The benefits of setting up a business in a free trade zone in Dubai are many. This persuades a lot of foreign investors to invest in the land and reap benefits. Once an investor makes up his mind to set up a business in any free zone in Dubai, the first thing he needs to look into is the legal formalities there. This includes registration and obtaining the appropriate business license. Both these formalities help the investor to gain a legal identity without which any process is incomplete.
Four steps to set up a Free zone company in Dubai:
- Type of company– As per the requirement of your business, you can choose the kind of set up you are looking for. A Dubai free zone offers two kinds of set up plans:
- Free zone establishment (FZE)
- A branch office
- Lease options- There is also a wide availability of lease operations to enable the smooth functioning of business operations in the free zones. As per your requirement, you can opt for an office space or an industrial unit on rent.
- Obtaining the License appropriate to the nature of business- For an investor to work from a free trade zone, it is essential that he has a legal standing or an entity there. This is possible by getting an appropriate business license. The licenses issued in a Dubai free zone are necessarily categorized into-
- Trade license (for the purpose of export, import, storage and distribution of certain category of products)
- Service license (it is necessary to consult a sales executive to obtain a service license)
Dubai free zone license cost however varies from one zone to the other.
- Submission of documents- There are specific documents that need to be submitted according to the nature of business or the kind of shareholders. The documents are required to be submitted together with the application form.
Apart from the license issued according to the kind of business setup, there are legal licenses too. They are-
- Commercial license- Under the commercial license the activities permissible are import, export, storage, distribution of the commodities allowed.
- Industrial license- Under the Industrial license the activities permissible are manufacturing, processing, packaging, assembling and the final export of the finished product. It also includes the import of raw materials.
- Service and consulting license- Consultation in the field of finances, legal matters, marketing, relationships of labor, industrial development and other related services are permissible.
- General Trading License- A commercial license or a general trading license permits or allows manufacture of products or dealing in such products as might be allowed. Manufacture of more than seven product lines is allowed.
The establishment cost varies from zone to zone but some general expenses are- registration fee, name approval charges, post box rental, immigration costs, labor registration costs, office lease rental and trade license fee (both yearly).
With a little documentation and formalities, an investor can enjoy host of benefits of investing in a free zone in Dubai.