What are the advantages of Freezone Dubai ?

What is the Freezone Dubai?

The Freezone Dubai is a specially designated and regulated geographical area in which established businesses enjoy tax, customs and regulatory advantages. These freezones were created to stimulate foreign investment, promote international trade and encourage economic growth.

Dubai’s freezones generally offer the following benefits to companies setting up operations there:

• Tax exemption: Companies operating in Dubai Freezones are generally exempt from taxes on income, profits, customs duties and local taxes for a specified period, which may vary depending on the zone and the type of activity.

• Possibility of 100% foreign ownership: Unlike traditional UAE commercial law, which generally requires a local company to have a majority Emirati partner, companies established in Dubai’s free zones can be 100% owned by foreign nationals.

• Customs facilities: Companies in free zones often benefit from easy import and re-export of goods and merchandise, with simplified customs procedures.

• Quality infrastructure: Dubai’s free zones generally offer world-class infrastructure, including state-of-the-art offices, warehouses and logistics facilities.

• Simplified regulations: Free zones often have simplified business regulations and expedited administrative processes to make it easier to set up and run a business.

• Access to specialised services and resources: Some free zones specialise in particular sectors such as technology, finance, health, media, etc., offering companies access to resources and an ecosystem specific to their field of activity.

What are the regulations?

The regulations governing Freezone Dubai are specific to each zone and may vary depending on the sector of activity, the type of business and other factors. However, here are some general regulations that are often applicable in Dubai freezones:

1) Legal Form of Business: You will need to choose the legal form of your business, such as a subsidiary, branch or limited liability company (LLC).

2) Type of Business: The business activities permitted in each freezone may vary. You will need to choose a business activity that is in line with the freezone Dubai authorisations.

3) Ownership: Regulations may specify the conditions of foreign ownership in the business. Free zones generally allow 100% foreign ownership.

4) Minimum capital: Some free zones may require a minimum capital to establish the business. The amounts vary depending on the zone and the type of business.

5) Business licence: You will need to obtain a business licence to operate in the free zone. The requirements and types of licence vary according to the zone and the sector.

6) Rents and Lease Agreements: You will need to sign a lease agreement for office or warehouse space in the free zone. Terms and conditions may vary.

7) Customs procedures: Customs regulations are often simplified in free zones, making it easier to import and re-export goods and merchandise.

8) Labour and Visas: Regulations on hiring foreign labour and obtaining residence and work visas vary by zone and government authority.

9) Taxes: Free trade zones generally offer tax advantages, but there may be accounting, reporting and tax compliance requirements.

10) Licence renewal: Business licences generally have to be renewed periodically. Make sure you are aware of the renewal requirements.

11) Dispute Resolution: Regulations may set out dispute resolution procedures and dispute resolution mechanisms.

12) Legal Compliance: All companies operating in free zones must comply with UAE laws and regulations, in addition to specific free zone regulations.

What are its advantages?

Dubai’s Freezones offer a range of attractive benefits for companies that choose to locate there. These benefits are designed to stimulate foreign investment, promote economic growth and encourage international trade. Here are some of the key benefits offered by Dubai’s freezones:

Tax exemption: Companies established in Freezone Dubai generally benefit from full or partial exemption from income tax, corporate income tax, customs duties and other local taxes for a specified period. This exemption may vary depending on the area and type of business.

100% foreign ownership: Unlike traditional UAE commercial law, which generally requires a local company to have a majority Emirati partner, companies established in Dubai’s freezones can be 100% foreign-owned.

Simplified administrative formalities: Registration and licensing procedures are generally simpler and faster in Dubai Freezones, making it easier to set up and run a business.

Access to quality infrastructure: Dubai Freezones offer world-class infrastructure, including modern offices, warehouses, advanced logistics facilities and co-working areas.

Freedom of foreign exchange: Companies in Dubai Freezones can generally trade in foreign currencies without restriction, facilitating international transactions.

Access to a wide network of business partners: Dubai Freezones are home to a diverse mix of national and international companies, giving businesses the opportunity to connect and collaborate with business partners around the world.

Protection of intellectual property rights: Dubai Freezones generally offer strong protection of intellectual property rights, which is essential for companies operating in sectors such as technology and innovation.

Customs and logistics facilities: Companies in Dubai Freezones benefit from easy import and re-export of goods and merchandise, with simplified customs procedures.

Access to services and a specialised ecosystem: Some free zones specialise in sectors such as technology, media, healthcare, etc., giving companies access to resources and an ecosystem specific to their field of activity.

Strategic location: Dubai is a hub for global trade, so companies based in free zones benefit from proximity to international markets and access to efficient transport networks.

What are the different Freezone Dubai locations?

Dubai is home to a number of specialised freezones, each with its own area of activity and specific advantages. Here are some of the main freezzones in Dubai:

Jebel Ali Free Zone (JAFZA): One of Dubai’s first and largest freezones, JAFZA focuses on manufacturing, logistics, international trade and business services. It offers modern facilities, access to ports and first-class logistics connectivity.

Dubai Internet City: This free zone is dedicated to technology and information and communication technology companies. It offers an environment conducive to innovation, start-ups and tech giants.

Dubai Media City: Specialising in media and communications, this freezone is home to companies involved in media production, advertising, public relations and information technology.

Dubai International Financial Centre (DIFC): This is Dubai’s financial centre, where financial companies, banks, institutions and financial services professionals congregate. It offers a distinct regulatory environment and world-class infrastructure.

Dubai Healthcare City: Focused on healthcare, this freezone is home to medical clinics, hospitals, research centres and medical-related businesses.

Dubai Knowledge Park: Specialising in education and training, this free zone is home to academic institutes, vocational training centres and educational companies.

Dubai Science Park: Dedicated to science, research and technology, this freezone encourages collaboration between science and technology companies.

Dubai Design District (d3): This zone is dedicated to the creative industry, including fashion, design, art and media.

Dubai Maritime City: Focused on the maritime and nautical industries, this freezone supports the maritime sector, shipbuilding and related services.

Dubai South (formerly Dubai World Central): This zone is a mega-project comprising several free zones and infrastructure designed to support various sectors, including logistics, aeronautics and business.

Dubai Silicon Oasis: This freezone is dedicated to technology and innovation, encouraging technology companies and start-ups.

Dubai Auto-Zone: Specialising in the automotive industry, this zone offers facilities for the sale, purchase, assembly and servicing of vehicles.

How do you set up in a Freezone Dubai?

Setting up in a Dubai freezone involves a number of steps and processes. Here is a general overview of the procedure for setting up a business in a Dubai freezone:

Step 1. Research and Planning: Before starting the process, conduct thorough research to identify the freezone that best suits your industry and business objectives. Make sure you understand the benefits, requirements and costs associated with each freezone.

Step 2. Choose the Type of Entity: Select the type of business entity you wish to establish, such as a subsidiary, branch or new limited liability company (LLC).

Step 3. Select Business Name: Choose a business name that complies with the guidelines of the chosen freezone and check the availability of the name.

Step 4. Licence Application: Prepare the necessary documents for the business licence application, which may include copies of passports, proof of address, business plans and other information.

Step 5. Hire space: Depending on the freezone, choose office space or a warehouse for your business. Sign a lease agreement with the freezone.

Step 6. Prepare Legal Documents: Prepare the required legal documents, such as company articles of association, shareholder agreements, etc., depending on the chosen company structure.

Step 7. Application for Licence and Approvals: Submit the application for the business licence and other required approvals to the freezone. Wait for licence approval.

Step 8. Issue Licence: Once all requirements are met, the freezone will issue the business licence and other official documents.

Step 9. Open a Bank Account: Set up a bank account in your company’s name at a freezone bank or a local bank.

Step 10. Obtaining Visas: If you need visas for your employees, start the process of applying for residence and work visas.

Step 11: Register with the Authorities: Register with the relevant government authorities, such as the Ministry of Economic Affairs or the Department of Manpower.

Step 12. Commence Operations: Once you have obtained your licence and everything is in place, you can start operating your business in the freezone Dubai.

It is essential to note that the exact procedures and specific requirements may vary depending on the free zone you choose and the type of business you are setting up. It is advisable to work closely with the freezone authorities and consult a business professional or legal consultant to guide you through the process and ensure compliance with all regulations. For more detailed advice and personalised assistance, contact us and let us help and support you with our local partners.