Company Formation

HomeOur ServicesCompany Formation

Company Formation in Dubai:

 

Choosing the Right Free Zone for Your Business in Dubai

When selecting the most suitable Free Zone for your company in Dubai, there are several key factors to consider. Dubai’s Free Zones offer a unique business environment with numerous advantages that make them attractive for both local and international businesses. Here are the factors to consider when choosing the right Free Zone for your company:

Business Activity Type:

Check the requirements for your specific business activity and ensure that the Free Zone you are considering allows for this activity to be conducted freely and in compliance with local regulations.

Location

Consider the geographic location of the Free Zone and ensure it provides easy access to local and global markets. Being close to ports, airports, or other vital areas in Dubai can be advantageous.

Leverage of Benefits and Facilities:

Check the benefits and facilities offered by the Free Zone, such as tax exemptions, customs facilitation, and simplified licensing and permit processes. Ensure that these benefits align with your company's needs.

Availability of Skilled Labor and Talent:

Check the availability of skilled labor and talent in the Free Zone and how well it matches your company's needs. Some Free Zones may offer training and development programs to support the growth of businesses.

We are here to streamline all processes and provide the necessary support to ensure your business runs smoothly and successfully. Contact us today to learn more about our services and how we can help you achieve your goals in Dubai.

Essential Steps to Set Up a Company in a Free Zone in Dubai

There are many steps to follow when setting up a company in Dubai, specifically in a Free Zone. For more detailed information, you can consult the team at Itqan Company, which is known for its extensive experience in the field. Here are the essential steps to establish a company in a Free Zone in Dubai:

  1. Determine the Type of Company:

    • Decide on the type of company you wish to establish, whether it is a sole proprietorship, a limited liability company (LLC), or a partnership.

  2. Choose the Free Zone:

    • Research and select a Free Zone in Dubai that aligns with the business activity you plan to set up.

  3. Obtain a Company Name:

    • Choose a name for your company and ensure it is available and does not conflict with any existing companies.

  4. Obtain a Business License:

    • Apply for a business license from the relevant authority in the Free Zone. You will need to provide the required documents and pay the applicable fees.

  5. Book an Office Space:

    • Reserve office space in the Free Zone to accommodate your company. Options may include shared spaces or private offices.

  6. Open a Bank Account:

    • Open a business bank account in the company’s name at a local bank.

  7. Complete Documentation:

    • You may need to complete legal documents, contracts, and agreements required to establish and operate your company.

  8. Register with Government Authorities:

    • Register your company with relevant government bodies such as the Dubai Economic Development Department and the General Authority for Taxes and Social Security.

  9. Obtain Residency Visas:

    • Apply for residency visas for the general manager and foreign employees that you will hire.

  10. Commence Operations:

    • Once all legal procedures and registrations are completed, you can start operating your company in the Free Zone in Dubai.

You should contact the relevant authorities and consult experts from Itqan Company to ensure compliance with all local laws and regulations related to setting up a business in a Free Zone in Dubai.

Essential Steps to Establish an Official Company

A mainland company can conduct business freely within the local market in the United Arab Emirates, in the free zones, or outside the country without any restrictions from the authorities.

Any mainland company needs a license issued by the Department of Economic Development in the relevant emirate.

A mainland company requires a local UAE sponsor or partner who does not have decision-making rights. The local partner’s share is 51%, while the foreign shareholders collectively hold 49%.

A mainland company can be a Limited Liability Company (LLC) or a Professional License, depending on the business requirements you wish to fulfill.

In any mainland company, the local partner/service agent is responsible for signing all government applications, while the foreign partner is the sole and primary partner in the business operations without any intervention from the local partner/service agent unless previously agreed upon.

Here are the essential steps for establishing a company in a Dubai Free Zone:

  1. Determine the Type of Business Activity

    • Business Activity: Define the primary business activity that the company will undertake.
    • Zone Selection: Choose between a free zone or the local market (inside or outside the free zone).

  2. Choose the Legal Structure of the Company

    • Sole Proprietorship
    • Limited Liability Company (LLC)
    • Public Joint Stock Company
    • Free Zone Company

  3. Register the Trade Name

    • Choose a Name: Select an appropriate name for the company that complies with trade name regulations.
    • Registration: Submit a trade name registration application to the Dubai Department of Economic Development (DED) or the chosen free zone authority.

  4. Obtain Initial Approvals

    • Approvals: Obtain initial approvals from relevant authorities, including the Department of Economic Development or the free zone authority.

  5. Prepare Legal Documents

    • Memorandum of Association and Articles of Association: Prepare the Memorandum of Association and Articles of Association for the company.
    • Lease Agreement: Sign a lease agreement for the company’s premises in Dubai.

  6. Submit Documents and Pay Fees

    • Required Documents: Submit all required documents such as the Memorandum of Association, Articles of Association, lease agreement, and passports of partners.
    • Fees: Pay the necessary fees for obtaining the licenses.

  7. Obtain a Business License

    • Issuance: After reviewing and evaluating the applications, the business license is issued by the Department of Economic Development or the free zone authority.

  8. Register the Company with the Dubai Chamber of Commerce

    • Registration: Register the company with the Dubai Chamber of Commerce and Industry to obtain membership.

  9. Open a Bank Account

    • Required Documents: Open a commercial bank account in one of the local banks in Dubai.

  10. Register for Taxes

    • Value Added Tax (VAT): Register for VAT if required by UAE tax laws.

  11. Obtain Additional Permits and Licenses

    • Special Permits: Obtain any additional permits required for the specific business activity.

Important Notes

  • Pre-planning: Careful planning and preparation can significantly expedite the establishment process.
  • Legal Assistance: It is advisable to consult a lawyer or legal advisor specialized in UAE company laws to ensure smooth operation and compliance with all local laws and regulations.

    © 2025 Global Gate Global Gate
    scroll to top