Dubai Free Zone — Everything You Need to Know What it is, Benefits and More
Dubai’s Free Zones are special areas in the UAE that give different advantages and perks to people from other countries who invest and wants to do business setup in Dubai. These zones have been really important in making Dubai and the United Arab Emirates economies grow.
If you want to know any specific information about the Dubai Free Zone, use the section below to reach there:
2. Advantages of Dubai Free Zone
3. List of Free Zones in Dubai
4. Difference Between Dubai Free Zone and Mainland
5. What Do You Need to Start a Business in Dubai’s Free Zone?
6. Can Dubai Free Zone Companies Work Outside Their Zone?
7. Some Most Asked Questions Around Dubai Free Zone
8. Final Words About Dubai Free Zones
What is Dubai Free Zone?
Dubai Free Zone is a special place where people from other countries can explore business opportunities in Dubai, UAE. In these zones, they can create companies with benefits like 100% ownership, tax advantages, customs perks, and easier administrative processes. These areas suit various industries, such as online selling, shipping, technology, and making things.
The first Dubai free zone, Jebel Ali Free Zone (JAFZA), started in 1985. After that, more free zones opened all over Dubai, each focusing on different types of businesses. These zones have played a big part in turning Dubai into a worldwide business center.
Advantages of Making a Company in Dubai Free Zone
Creating a business in a UAE free zone comes with many benefits, like:
- Full Foreign Ownership:
Own your company completely as an investor from another country.
2. Moving Money Easily:
Easily send your money and profits out of the country.
3. Simple Setup Process:
Set up your business quickly and with easy steps.
4. Busy Business Communities:
Join well-established and lively business groups.
5. Different Affordable Choices:
Pick from various business options at good prices.
6. No Taxes:
Don’t pay corporate or income taxes; get a full exemption. (However, you need to check if your income comes under qualifying income or not, as it would be the base if your income would be free from corporate tax or is subject to a 9% corporate tax rate.)
7. No Customs Fees:
Get a full pass on customs duties.
8. Independent Rules:
Follow your laws and rules.
9. Reaching Global Markets:
Easily connect to markets around your region and the world.
10. Modern Business Setup:
Work in a modern and advanced business environment.
Read Also: Top 10 Things You Should Know About Dubai Business Setup
List of Free Zones in Dubai
Here, we are sharing a list of free zones in Dubai that are more prominent than others:
· Jebel Ali Free Zone (JAFZA)
· Meydan Free Zone
· DUQE Free Zone
· Dubai Multi Commodities Centre (DMCC)
· Dubai Silicon Oasis (DSO)
· Dubai International Financial Centre (DIFC)
· Dubai Airport Free Zone (DAFZA)
· Dubai Internet City (DIC)
Different Available Company Structures in Free Zones:
- Free Zone Limited Liability Company (FZ LLC)
- Free Zone Establishment (FZE)
- Branch of a foreign company
Difference Between Dubai Free Zone and Mainland
Ownership:
Most Mainland companies can have 100% foreign ownership except for some activities, but in Dubai Free Zones, you can have complete ownership right from the beginning for all of the business activities.
Business Scope:
Dubai Free Zone Companies can only do business in the Free Zone, while Mainland companies can operate all over the UAE.
Workspace:
Mainland companies need a physical office of at least 200 square feet, but some Dubai Free Zone companies can use virtual offices.
Visas:
The number of visas for Mainland companies depends on their office size, while Dubai Free Zone companies follow specific rules the relevant authority sets.
Business Setup Approvals:
Mainland company formation needs approval from different government offices, but each Dubai Free Zone has its rules for registered businesses.
Types of Business Licenses Available in Dubai Free Zones
Dubai Free Zones offers different types of licenses for various jobs and businesses. Let’s look at some of the popular ones:
Making Things License (Industrial License):
Needed for businesses that make things like machines, chemicals, and food products.
Helping Others License (Professional License):
Necessary for businesses providing services like advice, accounting, and legal help. Also needed for creative jobs like graphic design, architecture, and advertising.
Independent Worker License (Freelance Permit):
For individuals who want to work independently in Dubai, offering their services as a freelancer, not as a company employee.
Online Selling License (E-Commerce License):
Required for businesses doing online trading and selling things on the internet. It’s important to note that E-Commerce License is only for selling goods online.
Tourism Business License (Tourism License):
Needed for businesses in the tourism sector, like hotels, tour operators, and travel agencies.
Buying and Selling Things License (Commercial License):
Businesses involved in trading, such as buying and selling large or small quantities, importing and exporting, and storing and distributing goods.
What Do You Need to Start a Business in Dubai’s Free Zone?
Starting a business in a Dubai Free Zone involves a few steps, and what you need can change based on the Free Zone and the kind of business you want. Usually, you’ll need some basic things like a filled-out form and colored copies of the passports of the people owning the company and the chosen manager or director. You might also need copies of your Emirates ID and UAE Residence Visa if you’re already in the UAE.
Some Free Zones might ask for extra stuff like a business plan, money reports, letters explaining your plans, and more. If you’re working alone (as a freelancer), they might also want your resume (CV).
Once they say you’re good to go, the Free Zone folks will make a rental agreement, give you a license to trade and start working on visas for your company’s workers. But remember, every Free Zone has its rules, so it’s smart to ask the Free Zone people exactly what they need.
Can Dubai Free Zone Companies Work Outside Their Zone?
Yes, some Dubai Free Zone companies can do business in the regular part of Dubai, but they need permission from the Free Zone bosses.
Remember that many Dubai Free Zones mostly focus on global trading or working with other companies in the same Free Zone.
If a Free Zone business wants to start doing things in the regular part of Dubai, they have a few options:
Get Help for Moving Things:
They can partner with a regular Dubai company to move around the UAE.
Use Delivery Services:
Online shops in Free Zones can use delivery services to send things to customers in the UAE.
Open a Copy of the Business in Regular Dubai:
They can make a second version of their Free Zone business in regular Dubai. This second version should do the same things and have the same name as the original Free Zone business.
Some Most Asked Questions Around Dubai Free Zone:
Can I Have a Bank Account for My Free Zone Company in the UAE?
Yes, you can! There are many good banks you can pick from.
Do I Have to Live in the UAE if I Have a Free Zone Company?
You don’t have to be a resident or live in the UAE if you own a Free Zone Company. Learn more about starting your business in an exciting Dubai Free Zone like IFZA here.
Can I Do Business Inside and Outside the UAE with My Free Zone Company?
Absolutely! You can do business locally and internationally, but you must follow the Free Zone’s Rules and Regulations.
Final Words About Dubai Free Zones
In conclusion, Dubai Free Zones offer a lucrative platform for international investors to establish businesses with enticing benefits like 100% ownership, tax exemptions, and streamlined administrative processes.
These zones, exemplified by pioneers like Jebel Ali Free Zone (JAFZA), have been instrumental in transforming Dubai into a global business hub. The advantages span full foreign ownership, easy money movement, simple setup procedures, and vibrant business communities.
With diverse company structures and license options, entrepreneurs can tailor their ventures to specific needs.
To embark on this entrepreneurial journey, explore opportunities to “start a company in Dubai Free Zone” for unparalleled growth and success.
