Thinking of setting up a business? Of course, you are because with home working in Dubai and online products to sell, setting up a business has never been easier and less risky, and where better to set up a business than in the UAE? It is one of the most attractive countries in the world for investment. This is largely thanks to the free zone immigration Dubai policy that you can take advantage of.
If you want to do business in the UAE and want to benefit from low taxes, free trade zones are an excellent option.
Read on as we explain what a free zone is, how it works, and what benefits can be derived from opening a company in Dubai.
What Is a Free Zone?
A free zone is an area under regulation by the government. If you’re looking to build a business, it offers 100% ownership of your company and it’s not subject to taxes.
Businesses in free zones are also exempt from corporate income taxes, withholding taxes on payments made abroad, import duties on capital goods, and raw materials used for production purposes.
The most popular free zones in Dubai include Dubai International Financial Centre (DIFC), Jebel Ali Free Zone (JAFZA), and Dubai Land Department (DLD).
There are so many different names given to the Dubai free zone visa, which you will be required to obtain as a free zone company. There are a few free zone visa types which can be any of the following:
- Investor visa
- Employment visa
- Dubai free zone visa
- UAE free zone visa
It is important to note that these can be a temporary visa or an entry permit, depending on which type of free zone visa you apply for. It is also important to note that there is a free zone visa process with a free zone visa application. These are crucial for your free zone company, and are managed under free zone authority.
Free Zones Make UAE Attractive
If you are going to choose the right strategy for your free zone immigration in Dubai, let’s start by explaining what it means. Free zones are areas that have special rules regarding business activities, such as tax exemptions, customs benefits, and other advantages.
The advantages of free zones are significant: They give you access to a highly educated workforce and help get your products on the market faster than if you were working from the mainland country.
They also provide an opportunity for foreign investors who want to expand their business in a new place without having to worry about investing in office space or hiring local employees as a traditional company would do.
Types of Free Zones in the UAE
There are free zones in Dubai, Abu Dhabi, Sharjah, Ajman, and Umm Al Quwain. These are the emirates that have the right to establish a free zone. Each emirate has its own laws and regulations and policies. You will need to be aware of these if you want to properly conduct your business there.
The easiest way is to choose a reputable company that knows all there is about immigration law and procedures for Dubai Free Zones.
An important point to remember is that each free zone in Dubai, Abu Dhabi, Sharjah, and Ajman has different rules and regulations. This means you will need to ensure that your company complies with them if you want to conduct business there.
The idea behind this is that it makes it easier for companies to do business. They don’t have to worry about losing profits due to high taxes. They can focus on doing what they love instead – making money.
Mainland Company vs. Free Zone Company in Dubai
As a potential investor in Dubai, you may be wondering whether it would make more sense to set up a free zone company instead of a mainland company. The answer depends on your particular situation and goals.
As mentioned above, free zone companies have the same rights as other companies in the UAE (although they are not subject to the same regulations). They are also not subject to taxation at all (most other companies pay corporate tax and value-added tax).
Finally, free zone companies do not have any restrictions on hiring employees from outside of the UAE or on transferring money from abroad into their bank accounts.
What Are Mainland LLC Companies and What Are the Benefits in Dubai?
As a Mainland LLC company, you have to operate in the UAE. This means that your business will be registered and licensed in the UAE. A Mainland LLC company is also referred to as an onshore company in Dubai.
A Mainland LLC has many benefits when compared to other businesses such as the limited liability for its owners, separation between shareholders and directors, easy administration requirements, and flexible transferability of shares among others.
You can also open bank accounts with any bank in Dubai or another country without any legal obstacles, which makes it easier for your customers to pay their bills on time or make payments online via credit cards issued by local banks
Mainland LLC companies are registered in the UAE and can operate in Dubai, Abu Dhabi, or anywhere else within the UAE jurisdiction.
If a company wishes to open a branch office outside of its home country, then it will have to be licensed for that specific operation. In this case, it will need an offshore license to operate without being legally bound by any foreign regulations.
Key Factors You Need to Consider Before Deciding on a Free Zone
There are many key factors you need to consider before deciding on a free zone. These are listed below:
Tax Benefits
The Dubai Economic Department issues commercial licenses for free zones, allowing businesses to get tax benefits. These include tax-free income and capital gains as a business owner through the Dubai International Financial Center (DIFC).
Business Owner Profile
If you’re starting your own business in a free zone, or if you have an existing business that has reached its limit of growth within the UAE, then it might be time to open up shop in one of these designated areas.
Commercial Infrastructure
In addition to offering tax benefits and other incentives, many Dubai Free Zones have great infrastructure and support services. They are ready-made solutions that can help get your company off the ground quickly.
Don’t worry about allocating extra funds for new equipment or training staff members for specialized tasks like computer programming or accounting services—all of which would cost much more money than what is already saved by operating out of a free zone!
But you do need to consider these commercial costs when setting up your Free Zone in Dubai or the wider UAE:
• Commercial license
• Commercial registration
• Commercial support services
Commercial Services are vital for companies that want to operate within a free zone, which include access control systems (ACS), office space rental, utility services like electricity and water supply along with telecommunications equipment such as broadband internet connections
Can a Company Be 100% Foreign Owned in Dubai?
Yes, you can be a 100% owner of a company in Dubai, UAE. The process is similar to any other business setup in Dubai except that you need to have a NOC (No Objection Certificate) from the Ruler of Dubai and get it stamped by the Ministry of Economy.
The required documents are:
- Business plan
- Proforma Invoice (to be attached with the application)
- Articles of Association/Memorandum and Article of Association
- Company logo (if available)
What Are the Requirements for Business Set-Up in Dubai, UAE?
To set up your business in Dubai, you need to have a trade license. To get this, you will have to submit your business plan (which should include information about the type of business and expected activities). You’ll also need documents proving that you are eligible for registration, such as the following:
- Proof of citizenship or residence permit
- Passport
- UAE National ID card
- Medical and Emirates ID card
If you are an expatriate, you should also provide details of your visa and the original license to operate in Dubai. If you have a foreign partner, you need to provide his/her documents too, such as a passport, UAE National ID card, and Bank statements (if applicable). For your Medical and Emirates ID card, you may need to provide a blood test when you get this card. It can be granted by the Emirates ID Services, and usually takes 7-10 working days to become valid. Your Medical and emirates ID card are part of your regular UAE ID card, which is required for foreign nationals for your immigration file.
The company’s registration certificate is issued by the Department of Economic Development (DED). During this process they will also do a residence visa stamping as proof of a residence visa as part of the visa application process.This certificate can be submitted when applying for a business license (or at any time after that).
How to Apply for a Visa in Dubai, UAE?
You need a UAE visa to enter. even if you are only staying in Dubai. You can apply for your visa at the UAE consulate in your country or submit an online application. This is a visa process free zone visa holders halved to do. If you apply online, you will need to provide the following documents:
- Passport
- Visa application form
- Passport photos
- medical and Emirates ID card
How Long Does It Take to Get a Business License in Dubai, UAE?
The process of getting a business license in Dubai, UAE can take anywhere from 1-3 months. The process is handled by the Dubai Land Department. However, there are certain steps that you should take before applying for your business license that is not handled by this department.
Check the requirements for your business in Dubai. To get a business license, you must first have a company registration in Dubai. This process can take anywhere between 1-3 months.
You should have a registered office in Dubai and all other documents required by the Department of Economic Development (DED) to ensure that you meet their regulations.
How Much Does It Cost to Start a Business in Dubai, UAE?
Here are the key costs to starting a business in Dubai, UAE:
- Business license fee (varies by type of business): $2,000 to $10,000
- Signing deposit (varies by type of business): $1,500 to $6,000
- A business account with Emirates NBD: $90 per month plus fees depending on your type of account and how much you withdraw from your account each month.
The minimum balance required is AED15k ($4k). You will also need cashier checks or wire transfers to open this account.
If you’re looking for more information about Dubai, check out our in-depth guide to starting a business there. The cost of living in Dubai is high, but the country is the 10th most affordable place to live in the world.
Choose Your Strategy Wisely When Deciding Where to Start Your Business
The right strategy for your free zone immigration Dubai business will depend on the type of business you want to start, and whether or not you have experience in that area. If you’re looking to open up a new office or branch, it might be best to consider starting small with a store before moving on to more ambitious projects.
The location of your free zone immigration Dubai business can also play an important role in deciding which strategy is best for you. Dubai and the UAE are always ahead of the game, most recently changing their working days to align with global markets.
If there are already established businesses nearby, it may be wise for newcomers like yourself to choose a different location instead of competing for customers with other companies who’ve been open for years.
Even if you’re starting your free zone immigration Dubai business with only one or two employees, there will still be plenty of challenges to face. Having said this, it is worth noting that Dubai came out well from the global financial crash of 2008-2009. Make sure you consider all the pros and cons before choosing which strategy is right for you!
Understand All About Free Zone Immigration Dubai Before You Invest
It is important that you understand the different types of free zones in Dubai and how they can help your business grow. When choosing a strategy for your company, it is important to take into account all aspects of your business, including the local regulations on foreign ownership.
The best way to do this would be by contacting us directly so that we can assist with any queries or concerns you may have about starting up new businesses in Dubai.
For help and advice on taking advantage of the free zone immigration Dubai, be sure to contact us today.