The free zone is a jurisdiction or a geographical region, where a set of activities or predefined trading activities are conducted in the United Arab Emirates. Setting up Business at Dubai Free zone needs a free zone license of UAE and Dubai issued based on the business activity of the company.

Licenses of Dubai Free zone are issued by the specific business activity of a company. New free zone regions are being constructed hence the total number of free zones can rise in the upcoming years.

Free Zone Authority has been the governing body to take charge of activities of a Free Zone company related to license issuance and operations.

Business Setup in Dubai Free Zone : There are Commercial laws to govern the United Arab Emirates mainland companies which are not applicable for Free zone companies. The greatest benefit of business set up in Dubai Free zone is foreign investors can have 100% ownership. Besides their complete ownership benefits, monetary benefits such as 100% repatriation benefits, complete tax exemptions, no foreign exchange restrictions can be the benefits of free zone company formation in Dubai.

If your company gets approved for the Free zone business, it gets the Dubai Freezone licenses like Industrial License, Trade License, National Industrial License or Service License by the Free Zone Authority. The free zone licenses are manually renewed in UAE or Dubai for their lease agreement.

You have to select the desired free zone jurisdiction based on your business. The business activity must match the preferred Free zone category. Offshore companies share the benefits of the Free zone companies in Dubai which are not identical.

Business entities of Free zone jurisdiction

Entrepreneurs and investors rely on three different business entities to form a company in Dubai Free zone jurisdiction. Those entities are:

• The Free Zone company has a business entity of two or more shareholders.
• The Free Zone establishment has a single shareholder as a business entity.
• In Branch Office, the investors form a business entity serving the branch office of parent-concern. It can be at an overseas company or in the United Arab Emirates.

Free Zone company benefits

• Foreign investors can seek 100% foreign ownership of free zone companies.
• Tax exemption benefits are implemented in the free zone regions. It is devoid of income tax, corporate tax and personal tax.
• There are no foreign exchange restrictions in Free zone jurisdictions.
• No hassle in employee recruitment formalities.
• Investors enjoy repatriation benefits of profit and capital.
• Devoid of import and export charges in free zone entities.
• Has the logistic advantage.
• Suitable for medium, small business establishments and start-up ventures.
• Free zone regions have full-fledged work-spaces and offices.
• Well-equipped communication facilities.

Free zone entities of Dubai

Business Setup in Dubai Free Zone Forty free zone jurisdictions are operating in the United Arab Emirates. Also, 28 Free zones operate in the Emirates of Dubai. However, Dubai is the preferred Emirate of Free Zone company formation in the United Arab Emirates. Here are major Free zone jurisdictions listed below:

• The Dubai South Free Zone is close to Jebel Ali Port and Al Maktoum Airport that is of logistic and strategic importance. This is the proposed venue of an international event – known as Dubai World Expo 2020. Free Zones serve as the SME, aviation and logistics hub.
• The Jebel Ali Free Zone has licenses for various business activities of general trading, jewellery, trading of machinery, electrical and electronic items, equipment, construction and building materials, aviation, logistics, manufacturing and so on.
• Dubai Silicon Oasis is the internationally well known Free zone that has a technology hub to cater for the needs of the IT sector and telecom.
• Dubai Healthcare City has the complete needs of the healthcare sector covered within medical research facilities, medical equipment and clinical and non-clinical services.

Dubai Free Zone business licenses

Business establishments have legal size and structure that need a trade licence for conducting the operations in any UAE Free Zones.

The issued Dubai Free zone Licenses has:

• Professional License for consultancies and service-oriented firms. The manufacturing firms have export and import companies.
• General Trading Licenses are used by investors to trade goods and commodities.
• Warehousing licenses are used by investors to meet the warehousing needs like storage and distribution.

Business transactions are conducted by Free Zone companies that limit the Free Zone and abroad. Some restrictions in business transactions happen at the Dubai mainland. The commercial license is held by Free zone companies to seek the service of distributors to conduct local or mainland operations.

Black Swan guides you through the complete Dubai Free zone Company Formation process. Black Swan has been a registered business consultant of Dubai to serve clients for over a decade. You can contact the consultants of the Black Swan team for any additional support.

Cost of Dubai Free zone License

The total cost of Dubai Free zone company formation has a registration fee, license fee, visa charges and similar fees of authority from time to time. Charges of business set up in the Dubai free zone mentioned here is for your reference. Also, contact us to know the latest cost of the Dubai free zone license.

Every Free Zone has their regulations and policies. Validity of business license and stipulations purely depend on the Free Zone. Generally, the Free zone license of Dubai is valid only for 3 years.

UAE’s Free Zone Options

UAE’s Free Zones are appended below. You decide which Free Zone can be productive for your company and business formation at Dubai free zone.

• Dubai World Trade Centre has regulated business regimes that support your business growth.
• Dubai World Central is one of the largest Free Zones in Dubai. It has the opportunity to manufacture, trade and for warehouse business operations.
• Dubai Creative Clusters Authority offers exclusive support to entertainment and media, it was established in 2000 having a cluster of 09 segments serving intellectual and creative industries.
• Dubai Multi Commodities Centre recognises the credibility aspects of 11200 companies that operate in the Free Zone jurisdiction. Firms of trading and service sector can choose this domain.
• Dubai International Financial Centre implements the strategic placement making favourable business growth. It was established in 2002 and is a reliable business jurisdiction.
• Dubai Airport Free Zone Authority has advanced business jurisdictions established in 1996. It is pivotal for the growth of business entities related to the export and import sector.
• Dubai Silicon Oasis has infrastructure facilities for business firms and technology-based institutions. It is the planned Free Zone for technical establishments.