Dubai is one of the most appealing emirates of the UAE, one of the most important reasons being a large number of free zones the city is surrounded by. Foreign investors interested in company registration in Dubai often choose to open free zone companies because of the many advantages the authorities offer.
Those who want to open free zone companies in Dubai must respect the regulations imposed by the local authority imposed in every free zone. However, they must also comply with the Company Law imposed in Dubai.
Below, our company formation consultants explain how to open free zone companies in Dubai. We can also assist with the registration of a free zone company in any Dubai free zone.
Features of free zone companies in Dubai
Dubai has more than 30 free zones and foreign investors can open free zone companies in any of them. Local and foreign investors can set up free zone companies in Dubai provided that they respect the legislation imposed at local and national levels.
One should know that free zone companies in Dubai are characterized by the following:
- there are two main types of free zones companies in Dubai: free zone limited liability companies and free zone establishments;
- foreign companies can also set up free zone companies in Dubai under the form of branch offices;
- the documents required to set up free zone companies are the same as when opening Dubai mainland companies;
- the registration procedure of a free zone company in Dubai is usually easier and faster compared to a mainland company;
- free zone companies can only operate in the free zones they are registered in; therefore, they cannot trade in other free zones either.
Our company registration specialists in Dubai can offer more information on the features of free zone companies.
Requirements for opening free zone companies in Dubai
Foreign investors who open free zone companies in Dubai will have plenty of benefits, among which an easy company incorporation procedure.
The following requirements must be respected when setting up a free zone company in Dubai:
- most free zones allow for single or multiple shareholders – their number will also determine the business form of the free zone company;
- the documents which need to be prepared for registering a free zone company are the Memorandum and Articles of Association;
- the share capital requirements for opening a free zone company depend on the Dubai free zone authority (each free zone has its own regulations in this sense);
- no matter the Dubai free zone, each company must apply for a license based on the activities it will undertake;
- in the case of foreigners, it is necessary to appoint a local agent to complete the company registration procedure of a Dubai free zone company.
Our local consultants can act as service agents and register free zone companies in Dubai on behalf of foreign entrepreneurs and they can put you in touch with their partners if you want to open a company in a country like Qatar.
We have also created a scheme with the benefits of opening free zone companies in Dubai:
Free zone company registration steps in Dubai
The company incorporation procedure of free zone companies in Dubai is the same as for onshore companies. The first steps will imply choosing a trade name for the company and find a location within the free zone to be used as a registered address. It is important to note that all free zones in Dubai have dedicated spaces which can be used as legal address and office spaces for developing their activities.
The next step will imply drafting and notarizing the business’ statutory documents. In the case of foreign companies, the parent company’s incorporation documents need to be translated and authenticated before being filed with the free zone authority.
The licensing procedure of free zone companies in Dubai will usually occur at the same time with the registration process, as most free zone authorities provide for one-step business incorporation procedures. The licenses are issued in accordance with the information provided in the company’s statutory documents.
With a deep knowledge of the legislation, our Dubai company formation advisors can help foreign investors set up free zone companies in Dubai.
We can also help with VAT registration in Dubai.
Advantages of free zone companies in Dubai
Most foreign investors decide to open free zone companies in Dubai because of the following benefits:
- full foreign ownership;
- quick and simple business registration procedure;
- free repatriation of profits in most free zones;
- a larger variety of business licenses compared to onshore companies;
- each free zone is dedicated to specific industries;
- each free zone has office spaces, industrial parks, and warehouses to cater to the needs of every type of company.
If you want to open free zones companies in Dubai and need guidance, do not hesitate to contact our company registration representatives.