Dubai has and continues to be an attractive proposition for foreign companies to set up base. This mega city of the United Arab Emirates wholeheartedly welcomes participation in its economy and this is evident from relaxed norms and regulations and significant tax breaks for businesses. This is common knowledge for companies that are looking to expand in the Dubai market and startups that wish to make Dubai their headquarters. In fact, these are the primary motivations for a business setup in free zones in Dubai. However, the process of setting up a business in these zones require some knowledge of approval formalities, norms and regulations. Read further for in-depth insights on this subject.
Requirements for 100% Business Ownership
Dubai has more than 45 free zones spread across the city. For foreign nationals aiming for a business setup in free zones here, having 100% business ownership is a possibility with conditions attached. These conditions are as follows…
- Various free zones cater to various business activities. Match your business operations and activities in keeping with a free zone’s limitations
- Commercial or industrial type sole proprietorship businesses can only be owned by UAE and GCC nationals
- Consultancy services can be operated by a foreign national with sole proprietorship of the business, provided the proprietor has a relevant scientific degree
- Proprietorship of commercial or industrial type business cannot be taken over by non-UAE and GCC nationals
- No minimum business capital is required to run a sole proprietorship business.
Business Type and Licensing
Your business activities primarily determine the kind of licensing you require for a business setup in free zones in Dubai. There are over 200 kinds of trades you can choose from while operating out of a free zone and a license is issued by the Department of Economic Development (DED) Dubai, based on your business activities and operations.
Different Zones Different Restrictions
It must be noted that varying zones have varying restrictions that govern the company structure of a business setup in free zones in Dubai city. Case in point, in certain zones, sole proprietorship of a legal consultancy firm is not allowed and such companies can only exist as a standalone firm or a singular branch of a larger company.
Naming Your Business
Business setup in free zones in Dubai, requires careful naming of your company. The name of your company should be indicative of your operations and activities and the services you provide. This norm can be relaxed if your firm is a part of a larger corporation.
Apart from the conditions listed above for setting up a business within a free zone in Dubai, businesses must also take into consideration factors such as…
- Office setup in free zones with the benefit of local assistance with finding a suitable operations space and the supply of water, electricity and other amenities.
- Restrictions and norms for employee hiring based on your business profile and operations and the zone you wish to operate out of.
- Local agent, sponsor, or partner support for DED licensing.
In conclusion, UAE based business setup consultants service in Dubai of repute, such as Arab Business Consultant, are a smart choice for all-round legal and logistical assistance, while setting up a business in a Dubai free zone.