Because of the low taxes and strategic geographical location between the earth’s greatest markets, many business owners are invested in learning the process behind Business Setup in Dubai Mainland. With a government that continuously supports private and public businesses, it is easy to understand why.
However, there is another important reason for entrepreneurs to move their company to the Persian Gulf’s shores. Free trade zones can be defined as economic areas in which different services or goods are exchanged. The attractiveness of these areas for company owners is that they are tax, customs, and duty-free.
These areas can as well be created as a collective agreement between different nations. The fact that no duties are paid helps encourage economic trade. Therefore, one of the mainly benefitted sectors is importation and exportation. This type of financial freedom and lack of barriers incentivize businesses to move into the free zones or set up new agencies.
In the UAE, there is a large number of well-known free zones. Some of the primary types are export processing zones and freeport zones.
The first step for setting up a company in the UAE free zone is to establish the type of legal entity that your company is going to take. There are two types of businesses that you can register in the UAE’s free zones. These can be:
Free Zone Limited Liability Company (FZ LLC)
Free Zone Establishment (FZE)
The contrast between these lies in the number of shareholders and if the said shareholder is a legal or natural person. Despite this, not all free zones allow both types of businesses, so owners must find out through the specific free zone authorities from where they intend to start a company.
At the same time, the future company owners must decide the trade name that will represent them. It is recommended to ask the corresponding free zone authority regarding the allowed names, as well as whether or not the chosen name is taken. Also, there are certain rules to follow as some names might be prohibited. In general terms, the usual aspects to consider when choosing a trading name in the UAE are:
It adapts to the public moral laws as well as public order of the country
It ends with the legal entity in which the company is being consolidated (LLC, FZE)
It has not been registered before
It matches the economical activity of the company
It does not use religious or government authority names, nor does it contain a name of an external body
Capital requirements can vary depending on the free zone. These can go from no minimum capital to AED 1000, and up to AED 150,000 in some free zones. When a company is created with shared ownership, some free zones such as DMCC require an amount of AED 10,000 for each shareholder. On the other hand, those who plan on obtaining a General Trading License are required at least AED 1,000,000 of share capital in this free zone.
After this process is completed, it will be time to obtain a business license. The type of license that you are going to apply for is determined by the economical activity of your company. Then, you will be ready to find an office space. You can buy or rent an office in the UAE’s free zones; however, the office requirements will be determined by the number of registered employees and again, the purpose of your enterprise itself.
Lastly, you must get a pre-approval. The paperwork required for this depends on the rules of the free zone in which you intend to set up your business. Future company owners in the Emirates must look up the specific documents required for their commercial activities. As soon as this is done, you will be able to register your enterprise and therefore, obtain your Property Visa in dubai.
For those aspiring to establish a business in the UAE’s free zone, it is advised that they first look into the different free zones available and the types of business operations permitted inside them.
The economy of the Emirates has evolved unceasingly over the last decade, offering endless growth possibilities for its citizens but also non-residents from around the globe.
Discussion about this post