Business Licenses in Dubai’s Free Zones: Everything You Need to Know

Foreign investment is the energy booster for every country. This being the fact, policymakers craft investor-friendly policies. To attract maximum entrepreneurs that would fortify the economy. Needless to say, Dubai has remained the winner in the race for more than a decade. Many factors attributed to the magnificent performance of this prolific business destination to be the number one in the world.

Continuing the trend, the authorities have been introducing several frills to the ex-pat investors. After all, who wouldn’t like unprecedented support from the government? Business license in Dubai free zone is one of the best options for company formation. Optimized with investor-centric regulations, one can start the business activities right away. Without any complex business setup process or intricate approval formalities.

Factors that Make Dubai Free Zone the Best Business Destination

The most progressive among the emirates, Dubai has been giving tough competition to global business hubs. Factors that make Dubai the ideal place for setting up a company are:

  • strategically placed location with great connectivity to the continents Europe, Asia and Africa
  • Supportive government and administration
  • Quick business setup
  • Advanced infrastructure
  • Population of high-income people
  • 100% business ownership to the ex-pats
  • 100% repatriation of capital and profits
  • Nil income or corporate tax
  • Optimal growth possibilities

An ex-pat entrepreneur can reap a fortune by starting a company in Dubai Free Zone or Mainland. Our team can guide you on the right location to set up the business, info on the ideal jurisdiction, and help you with the business setup formalities.

Free Zones in Dubai for Setting Up a Business

Each free zone in Dubai is regulated and controlled by the respective Free Zone Authority (FZA). The FZA issues trade licenses, promulgates amendments to the regulations and monitors the business activities. The free zones can be broadly divided into three categories viz. Dubai Creative Clusters Authority (DCCA), Dubai Multi Commodities Centre Authority (DMCC) and the rest of the Free Zones.

  • DCCA – All the media, education and entertainment free zones comes under the purview of DCCA. Those free zones include:

                o   Dubai Media City (DMC)

                o   Dubai Internet City (DIC)

                o   Dubai Production City (DPC)

                o   Dubai Knowledge Park (DKP)

                o   Dubai Design District (D3)

                o   Dubai Science Park (DPK)

  • DMCC - To ensure a physical infrastructure for global commodities, DMCC was established in 2002. It has more than 18000 registered members. DMCC is located in Jumeirah Towers.
  • Rest of the free zones in Dubai focus on varying industries and business sectors. It may turn into an uphill task for you to choose the best free zone for the business activity you are planning to commence. A professional, with immense experience in the field, maybe of the right support at this juncture. You may connect with us for any help on business setup in Dubai free zone.  The free zones include:

                o   Jebel Ali Free Zone Authority (JAFZA)

                o   National Industries Park

                o   Dubai Healthcare City Authority

                o   Dubai Airport Free Zone Authority (DAFZA)

                o   Dubai International Financial Centre

                o   Dubai Silicon Oasis Authority

Types of Licenses in Dubai Free Zones

A business license is required for setting up the business and starting company operations in Dubai free zone. The type of license would depend on the business activity:

  • Industrial license – For the company that manufactures, moulds or assembles products. An industrial license is necessary for importing raw materials and components and for exporting manufactured products.
  • Trade license – For trade activities in the region.
  • Service license – For setting up an agency or company that offers professional services.
  • National Industry license – Special type of license for industrial manufacturers, which offers the same status as a local manufacturer

Normally, a business license in a free zone is valid for three years. However, the validity may vary from one zone to the other. The expenses involved for a free zone license will include license fees, visa charges, registration fees etc.

How to Setup a Business in Dubai Free Zone

Setting up a business in the Dubai free zone is simple and quick. One can start the company in a matter of a few days and commence the business activities without any hassles. Assistance from reliable business setup services in Dubai would be helpful in identifying the best location, renting a cost-effective office and commercial space, and proceeding with a foolproof business plan.

Confirm the Business Activity – The type of license, the free zone to opt etc would depend on the business activity. Confirm the business activity to go with, before initiating the process. Industrial activity, trading business, service sector or freelancing. The license would be based on the business type.

Register the Business Name – The business name should be according to the extent naming regulations. Fix a name and register with the free zone authority. The name that doesn’t abide by the stipulations would be rejected.

Rent or Lease the Office and Commercial Space – Investors can choose office space from a variety of options. It could be a Flexi office, co-working office, private office and so on. A commercial office is also required to be rented or leased as per the requirement.

Obtain License – Put up the application attached with the requisite documents to the free zone authority. The license would be issued in a quick time.

Setting up a free zone company in Dubai is the right step towards prosperity. The records indicate a massive growth to companies in free zones in Dubai. Compared to most of the other business destinations, Dubai has remained true to the investors. Helping them to earn manifold than any other business destinations in the world.

We can help you with business setup in Dubai free zone, contact us now. 

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