Free zones in Dubai are some selected economic zones that provide tax concessions as well as duty-free benefits to promote economy and commerce in Dubai. There are many Free zones in Dubai which in other words are known as Free Trade Zone or FTZ in Dubai. These zones are basically operated to influence foreign investors and increase FDI here in this nation.
More than 30 free trade zones have existed in Dubai. Individual zones are operated by their respective authority and their distinct set of rules and regulations set by that free zone authority.
The Authority managing each of these FTZ manages various trade perspectives. For instance, business license preparation for any FDI program, industrial licenses, relevant industry initiation advisory assistance, etc.
How does FTZ in Dubai works?
Free zones in Dubai are managed by the respected authority of that zone. These authority bodies focus on FDI businesses and supervise incorporation processes. Moreover, they provide various subsidies and compensations during building an FDI company in those selective zones. FTZ like Jebel Ali Free Zone is one of the largest seaport in Dubai. It is also known for big subsidies policies for foreign investment companies.
FTZ like Dubai International Financial Centre is evaluated for its rapid growth in place of industrialization. The zone has a 24% growth rate. The GDP contribution of this zone is also impressive. It contributes10% of the whole nation’s GDP.
Another free zone is DMCC or the Dubai Multi Commodities Center. It has a remarkable reputation of having more than seven thousand registered companies actively operating in Dubai as per 2013 survey. This zone is rapidly progressing from an economic perspective.
Moreover, the retention rate is almost touching the 100% milestone, and the growth rate estimated to be more than 25%, which is undoubtedly remarkable. According to the 2015 trade survey, this particular free zone has contributed 12 percent of Dubai’s total GDP.
All these along with several other prime FTZ in Dubai such as the Dubai Media City, the Dubai internet City etc. are giving an impressive economic forecast in the coming years. You need to know how to start a business in Dubai. The authorities operating in each zone have already forecasted huge expansions of their trade radius by upcoming years.
What does it need to apply for a Free Zone company in Dubai?
Following are the requisitions needed to initiate free zone trade in Dubai:
Steps to register a Free Zone company in Dubai
Steps of registering a company may differ from one zone to another in Dubai, but there are some procedures and paperwork that are common in all FTZ. Below are those common procedures:
Categorize Free Zones in Dubai
Dubai free zone has been classified under three trading systems. These are:
Cost evaluation to start a company in Dubai Free Zone
Again, the cost varies from one area to the next but expenses are strongly based upon office rental cost, warehouse lease per square meter, company registration fees and finally various license fees. Following is the list of general costs at an approximation rate:
Considering all these three classifications, there are more than 30 Free trading zones situated in Dubai that are providing services to entrepreneurs who reside and engaged in corporate activities in Dubai. Some of the prominent free trade zones are listed below:
How many free zones are in Dubai?
There are more than 30 Free Zones operating in Dubai.
What is the most famous free trade zone in Dubai?
There are many but among those Dubai Airport Free Zone is in the top rank.
What is the charge for making a company license in the free trade zone?
You have to pay AED 15,000 for this license.
How to register a company outside the free zone in Dubai?
To know detail about company registration outside the free zone in Dubai: click here.