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Company Formation in Dubai and UAE – Which Free Zone?

Company Formation in Dubai and UAE – Which Free Zone?

Free zones are some of the most appealing areas to do business in the UAE. Taxation, dedicated activities, and modern infrastructure are some of the reasons to open companies in free zones in Dubai and other Emirates. So, here is a dilemma: which one to choose if you want to open a company in a Dubai free zone? Below, our lawyers in Dubai have compared the procedure of company formation in Dubai’s free zones.

 Quick Facts  
 Best places to open companies in Dubai Mainland and the Emirate’s free zones 

 Differences between free zone companies and mainland businesses

– taxation,

– licensing,

– activities 

 Appealing free zones

– Dubai Silicon Oasis,

– Dubai Multi Commodities Free Zone,

– International Financial Center,

– Jebel Ali Free Zone,

– International Free Zone,

– Dubai Internet City,

– Dubai Healthcare City,

– Dubai Airport Free Zone 

Other attractive free zones outside Dubai   The Emirates of Sharjah and Fujairah also have several attractive free zones.
Types of companies available in free zones 

The following entities are available in most free zones:

– free zone companies,

– free zone establishments,

– branches for foreign companies. 

 Specific activities permitted in Dubai International Financial Center

– finance,

– innovation,

– crowdfunding,

– investment advisory,

– provision of payment services 

 Activities allowed in Jebel Ali Free Zone

 – trading,

– logistics,

– services,

– industrial activities

 Main activities in Dubai Multi Commodities Free Zone

Commodities exchange with precious metals, energy, agricultural products, etc. 

 Types of business licenses available in Dubai International Free Zone

– trading permits,

– professional licenses,

– commercial authorizations,

– branch permits 

 Activities permitted in Dubai Silicon  Oasis

 – marketing,

– hospitality,

– trading,

– education,

– logistics,

– transportation,

– manufacturing,

– healthcare

 Types of licenses in Dubai Healthcare City

 Professional and commercial licenses are available in this free zone.

 Business permits available in Dubai Airport Free Zone

 The talent pass and the dual license

 Activities allowed in Meydan Free Zone Advertising, educational, financial, logistics, and real estate-related operations  

 

Licenses available in Dubai Internet City

 Professional and freelance licenses, including the Dubai freelance visa

Best free zones in Sharjah  Sharjah Media City and Sharjah Publishing City 

Differences between company incorporation in Dubai and its free zones

If you want to set up a company in Dubai, you will need to make a decision: whether to create the enterprise in Dubai or another Emirate (mainland companies) or in a free zone. The main differences between mainland and free zone companies are related to:

  • licensing – free zone companies obtain their business permits from the authorities in the free zones they are registered in (exceptions may apply).
  • taxation – free zones offer more tax benefits compared to mainland companies in Dubai or Ras Al Khaimah, for example;
  • operations – free zone companies can operate in the free zones they are registered in and outside the UAE, while mainland companies can operate all over the UAE and outside it.

But what are the most appealing free zones for company formation in Dubai? Our article will focus on:

  • Dubai International Financial Center;
  • Jebel Ali Free Zone (JAFZA);
  • Dubai Multi Commodities Centre (DMCC) ;
  • International Free Zone Authority (IFZA);
  • Fujairah Creative City Free Zone;
  • Sharjah Media City Free Zone (Shams);
  • Sharjah Publishing City Free Zone (SPCFZ);
  • Dubai Internet City (DIC);
  • Dubai Silicon Oasis (DSO);
  • Dubai Healthcare City (DHCC);
  • Dubai Airport Free Zone Authority (DAFZA);
  • Meydan Free Zone (MFZ).

In addition, we will also review the procedure of setting up a company in Ras Al Khaimah.

How to set up a company in Dubai International Financial Center

The process of opening a company in a free zone in Dubai is not complicated. Dubai International Financial Center allows you to set up any type of company, including general and limited partnerships. Its greatest advantage is that, while being designated to financial and insurance activities, it also enables you to open a business for trading operations. The available licenses in the free zone are for the following types of activities:

  • finance;
  • innovation;
  • crowdfunding;
  • investment advisory;
  • Payment Service Provider (PSP).

In addition, companies can also file for general trading licenses that enable them to carry out other activities than financial ones. The procedure to set up a company in Dubai Free Zone International Financial Center takes 6 to 8 weeks for unregulated activities and up to 6 months for finance-related ones.

How to open a company in Jebel Ali Free Zone (JAFZA)

If you are interested in setting up a company in a Dubai free zone, Jebel Ali Free Zone can be a good choice. Here, you can register free zone companies and free zone establishments (enterprises with a single shareholder), branch offices, public and offshore companies. The licenses you can obtain are for the following operations:

  • trading;
  • logistics;
  • service providing;
  • industrial-related activities.

Here, the maximum timeframe to open a company is 14 business days. Details about the costs of opening a company in Dubai free zones can be provided by our agents.

Company formation in Dubai Multi Commodities Centre (DMCC) 

DMCC is another interesting location if you want to open a company in a Dubai free zone. Located at the very heart of Dubai, DMCC is a free zone that deals in commodities exchange, such as:

  • precious metals;
  • energy;
  • metals;
  • agricultural products.

However, in 2021 the DMCC also issued the first сrypto assets trading license enabling investors to pay in virtual currency for the traded commodities. If you want to set up a free zone company in Dubai, you can choose between:

  • free zone companies;
  • free zone establishments;
  • branches of foreign companies.

In terms of licenses available, the DMCC authority issues:

  • trading permits;
  • service authorizations;
  • industrial licenses.

With availably of full foreign ownership and no personal income tax, this is also the place you can live in Dubai after you start your company. You can rely on our immigration lawyers in Dubai for support in this case. They can also help you if you are interested in company formation in a Dubai free zone.

How to set up a business in International Free Zone Authority (IFZA)

International Free Zone Authority offers multiple benefits to investors who want to operate here. Among them, we mention the following:

  • the possibility of setting traditional business forms such as free zone companies;
  • access to several types of business licenses;
  • no travel requirements if you want to open a company here.

So, if you want to establish a company in IFZA, you can rely on our law firm in Dubai for remote registration services. We can also help you with company formation in any Dubai free zone.

With respect to the license you can obtain in this free zone, these are:

  • the trading permit;
  • the commercial authorization;
  • the professional license;
  • the branch permit.

What is unique about this free zone is that you can combine more activities under one license. With a quick registration process of only 5 business days, this may be a great fit for your future company.

What to consider when opening a company in Fujairah Creative City Free Zone

Fujairah Creative City Free Zone is dedicated to operating in the media sector, as its name suggests. However, you can also develop other activities, such as HoReCa or even IT, for which you need to apply for general licenses. In addition, you can also obtain industrial and services business permits.

The most important aspect of this free zone is that its authority does not require businesspersons or companies to have a physical location in Fujairah. This makes a great place for freelancers, for example, who can also apply for the Dubai freelance visa.

Sharjah Media City (Shams) and Sharjah Publishing City (SPCFZ) free zones

Sharjah is the 3rd largest Emirate in the UAE. There, you can set up Dubai free zone companies in 6 free zones, out of which we will focus on:

  • Sharjah Media City;
  • Sharjah Publishing City.

Sharjah Media City or Shams is one of the newest free zones in the UAE and you can set up a company in it or operate as a freelancer. Apart from the regular licenses that enable you to trade, offer services, or carry out industrial activities, you can also apply for a holding license. More importantly, you can create a company in Shams fully remote. You can rely on our lawyers in Dubai for support in this case and for company formation in any Dubai free zones.

In the case of Sharjah Publishing City, you must first apply for the trade license. Following that, you can register your company. This free zone is known for its excellent facilities provided to businesses operating in the publishing sector. One of the most important is that you can secure a business permit for operating in the free zone and Sharjah mainland.

Why open a company in Dubai Internet City (DIC)

If you want to set up a free zone company in Dubai, you can include Internet City on your list. What you need to consider about this free zone is that:

  • you can obtain a trading, service, professional or freelance license;
  • to open a company in DIC, you must also secure a minimum share capital of AED 50,000 or approximately USD 14,000;
  • you can set up a free zone company or expand a business through a branch or subsidiary.

No matter the type of company formation in a Dubai free zone, you can rely on our local law firm.

Company incorporation in Dubai Silicon Oasis

Among the sectors you can operate if you want to open a company in Dubai Silicon Oasis are:

  • marketing;
  • hospitality and tourism;
  • trading;
  • education;
  • logistics;
  • transportation;
  • manufacturing;
  • healthcare.

An important aspect to consider about this free zone is that most of the steps of opening a company can be completed online, including the licensing phase. This way, it will take a few days only to obtain all the approvals and start operating.

How to open a company in Dubai Healthcare City (DHCC)

There are two ways to operate in Dubai Healthcare City Free Zone:

  • by starting a company under a commercial license;
  • as a professional under the Dubai investment visa which enables you to obtain a 10-year renewable residence permit.

If you decide to set up a free zone company in Dubai HCC, the following share capital requirements must be respected:

  • AED 50,000 (approx. USD14,000) for commercial companies;
  • AED 300,000 (around USD 82,000) for healthcare clinics.

Conditions for company formation in Dubai Airport Free Zone Authority (DAFZA)

DAFAZA is one of the free zones in which you can obtain several licenses. Apart from trading, industrial, and services permits, the following are also available:

  • the dual license, under which you do not need a physical office space and that enables you to operate outside the free zone as well;
  • the talent pass license, which enables you to carry out activities in the media, technology, or education sectors as a freelancer.

How to open a company in Meydan Free Zone (MFZ)

Meydan Free Zone is one of the central free trade areas in Dubai, which boasts one of the quickest registration procedures. It also has some of the lowest company incorporation fees in a Dubai free zone.

The main advantage of opening a company in MFZ is that it enables you to carry out various types of activities under one single permit, named simply the business license. Among these operations, we mention the following:

  • advertising;
  • education;
  • financial;
  • real estate-related activities;
  • logistics.

We also have a video on this subject below:

Business set up in Ras Al Khaimah

Ras Al Khaimah or RAK is an appealing Emirate to do business in both on mainland and in its free zones. If you want to open a company in Dubai free zone RAK, you can apply for one of the following 4 types of business permits:

  • the commercial one;
  • the general trading one;
  • the industrial one;
  • the services one.

The Emirate also allows for the registration of several types of companies, among which are limited liability companies, branches, and agent services establishments, free zone companies. It is also possible to set up offshore companies in RAK.

The minimum share capital for a mainland company in RAK is AED 10,000 (approx. USD 2,700), while for a free zone establishment, it is AED 100,000 (approx. USD 27,000).

Business is one of the most popular options when it comes to immigration to Dubai. Apart from the dedicated investor visas, you can also move here and simply open a company.

After carefully considering where and the type of company you can open in Dubai, feel free to contact our lawyers for support with the incorporation procedures.