A Dubai free zone business license is one of the vital foundations for establishing a business in the emirate, which is one of the most prominent investment destinations in the world. Dubai offers a stimulating business environment with many advantages for investors, including a business license that enables companies to operate effectively within a regulated legal framework, while benefiting from tax exemptions and other facilities.
Dubai’s free zones attract investors from all over the world with a range of unique benefits, such as 100% foreign ownership, zero tax on profits, and easy remittance of funds abroad. To access these benefits, investors must obtain a trade license that complies with local laws and free zone requirements.
Obtaining a commercial license in the Dubai Free Zone requires following a series of organized procedures and steps, starting from submitting the license application, through submitting the required documents such as passport, business plan, and lease contract, and ending with obtaining final approvals. The commercial license is one of the basic documents that ensures companies’ compliance with regulations and allows them to practice commercial activities legally and effectively.
A business license in Dubai also contributes to enhancing transparency and trust among investors, customers, and business partners, which contributes to achieving success and growth for businesses in the competitive Dubai market. In this article, we will review the details of the process of obtaining a business license in the free zones in Dubai, including the requirements, procedures, and benefits that this license provides to investors.
How to get a business license in Dubai Free Zone
To obtain a business license in a free zone in Dubai, the procedure is usually as follows:
- Choosing a Free Zone: Research and choose the right free zone for your business. Each free zone may require different procedures.
- Select the type of license: Select the type of commercial license that suits your business activity (general trade license, limited trade license, industrial trade license, etc.).
- Submitting the application: Fill out the required form to obtain a commercial license in the free zone of your choice.
- Submitting documents: You may be asked to submit personal documents such as passport, passport photos, lease agreements, business plans, and any other required documents.
- Pay the fees: Pay the fees required to submit and process the application.
- Application Review: After submitting the application, it will be reviewed by the relevant authority in the free zone.
- Approval and receipt of the license: If your application is approved, you will receive a commercial license that allows you to practice commercial activity in the free zone.
- Start your business: After receiving the license, you can start doing business in the free zone.
Expected fees for obtaining a commercial license in the free zone
When applying for a business license in a Dubai free zone, investors may face a range of potential fees that vary depending on the type of license and the free zone in question. Generally, these fees include:
- Registration fees: These include fees associated with registering a company in the free zone, which may include the cost of submitting the application and the initial registration procedures.
- Commercial License Fees: These are the basic fees that must be paid to obtain the commercial license itself, and usually include the costs of issuing and renewing the license.
- Rental fees: Obtaining a commercial license in the free zone may require signing a lease contract for the office or business space, and these fees vary depending on the location and size of the space.
- Additional service fees: These fees may include the costs of additional licenses, such as work permits or licenses for specific activities that the company wishes to undertake.
- Visa Fees: Most free zones require work visas for employees, which may have fees associated with them.
- Legal Consulting and Procedure Fees: Companies may require consulting or legal services to ensure they comply with legal requirements, which adds some additional costs.
Types of commercial licenses available in Dubai free zones
In Dubai free zones, there are several types of business licenses that companies can obtain depending on the type of business activity they intend to engage in. Here are some of the types of business licenses available in Dubai free zones:
- General Commercial License: This license allows the practice of a general commercial activity within the free zone.
- Limited Liability Company (LLC): Allows the business owner to retain limited liability and participate in the management of the business.
- Industrial License: Allows the manufacture of products and goods within the free zone.
- Professional License: Allows the practice of the professional activity specified in the license (such as medicine, engineering, law, consulting, etc.).
- Free Zone Establishment License: Allows individuals to establish a limited liability company in the free zone.
- Branch License: Allows national and international companies to open a branch of their company in the free zone.
Documents required to apply for a commercial license in a free zone in Dubai
When applying for a trade license in a Dubai free zone, you will typically need to submit a set of basic documents. Although requirements may vary slightly from one free zone to another, the following documents are often required:
- Passport: Copy of the passport of the investor or major shareholders of the company. The passport must be valid.
- Personal photo: A recent personal photo of the investor or general manager, as per the requirements of the free zone.
- Lease Contract: A copy of the lease or rental agreement for an office or workspace in the free zone.
- Business Plan: A document that details the business, goals, target market, and overall strategy.
- Registration Application: The registration application form for the free zone being applied for.
- Articles of Association and Memorandum of Association: A draft of the company’s articles of association and memorandum of association, which includes basic details about the company’s structure and objectives.
- Directors’ Signature: A notarized signature form of the directors or major shareholders of the company.
- Legal Certificates: You may need to provide additional legal documents, such as certificates from a notary public, if there are changes in the ownership or management structure.
- Bank details: Some free zones may require bank details or a letter of support from a local bank.
- Authorizations: An official power of attorney for any person to represent the company in submitting the application and completing the procedures.
Advantages of owning a commercial license in the Dubai Free Zone
All sizes of commercial licenses are granted, starting from small to medium and large companies, and for all types of company nationalities. There are many advantages that the commercial license grants to companies, which we will learn about in the following points:
- There are many free zones in Dubai available for various activities.
- Complete exemption from corporate and personal income taxes for 50 years.
- Dubai’s free zones have a strong and rapidly developing infrastructure.
- 100% foreign ownership of the company.
- 100% capital recovery
- Dual licensing opportunities.
- Freedom to create multiple options for administrative and legal structures.
- No restrictions on currencies.
- Freedom to employ foreign resources and human resources.
In conclusion of our article on obtaining a business license in Dubai Free Zone , it is clear that the process of obtaining a license is a crucial step towards achieving success in the business world. Free zones in Dubai, including areas such as Jebel Ali, Dubai South, and Dubai Academic City, provide an ideal environment for business thanks to the great incentives they offer, such as tax and customs exemptions, and flexibility in company ownership.
The process of obtaining a business license in these free zones requires following specific steps, starting with submitting the appropriate application to the relevant authority in your chosen free zone. This includes providing basic documents such as your passport, lease agreement, and business plan. After submitting the application, your documents will be reviewed and any additional requirements that may be necessary will be completed.
The commercial license in the free zones is characterized by its flexibility and ability to meet the needs of companies with various activities, from trade to services and consulting. Moreover, these zones provide ease of establishing companies and facilitating administrative procedures, which enhances Dubai’s attractiveness as a global business hub.
Top Frequently Asked Questions About Dubai Free Zone Business License
What are the free zones in Dubai?
Free zones in Dubai are special economic zones that offer significant incentives to businesses such as tax exemptions and customs facilities. Some of the most popular free zones in Dubai include Jebel Ali, Dubai South, and Dubai Academic City.
What are the main benefits of obtaining a free zone business license?
Benefits include: 100% foreign ownership, exemption from customs duties on imports and exports, freedom to repatriate profits and losses, and facilities in licensing and administrative procedures.
What are the fees associated with obtaining a business license?
Fees may vary depending on the free zone and license type, and typically include registration fees, license fees, rental fees, and fees for any additional services such as work visas.
How long does it take to obtain a business license?
The process usually takes from a few days to several weeks, depending on the free zone and the type of activity. It is important to follow up with the relevant authority for accurate updates.
Can the business activity be modified after obtaining the license?
Yes, the business activity can be modified, but this requires submitting an amendment request and updating the documents related to the new activity.
