space that satisfies your needs for space right now. Depending on the size of your staff and the nature of your firm, the space shouldn’t be either too small or too large.
Step 5: Secure approvals and obtain a business license.
Assess the fact that you require any further permissions from a governmental body in order to carry out your business legally. Avyanco UK can assist you in solving this for a smooth free zone business setup process.
Taxation Considerations
To attract foreign investments and accelerate economic growth, free zones in the United Arab Emirates design certain incentives that exempt businesses from corporate tax, import and export duties, etc.
Corporate tax:
Under the United Arab Emirates corporate tax law, companies (and branches in certain situations) registered in Free Zones are taxable persons and must fulfill standard compliance requirements, such as transfer pricing duties. But if a Free Zone entity satisfies the requirements to be regarded as a Qualifying Free Zone Person, it ought to be qualified for a UAE CT rate of 0% on its qualifying revenue. A Qualifying Free Zone Person’s revenue that does not meet qualifying requirements will be subject to 9% CT taxation.
VAT:
For trade and investment promotion purposes, free zones are typically defined as areas exempt from value-added taxation. Designated and non-designated zones are the two categories into which free zones are separated in the United Arab Emirates. Goods supplied between specified zones or between designated zones and non-designated zones are free from value-added tax. Supply to and from non-designated zones and the mainland, however, shall be charged VAT. In this regard, in order to get the most out of their location and optimize its advantages, businesses operating in free zones must comprehend and abide by these rules.
Why choose Avyanco UK?
A group of professionals at Avyanco UK works to simplify the company formation in Dubai procedure for investors. With all approved and required formalities, we promptly offer the best and most dependable methods. Avyanco UK specializes in developing quick and efficient business startup plans. Get more information about starting a business in Dubai, United Arab Emirates, by getting in touch with our qualified consulting staff to see what would work best for your venture.
Our Expertise Spectrum
Mr. Jashvantkumar Prajapati is the founder and CEO of Avyanco Group of Companies. He has gained recognition as a leading business personality in the United Arab Emirates thanks to his vast industry knowledge and broad range of business consulting skills, which he uses to support SMEs on their entrepreneurial journeys.
With a diversified portfolio and core competencies in investment management, business consulting, business planning, market research, and other operational business domains, he hopes to assist prospective clients and investors in establishing their businesses in rapidly developing economies such as the Middle East and North Africa (MENA).
In order to help committed investors with the necessary company formation in Dubai procedures, he launched Avyanco UK, which quickly established itself as the most reputable company setup consultancy in the UAE, assisting investors in increasing profitability thanks to his extensive industry experience and skills.
Our team in action:
We are proud to have a team of competent and skilled experts committed to bringing innovative ideas and solutions to the table with exceptional service to our clients. With a wide range of expertise and knowledge, our team works to tackle complex challenges and drive positive outcomes for our clients.
Contact Avyanco UK
Ready to launch your business in Dubai? Contact Avyanco UK to transform your company. To optimize processes and boost business performance, our knowledgeable staff contributes unmatched industry knowledge and strategic insights. Select Avyanco UK for company registration in Dubai services catered to your unique requirements. To book a consultation, contact us today.
FAQS
What are the benefits of registering a business in a Dubai Free Zone?
Registering a business in a Dubai Free Zone offers several advantages, including 100% foreign ownership, zero corporate and personal taxes, full repatriation of profits, and streamlined import/export processes.
What types of businesses can be registered in Dubai Free Zones?
Dubai Free Zones accommodates a wide range of businesses, including trading, service-oriented, consulting, and industrial activities. Some Free Zones specialize in specific sectors, such as media, technology, or logistics.
What are the key steps involved in registering a business in a Dubai Free Zone?
The process of Free Zone Company Setup in Dubai typically involves selecting the appropriate Free Zone, choosing a business activity, submitting the required documents, obtaining approvals, and finally receiving your trade license and visa.
What documents are required for Dubai Free Zone business registration?
Commonly required documents include passport copies of shareholders, a business plan, proof of address, a No Objection Certificate (NOC) from the sponsor (if applicable), and bank reference letters.
How long does it take to complete the registration process in a Dubai Free Zone?
The registration process in a Dubai Free Zone can take anywhere from a few days to a couple of weeks, depending on the complexity of the business and the specific Free Zone’s procedures.
Are there any specific capital requirements for setting up a business in a Dubai Free Zone?
Some Free Zones have minimum capital requirements, while others do not. The required capital can vary based on the type of business activity and the chosen Free Zone.
Can I obtain a visa for myself and my employees through Free Zone registration?
Yes, Dubai Free Zones offer visas for business owners and their employees. The number of visas available typically depends on the size of the office space or the package selected.
What are the costs associated with registering a business in a Dubai Free Zone?
The costs include Free Zone registration fees, trade license fees, visa costs, and office space rental. These fees vary depending on the Free Zone and the nature of the business.