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Starting A Business In A Free Zone – Dubai Free Zone License

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Starting a business in a Free Zone is very simple. Free zones have become a popular form of business registration in the United Arab Emirates (UAE) where 100% foreign ownership is allowed. A free zone or free trade zone is an area with special tax-free status and low trade barriers where goods can be manufactured, imported/exported, managed, or reconfigured without paying and customs duty. Dubai is a UAE city where you can find out an array of free zones to do trade.

An expatriate wanting to set up a business in the United Arab Emirates (UAE) has the choice of either starting up a Limited Liability Company (LLC) with a license to operate anywhere within the United Arab Emirates (UAE) or the company can be registered with one of the many free zones in the UAE. A free zone known as the free trade zone is a special economic zone where companies can operate and receive considerable tax and fee exemptions.

Free trade zones are usually situated in strategic geographical locations like national borders, international airports, and major seaports, to maximize trading benefits. The government of UAE has set up many free zones in the Emirates, each designed for particular business activity. Dubai’s free trade zone provides lucrative amenities to non-resident corporates such as the convenience of single-window administration, no bureaucratic red tape, and 100% ownership.

Steps To Starting A Business In A Free Zone

Decide which kind of entity you wish to set up in any free zones. The capital need for such an entity depends upon that specific free zone where you wish to form a company.

2. Pick A Trade Name

After determining the kind of legal entity, opt for a trading name for your company. Remember that you prerequisite to cross-check with the respective free zone authority about the allowed trade names and whether the intended name has already been registered.

3. Apply For A Business License 

After opting for a trading name and registering the same in the free zone authority’s portal, you have to apply for a business license. The type of business license varies on the main activity of your business. You require to submit the supporting documents when applying for the license.

4. Choose An Office Space

Free Zone officials offer flex-desk office assistance to support start-ups. You can either buy or rent office spaces in free zones. Office requirements vary on the number of employees and the variety of business activity of your company.

5. Acquire Pre-Approval, Register Your Business, And Obtain The License

Get the initial approval and the related business approvals from the particular authorities, register your business at the portal, and get your license. It will merely take 2-4 weeks to get done with this procedure. When you get Dubai free zone license you are good to set up a business.

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Advantages Of Starting A Business In A Free Zone

  1. 100% exemption from corporate, personal, and income taxes
  2. 100% repatriation of capital and profits
  3. Exemption from all import and export duties
  4. Sponsorship and visas for a reasonably skilled workforce
  5. Unique industry clustering and purpose-built infrastructure
  6. Effective communication procedures and single-window administrations
  7. No restrictions on hiring expatriates
  8. Inexpensive workforce, and easy recruitment process
  9. Simple start-up and licensing procedures
  10. Freehold offices available for sale or lease

Dubai Free Zone License Cost

The free zone in the United Arab Emirates (UAE) provides a range of advantages for its entrepreneurs. Some of them comprise 100% ownership of the business entity, tax-free-environment, profit repatriation, easy business setup, art infrastructure, and many more. Companies aspiring to have a presence in Dubai require to find out the cost of company setup in Dubai. Numerous factors deciding the coast and it depends on the free zone one selects.

Also read, Abu Dhabi Global Market license (ADGM) Free Zone

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Lara lace

A knowledgeable and active member of the business community in the UAE and advises large multinationals as well as startups on how to best establish a commercial presence in the UAE.

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