Procedure of Dubai free zone company formation

 For both foreign legal entities and natural persons, Freezone company formation in Dubai is the most effective approach to launch a profitable business in the UAE. The UAE law offers the most open and beneficial terms and circumstances for establishing new businesses.

Procedure for forming a company in the Dubai Free Zone :

The choice to establish a business in one of the Dubai FTZs is preceded by necessary preparations. At the very least, it entails completing a comprehensive market analysis and developing a well-thought-out business plan.

The following stages make up the standard procedure for offshore company formation in Dubai :

• Choosing a license that is appropriate for a specific business.
• Confirm that the activities permitted by the license are also permitted in the FTZ of choice.
• Examining the availability of all essential facilities or the potential of establishing a virtual office.
• Calculating total costs associated with the creation of a corporation.
• submitting the necessary paperwork to the administration section of the FTZ.
• Various administrative and registration fees must be paid.
• Obtaining other required documentation eg: a business license, a PO Box as well as creating a bank account and paying share capital.
• Obtaining any further approvals or licenses that may be required.
• Obtaining a business license and other paperwork related to company registration.

Let’s take a closer look at each stage of the Dubai Free Zone company formation process one by one :

1. Selecting a License:

The first and most crucial stage in the Dubai free zone company registration process is selecting a license. The type of activities you can undertake will depend on the license you choose. As a consequence, it must be related to your business plan.

You have the option of getting one of the following types of business licenses:

-Trading Permit in a Free Zone :

The license allows you to engage in the most common sorts of trading operations (buying-selling, import-export). The number of allowed items is restricted to three closely linked categories.

-Free Zone General Trading License :

The cost of a General Trading License is more than that of a standard one. Substantial payments for the share capital may be required.

-Free Zone Consultancy / Service License :

Consulting, accounting, IT, and other services are provided.

-Free Zone Industrial License :

Allows for the production, processing, packing, and assembly of a variety of items, tools, and equipment.

-Free Zone Commercial License :

Establishing workshops, providing repair and other services, and so on.

2. Approving business activities :

Some FTZs limit the types or number of activities that are permitted. Examine your company plan in perspective of the FTZ’s regulations.

3. Identifying the company’s legal structure :

The legal structure is determined by the number and character of the partners engaged, and it has an impact on the required documentation, fees, and other factors.

4. Confirming the availability of business facilities :

Ascertain that you will be able to obtain the required type of premises. In almost all FTZs, office space and storage facilities are available. At the same time, keep in mind that the availability of physical space can be a constraint. However, virtual office services are only available in a few FTZs.

5. Calculation of total expenditure :

When picking an FTZ, it’s important to consider not only the obvious costs of forming a company but also all the hidden costs and charges.

The following items are usually included in the cost of company registration:

first-year cost for company formation

renewal costs (paid yearly)

the expense of the facilities (if a real office is required)

share capital requirements

visa costs.

Only the costs of a business license are sometimes included in the packages offered. It means you’ll have to pay rent for necessary premises as well as other yearly package fees. It can be difficult to uncover such hidden costs when selecting an FTZ. As a result, obtaining the help of seasoned business setup consultants in Dubai is a wise decision.

6. submitting the appropriate documentation to the Dubai Free Zone administration :

The following documents are required:

• a copy of the passport
• a copy of the visa (if the visa is available)
• business plan
• bank account statements (proving the capital value)
• certificate from the present sponsor stating that there are no objections (for the UAE residents)
• application form

7. Payment: You must pay all of the company’s incorporation, licensing, and other fees at this point. Rent should be paid if you rent any property. If share capital payments are required, you should additionally register a corporate account.

8. Obtaining a company license and associated paperwork: You will receive a Free Zone Business License and other documentation at the end of the Dubai Free Zone company establishment process. It enables you to begin conducting business and, if necessary, to apply for a UAE visa.

The Dubai Free Zone Company Registration Procedure is a comprehensive and time-consuming process that necessitates the consideration of numerous aspects and the analysis of large amounts of data. In the United Arab Emirates, forming a company might take up to 8 weeks. To learn about all of the aspects of the UAE FTZs and banking institutions, you will need to spend 3-4 weeks in the UAE. Then you’ll have an idea of all the options to make the best decision for your company. A resident visa will take another 2-4 weeks to get. TGS Koya is a JAFZA offshore company’s registered agent and in addition, they are DMCC Approved Auditors in Dubai in most of the UAE’s free zones.