How to start a business in Dubai free-zone
Dubai is the global hub in the growing age of business and technology. A bridge between three continents, the state offers opportunities like no other. The state encourages and welcomes business start-ups, the reason why the world’s biggest and most successful business investors always their eyes trained there.
More and more people arrive in the city every day to try their luck, but only a few succeed. That isn’t surprising at all. Business start-up is tough as it is, but doing it in a completely new land without any comprehensive knowledge is even tougher.
The only way a business start-up can own the company without any UAE national as a shareholder is to set-up in the free-zone. Although the free-zone is costlier as compared to the mainland, it offers a speedy start-up. Also, the customs boundaries are duty-free.
We have compiled a step-by-step guide of how to start a business in Dubai free-zone for you.
The company type
You need to determine the type of legal entity your company is going to form. For that you have three options:
- Limited liability company in the free-zone (can have single or multiple shareholders)
- Free zone establishment or a limited liability company as a wholly owned subsidiary
- Branch of a local or foreign company
The thing you need to keep in mind is that not all free-zones will register all types of companies. You’ll need to check with authorities of different free-zones to short-list your options and then decide on them.
The company activities
The company license is issued on the basis of their business activities. You can choose from over 600 company activities from a selection of 20 different sectors that include healthcare, energy, technology, construction, and many more.
A license will primarily be based on a company’s business activities; however, a company can also opt for a general trading license or multiple licenses in that case.
The other structures of a customized license can cover an establishment of “single family offices”, where all the shareholders are of the same family. These licenses centralize the management of a family’s corporate structure, family succession, and management of assets, shares, trust, and foundations.
You can even register for an e-commerce trading license that allows you to establish an online forum as a third party facilitator.
The company name
After deciding the company’s legal entity and license structure, based on your business activities, come up with a trade name.
For this purpose you would need to check with the local authorities of your free-zone or visit the department of economic development for the registration of intended company name, it’s availability, and permission.
The basic rules to keep in mind while choosing a trade name are:
- Not previously registered
- Does not violate public morals
- Compatibility with the intended business activities
- Does not contain names of a government authority or religious figure
The company address
Next you need to visit different free-zones and determine the locality that suits your company the most. Office spaces are available in almost all free-zones for rent and lease. Your requirement depends upon the activities you plan to administer in your office and the number of employees that’d be working there.
The company registration
In order to get your company registered in the free-zone, you need to fill in an application form and have it submitted along with the required documents. The documents you’ll need may include:
- Your business plan
- Passport
- Residential address proof
- Passport copies of companies shareholders
- Attested documents of parent company if opening a branch
- NOC from sponsor
- Letter of intent
- Bank reference letter
The registration process will start as soon as your application is approved. You will then need to pay registration and license fees depending on your business activities and company plan.
The company license
Once your registrat1ion process comes through, the authorities will prepare a lease agreement for you. Based on the lease agreement, your company license will be issued. As soon as the license issuance ends, the visa processing will start.
The steps are fairly simple on paper but might be harder to follow. At this point, we’ll point you towards the direction of business advisory firms that might be able to walk you through the process easily. How to start a business in Dubai is a question they have a complete answer to. These experts can walk you through the process without any difficulty. From registering the company, to opening your bank accounts, these companies can handle everything.