Investors would like to know what the cost of a business license in the Dubai Free Zone is because Dubai is the first Arab country to lead free zone models, offering many attractive privileges along with a variety of investment incentives for foreign companies. This is in addition to the ability for corporate owners to collect 100% of their free zone subsidiaries without taxes. About 24 free trade zones have been established for many specific sectors and industries, including information and communications technologies, finance, media and healthcare. Follow this article to find out the cost of a commercial license in the Dubai Free Zone .
Cost of a business license in Dubai Free Zone
The cost of a business license in the Dubai Free Zone varies based on several key factors, including:
- Type of license: Commercial licenses vary between industrial, commercial, and service licenses, and each type has a different cost.
- Company size: Small and medium companies may require lower fees compared to larger companies.
- Number of activities: Adding multiple business activities may increase the cost of the license.
- Location: The free zone you choose affects the cost. Some free zones have higher prices than others.
- Duration of the license: The license can be for a period of one year or more, and the longer the period, the higher the cost.
- Additional Services: Services such as office rental, visas, and logistics can add to the overall cost.
- Insurances and guarantees: Some licenses require certain insurances or financial guarantees, which increases the cost.
Using a company like Itqan, we can facilitate this process and provide advice on the best options that suit your needs and budget.
Types of business licenses in Dubai
Here is a table showing the types of commercial licenses in Dubai with a brief explanation of each type:
| Type of license | the description |
|---|---|
| Commercial license | For commercial activities such as sale, distribution, import and export of goods. |
| Industrial license | For industrial activities such as manufacturing, production and assembly. |
| Professional license | For professional activities such as consulting, legal, medical, and educational services. |
| Tourist licence | For tourism-related activities such as travel agencies, hotels and tour organisation. |
| Agricultural license | For agricultural activities such as farming, hunting, and livestock. |
| Free license | Commercial activities in free zones include import, export and re-export. |
These types provide a diversity of economic activities that can be practiced in Dubai, taking into account the conditions and requirements of each type of license.
Steps to obtain commercial licenses in the free zone
Obtaining commercial licenses in the Dubai Free Zone requires following specific steps to ensure compliance with all laws and procedures. Here are the basic steps:
- Determine the type of business activity: Choose the type of business activity you wish to engage in, whether it is commercial, industrial, professional, or tourism.
- Choosing a trade name: Choosing a trade name that complies with the conditions specified by the Department of Economic Development.
Check name availability and register. - Determine the legal form: Determine the legal form of the company (such as a limited liability company, joint stock company, sole proprietorship, etc.).
- Obtaining initial approvals: Submit a request to obtain initial approvals from the relevant authorities such as the Department of Economic Development and other government agencies if necessary.
- Preparing the articles of incorporation and the establishment agreement: Preparing and signing the articles of association (for limited liability companies) or the establishment agreement depending on the type of company.
- Selection of business location: Identifying and renting a suitable location for conducting business activity. Obtaining a notarized lease contract from the relevant authorities.
- Payment of fees: Pay the fees required to obtain the commercial license.
- Obtaining the license: Receiving the commercial license after final approval.
- Registration with government agencies: Register the company with other government agencies such as the Ministry of Human Resources and Emiratisation and the Federal Authority for Identity and Citizenship to obtain work visas for employees.
These steps may vary slightly depending on the type of business activity and the legal form of the company. A company like “Itqan” can facilitate this process and provide the necessary assistance to ensure the speed and efficiency of obtaining the commercial license.
Submit the required documents:
- Submit the required documents, which include:
- A copy of the partners’ passports.
- A copy of the lease contract.
- Memorandum of Association or Foundation Agreement.
- Initial approvals.
Establishing companies in free zones
At our company, we focus on providing comprehensive solutions for establishing companies in all regions of the United Arab Emirates, including free zones. Thanks to many years of experience in this field, we are pioneers in providing company establishment consultations and services, as we help you determine the most suitable one among the different free zones based on your specific needs.
We provide integrated services that include all the necessary steps to successfully establish your company, from completing the necessary legal procedures to providing support in choosing the ideal location for your office. We are committed to providing our services with the highest quality and the lowest possible prices, which makes us the ideal choice for individuals and companies seeking to start a new business without hassle.
Thanks to our commitment and dedication to providing the best solutions, we help businessmen achieve their goals efficiently and quickly. Do not hesitate to contact us to benefit from our extensive experience and knowledge in the field of establishing companies in the Emirates. We are here to support and assist you every step of the way towards your business success.
Conditions for obtaining commercial licenses in the free zone
To obtain commercial licenses in the free zone in the United Arab Emirates, you must adhere to a number of conditions and requirements that differ slightly between free zones but share the following basic points:
- Determine the business activity you wish to engage in, as the activity must be compatible with the activities permitted in the free zone you choose.
- Choose a trade name that complies with the laws in force in the free zone. The name must be unique and not used by other companies.
- Providing passports to partners or shareholders in the company. Also submit CVs to partners or managers.
- Some free zones require a detailed business plan explaining how the business will be implemented, its goals and future plans.
- Submit a lease contract for a workplace in the free zone, such as an office or work space. This contract must be notarized and approved by the competent authorities.
- Preparing and signing the articles of incorporation or incorporation agreement depending on the type of company. The contract must comply with the legal requirements of the free zone.
- Pay the fees required to obtain a commercial license. Fees may include license issuance costs, office rental, and other related fees.
- Comply with all local laws and regulations of the free zone, including additional licenses if required.
- Obtaining final approvals from the free zone administration after reviewing the documents and confirming that all requirements are met.
- Some free zones may require financial insurance or guarantees to ensure compliance with all laws and regulations.
- Registration with other government agencies if required, such as the Ministry of Human Resources and Emiratisation for work visas.
These conditions help ensure that the company operates within legal frameworks and successfully achieves its business objectives. Specialized companies such as Itqan can help you meet these conditions and speed up the process of obtaining a commercial license in the free zone.
The importance of commercial licenses for establishing companies in the free zone
Commercial licenses are one of the basic elements in establishing companies in the free zones of the United Arab Emirates, and they are of great importance, which is evident in the following points:
- Obtaining a business license ensures that the company complies with all local laws and regulations. This license proves that the company operates within the required legal frameworks, which protects it from violations and penalties.
- The commercial license determines the type of activity that the company can practice. This helps ensure that the company operates within the scope of permitted activities, and prevents it from expanding into activities that are not permitted in the free zone.
- Some services, such as opening commercial bank accounts, contracting with suppliers, and hiring employees, may require a business license. Having a license facilitates these operations and provides additional facilities.
- A trade license enhances the company’s credibility in the eyes of customers, suppliers and business partners. It reflects the seriousness and professionalism of the work and helps build a strong reputation in the market.
- Free zones offer benefits such as tax exemptions and full foreign ownership. The presence of a commercial license enables the company to benefit from these advantages in accordance with the authorized activities.
- The commercial license contributes to facilitating expansion and growth. By obtaining the license, the company can expand the scope of its activities or open new branches in other regions.
- For investors, a business license provides confirmation that the company follows legal and regulatory standards, which enhances the company’s attractiveness for investment and strategic partnerships.
In the end, a commercial license is not just a document, but rather an essential element to ensure the success and continuity of the company in free zones, and helps achieve commercial goals in an organized and legal manner.
Establishing companies in free zones
Steps to establish business in the free zone
There are many steps that must be taken to establish a business in Dubai’s free zones , including: Determining the type of activity, as this is the first step towards obtaining a business license.
- The activity identifies the parties associated with this activity and the legal forms it allows. Capital figures and capital requirements vary from region to region.
- Enter the business name, because it is the name that distinguishes the organization from others.
- There are conditions and rules based on which it is done
- Choose a trade name.
- Apply for a trading license and it depends on the activity you undertake.
- Choose offices and work facilities to track work from.
- Obtain initial approvals from the relevant authorities.
At our company, we help you take all the necessary steps to start a business. We can follow these steps and work to complete the procedures, all of this happening as quickly and cheaply as possible. You can contact us by calling our company number.
In conclusion, the cost of a business license in Dubai Free Zone is a vital factor to consider when starting a business in these areas. Costs vary based on license type, company size, location, and additional services required. Accurately understanding these costs can help companies plan better financially and make informed investment decisions.
Dubai’s free zones provide an ideal environment for businesses thanks to their unique benefits such as tax exemptions and full company ownership. However, managing the costs associated with a business license remains an essential part of the success strategy.
Frequently asked questions about a commercial license in the Dubai Free Zone
What is a trade license?
A commercial license is a legal document that authorizes individuals or companies to practice a specific commercial activity within the country. In Dubai free zones, a license is necessary to operate business activities in accordance with local laws
How long does the process of issuing a commercial license in free zones take?
The process of issuing a commercial license may take from several days to several weeks, depending on the speed of completion of documents and procedures, as well as the type of license and the free zone in question.
What are the costs associated with obtaining a business license in free zones?
Costs vary based on license type, company size, location, and additional services required. This includes license issuance fees, office rental costs, and other additional fees.
Can I change my business activity after obtaining the license?
Yes, your business activity can be modified after obtaining the license, but this may require submitting a license amendment application and paying additional fees, in addition to obtaining the necessary approvals from the free zone administration.
