Procedures for establishing a company in the free zone

Procedures for establishing a free zone company. The Dubai Free Zone is considered an ideal destination for individuals seeking to establish a company in Dubai, thanks to a group of factors, including the distinctive geographical location, ease of international trade, low fees, modern infrastructure, and other features. In addition, the Dubai Free Zone provides a favorable legislative and legal environment for business operations, which includes intellectual property protection, freedom to transfer funds, and no income or capital taxes on the facility. Companies in the free zone can benefit from the facilities available in the field of international trade, as work and travel visas are issued quickly and easily, and customs clearance procedures for goods, shipments and services are facilitated. Moreover, it is possible to obtain more business opportunities, expand the circle of customers and suppliers in regional and global markets, and achieve more growth and prosperity in business.

Establishing a company in the Dubai Free Zone

Establishing a company in the Dubai Free Zone is an interesting and important process at the same time, as it provides you with the opportunity to launch your own business and take advantage of the evolving economic environment and government features available in Dubai. By establishing a company in the Dubai Free Zone, you will obtain many advantages and privileges that will help you achieve your success and grow your business.

First, Dubai Free Zone has a distinguished investment environment, providing supportive government legislation and regulations, advanced facilities, and diverse services that make it easy to establish and operate a business. Dubai’s strong and stable legal system also provides a business-friendly environment and helps provide protection to companies and investors.

Secondly, Dubai Free Zone offers a wide range of government services available online, making it easier for you to carry out the administrative procedures necessary to establish your company. In addition, Dubai Free Zone provides business support and guidance services to investors, helping you expand your business and achieve your goals.

Third, the Dubai Free Zone offers a range of attractive features for businesses, such as full tax exemptions on profits, full ownership of foreign companies, and no restrictions on profit shifting and local hiring. The Dubai Free Zone also provides areas for warehousing, manufacturing, distribution and logistics services, making it an ideal destination for companies that rely on import and export.

Finally, Dubai Free Zone is characterized by cultural and social diversity that makes it an ideal place to work and live. With a great community and a diverse and evolving business environment, you can take advantage of opportunities to expand your networks and develop your personal and professional relationships.

In short, establishing a company in Dubai Free Zone is an ideal choice for startups and existing companies that want to grow and expand. Thanks to the distinguished investment environment, government benefits and available services, you will get a strong start for your business and will be able to achieve your success in the Dubai Free Zone.

Procedures for establishing a free zone company

Free zones are considered one of the most important economic centers in the United Arab Emirates, providing an ideal business environment for local and international investors to start and operate businesses. These free zones provide great facilities such as complete freedom in company ownership, easy financial transactions, and access to a global market. In this context, we will take a look at the basic procedures for establishing a company in the free zone. Procedures for establishing a free zone company:

1. Planning and study: Before starting any establishment process, you must conduct a comprehensive market study to understand demand, supply and competition in the target market, in addition to developing a detailed business plan for your project.
2. Location selection: Choose the appropriate free zone for your business, taking into account the available infrastructure and operational facilities provided.
3. Registration and licenses: Submit an application to establish the company to the local authorities in the free zone, obtain the necessary licenses and register in the commercial registry.
4. Choosing a company type: Determine the appropriate company type for your business, whether it is a limited liability company, a sole proprietorship, or a one-person company.
5. Determine capital: Determine the required capital for the company and transfer it to the bank account designated for the company.
6. Obtaining additional licenses: You may need additional licenses depending on the type of business, such as building permits or security and safety permits.
7. Open a bank account: Open a bank account for the company, transfer capital, and manage financial transfers for the company’s business.
8. Office rental: Choose a suitable office for the company within the free zone, complete the contract and pay the required rent.

Tasks necessary to establish a company in the free zone

Here is a list of the basic tasks that must be completed in order to establish a company in the free zone:

1. Choosing the type of company : Determine the type of company you wish to establish (such as a limited liability company, sole proprietorship, or joint stock company).
2. Choosing a free zone : Select the free zone in Dubai that suits your company’s activity.
3. Submit a registration application : Submit a registration application for your company to the chosen free zone authority. Information such as company name, type of activity, and shareholder information must be provided.
4. Approvals and licenses : Wait for official approvals from the relevant authorities. You will need to receive the necessary approvals and licenses before moving forward.
5. Signing contracts and paying fees : After approval, you may need to sign the required contracts with the authorities and pay the required fees and capital.
6. Capital contribution : Providing the required capital in accordance with local laws and free zone regulations.
7. Sign contracts with managers and employees : Sign contracts with managers and employees and calculate the necessary salaries, benefits, and insurance.
8. Residence and work visas : Submit applications for residence and work visas for foreign managers and employees if they are required.
9. Opening a bank account : Open a bank account for your company for financial transactions and business procedures.
10. Office or commercial space rental : Rent the office or commercial space required for company purposes.
11. Compliance with local procedures : Follow all necessary local procedures and regulations and ensure full compliance.
12. Starting operational operations : Once all procedures and preparations are completed, you can start the operational operations of your company.

Remember that the procedures for establishing a company in a free zone depend on the type of company and the chosen free zone, and some details may differ. It is always preferable to cooperate with local consultants specialized in establishing companies to ensure full compliance with local laws and procedures.

Read also:  Benefits of investing in the Dubai Free Zone

The cost of establishing a company in the Sharjah Free Zone

The cost of setting up a company in Sharjah Free Zone can change based on the type of company and support services you need. However, here is a general estimate of the costs that may be expected:

Cost of licenses and registration: The cost of licenses and registration varies depending on the type of company (sole proprietorship, limited liability company, or limited liability company) and the activity carried out by the company. This cost may range from several thousand to several tens of thousands of UAE dirhams.

Cost of land or offices: If the company needs space in the free zone, there will be a cost to rent or purchase the office depending on the space and location. These costs vary greatly.

Additional Services Fees: There may be additional fees for additional services such as logistics services, legal services, financial services, etc., depending on the company’s needs.

Insurance fees and financial guarantees: Incorporation may also require paying insurance fees or providing financial guarantees to support business operations.

Please note that these costs are general estimates and may vary significantly based on individual circumstances and company requirements. It is always advisable to speak with a local consultant who specializes in establishing a company in the free zone to obtain an accurate estimate of the costs and procedures required in the Sharjah free zone.

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Documents required to establish a company in Dubai Free Zone

The paperwork required to establish a company in the Dubai Free Zone may vary slightly depending on the type of company and local legal arrangements. However, it usually includes the following basic documents:

• Registration application form: contains company information such as name, business activity, shareholders, and company type.
• Investment Agreement Form: If the company requires foreign approval.
• Incorporation instruments: A document containing information about shareholders and their shares in the capital.
• Authorization to the legal partner: if there is a legal partner.
• A copy of the passport and a personal photo of shareholders and directors: the photo must be recent.
• Lease contract for the office in which the company will be headquartered: The office must have a specific address and be legal.
• Source of funds report: To confirm the source of capital financing.
• Investment and licensing model: To obtain the approval of the General Authority for Business Regulation.
• Employment contract that defines the duties of key employees: Required in some cases.
• Electronic processing permit: for companies that intend to use the Internet in their business.

This is an approximate list, and it is always advisable to check the exact requirements of a particular free zone before embarking on the incorporation process.

Free zone companies law in Dubai

The laws for establishing a company in the free zone are subject to the general legal framework of the United Arab Emirates, and are often identical to the federal laws for companies and commercial activities. However, federal law provides flexibility for each emirate to determine its local laws and executive regulations regarding free zones.

Below are some of the main points that may be covered by the laws for establishing a company in a free zone:

• Company Incorporation: Establishing a company in the Dubai Free Zone requires submitting a formal application and complying with the specified terms and requirements. You must specify the type of company to be established, such as a limited liability company or joint stock company, and determine the commercial activities to be practiced.
• Basic capital: The basic capital of the company must be determined, which varies according to the type of company and the activity carried out. In some cases, there may be special requirements for core capital in free zones.
• Administrative procedures: It includes many administrative procedures such as registering the company, determining the responsibilities and rights of partners, and committing to financial disclosure and annual reports.
• Licenses and Permits: There may be special requirements for obtaining licenses and permits to conduct specific business activities in the free zone.
• Foreign investment: Dubai free zones provide opportunities for foreign direct investment, and their laws regulate controls and facilities related to foreign investment.

Please note that this information is only a general overview, and local law and legislation may change over time. Therefore, it is recommended to consult with a competent lawyer or legal consultant to obtain more detailed and accurate information about the laws of free zone companies in Dubai.

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Types of companies that can be established in the Dubai Free Zone

Several types of companies can be established in a free zone in Dubai, and some of these types include:

1. Limited Liability Company: It is the most common form that allows shareholders to contribute a specific capital and be responsible for the company’s debts in proportion to this contribution.
2. Sole proprietorship: where the owner is one and is responsible for all debts and obligations of the company.
3. Public Joint Stock Company: It is the one whose capital is divided into shares that are tradable on the financial market.
4. Wholly foreign-owned company: A company that foreigners can establish and wholly own without the need for a local partner.
5. Joint company: where a number of people or companies cooperate to operate the company together and bear responsibility for debts and losses in a certain percentage.

The conditions and requirements for establishing these companies vary depending on their types, according to UAE laws and legislation.

Advantages and obstacles to establishing a company in the free zone

Establishing a company in the Dubai Free Zone comes with a set of advantages and disadvantages. Here’s an overview of some of these advantages and disadvantages:

Advantages of establishing a company in the free zone:

1. Tax Exemption : Free zones in Dubai are famous for providing complete exemption from taxes on profits and income for companies for a period of up to 15 or 50 years, renewable. This can be a huge advantage for startups and investors.
2. Full Ownership : Foreigners can own 100% of their company’s shares in Dubai free zones without the need for a local partner.
3. Easy access to regional and global markets : Dubai is a hub for global trade and logistics, making it easier for companies to access regional and international markets easily.
4. Advanced infrastructure : Dubai is characterized by advanced infrastructure and modern facilities that facilitate business and living in the region.
5. Simple incorporation procedures : In general, company incorporation procedures in Dubai free zones are relatively simple and quick compared to some other places.

Obstacles to establishing a company in the free zone:

1. Establishment and maintenance costs : Although taxes are exempt, there are costs for establishing and maintaining a company in free zones.
2. Restrictions on activities : Free zones may impose restrictions on the activities of some companies or require specific standards.
3. Local Laws and Regulations : Laws and regulations change from time to time, and companies must comply with them strictly.
4. Recruitment issues : There may be difficulty recruiting skilled labor at affordable prices in some industries.
5. Competition : There can be significant competition in some industries in free zones.
6. Intellectual Property Laws : You need to comply with intellectual property protection laws and relevant licenses.

It is important that you conduct a careful feasibility study and consult with specialized legal and accounting advisors before deciding to establish a company in the free zone. Carefully defining your needs and goals will help you assess whether a free zone is the right choice for your business.

Itqan Company services for establishing a company in the free zone

Itqan Company provides comprehensive services for establishing a company in the free zone in Dubai. These services include, but are not limited to:

1. Company establishment consulting: Providing advice and guidance to choose the appropriate type of company and the appropriate free zone and determine the legal and administrative requirements.
2. Preparing legal documents: such as registration application forms, investment agreement forms, incorporation deeds, and other necessary documents.
3. Assistance in arranging capital: Assistance in determining the required capital and arranging it in a manner consistent with the requirements of official bodies.
4. Mediating with government agencies: facilitating the registration process and obtaining the necessary licenses and approvals from the competent authorities.
5. Assistance in opening a bank account: Providing support in opening a bank account for the company to manage financial matters.
6. Providing administrative support services: such as providing temporary offices, reception services, telephone communication, and correspondence management.
7. Providing legal and accounting services: Providing advisory, legal and accounting services to ensure the company’s compliance with local laws and legislation.
8. Follow up and monitor legal procedures: Monitor the progress of legal procedures and deadlines and ensure the company’s compliance with legal standards.

These services help facilitate and simplify the process of establishing a company in the Dubai Free Zone and reduce the costs and effort required for this.

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