Dubai has become a hotbed for tax free company setups for many foreigners. Setting up a business in a free zone is relatively easier in Dubai. Free zone authorities require minimum paperwork and duration. Here are the key steps to set up a business in a free zone. The easiest and cheapest way to get UAE residency visa (dubai) is to form a freezone company (not offshore). Depending on the freezone, you dont need bank account, rent an office, pay rent a place to live, giving you huge savings. The total costs you can expect all inclusive for company licenses with single visa is approx US$ 6000 to US$ 7,000 per year. It is also most affordable compared to golden visa which requires AED 1.2 million property investment.
Why Dubai
• Biggest property market
• Gateway to the world
• Quality of life
• The commercial capital of the UAE
• Awe-inspiring infrastructure
• World-class logistic & transportation hub
• Excellent healthcare & medical facilities
Benefits
- No minimum capital (depositing in bank account not required)
- no accounting or reporting requirements for free zone companies
- Minimum of one (1) shareholder.
- Low cost business setup in the UAE.
- 0% corporate or personal income tax. (corporate tax registration required)
- No requirement to live in Dubai (must visit once every 180 days)
- No requirement to rent a home/flat
- 0% import or re-export duties.
- Very fast company incorporation (digitally without days)
- Exempt from all corporate taxes in the United Arab Emirates.
- Wide range of commercial, services and trading activities available.
- Shareholders are not required to be physically present in the UAE for company formation.
- 100% repatriation of capital and profits.
- 100% foreign ownership in shares allowed.
- 0% corporate or personal income tax.
- Companies can also operate outside of UAE.
- Dubai residency visa and non-visa packages available (family members can also receive visas).
In this article, we cover only dubai based freezone (others will be ignored. To start with first to start a company first, you need to
- Determine the type of legal entity
- Choose a trade name
- Apply for a business license
- Choose an office space
- Get pre-approvals, register your business and get your license
- Apply for residence visas
Determine the type of legal entity
In a free zone, you can set up one of the two types of companies:
The differences lie in the number of shareholders and whether the shareholder is a natural person or a legal person. All free zones might not register both types of companies. You need to check with individual free zone authorities about the type of company they can register. Refer to the list of free zones and their authorities. Note offshore companies are not eligible for visas (only possible with freezone and mainland companies)
- FCZO (Free Zone Company). It is basically a free zone LLC formed by multiple shareholders which may include both individuals and non-individuals (companies).
- FZE (Free Zone Establishment). It is an LLC with a single shareholder who can be either an individual or non-individual (company).
- PLC (Public Listed Company). This is an entity type that resembles an LLC with two or more shareholders and a public offering of its shares on the stock exchange market.
- Branch. As the name suggests, it is a branch opened by a parent company within JAFZA with 100% ownership by the parent company and subject to its name and activities.
- Offshore company. This legal entity type is aimed at conducting business outside of the company’s location or registered jurisdiction. It has to have at least one shareholder with no limit to their maximum number and may include both individuals and non-individuals (companies).
List of Freezones in Dubai
- DMCC – Dubai Multi Commodities Center
- Dubai South (DWC, Dubai World Central)
- DTEC – Dubai Technology Entrepreneur Center
- DAFZA – Dubai Airport Free Zone
- IFZA – International Free Zone Authority
- Dubai Silicon Oasis
- JAFZA – Jebel Ali Free Zone
- Dubai World Trade Center Free Zone (DWTC)
- Dubai Media City (DMC)
- Dubai Internet City (DIC)
| FREE ZONE | LICENSES ISSUED | TIME FOR REGISTRATION | SHARE CAPITAL | BANK ACCOUNT (FOR DEPOSITS) |
| IFZA | Professional, commercial, industrial, branch | 15 days | None | Not required |
| Meydan | Consulting, commercial, media | AED 100,000 | ||
| Jebel Ali Free Zone (JAFZA) | trading | 15-25 days | None | Not required |
| Dubai South Free Zone | trading, service, industrial | 15 – 20 days | AED 300,000 | Not required |
| Dubai Airport Free Zone (DAFZA) | trading, service, industrial | 10-20 days | AED 1,000 | required |
| Dubai Internet City (DIC) | service | 20 – 25 days | AED 50,000 | required |
| Dubai Multi Commodities Center (DMCC) | trading, service | 20 – 25 days | AED 50,000 | required |
| Dubai International Financial Centre (DIFC) | service | 28 – 42 days | min USD 50,000 (AED 185,000) | required |
| Dubai Media City (DMC) | service | 20 – 25 days | AED 50,000 | required |
| Dubai Knowledge Village (DKV) | service | 20 – 25 days | AED 50,000 | required |
| Dubai Health Care City (DHCC) | service | 20 – 35 days | AED 50,000 | required |
| Dubai Silicon Oasis (DSO) | service | 15 – 20 days | AED 100,000 | required |
What are the costs ?
The registration fees vary depending on your chosen free zone but typically range between AED 12,900 and AED 50 000. The most popular ones for dubai freezone company . Some freezones require minimum capital, offices, bank account as mandatory requirement. For example a company package with one residency visa can cost.
- Meydan – License AED 14,250 (1 visa) per year
- IFZA – License AED 22,000 (1 visa) per year
- Jebel Ali – License AED 60,000 with office per year (2 visas)
Documents you will receive with your business license
• Business License
• Certificate of Formation
• Share Register
• Lease Agreement
• Memorandum of Association (MOA)
Dubai Residence Visa valid for two years for owners and employees. The full package cost consists of several services:
- Trade License
- Establishment Card (additional)
- Visa fee (additional)
- Medical checkup (result in 24 hours) (additional)
- Emirates ID (additional)
For family members to receive supporting visas, you should have minimum salary of AED 4000 per month.
How to Apply?
We recommend Inzone corporate services who specialize in UAE companies and other visa services.
FAQs
1.What is the difference between offshore and freezone company?
Offshore companies can be cheap but there is no possibility to receive UAE visas for the company.
2.How much time it takes from incorporating a company to receiving visas?
All in all 2-3 months. You must enter UAE using an employment visa (issued by your own company), then apply for residency through your PRO, who will process ICE then Emirates id is issued. First medical checkup, biometrics, also finally insurance to apply for Emirates ID.
3.What is the liquidation process?
First you must cancel all visas, then follow proper procedure winding up the company. If you dont cancel the all licenses or visas, you will be liable for heavy fines, which builds up. Non payment of fines, will be subjected to entry ban.
4.Can i stay outside of Dubai?
Yes, you can provided you visit dubai every 180 days. Stays outside this time, will lead to cancelation of residence permit.
5. Can i open bank account and also driving license?
Yes, with your emirates id, possible to avail all these services.
