Starting a business in Dubai is an attractive proposition for entrepreneurs due to its strategic location, favorable tax regime, and vibrant economic environment. One of the most popular options is setting up a business with a Free Zone license, which offers numerous advantages such as full foreign ownership and tax exemptions. Here’s a step-by-step guide on how to start a business with a free zone licence in Dubai.
Choose the right free zone:
Dubai is home to several Free Zones, each catering to different types of businesses and industries. Start by researching the various Free Zones to determine which one aligns with your business needs. Consider factors such as location, the nature of the business, infrastructure, and the services provided by each Free Zone. Popular Free Zones include Dubai Multi Commodities Centre (DMCC), Dubai Internet City (DIC), and Jebel Ali Free Zone (JAFZA).
Select a business activity:
Define the nature of your business and the activities you intend to engage in. Each Free Zone has a specific list of permitted business activities. Ensure that the activities you choose align with the regulations of the selected Free Zone. This step is key as it will influence the type of Free Zone license you need to obtain.
Choose a legal structure:
Decide on the legal structure of your business. Common structures in Free Zones include sole proprietorships, limited liability companies (LLCs), and branch offices of existing companies. The choice of structure will impact your business operations, ownership, and liability.
Apply for a free zone license:
Submit your application for a Free Zone license to the relevant Free Zone authority. The application process typically involves providing documents such as a business plan, passport copies of shareholders, and proof of address. Some Free Zones also require a Memorandum of Association (MOA) and a business name reservation. The Free Zone authority will review your application and issue the license upon approval.
Set up your office space:
Once you have your Free Zone license, you need to establish a physical presence. Free Zones offer a range of office space options, including virtual offices, co-working spaces, and dedicated office units. Choose an office space that meets your business requirements and budget. Many Free Zones also provide flexible leasing options to accommodate growing businesses.
