Starting a free zone company in Dubai involves following specific procedures laid out by the authorities. Free zones are designed to support business activity within a controlled framework. Each free zone has its own rules, but many of the steps are similar.
This article outlines the main points to consider for your freezone company setup.
Choose a business activity:
The first step involves selecting the type of business activity. Free zones allow a wide range of activities including trading, services, industrial work, and media. Each Free zone may have specific activity lists, so reviewing those helps match the business goals with the available options.
Select the suitable free zone:
Dubai has several Free zones, and each one is designed to support specific industries. For example, Dubai Media City focuses on media companies, while Jebel Ali Free zone suits industrial and trading businesses. Choosing a Free zone that matches the business activity ensures smoother registration and access to appropriate facilities.
Decide the legal structure:
Depending on the Free zone, businesses can be set up as a Free zone Establishment (FZE), Free zone Company (FZCO), or a branch of an existing company. The choice of structure depends on factors like the number of shareholders and business goals. It’s good to check the rules of each Free zone before making a decision.
Prepare the necessary documents:
Typical documents include passport copies of shareholders and managers, business plan, application form, and proof of address. Some Free zones may ask for additional documents such as a No Objection Certificate (NOC) if the shareholder is already a UAE resident.
Submit application and pay fees:
Once the documents are ready, they are submitted to the Free zone authority. Each Free zone has its own application process and fees. The fees depend on the type of business activity, license, and office space selected. Payment is made at the time of submission or once initial approval is granted.
Set up office space:
Most Free zones involve businesses to have an office space or a flexi-desk within the zone. The office size and type vary based on the business activity and license type. After choosing the space, an agreement is signed with the Free zone authority.
Collect business license:
Once all approvals are in place and fees are paid, the Free zone authority issues the business license. This document allows the company to start operations within the Free zone.
English