Cost of a business license in Dubai Free Zone

In light of the continuous development of the business market and the growing economy in Dubai, emerging companies and projects are one of the main factors supporting this sustainable growth. In this context, the importance of commercial licenses is highlighted as one of the basic success tools for any commercial project in the region. Itqan Company provides extensive experience and specialized services in this field, as it strives to provide support and guidance to entrepreneurs in choosing the appropriate commercial license for their projects. In this article, we will explore together the cost of a business license in the Dubai Free Zone and how Etqan can facilitate this process effectively and economically. Let’s review together how partnering with Itqan can be an important step towards achieving success in the business world in Dubai.

This article aims to shed light on the cost of a commercial license in the Dubai Free Zone in cooperation with Itqan Company. The article will provide comprehensive information about the costs associated with setting up and establishing a company in the free zone, from the cost of registering and establishing the company, to the costs of additional services such as office rental, legal and accounting services. The article will include an analysis of fixed and variable costs, in addition to a review of the factors that must be considered when estimating the financial costs of obtaining a business license in the Dubai Free Zone . This article will be a comprehensive guide for those who want to estimate the potential cost of business expansion in Dubai Free Zone in cooperation with Itqan Company.

Cost of a business license in Dubai Free Zone

Cost of a business license in Dubai Free Zone

The cost of a business license in Dubai varies based on several factors, including the type of license and the scope of business activities you plan to engage in, as well as the infrastructure and services provided by the free zone itself. Here’s an overview of the expected cost of a business license in the Dubai Free Zone:

1. Registration fees: This includes the basic registration fees that must be paid to establish the company, which vary between different free zones in Dubai.
2. License fees: License fees vary depending on the type of business activity and the size of the company, and are paid annually.
3. Additional services fees: The free zone may provide additional services such as legal and accounting consulting services, and the cost of these services is determined based on need.
4. Labor Charges: If you hire labor, you may incur salary costs and fringe employee benefits.
5. Office costs: You also need to consider office rental costs and additional expenses such as bills and maintenance costs.
6. Public utility costs: It is also important to calculate the costs of public services such as electricity, water and communications.

Steps to obtain a business license in the free zone

Obtaining a commercial license in a free zone in Dubai to establish a company in the free zone usually requires following several steps. Here’s a general plan of basic steps:

1. Market study and business identification: Conduct a market feasibility study to determine whether your business idea is in demand and feasible in the free zone.
2. Choosing a Free Zone: Do a thorough research on the different free zones in Dubai, and choose the ones that suit your business needs and requirements.
3. Determine the type of license: Choose the type of commercial license appropriate for your business activity, such as a general commercial license, a self-employed license, a limited company license, and others.
4. Submitting the application: Submit the application for the license to the relevant authorities in the selected free zone, and fill out all the required forms correctly and clearly.
5. Establishing the company (if necessary): If the license requires establishing a company, take the necessary steps to establish and register the company and determine the responsibilities of the partners, the amount of capital, etc.
6. Obtaining the necessary approvals: You may need to obtain various approvals before issuing the license, such as approval from governmental, financial, or health authorities.
7. Payment of fees: Pay the fees required to issue the license and any additional fees requested by the relevant authorities.
8. Receiving the license: After reviewing the application and taking into account all conditions and requirements, you will receive the commercial license from the relevant authorities.
9. Implementing legal obligations: After obtaining the license, carry out all legal and regulatory obligations related to practicing your business activity in the free zone.

Advantages of issuing a commercial license in the Dubai Free Zone

Issuing a commercial license in a free zone in Dubai is an ideal option for investors and entrepreneurs seeking to expand their business within the emirate. Dubai’s free zones have exceptional advantages that make them attractive to both local and international companies. The following is a comprehensive review of the advantages of issuing a commercial license in the Dubai Free Zone:

1. Full or partial tax exemptions
on personal taxes and taxes on profits: Free zones in Dubai provide full or partial tax exemptions on profits and personal income for shareholders and managers. This reduces operating costs and increases the profitability of companies.
2. 100% foreign ownership
: Dubai free zones allow foreign investors to own 100% companies without the need for a local partner, which increases the attractiveness of foreign direct investments.
3. Fast and easy incorporation procedures.
Rapid registration: The legislative environment in Dubai’s free zones allows for fast and effective incorporation procedures, as companies can start their business in a short time after meeting all conditions and requirements.
4. Easy access to the regional and global market
Strategic location: Dubai has a strategic location that facilitates access to the markets of the Middle East, Africa and Asia, which enhances the opportunities for growth and international expansion for companies located in the free zones.
5. Advanced infrastructure and
infrastructure support services: Dubai free zones provide advanced infrastructure that includes airports, ports, and integrated logistics services, which facilitates the international transportation and distribution of goods and services.
6. Banking and financial facilities
Banking facilities: Dubai free zones allow companies to obtain easy banking facilities from local and international banks, which supports their commercial activity and expansion.

What are the free zones in Dubai?

Dubai Airport Free Zone

Dubai Airport Free Zone is a special zone inside the airport concerned with facilitating business and stimulating investments. The free zone is a center for global trade and a hub for sea and air transport and logistics. This region provides a facilitating legislative and regulatory environment that attracts companies and investors from around the world, which contributes to strengthening the national economy of the United Arab Emirates and enhancing Dubai’s position as a global center for business and trade.

Dubai Design District

Dubai Design District is a dynamic creative community in Dubai that brings together arts, design and innovation. The neighborhood includes a group of galleries, workshops, shops and restaurants that reflect the modern urban spirit. Dubai Design District is a hub of innovation and creativity where designers, artists and creatives come together to exchange ideas and develop new projects.

Dubai Healthcare City

Dubai Healthcare City is an integrated medical community in Dubai that provides world-class health services. The city includes specialized hospitals, medical centers, specialized clinics, and advanced research centers. The city aims to provide outstanding healthcare to local residents and visitors from all over the world, and strengthen Dubai’s position as a world-leading destination in the field of healthcare and specialized medicine.

Dubai International Academic City

Dubai International Academic City is a leading educational institution in Dubai that provides high-level education with modern methodologies and diverse educational products. The city has affiliated schools that offer integrated educational programs from kindergarten to high school. It is characterized by advanced technology in education and enhances innovation and critical thinking among students, which contributes to preparing them for their academic and professional future in a distinguished manner in the global labor market.

Dubai Internet city

Dubai Internet City is a strategic initiative aimed at enhancing Dubai’s digital infrastructure and transforming it into an advanced smart city. The initiative includes providing high-speed communications networks and advanced Internet technologies, which supports innovation and business leadership and enhances the user experience in various sectors, including education, health, transportation, and government services. This initiative is part of Dubai’s vision to achieve sustainable development and a thriving digital economy.

Dubai International Financial Centre

The Dubai International Financial Center is a specialized financial district that provides a flexible and stimulating legal and regulatory environment for financial and investment businesses. The center includes a wide range of global and local financial companies and financial institutions, and is distinguished by its advanced infrastructure and advanced financial services. The center is part of Dubai’s vision to enhance its role as a global financial center and a hub for business and trade in the Middle East and the world.

Knowledge Park in Dubai

Knowledge Park in Dubai is a fun and interactive educational destination that aims to enhance educational spaces for children and youth. The park offers innovative educational experiences in the fields of science, technology, arts and mathematics, through interactive exhibits and educational activities that encourage exploration and active learning. It is an ideal place for families and students to explore the world of science and technology in innovative and entertaining ways.

Dubai Media City

Dubai Media City is a dynamic creative community focused on the media, television and film production industry in Dubai. The city includes modern studios and advanced filming facilities, making it a preferred destination for media production in the Middle East. The city is witnessing rapid growth in the media and entertainment sectors, while providing a suitable environment for innovation and creativity in the manufacture of films, television programs and digital content.

Gold and Diamond Complex

The Dubai Gold and Diamond Park is a leading global destination for gold and diamond trade, where the most prominent international traders and companies in this sector gather. The complex provides a distinct and stimulating commercial environment, attracting investors and visitors from different countries of the world. The complex is distinguished by the diversity and quality of the products offered, which makes it an important center for gold and diamond deals in the Middle East and the world.

Dubai Multi Commodities Centre

DMCC is a large mall in Dubai that is considered a major destination for international trade and distribution in the Middle East. The center includes a wide range of businesses and stores offering a variety of goods including clothing, household items, electronics, and food. The center features advanced infrastructure and excellent logistics services, facilitating import and export operations and attracting buyers and investors from around the world.

Dubai Silicon Oasis

Dubai Silicon Oasis is an integrated technology community in Dubai dedicated to startups and large technology companies. Dubai Silicon Oasis is an ideal environment for innovation and technological entrepreneurship, as it provides advanced infrastructure and modern facilities that include flexible office spaces, technologically equipped laboratories and workshops. The oasis encourages innovation and provides support programs for startups, which contributes to developing and strengthening the local economic system and attracting technology investments to Dubai and the surrounding region.

Dubai Production City

Dubai Production City is an integrated industrial community in Dubai that provides an ideal environment for industrial companies and factories for production and manufacturing. The city includes a wide range of industrial sectors such as food, engineering, electronic, furniture, and others. The community features advanced infrastructure and excellent logistics facilities, facilitating production and distribution operations and attracting national and international companies and investors.

Jebel Ali Free Zone Authority

Jebel Ali Free Zone Authority is a regulatory body in Dubai that promotes business and trade by providing a flexible and stimulating investment environment within the free zone. The region features advanced infrastructure and excellent logistics services, facilitating the import and export of goods and services with high efficiency. The Jebel Ali Free Zone Authority attracts national and international companies to take advantage of the facilities and competitive advantages it provides to enhance business growth and achieve economic prosperity.

Dubai South

Dubai South is a comprehensive development project in Dubai that includes Al Maktoum International Airport, which is considered the largest airport in the world in the future, in addition to residential, commercial and industrial areas. Dubai South features advanced design and integrated infrastructure that supports economic growth and future investments in the emirate, making it a multi-use destination that enhances Dubai’s position as a global hub for business, logistics and tourism.

Dubai Media Production City

Dubai Media Production City is a specialized area in Dubai that hosts advanced filming studios and world-class production facilities. The city is a vital center for the film, television and media production industry in the Middle East, attracting production companies and producers from all over the world to use its modern facilities and cutting-edge technology. The city provides a suitable environment for the creation of films and television programs of high quality and in an atmosphere that stimulates creativity and innovation in the media and entertainment industry.

Dubai Studio City

Dubai Studio City is a world-leading destination for film and television production in the Middle East. The city includes advanced filming studios and world-class production facilities, used by international production companies to create high-quality films and television programmes. The city is distinguished by advanced technologies and integrated infrastructure that supports every stage of media production, making it an ideal destination for producers and creatives who seek to achieve their creative vision with the highest standards of quality and innovation.

Steps to establish a business in free zones

Establishing a business in free zones is an ideal option for investors seeking to benefit from advanced infrastructure and stimulating government facilities. The basic steps for establishing a business in free zones include the following:

Determine the type of activity

Determining the type of business activity is an essential step in the business creation process, as the entrepreneur must determine the type of services or products that his company will provide. This choice must be strategic and thoughtful, considering demand in your target market and potential competition. The investor should also consider his interest and experience in this area, as well as the legislative and tax aspects involved in the specific type of activity.

Determine the legal form

Determining the legal form of a company is a crucial step in the business establishment process, as it determines the legal framework under which the company operates and affects the liability and taxes of the company owners. It includes choosing between different types of legal form such as joint stock company, limited liability company, or partnership. An entrepreneur must consider incorporation and management requirements and local legislation to determine the legal form that best suits his business and its strategic objectives.

Trade name registration

Registering a trade name is an essential step in the process of establishing a business, as it determines the company’s commercial identity and ensures that the chosen name is legally available. The registration process requires ensuring that the name does not conflict with previously registered trademarks, in addition to complying with local legal requirements and relevant legislation. Registering a trade name promotes transparency and protects a company’s rights to use the trade name exclusively in its specific business activity.

Choosing offices and work facilities

Choosing offices and business facilities is a strategic decision that affects the efficiency and success of the company. The choice should be a suitable location that meets the company’s needs in terms of access, transportation and proximity to customers and business partners. The infrastructure and facilities such as security, communications and technology available at the chosen location should also be taken into account, as well as the costs of rent and associated services. The choice of work offices affects the work atmosphere and employee productivity, which makes it necessary to make a considered decision that supports the sustainable growth and prosperity of the company.

Getting the approval

Obtaining approval is an essential step in the process of establishing a business, as it requires the entrepreneur to apply to the competent government authorities to request approval to establish and operate the company. This process includes demonstrating compliance with local legal and regulatory requirements, and correctly submitting required documentation in accordance with established procedures. Obtaining approval is a crucial step to starting a business legally and orderly, which contributes to providing confidence and stability to the company and all stakeholders involved.

company Registration

Company registration is a basic and necessary process for establishing a business legally and officially. Registration includes submitting a set of documents and information to the competent authorities, such as choosing the legal form of the company, determining its location, determining its organizational structure, and proving compliance with local laws and legislation. Registration aims to protect the rights of shareholders and investors, provide transparency in company management, and secure the ability to conclude deals and transactions in a legal and orderly manner.

Types of business licenses in the Dubai Free Zone

In the Dubai Free Zone, there are several types of business licenses that companies can obtain depending on their business needs and goals. Here are some common types of business licenses in Dubai Free Zone:

• General Trading License: This license allows companies to conduct any legitimate commercial activity within the free zone, including importing and exporting goods.
• Professional License: This license is issued to individuals who provide certain professional services such as medicine, engineering, accounting, and graphic design.
• Limited Liability Company License: This license allows the establishment of a limited liability company in the free zone, with the possibility of providing a limited number of shareholders.
• Public Shareholding Company License: This license allows companies operating in the free zone to make public offers of shares and attract shareholders from the public.
• Private Shareholding Company License: This license allows companies to make private share offerings and offer shares to a limited number of shareholders.
• Industrial Free Zone License: This license is issued to companies operating in the manufacturing and product manufacturing sector.
• Multinational Company License: This license allows international companies to expand their commercial activity and invest in the Dubai Free Zone.

Steps for a commercial license in the Dubai Free Zone

The cost of establishing a company in the Dubai Free Zone

The cost of a business license in the Dubai Free Zone depends on several factors, including the type of company, business size, and legal and administrative requirements. Here are some points that affect the cost of establishment:

• Type of company: The cost of establishing a sole proprietorship differs from that of a joint-stock or partnership company.
• Government fees: Company registration and business license fees are added to the cost of incorporation.
• Consulting Services: If you use the services of a consulting company such as Itqan, there may be additional fees for these services.
• Virtual Offices: If you need a virtual office in a free zone, there may be an additional cost.
• Annual fees: There are annual fees for renewing business licenses and registration in the free zone.
• Additional Services: Additional services such as opening a bank account or hiring additional staff can cost extra.

It is important to consult Itqan Company’s experts who specialize in this field to obtain an accurate estimate of the cost of establishing your company in the Dubai Free Zone, as prices can change according to the circumstances of each individual case.

Commercial license in Dubai Free Zone

To obtain a business license in a free zone in Dubai, you must follow several steps. First, you must choose the type of company you want to establish, whether it is a sole proprietorship, joint stock company or partnership. Then, you must choose the free zone that suits your business, such as Jebel Ali or Dubai Investments Zone. Next, you must submit an application to register the company in the chosen free zone, and submit the required documents such as a passport, a personal photo, and a business plan. After approval of the registration request.

You will have to obtain a business license from the relevant authorities in the free zone. You must also open a bank account in the company’s name and register it with the local tax authorities. The fees required for these steps change based on the type of company and the requirements of the free zone, and it is best to consult the experts of Itqan Company for more information and guidance on this process.

Trade license fees in Dubai

Commercial license fees in Dubai vary between different free zones and depend on the type of company and its commercial activity. Generally, the trade license fee includes many aspects, including:

1. Basic registration fees: Paid to the Free Zone Authority when submitting a registration application to obtain a commercial license.
2. License renewal fees: Paid annually to renew the validity of the commercial license.
3. Additional permit fees: There may be additional fees for obtaining permits specific to your business, such as a building permit or health and safety permit.
4. Consulting services fees: If you hire a consulting company to help you with the licensing process, you may need to pay a fee for these services.
5. Tax registration fees: If your company is subject to VAT, you may need to pay a fee to register with the local tax authorities. Please note that fees are subject to change and vary between different free zones.

How to establish a company in the Free Zone

Establishing a company in the Free Zone is an interesting option for many entrepreneurs, as these areas provide an encouraging business environment and attractive features. To establish a company in a free zone in Dubai, specific procedures must be followed:

The entrepreneur must also choose a free zone suitable for his business activity. You can choose from several free zones such as Jebel Ali Zone, Dubai Investment Zone, Dubai Media Zone, and other zones.

After choosing the free zone, the entrepreneur must submit an application to register his company. This requires providing information about the company such as its name, type of business, and ownership structure.

After approval of the registration application, the entrepreneur must determine the type of company he wishes to establish, whether it is an individual company, a joint-stock company, or a partnership.

After determining the type of company, the entrepreneur must submit the required documents to obtain a business license in the free zone.

Also, the entrepreneur must open a bank account in the name of the company in one of the approved banks in the free zone.

In short, establishing a company in a free zone in Dubai requires following specific procedures that differ slightly depending on the free zone and the type of company, and the entrepreneur must go to the relevant government agencies in the free zone to obtain the necessary assistance and guidance.

Establishing a company in the Sharjah Free Zone

Establishing a company in the Sharjah Free Zone in cooperation with Itqan Company is considered a strategic and promising step for pioneers in the business world. The Sharjah Free Zone provides an ideal business environment for emerging and medium-sized companies, providing growth and expansion opportunities in the UAE market and the surrounding region.

By cooperating with Itqan Company, the entrepreneur can benefit from the expertise and specialized advisory services provided by the company in the field of establishing companies. These services include assistance in choosing the appropriate company type, preparing the necessary documents, advising on local licenses and regulations, and providing support in the legal and administrative procedures necessary to establish the company.

Thanks to the partnership with Itqan Company, the entrepreneur can obtain comprehensive support that helps him establish his company efficiently and at the lowest possible cost, which makes it easier for him to enter the business market in the Sharjah Free Zone and achieve sustainable success in his field of work.

Establishing a company in the Dubai Free Zone

Establishing a company in a free zone in Dubai in cooperation with Itqan Company can be an important strategic step for those wishing to start their business project in the Emirates. Dubai’s Freedom Zones are an ideal environment for startups and medium-sized companies, as they provide an opportunity to access the Middle East and North Africa market.

By cooperating with Itqan, investors can benefit from its extensive experience and knowledge in establishing companies in Dubai. Itqan provides support in all aspects of the incorporation process, including assistance in choosing the appropriate company type, preparing the necessary documents, advising on local licenses and regulations, and providing support in legal and administrative procedures.

Thanks to Itqan Company, investors can avoid the legal and administrative obstacles that they may face while establishing a company in a free zone in Dubai, and thus achieve a successful start to their business project.

Tax advantages of working in the Dubai Free Zone

Working in the Dubai Free Zone offers many tax advantages that make it an attractive destination for companies and businessmen. In establishing a company in the Dubai Free Zone, here are some of the main tax advantages:

1. Not imposing income tax on companies and individuals: In Dubai’s free zones, the emirate does not impose income tax on companies or individuals, which means that companies can make their profits without paying taxes on them.
2. No value-added tax (VAT) is charged on services and goods: VAT is not charged on goods and services provided within Dubai free zones , providing additional savings to businesses.
3. Not imposing corporate tax: In free zones, the emirate does not impose corporate tax on commercial profits made by companies.
4. Not imposing a capital tax: The emirate does not impose a tax on capital or assets in the free zones, which helps stimulate investment and business growth.
5. Savings on customs: Free zones provide distinctive customs facilities, such as not imposing customs duties on import and export, and this enhances the flow of goods and international trade.
6. Exemption from customs duties: Companies in free zones enjoy exemption from customs duties for materials, equipment, and components that are imported for use in production and manufacturing processes.
7. Protection of intellectual property: Free zones provide a suitable environment for protecting intellectual property and encouraging innovation, research and development.
8. Flexible legal regulation: Free zones provide a flexible and easy-to-use regulatory environment that allows companies to manage their business efficiently and effectively.

Documents for obtaining a commercial license in the Dubai Free Zone

The documents required to obtain a business license in the Dubai Free Zone vary depending on the type of license and the planned business activity, but there are some basic documents that are usually required. Here is a general list of documents you may need:

• License Application Form: You must fill out the application form provided by the competent authorities in the free zone.
• Copy of Passport: A copy of your passport or the passports of the founding members (in the case of companies) is required.
• Photo: The application often requires a photo of each individual associated with the application.
• Business Plan: You may be required to submit a detailed business plan explaining the company’s objectives and proposed activity.
• Company quality certificate: In some cases, you may need a company quality certificate or certificate of incorporation.
• No objection certificate: Local authorities may require a no objection certificate from the relevant government agencies.
• Special Permits: In some cases, you may have to obtain special permits based on the type of activity you plan to engage in.
• Copy of the lease contract: If you plan to rent an office or space in the free zone, you may be required to provide a copy of the lease contract.
• Certificates of Qualifications: You may need to provide certificates of qualifications for the founders or executives of the company.

At the conclusion of this comprehensive article about the cost of a commercial license in the Dubai Free Zone in cooperation with Itqan Company, we can confirm that estimating the financial costs of obtaining a commercial license in the free zone depends on several factors. The type of company, the size of the proposed business, and additional services required, such as legal and accounting services and office leasing, should be considered. There are also fixed and variable costs associated with setting up and operating a company.

By utilizing Itqan’s experience, the article can provide valuable advice on how to achieve cost savings and identify the most feasible investments. In addition, you must adhere to the laws and regulations regarding setting up companies in the Dubai Free Zone and ensure that all legal requirements are met.

Generally speaking, the financial cost of obtaining a business license in the Dubai Free Zone can be a good investment for startups and established enterprises, while providing an opportunity to gain access to the UAE market and the surrounding region.

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