List of Free zone in Dubai to start your Business

List of Free zone in Dubai to start your Business

Free trade zones in Dubai are special economic zones that are set up to provide companies with concessions in Taxes and custom duty benefits to foreign investors. There are more than 30 zones in Dubai. Free Zones in the UAE and Dubai are governed by the rules and regulations of the relevant authority in the country. Free zone authority offers foreign business owners with a business license. Each zone is for a different industry.

The Free Zone in Dubai is managed and operated by relevant institutions. For example, Dubai’s Jebel Ali Free Trade Zone Authority manages, operates and oversees the Jebel Ali Free Trade Zone, one of Dubai’s largest seaport free trade zones. The country’s foreign direct investment (FDI) subsidy rate is 32%. As for other duty-free zones in Dubai, the Dubai Multi-Commodity Center (DMCC) has 7,330 active registered companies with a retention rate of 94%. It is estimated that more than 200 companies are applying each year. The Dubai International Financial Center (DIFC) is another jurisdiction that shows the growth of the extended business. It contributes 12% to Dubai’s GDP and is estimated to grow at 27% as per the statistics of 2015. The authorities speculated that by 2024, the size of the area will double. Others include the Dubai Airport Free Zone DAFZA, Dubai Internet City, and Dubai Media City.

List of free zones in Dubai

  1. Jebel Ali Free Zone
  2. Dubai Airport Free Zone
  3. Dubai Design District
  4. Dubai International Academic City
  5. Dubai Internet City.
  6. Dubai Healthcare City
  7. Dubai Knowledge Village
  8. Dubai Knowledge Village
  9. Dubai Studio City
  10. Dubai International Financial Centre
  11. Dubai Media City
  12. International Media Production Zone
  13. Dubai Production City
  14. Dubai Gold and Diamond Park
  15. Dubai Multi Commodities Centre (DMCC)
  16. Dubai Silicon Oasis (DSO)
  17. Dubai World Central (Dubai South)

Starting a Business in a Free Zone

A company established in the free zone is completely owned by the person who established it. Setting up a business in the free zone is easy as it does not require much documentation and the duration is minimum. In the Free Zone, you can set up one of two types of companies.

  1. Free Zone Establishment (FZE)
  2. Free Trade Zone Limited Liability Company (FZ LLC) or Free Trade Zone Company (FZ Co.)

The difference lies in the number of shareholders and whether the shareholders are natural or legal. All types of companies may not be registered in all free zones. You will need to check with the individual duty-free zone authorities for the type of company they can register.

The Dubai Multi-Commodity Center (DMCC) allows the formation of a limited liability company, which can be a newly formed entity with single or multiple shareholders, or a wholly-owned subsidiary of a local or foreign company. Existing local and foreign companies can set up company branches in the duty-free zone. There is no minimum capital requirement in twofour54 Abu Dhabi.

In KIZAD, you can set up a limited liability company with a minimum paid-in capital of 150,000 dirhams. At the Dubai Airport Free Zone, you can set up FZ with a minimum share capital of AED1000. The denomination of each share shall be AED 1000.

In the DMCC, the minimum share capital of a free zone company is 50,000 dirhams per company and 10,000 dirhams per share. For companies that are to obtain a general trading license, their share capital should be at least 1 million dirhams.

When determining the type of legal entity that an enterprise should adopt, the name of the trademark should be chosen. In most cases, you should check with your respective Free Zone Authority or Economic Development Department for the permitted trademark name and whether the expected name is already registered. According to the twofour54 website, you cannot use Abu Dhabi and/or the United Arab Emirates in the name of FZ-LLC or affiliates. In general, the key requirement for the DED to approve a proposed brand name is the trademark name:

  1. Must not violate the public morality or public order of the state
  2. Must follow the legal form of the company
  3. Not registered before
  4. Compatible with the type of activity required and legal status
  5. Do not include the name of any religious or regulatory agency or the name or logo of any external agency.

Steps for Starting a Company in a Free Zone

  1. Identify the entity type
  2. Establish a trading name.
  3. Apply for a business license
  4. Choose an office space.
  5. Get the pre-approvals, register the company and get your license.

Free zones are a great thing in the UAE, they have allowed foreign investors and foreign companies to come into the markets, target customers and have a chance to play the field with the other competitors. The process is easy and does not require a lot of paperwork and time.

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