Your Ultimate Guide to Free Zones in Dubai in 2021
Your Ultimate Guide to Free Zones in Dubai in 2021
Free zones in Dubai have become very popular destination for companies worldwide.
Free zones provide many advantages, such as access to seaports, airline terminals, and warehousing. Additionally, to encourage entrepreneurs, the UAE has introduced new laws that allow foreign companies 100% ownership of their business and exemption from all types of taxation.
A Limited Liability Company (LLC) and a Free Zone company are two different types of companies you can set up in Dubai.
Starting a business requires an instant license from the Department of Economic Development, Dubai .
To get approval for your trade or business name, you need to pay a one-time fee. Dubai requires that all businesses also have an office space in order to be legitimate. A Free Zone company also has to pay a bank guarantee, registration fees, and a local agent fee.
Benefits of Free Zones in Dubai.
If you are looking to set up your business in Dubai, you’re in for some attractive perks. Some of them are:
Ownership: One of the biggest perks of opening a business in Dubai free zones is that you retain 100% ownership of your company. Furthermore, you don’t even need a local sponsor or promoter for opening a company in the free zone. You can solely establish a company without unnecessary hassles.
Tax Exemption: There are places in the world where businesses pay a hefty tax to set up shops. But that’s not the case in Dubai free zones. Dubai offers you tax exemptions so that you can pocket all the profits that your business makes.
Own or lease property: Your business-related assets can be either purchased or leased. Dubai offers you all the flexibility you need to get your business off the ground.
100% Repatriation of Capital and Profits
Steps Involved in Starting A Business in a Dubai Free Zone
Starting a business in Dubai may seem like a daunting task. Here is a breakdown of the steps involved:
Determine the type of business entity: Choosing the type of business activity you want to do and the type of legal entity you want to form is the first step of a Dubai free zone company setup. Dubai Department of Economic Development (DED) offers a plethora of business opportunities that you can choose from.
Choose a trading name: You need to choose an appropriate business name that complies with the criteria spelled out by the government of UAE. Generally, your company name should not be offensive to the local sentiment and culture.
Apply for a business license: Once you have the trade and business name sorted, you can apply for your license. Your application form should include your business plan and a copy of your passport.
Choose an office space: You also have to select an office space. Your business consultant will be able to help you with identifying and finalizing your office space in an ideal location.
Get pre-approvals, register your business and get your license
Open your corporate bank account: You would need a bank account to commence your business in Dubai. There are many local and international banks that you can choose from.
Apply for a visa: You can apply for a visa while you are applying for your business license. That way, you can get your business license and visa together.
What Are the Different Free Zones in Dubai?
Dubai has over 30 free zones. Some of them are as follows:
1. Dubai Airport Free Zone Authority (DAFZA)
DAFZA is one of the most vibrant free zones in Dubai. It houses over 1,800 registered companies and 17,000 professionals. For a company looking to open a branch in Dubai, DAFZA offers:
Business-focused regulatory and tax environment
Total ownership of the business
Full repatriation of earnings and a range of
Range of world-class facilities.
Dubai Design District is owned by TECOM Group and is specifically built for the design community. The free zone is open to businesses for startups, entrepreneurs, and luxury and fashion brands. It offers a creative ecosystem to forge Dubai’s name as a leading destination of design, art, and culture.
3. Dubai Healthcare City (DHC)
Launched in 2002, DHC is a free zone dedicated to healthcare. DHCC offers the most comprehensive range of services in healthcare, medical education, pharmaceutical distribution, medical equipment, and wellness all aimed at promoting medical tourism to Dubai.
4. Dubai Internet City DIC
DIC is the innovation and technology hub of Dubai that houses 1600 companies and 24,000 professionals. It offers ownership, taxation, and customs benefits to tech companies for 50 years.
The freedom and flexibility offered by DIC have attracted Fortune 500 companies like Facebook, Google, Linkedin, Microsoft, IBM, and many more.
5. Dubai International Financial Centre DIFC
DIFC is a free zone that happens to be the financial hub catering to 72 countries including Middle East, Africa, and South Asia. It comprises over 2,500 companies and close to 26,000 professionals companies making it the region’s largest financial ecosystem.
DSO is an integrated technology park that offers state-of-the-art infrastructure for anybody who wants to start a company in Dubai. It is located in the heart of Dubai Digital Park with ready-to-move-in office and living spaces.
7. Dubai Production City (DPC)
DPC was launched in 2003 and is a business hub that aims to foster global and local publishing and printing industry. Formerly known as International Media Production Zone (IMPZ), DPC offers a vibrant community for media professionals.
8. Dubai South
Dubai South is an upcoming economic zone and was previously called Dubai World Central. Launched in 2006, It is a 145 square km city that includes Al Maktoum International Airport.
DSC is the media hub that caters to media production. Located opposite Dubai Motor City, the free zone has world-class production facilities and studios. Its offers commercial spaces, co-working spaces, and boutique studios.
DMC is a sought-after real estate hub for renting and buying property in Dubai. It’s a sports-themed free zone with residential spaces, business centres, theme parks, and motorsports facilities.
Jebel Ali Free Zone is in the western part of Dubai and is the world’s largest free zone. With over 7,000 companies operating in the free zone, it provides employment opportunities to over 1,50,000 people.
12. Dubai Multi Commodities Centers DMCC
DMCC is the center of global commodities trading. It is located in the heart of Dubai and is an ideal location to set up and grow your business. DMCC was awarded ‘Global Free Zone of the Year’ six times by the Financial Times.
Cheapest Free Zones in Dubai
Although most of the free zones in Dubai offer a lot of benefits at a cost-effective price. There are some that are comparatively cheaper. They are:
Ras Al Khaimah Economic Freezone (RAKEZ)
International Free Zone Authority (IFZA)
Umm Al Quwain Free Trade Zone (UAQ FTZ)
Conclusion
Free zones are attractive for international investors, but the intricacies of the new laws may require external consulting.
Business consultants can help new entrepreneurs with their business ideas, such as setting up their business and providing ongoing support through accounting and other areas.
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FAQs.
1. What Are the Types of Companies You Can Set Up in the Free Zones?
You can set up either of the following two types of companies:
Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
Free Zone Establishment (FZE)
2. What Are The Types Of Businesses You Can Open In The Free Zones In Dubai?
You can open many types of businesses in Dubai free zones. From retail, education, technology to hospitality - the opportunities are endless.
3. What is the PRO Services Free Zone?
Setting up your business is a tedious process because of the legal formalities and numerous paperwork involved. PRO services is a type of service provided by business consultants in Dubai to assist you in processing your documents to set up your business in Dubai. With the help of PRO services, you can sit back and relax while your consultant runs all the errands on your behalf saving you time, effort and money.
4. What is the cost of setting up a business in the Dubai free zone?
The cost of setting up a business in Dubai free zones varies drastically. Since there are over 30 free zones in Dubai, each with its own unique and specific criteria, it’s hard to estimate a definite figure. Schedule a call with your experts so that we can tailor an estimate based on your business expectations.