The free-zone Company formation process is less complicated and easy in Dubai rather than in other free-zone areas of the world. Government has business-friendly behavior towards foreign investors and encourages them to bring investment in Emirates. Free-zone authorities allow them to retain 100% ownership & profit. Moreover, they can transfer financial assets and revenue to their home countries. Foreign investors do not have to pay personal or corporate income tax and also have an exemption from import/export duties. In this article, you will learn how to initiate a business setup in UAE.
Here is the procedure for setting up the free-zone Company in Dubai.
Choose a Business activity:
The first step of Company formation in free-zone is to choose the business activity. So be careful when choosing a business activity as a little mistake can ruin the entire process. Once you chose a business activity, you cannot change or involve in other types of business entities.
For instance, if you select a trading business activity, you will not be able to deal with the services business. However, Government authorities allow you to choose two or more business activities with a single license.
Choose the right zone:
In Dubai, there are various types of free-zones, such as finance, outsourcing, industrial healthcare, manufacturing maritime, and so on. Therefore, it is essential to choose the right zone for setting up your Company in a free-zone. For example, if you are planning to set up a manufacturing company, you should select a free-zone that is a specifically constructed manufacturing industry.
Choose a Company name:
Choosing a business name seems an easy task, but it can be daunting sometimes. You have to be careful while choosing a name as it carries the brand image of your Company as well. Therefore, it is essential to take some time when selecting a business name. Moreover, check the name with the Department of Economic Development if anyone is using this name already.
Apply for license:
Once you have chosen the particular zone and name of your country, the next step is to apply for Company formation in the Dubai free-zone. The trade licenses you want to apply for depending on the types of business activity.
Open a corporate bank account:
The last step of free-zone Company formation in Dubai is to open a corporate bank account for your organization. Read more about this here.