According to the World Bank, Dubai is the 33rd easiest place where a foreigner can easily set up a business. Moreover, English is widely known there and the process to get register your company as well as to work there becomes a price of cake for you. Except for foreign banking and oil and gas companies, all others are exempted from the income taxes. To add the benefits, there is no gains tax applicable in Dubai. There is no value-added taxes as well as sales taxes in Dubai that make it the biggest attraction for setting your company if you are looking for investing in a foreign place.
DUBAI FREE ZONE AREA
Free zone are the economic areas in Dubai that are embellished with the tax concession and custom duty benefits for the sake of propagation of business in those areas and being the biggest attraction to the foreign investors. There are more than 30 such areas in Dubai and they have a flexible system of rules and regulations. Some of these areas are providing some specific business activities to be operated there while major of them have a vast spectrum of business activities that are available for foreign activities. Moreover, there is an easy recruitment process for the labor. There is a requirement of just AED 24,500 for the business register in Free zone area of Dubai Free Zone company registration. There is no need of a local sponsor there
These areas are governed by their respective authorities and have a few specific facilities available there.
Jebel Ali Free zone are is around the seaport and offers 32% subsidy for the companies. Jebel Ali Free zone Authority is the one that regulates that. Similarly, the Dubai Multi Commodity Center DMCC has more than 3500 companies registered with it. Dubai Design City is also one of these free zone areas and the Dubai Silicon Oasis is also the best free zone area and as the name indicates it is specific for certain business activity. The Dubai International Finance Center DIFC is the free zone area mainly known for finance business.
STEPS FOR COMMERCIAL REGISTRATION IN FREE ZONE AREA
The paperwork is slightly easy and there is minimum paperwork and it takes a short duration to do the business in free zone area in Dubai.
You need to start with a business plan in which you should be clear about the type of legal entity that you want to opt. Then you should have an idea of the budget and then having the required information about the commercial register process, you can kick start. There is 2 type of companies that are Free Zone Limited Liability Company LLC or a Free Zone Company and a Free Zone Establishment.
Free Zone Company is the one that will give you 100% ownership and will make you evade every restriction. Even a single individual can register it and make it work and there is 0% tax that you will be liable to pay. You can liquidate such company at any time and the renewal charges are also a minimum value. With that, you can enjoy a variety of services that you can provide for and you can also expand your business to an international level. This will allow you to open your bank too. Free Zone Establishment is the one that needs only shareholders while the Free Zone Company can have more than 2 shareholders too. Moreover, both will have no import or export taxes and the profits and capital all belong to the owner in the free zone areas.
First of all, you need to know about the trade name. you need to cross-check whether that name has been previously registered or not with the Department of Economic Development.
You need to have business license. For that, you have to apply by filling the application form. The manager or the director needs to fill the Registry Identification Code Form RIC. You should be clear about the shares of the different partners and their liabilities. You need to provide a Board Resolution providing the manager or the director in the original as well as the notarized form. The manager and director should get the Power of Attorney from the partners. You also need to provide the passport copies of all the foreign members and get them attested. With that, propose an Article of Memorandum and Association. With that, the information of the capital needs to be given in a bank statement form.
You need to rent or buy a place where you can set up your business. It is easy to lease a space in free zone area in Dubai.
Then you will get a business license and also visa processing will get started with that.
LIST OF FREE ZONE COMPANIES IN DUBAI
- Hospira Pharmaceutical company
- Aurion Setup Consultants
- ProSoft Technology Middle East
DISADVANTAGES OF BUSINESS IN FREE ZONE AREA
But before making a decision, you need to know the whole of it and there are certain restrictions that also come along and you should be aware of that too. First of all, the Free zone company can not be able to operate in other areas of Dubai, so you have to be geographically restricted. They can not operate in Mainland area of Dubai. Moreover, there is a prerequisite of a fixed deposit as an investment that you need to kick start the process. You can have an office set up only in the free zone area and can not set up a branch anywhere you want. Moreover, the activities that you can carry out in a free zone area are also restricted.
So there are many benefits that the Dubai free zone is offering and they also come with some restrictions. So you need to be well acquainted with the information on how to register a commercial company in Dubai Free Zone Area. You must be aware of the trips and tips that will help you pass through the process with ease and smoothness.