Have you heard of the free zone area in Dubai? The region is nothing but a particular space where you are allowed to perform a specific trading activity or set of businesses in the UAE. Every activity you perform in the free zone needs a Free Zone licence in Dubai and will be issued following the submission of documents at the authorized agency.
Since the construction is still going on in the free zone area, we can expect more business activities in the years to come.
Free Zone Authority (FZA) is a governing authority that ensures all the activities in the free zone comply with the laws. This authority issues licenses for operating your business. The laws that are followed by the companies in the UAE mainland are different to that of companies in the free zones.
Some of the advantages that you get by setting up a new business in UAE, Dubai free zone are:
- 100% ownership
- 100% repatriation
- 100% tax exemptions
- No restrictions for foreign exchange and so on
When you get a license to perform your business in the Dubai Free zone, the category of license would be under trade license, National Industrial License, Service license etc which are issued by the Free Zone Authority. The license you acquire must be renewed annually along with the agreement of lease.
Based on the type of your business, you can choose the free zone jurisdiction. The chosen free zone must match with the intended trading activity type in the free zone. Some of the benefits of companies offshore are similar to the companies at the free zone, they are not the same.
How to apply for a business license in the free zone?
Business licenses can be acquired based on your business activity and there are various types of business licenses. Applying for a business license must be done carefully by approaching a professional business setup consultant in Dubai.
Business types in the free zone
There are 20 different sectors in Dubai Multi Commodities Centre (DMCC) where you can perform 600 business activities that include technology, energy, healthcare, FMCG, commodities, financial services, education, personal consultancy, aviation etc.
In DIFC, financial activities like wealth management, insurance, banks and non-financial activities like restaurants, hotels, educational institutions, and galleries are allowed.
The various types of business licenses are:
- Consultancy services
License pre-approvals, business registration and obtaining a license in free zone
The companies in the free zones will have to follow the set of rules governed by respective zones. Apply with the necessary documents based on your business activity, organization type and the FZA (Free zone authority).
Let’s check out the steps to follow and the documents to be submitted to obtain your business license.
The initial approval of your license include:
- Duly filled application form
- Business proposal
- Copy of license of an existing organization if any
- Passport copies of shareholders and Managing Director (colour copies)
Initial approval process for business in Free zone
First, you need the initial approval. You are required to provide:
- Completed application form
- Business plan
- Copy of existing trade licence/registration certificate (if you are an existing company, applicable for a local company only)
- Coloured passport copies of the company’s shareholder/s and the appointed Manager/Director for the new company
- Original and notarized Registry Identification Code Form (RIC) for Manager/Director
- Financial reports of the company for the past 2 years or a reference certificate from a personal bank
- No objection certificate (NOC) from the present sponsor
- Letter of intent
- Unit title deed
If you are a freelancer who wishes to take up work of your own, you need to submit:
- Reference letter from a personal bank
- Application for registration
- Original and notarized Registry Identification Code Form (RIC)
Registration process and documents required for free zone license
Once you get initial approval, pay fees for registration and license. Fees may vary based on your type of business. The documents to be submitted are as follows:
- Duly filled registration application
- Notarized and attested Power of Attorney provided to Manager/Director
- Notarized and attested Board resolution appoint Director
- Notarized and attested Memorandum and Articles of Association
- Notarized and attested Signature of Director
- Passport size photograph of the Director
- Capital information
Licensing and visa process in Free Zone
- Agreements of the lease will be handed over by the free zone authority
- Issuance of trade license
- Visa processing
Dubai welcomes you to establish your desired business set in its free zone. There are various free zones and the rules and regulations of each area depend on the type of business within it. Be a proud owner of your company by obtaining a business license with the help of professional business consultants like Centriz Solutions for your trading activity. We can help company formation in Dubai process easy and hassle-free for you!!