For decades Dubai has been an attractive destination due to the types of businesses running in the Dubai Free zone like Sole proprietorship and Joint Venture business. It has been a dream for a lot of business people to start a company in Dubai. The investors are also interested to set up business in Dubai.
It has been offering a strategic location at the heart of the world’s largest and fastest emerging markets, and a government committed to nurturing and supporting business. Other than all these factors, there is another major reason so many investors flock to the Dubai Free zones to start up their business.
What are Free Zones?
Free zones are economic areas with special tax fee status to promote import and export goods without paying customs. In Dubai, there are places like seaports, airports established as free zones for business trading. Free zones provide a lot of advantages like access to seaports, airline terminals, and warehousing. In addition, to encourage entrepreneurs, the UAE has also introduced new laws that allow foreign companies 100% ownership of their business and exempt from all types of taxation.
Advantages of setting up business in Dubai Free zones
Here are some attractive benefits to starting a company in Dubai:
1. Easy Company Formation
The process of company formation in most free zones in Dubai is simple. The investor has to choose the free zone in the application process depending upon the business activity.
2. 100% Ownership
One of the most attractive benefits of setting up business in free zones Dubai is that the person can enjoy 100% ownership of the company. No local sponsor is required to set up business in the Dubai Free zones.
3. Tax Exemption
Free Zones in Dubai provides a 100% tax exemption on corporate and income tax, so the investor can have all the profits that the business makes.
4. Repatriation benefits
Dubai Free zones are eligible for full repatriation benefits on capital and profits, including financial assets.
5. Own or Lease Property
The investor can either purchase or lease the business-related property-free zones in Dubai. It provides all kinds of mobility the person needs to launch the business smoothly.
6. Labor Recruitment
In the Free Zone, Companies can manage labor recruitment paperwork easily in a cost-effective manner.
7. Exemption in Import and Export
Import and Export duties are not restricted to the free zone territory in the UAE. It encourages international trade and helps businesses set up in Dubai.
What are the steps to get a Free Zone Visa in Dubai?
Here is the step by step process to getting a Dubai Free Zone Visa:
1. Registration on E-Channel
The first step of applying for a Dubai free zone visa is an E-channel Registration. The whole purpose of this process is to remove the hectic paperwork and make applications much faster and simpler. It also makes the visa process smooth. The registration for a Dubai free zone visa is effortless.
2. Entry permit
The next step involved applying for the entry permit which is also known as an employment visa. It is a temporary visa that is only valid for 60 days. Generally, an Entry permit is issued in 15 days, if an extra amount of fee is paid.
3. Status Change
The status change is the next step after obtaining an entry permit. There are three different ways whereby a person can obtain a visa, the ways are:
- In-Country Process – This is a basic process. The person has to submit a passport to the immigration department which will be stamped and then the employment visa will be activated. It usually takes around 3-5 days and the charge is also minimal.
- Out-Of-The-Country Process - If the person is from outside the UAE at the time of issuing of visa then they can get the visa activated at the airport by getting it stamped by the immigration officer at the airport.
- Border Run Process – This process demands leaving the UAE and receiving an exit stamp, and then re-entering by handing over the printed employment visa to the immigration officer. This process only works for certain passport holders of certain countries and they may or may not be eligible for visa-on-arrival travel to the UAE.
4. Medical Test and Emirates ID Registration
The fourth step involves a medical fitness test where the person has to get a blood test done for any infectious diseases, chest X-ray, etc. The medical reporting is available after 3 working days. After this medical examination, the person has to apply for an Emirates ID card, also known as EID. For the application, the person will have to visit an official ID authority and give specific biometric information (eye scan and fingerprints) to record. It is essential to open a bank account and get a mobile phone or any agreement for this process.
5. Residence Visa
The last step in getting a visa in the Dubai Free zone is the residence visa stamping process where the person will get the Dubai residence visa stamped in their passport.
For visa stamping, the person must submit a passport to the immigration department. This process can take up to 15 working days during that time.
Read: Your Ultimate Guide to Free Zones in Dubai in 2021
Rules and regulations to get the Dubai Free zone Visa
Entrepreneurs aiming to start a business in the Dubai free zone can attain residence through an employment visa or investor visa. The investor visa is valid for 3 years and both employment and investor visa can apply to the dependent's residence visa. Free Zones visa can be obtained solely from the Immigration Department without the necessity of contacting the Ministry of Labor. This makes the process easier but it does not allow the holders to work outside the Free zones.
Conclusion
Setting up your own business has never been easier. Danburite Corporate takes care of it all so you can focus on what matters – building your business. For more information about company formation in the UAE mainland or free zones, Contact Us. We will be glad to assist you!
