Cost of a business license in Dubai Free Zone

02 Feb Cost of a business license in Dubai Free Zone

Dubai is considered one of the most prominent economic destinations in the world, attracting investors and businessmen from all over the world thanks to its attractive investment environment and advanced infrastructure. Free zones in Dubai are one of the most important factors that contribute to attracting foreign investments, as they provide a distinctive work environment that allows companies to achieve sustainable growth and expand the scope of their business with ease.

The trade license in the Dubai Free Zone is one of the most prominent facilities provided by the emirate to investors, as it gives them many advantages and facilities that enable them to carry out their commercial activities with high efficiency. In this article, we will review the most important advantages provided by a commercial license in the free zone , in addition to the types of commercial licenses available, and the steps necessary to obtain them.

Cost of a business license in Dubai Free Zone

Advantages of a commercial license in the free zone

Dubai Free Zone is considered one of the most prominent economic destinations in the world, providing an ideal environment for companies and investors seeking to achieve the success of their businesses. The advantages granted by a free zone business license are numerous , making it an attractive option for many entrepreneurs. The most prominent of these advantages are:

• Exemption from taxes

One of the most important advantages offered by a business license in a free zone is complete exemption from taxes. Whether it is income taxes or corporate taxes, companies registered in the free zone benefit from not being charged any type of taxes for a long period of time that may reach 50 years. This tax exemption contributes significantly to increasing net profits and motivating companies to invest and expand their business.

• Complete ownership by foreigners

Another equally important advantage is the possibility of full foreign ownership, as foreign investors can establish their companies and own them 100% without the need for a local partner. This allows investors to have full control over their business and commercial operations, which enhances their sense of security and stability in managing their projects.

• Ease of procedures

Facilitating procedures is also one of the main advantages of a commercial license in the free zone. Dubai’s free zones are characterized by speed and flexibility of procedures related to establishing companies and obtaining commercial licenses. New companies can establish their businesses within a short period thanks to the effective administrative system and continuous support from government agencies. In addition, free zones provide technical and legal support services to help overcome any obstacles investors may face.

Through these advantages, the Dubai Free Zone becomes an ideal environment to attract foreign investments and promote economic growth. Tax exemptions, full foreign ownership, and ease of procedures make Dubai a desirable destination for international companies and entrepreneurs seeking success and prosperity.

Types of commercial licenses available in Dubai Free Zone

Dubai Free Zone offers a variety of business licenses that meet the needs of different companies, whether small, medium or large. These licenses allow companies to operate legally and benefit from the many advantages provided by the free zone. Learn about the types of commercial licenses in the Dubai Free Zone :

• Business license

A trade license is the ideal option for companies aiming to engage in commercial, import, export and distribution activities. This license allows companies to deal in a wide range of products and goods, which opens up great opportunities for expansion and growth in local and international markets. The commercial license is one of the most in-demand types of licenses in the free zone thanks to the flexibility it provides in commercial operations.

• Industrial license

The industrial license is granted to companies that wish to carry out industrial and production activities within the free zone. These activities include manufacturing, assembly, and packaging. The industrial license allows companies to establish factories and industrial facilities in accordance with the latest standards and specifications. The free zone also provides advanced infrastructure and distinguished logistical support, which contributes to enhancing the capabilities of industrial companies and increasing their production efficiency.

• Services license

The services license is allocated to companies that provide various services including consulting, technology, marketing, training, financial services, and other professional services. This license allows companies to provide their services to customers inside and outside the free zone, providing broad opportunities for cooperation and growth. Thanks to the supportive environment provided by the free zone, service companies can flourish and achieve great success in their fields.

These three types of commercial licenses available in the Dubai Free Zone are considered the basic pillar that contributes to attracting investments and international companies to Dubai, which enhances its position as a regional and international center for business and trade.

Cost of a business license in Dubai Free Zone

The cost of obtaining a business license in free zones in Dubai varies based on several factors including the type of business activity and the location of the company within the specific free zone. In general, basic costs include the licensing fees themselves, which reflect the nature and scope of the business desired to be undertaken. In addition, the cost of renting an office must be taken into consideration, as free zones provide various options for office space that meet the needs of companies with different levels of luxury and equipment. Additional fees must also be paid for work and residency visas, which depend on the number of employees and the company’s needs. The cost also includes any other government fees related to company registration and license renewal procedures. In general, free zones provide a conducive business environment with multiple benefits, but overall costs can vary based on the specific requirements of each project.

Steps to obtain a commercial license in the Dubai Free Zone

The process of obtaining a business license in the Dubai Free Zone is considered one of the simplified processes compared to the procedures in other regions. However, certain steps must be followed to ensure obtaining the license smoothly and without delay. These steps include the following:

Submission of the application

The first step in the process of obtaining a commercial license is to submit an official application to the competent authority in the free zone in which you wish to establish your business. The application can usually be submitted online through the free zone website or by visiting their offices.

The required documents

After submitting the application, you must prepare a set of necessary documents to support your application. The required documents vary slightly depending on the type of business and the legal form of the company, but in general the basic documents include:

• Copy of passport: for all shareholders and directors.
• Personal photos: passport size photo.
• Business plan: explains the type of business activity and the company’s goals.
• Articles of Association: If the company has multiple shareholders.
• Initial approval: on the company name and commercial activity from the competent authority.
• Proof of address: whether it is the personal address of the shareholders or the expected office address of the company.

Fees and costs

The process of obtaining a business license includes paying certain fees and costs that vary depending on the type of business activity and the size of the company. Fees usually include:

• Application submission fee: These are fees paid when submitting the application.
• License issuance fees: Paid upon approval of the application and issuance of the license.
• Office rental costs: If the free zone requires a physical office.
• Other service fees: such as visa and accommodation services for company employees.

It is necessary to calculate these costs in advance and prepare a budget for them to ensure that you do not encounter any financial problems during the process of obtaining the license.

By following these steps and providing the required documents, business owners can easily obtain a commercial license in the Dubai Free Zone and start their business activity in an environment that encourages and supports growth and development.

In conclusion, a business license in the Dubai Free Zone is an ideal strategic option for investors and entrepreneurs seeking to establish or expand their businesses in an encouraging and prosperous economic environment. Dubai Free Zone offers many unique benefits such as tax exemption, full ownership by foreigners, and ease of procedures, making it a preferred destination for companies from various sectors.

The variety of types of licenses available, whether commercial, industrial or service, gives investors great flexibility in choosing the activity that suits their needs and goals. By following simple and organized steps to submit the application, provide the required documents, and pay the fees, investors can obtain the commercial license easily and quickly, allowing them to start their business without delay.

Investing in Dubai Free Zone is not only an opportunity to achieve commercial success, it is also a step towards engaging in a dynamic and multicultural economic community, enhancing opportunities for long-term growth and expansion. So, if you are thinking about starting a new project or moving your business to a stable and developing environment, Dubai Free Zone is the perfect destination to achieve this.

The most important frequently asked questions about a commercial license in the Dubai Free Zone