Cost of a commercial license in the Dubai Free Zone

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٢٨ فبراير Cost of a commercial license in the Dubai Free Zone

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Dubai is one of the world’s most prominent investment destinations, providing an ideal economic environment for investors from around the world. One of the most important factors that makes Dubai attractive is its free zones, which offer numerous facilities and benefits to investors, including the cost of a Dubai free zone business license. A business license is one of the essential steps for starting a business in Dubai, and free zones offer a flexible and business-friendly environment, making them a popular choice for startups. In this article, we’ll discuss the cost of a Dubai free zone business license in detail, reviewing the various factors that affect the cost, such as the type of business activity, company size, required facilities, and any additional costs that investors may have to bear. If you’re planning to launch a business in Dubai through a free zone, knowing the details of the cost of a Dubai free zone business license will help you better plan and ensure the success of your project from the start.

Cost of a commercial license in the Dubai Free Zone

Table of Contents

Basic Steps to Obtaining a Business License in a Dubai Free Zone

Obtaining a business license in a Dubai free zone requires following a set of basic steps to ensure a smooth process. Here are the steps to follow:

1. Choosing a Business Activity:
First, the investor must determine the type of business activity they wish to pursue, such as trade, industry, consulting, or services. Each free zone in Dubai offers a variety of permitted activities, and the activity should be chosen based on the type of services or products they intend to provide.
2. Choosing the Appropriate Free Zone:
After determining the business activity, the investor must choose the free zone that best suits the business requirements. Dubai has several specialized free zones, such as Dubai South, Dubai International Financial Centre, International Media Production City, and others, each of which offers specific facilities for different activities.
3. Choosing a Company Name:
Choosing an appropriate name for your company is one of the first steps. The name must comply with local regulations and not be duplicated or previously registered. Some free zones may allow investors to choose an innovative business name.
4. Preparing the Required Documents:

A set of basic documents must be submitted, such as:

A valid passport for investors
A personal photo
A lease contract for the office space or office number in the free zone
A description of the business activity
Special approvals, if required by the free zone
5. Submitting the Application to the Relevant Authority:
After preparing all documents, the application must be submitted to the relevant authority in the selected free zone. The authority will review the application and provide the necessary approvals. In some cases, a feasibility study or commercial proposal may be required.
6. Paying the Required Fees:
After the application is approved, the required fees must be paid to obtain the trade license. The fees depend on the type of business activity, office space, and number of visas.
7. Obtaining the Trade License:
After paying the fees and submitting the required documents, your trade license will be issued, authorizing you to begin operating in the free zone. 8. Issuing Visas:
If you need to hire additional employees or founders, you can apply for work or residence visas in Dubai. The free zone issues visas for employees according to the number you specify.
9. Getting Started:
Once you have obtained the necessary trade license and visas, you can start your business in the free zone and benefit from the advantages it offers, such as tax exemptions and full ownership.

Cost of a Dubai Free Zone Business License

The cost of a business license in a Dubai free zone varies based on several factors, including the type of business activity and the specific location within the free zone. In general, Dubai’s free zones are ideal options for establishing businesses, thanks to their numerous benefits, such as tax exemptions and full foreign ownership. Here are some factors that affect the cost of a business license in a free zone:

1. Type of Business Activity:
The cost varies based on the type of business activity you wish to pursue. Some activities, such as services or consulting, may be cheaper than industrial or commercial activities that require larger facilities.
2. Number of Visas:
The cost of a trade license typically includes a certain number of visas (residence and work visas), and this cost varies depending on the number of employees or founders requiring visas.
3. Location within the Free Zone:
Some free zones in Dubai, such as Dubai South or Dubai Technology Park, offer competitive license rates, while costs may be higher in other areas, such as the Dubai International Financial Centre (DIFC).
4. Type of Legal Structure:
The cost of a license is also affected by the type of legal structure of the company, whether it is a sole proprietorship, limited partnership, or limited liability company.
5. License Term:
The cost of renewing a license typically depends on the period you choose. Trade licenses may be annual or multi-year.
6. Facilities and Equipment:
If you require office space or additional services such as infrastructure or administrative support, additional costs may be added to the license cost.
7. Additional Costs:
You may need to pay additional fees, such as registration fees or activity approval fees from government agencies or some private facilities.

Documents Required to Obtain a Free Zone Business License

To establish a business license in a Dubai free zone, a set of basic documents must be submitted to ensure a smooth process in accordance with the legal regulations of the specific free zone. Some details may vary depending on the type of business activity and the selected free zone, but in general, most free zones in Dubai require the following documents:

1. Valid Passport:
A copy of the passport of the founding investors or shareholders of the company. The passport must be valid for at least 6 months from the date of application.
2. Personal Photographs:
Recent personal photographs of the investors or founders, depending on the requirements of the free zone.
3. License Application Form:
Complete the business license application form, which can be obtained from the relevant authority in the free zone. The form includes basic information about the business activity and the investors.
4. Choosing a Company Name:
The company name must comply with the requirements specified by the free zone, such as being a unique name or previously registered.
5. Business Plan or Business Description:
A business plan or business description that outlines the type of activities the company will undertake. This may also require providing details about the target market, type of products or services, and growth strategy.
6. Office or Space Lease:
A lease or rental agreement for office space within the free zone, or a document confirming the availability of office space for company registration.
7. Approval from Local Authorities (if required):
In some cases, the free zone may require special approval or licensing from other government agencies or local authorities based on the type of activity (such as healthcare, educational, legal, etc.).
8. Additional Documents for Employees (if the application includes employees):
Passport photos of key employees if you plan to employ staff within the company.
Certificates of qualifications if the employees will occupy specialized positions or require special approvals.
9. Payment of Initial Fees:
The initial registration fee is usually required with the application for a trade license.
10. Additional Documents by Activity:
Some business activities may require additional documents such as special licenses or permits, such as financial, medical, or educational activities.

Benefits of Obtaining a Business License in a Dubai Free Zone

Obtaining a business license in a Dubai free zone offers many advantages that make these zones an ideal business environment. Here are the most prominent benefits investors can enjoy when establishing their companies in Dubai’s free zones:

1. Full Foreign Ownership:
In most Dubai free zones, foreigners are allowed to own 100% of the company’s shares without the need for a local partner, allowing investors complete control over their business.
2. Tax Exemptions:
Companies in free zones enjoy long-term tax exemptions, in some cases up to 25 years, renewable. In addition, there is an exemption from personal income tax.
3. Ease of Procedures:
Establishing companies in free zones is done through simplified and rapid procedures. These procedures include submitting the required documents, choosing a trade name, and obtaining the necessary approvals within a short time.
4. Customs Duty Exemption:
Investors in free zones enjoy customs duty exemptions on the import and export of goods within and outside the free zone, reducing operating costs.
5. Government Support and Logistics Benefits:
Free zones provide direct government support to investors, in addition to advanced logistics facilities such as nearby ports and airports, facilitating shipping and distribution operations.
6. Employability:
Companies in free zones can easily obtain work visas for employees and build multinational teams, facilitating the recruitment of global talent.
7. Availability of Office Space:
Free zones offer a variety of office spaces at competitive prices, both small and large, to suit the needs of startups and large corporations.
8. Benefiting from Advanced Infrastructure:
Dubai’s free zones offer a sophisticated business environment in terms of infrastructure and facilities, such as high-speed internet, data centers, and technical facilities, which enhances business success.
9. Ease of International Transfer and Expansion:
Companies in free zones can easily expand internationally thanks to trade agreements linking Dubai with several countries, including free trade agreements that facilitate access to global markets.
10. Flexibility in Choosing Business Activities:
Free zones allow investors to choose from a wide range of business activities, such as trade, consulting, technology, industry, logistics, and more.

In conclusion, the cost of a Dubai free zone business license varies depending on several factors, such as the type of activity, company size, and required facilities. However, the free zone remains an ideal choice for investors who want to take advantage of the advantages Dubai offers, such as full foreign ownership, tax exemptions, and flexibility in incorporation procedures. Knowing the exact cost of a Dubai free zone business license allows investors to plan well for establishing their company and ensure continued growth and expansion in the UAE market. By choosing the right free zone and business type, investors can enjoy a stable and prosperous business environment in Dubai, enhancing their chances of success.