Dubai Free Zone

In the UAE, free zones are a major platform for business development and investment promotion. These areas represent an ideal environment for local and international companies that wish to establish and expand their business activity. Thanks to advanced infrastructure, flexible legislation and modern facilities, free zones in the UAE are a great attraction for businessmen and investors alike. Free zones in the UAE are characterized by providing a wide range of services and benefits, including access to the regional and global market, Facilitated import and export operations, no taxes on profits, and facilitation of licenses and permits. Free zones also provide logistical and technical support to companies through advanced infrastructure and excellent logistics services. By providing a flexible and stimulating business environment, free zones in Dubai, the United Arab Emirates, foster innovation and encourage investment in diverse sectors such as manufacturing, logistics, technology, and tourism. , trade, and financial services. Free zones in the United Arab Emirates are considered a vital hub for the national economy, as they contribute to enhancing economic development, providing job opportunities, and stimulating innovation and competitiveness.

Dubai Free Zone

Dubai Free Zone is a special economic zone that provides benefits such as tax exemption, full foreign ownership, advanced infrastructure, procedures for establishing a company in the Dubai Free Zone , and excellent logistics services, making it an attractive destination for global companies and investors. Dubai Free Zone has many advantages that make it a preferred destination for companies and investors from around the world. Here are some key advantages:

1. Tax exemption: Complete exemption from corporate tax and personal income tax.
   Exemption from value added tax (VAT) in some cases.
2. Full foreign ownership: The possibility of full (100%) ownership of companies by foreign investors without the need for a local partner.
3. Excellent Infrastructure: It provides world-class infrastructure that includes ports, airports, and advanced road networks.
   Provides high quality office, commercial and industrial facilities.
4. Ease of establishing a business: quick and simple establishment procedures.
   Providing comprehensive support services, including issuing licenses and visas.
5. Strategic location: A distinctive geographical location that allows quick access to global markets.
   Dubai is considered a major gateway between East and West.

These advantages make Dubai Duty Free an attractive destination for companies looking for a business environment conducive to growth and expansion in global markets.

How to establish a company in free zones

Establishing a company in the free zones in the United Arab Emirates requires following several steps. Below is an overview of the main steps of this process:

1. Market study and planning: Before starting the process, you must study the local market and determine the type of company you want to establish and the business activities you want to practice in the free zone.
2. Choosing a free zone: You must choose a free zone that suits your company’s needs, which may differ with regard to infrastructure, services provided, rules and legislation.
3. Determine the legal type of company: The company can be a sole proprietorship, a limited liability company, or a joint stock company, and this depends on the company structure and the requirements of the business activity.
4. Submitting the application and submitting documents: After choosing the region and determining the legal type of the company, you must submit an application to establish the company to the chosen free zone authority, submitting all required documents such as passports, identity photos, contracts, etc.
5. Obtaining approvals and licenses: After submitting the application, you must wait for the application to be reviewed and to obtain the necessary approvals and licenses from the relevant authorities in the free zone.

The financial cost of establishing companies in free zones 

Incorporating a company in a free zone in Dubai and in the UAE varies based on several factors, including the type of company, the size of the planned business, and the legal and administrative requirements of the specific free zone. However, a rough estimate can be given of the costs that may arise from establishing companies in these regions:

1. Registration and licensing fees: Registration and licensing fees must be paid to the relevant regulatory authorities, and these fees range between thousands and tens of thousands of UAE dirhams depending on the type of company and its activity.
2. Legal consultation fees: You may need to consult a lawyer or legal advisor to help you prepare legal documents and ensure compliance with local legislation. The cost of this consultation varies depending on the advisor and the scope of services provided.
3. Administrative services fees: You may need to pay administrative fees such as opening a bank account or renting an office or work space in the free zone.
4. Insurance and registration fees: Some companies may need to pay insurance or registration fees to comply with local legislation.
5. Labor Costs: If you intend to hire employees, you must factor in the costs of payroll, fringe benefits, and Social Security.

Documents required to establish companies in free zones

The documents required to establish a company in free zones in the United Arab Emirates may differ slightly between different free zones according to the type and legal structure of the company, and the requirements of local authorities. However, here is a general list of documents that are often required:

1. Registration application form: This is the document that must be filled out to request company registration.
2. Agreement document or articles of association: This is a document that defines the company’s structure, the powers of the officials, and the type of business it will carry out.
3. Passports and copies of residence visas: for shareholders, directors and any other partners who may be necessary.
4. Personal photos: for shareholders and directors.
5. Certificates certified by banks: to prove the efficiency of shareholders in financing the company.

Free zones in the United Arab Emirates

The UAE is considered one of the best commercial markets for investment in the world because of the facilities and advantages it offers to foreign and Gulf investors in particular.

1. Dubai Free Trade Zone (Jebel Ali Free Zone – JAFZA): It is considered one of the largest free zones in the world, and includes many companies in various sectors such as logistics, manufacturing, and services.
2.  Dubai Free Zone: It includes several free zones such as the Dubai Media Zone, the Dubai Internet Zone, and the Dubai Aviation Zone, and provides an ideal environment for companies operating in different sectors.
3. Sharjah Free Trade Zone (Sharjah Free Zone – SAIF Zone): Provides a developed business environment and a suitable investment climate for small and medium-sized companies, and promotes growth in the industrial, logistics and services sectors.
4. Ras Al Khaimah Free Trade Zone (Ras Al Khaimah Free Trade Zone – RAKEZ): It is considered one of the leading free zones in the UAE, and supports companies in a wide range of sectors such as industry, services and trade.
5.  Abu Dhabi Free Zone: It works to provide a flexible and innovative business environment, and encourages competitiveness and innovation in various industries.

The time period for establishing companies in free zones 

The time period for establishing companies in free zones in the UAE is usually an issue that is affected by several factors, such as the type of company, its composition, and the administrative procedures followed in each free zone. However, a general estimate of the time frame for setting up companies in many free zones in the UAE can be provided, according to common procedures:

1. National Free Zones (NAF): National Free Zones are considered one of the fastest zones in establishing companies, as companies can complete procedures within 2 to 5 business days.
2. Dubai Free Zone (DAFZA) and Jebel Ali Free Zone (JAFZA): The process of setting up companies in DAFZA and JAFZA can take between 7 to 10 business days.
3. Sharjah Free Zone (SAIF-Zone): SAIF-Zone are traditional free zones, and usually need about 10 to 14 business days to set up companies.
4.  Ras Al Khaimah Free Zone (RAK FTZ): RAK FTZ is characterized by its speed in setting up companies, as new companies can complete the procedures within 2 to 5 business days.
5.  Abu Dhabi Free Zone (ADGM): ADGM varies slightly in procedures and timeliness, and can take 10 to 15 business days to set up companies there.

Please note that these time periods are estimates and may vary based on the size and type of company and the administrative procedures requirements in each free zone. Therefore, it is always preferable to speak with an Itqan company incorporation to obtain an accurate estimate of the expected time to establish the company in the specific free zone.

Our company’s role in helping you establish a company in the free zones

Itqan Company provides many services to help establish companies in free zones in the Emirates. Here are some of the roles played by Itqan Company in this context:

1. Legal and commercial consultations:
   Providing the necessary consultations on the types of companies suitable for your business activity and legal legislation related to establishing companies in free zones.
2. Preparing documents and documents:
   Assistance in preparing and organizing the documents necessary to establish the company, such as contracts, internal memos, and financial reports.
3. Registration and licenses:
   Providing assistance in the registration process and obtaining the necessary licenses from the competent government agencies in the free zone.
4. Communication with relevant authorities:
   Representing and communicating with government agencies and various institutions in the free zone to facilitate the establishment processes and obtain the necessary approvals.
5. Coordination with local partners:
   Providing support in dealing with local partners and suppliers and providing a network of strategic relationships to support the company’s success.

Dubai Free Zone

In conclusion, Dubai Free Zone is a global model for economic development and innovation. It has succeeded in attracting foreign investments and providing an integrated work environment that supports companies and contributes to their prosperity. This region has become a global business center thanks to the great facilities, advanced infrastructure, and tax exemptions it grants to investors, making it an ideal destination for international and local companies alike.

Itqan plays a pivotal role in enhancing the position of Dubai Free Zone and achieving its future vision. By providing integrated solutions in the fields of business establishment, legal consulting, and financial services, Itqan effectively contributes to facilitating the process of establishing and operating companies within the free zone. Thanks to its deep experience and specialized team, Itqan has been able to provide distinguished services that help companies overcome administrative and operational challenges, which enhances the efficiency of their business and increases their chances of success.

The importance of Itqan Company’s role in supporting startups and investors is evident by providing training programs and workshops that enhance their skills and knowledge of the local and international market. This continued support not only contributes to the growth of companies, but also contributes to the development of the local economy and the creation of new job opportunities, enhancing Dubai’s position as a leading destination for investment and business.

In light of global economic challenges, Dubai Free Zone, with the support of strategic partners such as Itqan , remains a flexible and innovative platform that contributes to achieving sustainable development. This integration of the public and private sectors serves as a model for other countries seeking to strengthen their economies and develop their societies. Therefore, the future of Dubai Duty Free looks bright and promising more successes and achievements.

Frequently asked questions about free zones in the United Arab Emirates