Launching a business in Dubai is a fairly fast and straightforward procedure and therefore, it is easy for Dubai free zone business setup. The government has demonstrated numerous free zones here to entice better foreign trade investment, which is rectified by its free zone authority. Free zones are entitled to formulate their company regulations, which are free of the company laws of Dubai or the mainland. Also, it only requires the least paperwork and time. Foreign firms are authorized to inhabit their business in a free zone entirely. You can commend any business in the areas of monetary, scholastic, media, retail, hospitality, and more with the respective free zone authority for businesses allowed on their premises.
Nonetheless, there are a few quite obvious prerequisites an entrepreneur should keep in mind before establishing a business in Dubai Free Zone. Below are the six essential aspects that will assist you to interweave a business procedure.
Choose the right type of legal entity
First of all, decide the kind of legal entity your business requires. In a free zone, you can choose with Free Zone Limited Liability Company/ Free Zone Company or Free Zone Establishment. The disparities between these two lie in whether the shareholder is an ordinary individual or a legal person and the total number of shareholders. Also, each of these has both specific advantages and disadvantages. The management must understand which business entity will be beneficial for the company.
Choose a business activity
The second step entails deciding the type of business activity you wish to carry out. As many free zones allow multiple business activities, you have myriad areas to launch a business in. This will influence the region where you can register your company. However, Dubai has a few specific requirements about what activities are authorized, so the best suggestion is to work with a company formation specialist to guarantee a steady process.
Choosing the Name of the Company
In Dubai, there are numerous aspects that you need to evaluate before deciding on a name for the company. First, you have to make sure the decided name is available for use and no other company is using it to administer business. You also need to ensure that you are not using words that are heretical or have any political or religious effect. Similarly, if you wish to name your business after someone, then he/she must be a partner and shareholder in your business. Also, make sure that you only use full personal names instead of abbreviations or initials.
Prepare your license application
After deciding the type of entity, business activity, and name of your company, it’s time to make your Dubai free zone business official by submitting your license application. Businesses formulated in free zones are overruled by the laws of the respective free zones. To get the essential approvals, you need to pertain to the documents. Also, keep in mind that the list of documents will vary depending on the kind of business activity, the type of company, and the laws of the free zone council.
But, first, you require initial approval from the respective authorities. For that, you are supposed to provide the documents listed below.
- Firstly, the application form for the company incorporation
- A detailed business plan
- Copy of existing trade license or registration certificate
- Colored passport copies of the company’s shareholder and the appointed manager
- Specimen signature of the company’s shareholder and the appointed manager for the new business
- 2 years’ audited monetary statements for corporate entities or certificate of reference from a personal bank of the shareholder
- NOC from the current sponsor
- Unit title deed
- Letter of the Intent
- Finally, registry Identification Code Form for the manager or director
While starting as a freelancer, you may need to deliver proof of work orders or invoices. In the majority of the cases, they have to submit the following:
- Registry Identification Code Form
- Application for registration
- Bank reference letter
After obtaining the initial approval, you have to pay registration fees and license fees. The fee may vary depending on the kind of license needed. Next, you have to provide the following documents for registering your company:
- Firstly, A completed application for registration
- Board Resolution appointing Manager/Director
- Power of Attorney given to Manager or the Director
- Memorandum and Articles of Association
- Specimen signature of Manager/Director
- Passport-size photo of Manager or the Director
- Share capital data
- Finally, Applying for visas
After registering your business, next you can start your visa application. You can also apply for a visa for your hireling and any household staff you may have. This application process involves status adjustment, receiving entry permits, Emirates ID registration, medical fitness test, and visa stamping. A company formation specialist can easily help you throughout this phase.
Open a Bank Account
Opening a bank account is very important as this will enable the business to have a different identity other than the holder. But, starting a corporate bank account in Dubai is not that easy and there are numerous aspects to keep in mind. However, a professional company formation expert can assist and recommend you on the best bank that matches your specific requirements. To open a bank account, you will be instructed to provide the appropriate documents. These documents involve the following:
- An account opening form
- A signed copy of the board of directors permitting the starting of the bank account
- A copy of the share certificates
- Copies of the passport
- A copy of the memorandum of association and the article of association
These are some of the factors which should be evaluated by the management before starting a company in the free zone. Keeping these aspects in the back of your mind will enable the innate Dubai free zone company formation and will also assure that the firm is on the way to success.