How to do company registration in Dubai Free Zone?

Free Zones in Dubai are set up with the objective of offering tax concessions and customs duty benefits to expatriate investors.

There are more than 30 Free Zones operating in Dubai. Free zones in Dubai are managed and operated by the relevant authority. These authorities offers business licenses to foreign-owned businesses

Each Free Zone is designed around one or more industry categories and only offers licenses to companies within those categories. Most of the free zones in Dubai broadly offer trading, services, and industrial licenses to investors looking to set up their businesses. 

Free Zones in Dubai

Here are lists of the most important Free Zones in the UAE.

• Jebel Ali Free Zone (JAFZ)

• Dubai World Trade Centre (DWTC)

• Dubai Cars and Automotive Zone (DUCAMZ)

• Dubai Multi Commodities Centre (DMCC)

• Dubai Internet City (DIC) – DDA

• Meydan Free Zone

• Dubai Media City (DMC) – DDA

• Dubai Airport Free Zone (DAFZ)

• Dubai Studio City – DDA

• Dubai Healthcare City

• Kiklabb (Queen Elizabeth II)

• Dubai Design District (D3) – DDA

• Dubai Silicon Oasis (DSO)

• Dubai Knowledge Park – DDA

• Dubai International Financial Centre (DIFC)

• Dubai International Academic City – DDA

• International Humanitarian City

• Dubai Outsource City – DDA

• Dubai South

• Dubai Production City - DDA

• Dubai Science Park- DDA

Setting up a business in Dubai Free Zone

First of all, you need to decide the Free Zone in which you plan to do business.

Setting up a business in a free zone is relatively easier. Free zone authorities require minimum paperwork and duration.

Here are the key steps to set up a business in a free zone.

• Determine the type of legal entity

• Choose a trade name

• Apply for a business licence

• Choose an office space

• Documents Required

Determine the type of legal entity to setup business in Dubai Free Zone

Determine the type of legal entity your business would take up. In a free zone, you can set up one of the two types of companies:

• Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)

• Free Zone Establishment (FZE)

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.

Choose a trade name for Dubai Free Zone company

While you are deciding upon the type of legal entity your business should take, you should choose a trade name.

In most cases, you should check either with the respective free zone authority or the respective with the Department of Economic Development about the permitted trade names and whether the intended name has already been registered.

In general, for DED to approve the proposed trade name, the key requirements are that the trade name:

• must not violate the public morals or the public order of the country

• must be followed by the legal form of the company, for example (LLC, FZE, DMCC etc.)

• has not been previously registered

• is compatible with the required type of activity and legal status

• should not contain names of any religion, or governing authority, nor names or logos of any external bodies.

Apply for a business licence from Dubai Free Zone Authority

The type of business licence you will apply for depends on the primary activity of your business.

Choose an office space from Dubai Free Zone

You can either buy or lease office spaces in free zones. Office requirements depend on the number of employees and type of business activity of your company.

Documents Required to set up a Dubai Free Zone company

Companies established in free zones are governed by the rules of the respective free zones. To get the necessary approvals, you need to apply with the documents. The list of documents varies on the type of business activity, the type of company and the requirements of the free zone authority. Below is a general guideline of steps and documents needed for approvals.

A. Initial approval

First, you need the initial approval. You are required to provide:

• Completed application form

• Business plan

• Copy of existing trade licence/registration certificate (if you are an existing company, applicable for local company only)

• Coloured passport copies of the company's shareholder/s and the appointed Manager/Director for the new company

• Specimen signature of the company's shareholder/s and the appointed Manager/Director for the new company

• 2 years' audited financial reports for corporate entity or certificate of reference from a personal bank of the individual shareholder

• NOC from current sponsor (for individuals)

• Unit title deed

• Letter of Intent

• Registry Identification Code Form (RIC) for Manager/Director (Original and notarised)

Freelancers need to submit fewer documents. In most cases, they need to submit:

• Application for registration

• CV

• Bank reference letter

• Registry Identification Code Form (RIC) (Original and notarised)

B. Registration

After getting initial approval, you need to pay registration fees and licence fees. The fees depend on the type of licence required. Then, you need to submit:

• Completed application for registration

• Board Resolution appointing Manager/Director (Notarised and attested)

• Power of Attorney given to Manager/Director (Notarised and attested)

• Memorandum and Articles of Association (Notarised and attested)

• Specimen signature of Manager/Director (Notarised and attested)

• Passport-size photo of Manager/Director against white background

• Share capital information

C. Licensing and visa process

• Lease agreements will be prepared by the authority

• Then trade licence will be issued

• Visa processing will start

Note that certain activities may be subject to approval from external authorities.