An Entrepreneurs Guide to DWC Free Zone
Dubai, one of the major business cities in the Middle East, offers you a lot of opportunities when it comes to business formation. One of the most lucrative opportunities is opening a business in a free zone. There are many free zones in Dubai offering a host of advantages. But, if you are looking for starting a business in a free zone that offers excellent connectivity to road, water, and air transportation, you should start thinking about business setup in DWC free zone.
The DWC Free Zone, formerly known as Dubai World Central, was created in 2006. It has the Al Makhtoum International Airport at its core. The DWC Free Zone is located near some of the major road networks in the UAE, as well as the Jebel Ali Sea Port and the Al Makhtoum International Airport. These advantages have turned the DWC Free Zone into a major trade and logistics hub in the entire UAE. Thus, when it comes to build your presence in Dubai with benefits of a free zone, DWC freezone business setup should be the first choice.
Here at Arab Business Consultant, we have a team of business setup experts who can guide you to choose the best options among the various free zones basis your requirements.
Advantages of Forming a Company in the DWC Free Zone
- 100% foreign ownership
- 100% repatriation of capital and profits
- 0% personal income tax
- 0% corporate tax
- You get the host of office solutions such as serviced desks/offices etc.
- Affordable government fees on incorporation and visa
- When you want to set up business in DWC Free Zone, you would be entitled to Tax Residency Certificate.
- No public disclosure of information would be required.
Significant features of DWC Free Zone
Now there are many significant features of opening a company in the DWC Free Zone. Some of the biggest features are given below:
- Time to Incorporate in the DWC Free Zone is about 4-7 working days
- There are Residency Requirements for Manager only Share Capital AED 300,000
- There are Residency Requirements for Manager only Share Capital AED 300,000
- You also need to file Audit reports with Registrar at time of license renewal
Eligible Entities
Now let us take a look at the entities that are eligible for company formation in DWC Free Zone
- You can form a Limited liability company as a newly formed entity with single or multiple shareholders
- You can also start a Limited liability company as a wholly owned subsidiary of local or foreign company
- You can even start a Branch of local or foreign company
DWC Free Zone Company License Categories
When you are forming a DWC Free Zone Company, you need to know about the different licenses. Here are the options for licenses for forming companies in the DWC Free Zone
- Commercial License –With a commercial license, you can carry out specified commercial services including general trading and logistics services
- Service License –Service licenses allow you to carry out services specified in the License within the DWC Free Zone and elsewhere in the UAE.
- Industrial License –You carry out specified light manufacturing activities with Industrial License
- Education License – The Educational License allows you to carry out educational and social services, educational training, and educational consultancy services as well.
FAQs about the Types of Activities
In the DWC Free Zone, you would be able to license most of the activities that are allowed by the Dubai Department of Economic Development (DED). Let us look at some of the commonly asked questions about DWC Free Zone business setup
How many activities can I have under one Business license?
A DWC Free Zone company can have up to 5 related activities. This is for companies in the DWC Business Centre. You can carry out up to 10 related activities in the Aviation District and Logistic District of the DWC Free Zone. However, you must note that a trading activity and a service activity cannot be issued under the same license. You need to form two different companies and get two different licenses.
Can I carry out business activities outside of the DWC free zone with my DWC license?
Yes, you can, but only in certain cases. For example, a company with a service license could provide consultancy services to clients based outside of the DWC Free Zone. Similarly, a company providing logistics services under a commercial license could pick up and deliver products within the UAE. However, you can’t sell anything in the UAE Domestic Market. If you have a commercial license, then you are only permitted to sell completed products in the UAE market through a local registered distributor or a commercial agent in the UAE.
Applying for a DWC Free Zone Residency Visa
Entities wishing to business setup in DWC Free Zone can apply for shareholder and/or employee residence visas after getting the business license. The residence permit or residency visa would be valid for three years for the shareholders and the validity would be for two years for employees. The number of visas that can be applied by the company depends on the size of the office. Usually, you would be allowed up to one visa per 9 sq. m of office space. If you have opted for a Flexi Office package, then you can apply up to two residence visas.
Flexi Office Package and Visas in the DWC Free Zone
| Smart Desk | Permanent Smart Desk | Smart Office | Permanent Smart Office | |
|---|---|---|---|---|
| Activities allowed | 3 | 3 | 5 | 5 |
| Visas allowed | 2 | 2 | 3 | 3 |
| Hours/ week | 5 | Exclusive base | 5 | Exclusive base |
| Cost of lease facility (AED) | 16,900 | 31,900 | 26,900 | 72,000 |
For more assistance on forming a company in the DWC Free Zone, get in touch with Arab Business Consultant. They have years of experience in helping companies form successful business entities in the various free zones of Dubai. So, contact them and get the best services from the experts.