Establishing a company in the Dubai Internet Free Zone

Dubai is a global center for technology and innovation, and provides an ideal environment for entrepreneurs and investors seeking to establish their companies in the field of technology and information. One prominent destination that attracts the interest of these investors is the Dubai Internet Free Zone. This region provides advanced infrastructure, a distinguished work environment, and full support for startups and major projects alike. In cooperation with Itqan Company, investors can obtain specialized advice and various support services to establish a company in the Dubai Internet Free Zone. This step is considered a smart strategy, as it allows them to access a market rich in opportunities and capabilities, and enjoy many advantages that enhance the success of their business and its expansion at the regional and international levels. By cooperating with Itqan, investors are able to achieve their ambitions in an encouraging and flexible work environment, which contributes to the sustainable and effective growth of their companies. Establishing a company in the Dubai Internet Free Zone is indeed a step towards a promising future in the business world.

Advantages of establishing a company in the Dubai Internet Free Zone

Establishing a company in the Dubai Internet Free Zone comes with many advantages and benefits. This region is one of the most attractive environments for technological and innovative companies in the region. Here are some key advantages:

• Complete independence: Dubai Internet Free Zone provides an independent legal and commercial environment, which means that companies established in it enjoy complete independence in managing their business and making independent decisions.
• Low Taxes: The free zone provides comprehensive exemption from corporate taxes, including income tax, value-added tax, and import and export taxes. This means that companies can achieve more profitability and reduce tax costs.
• Customs facilities: The free zone provides customs facilities and simple procedures for import and export. Companies can import equipment and materials easily and at lower costs, enhancing their ability to implement their projects efficiently.
• Access to the global market: Dubai is located in a prime strategic location and is a major center for global trade and communications. Thanks to the presence of ICT companies in the Internet Free Zone.

Legal forms of a company in Dubai Free Zone 

In the Dubai Free Zone , several legal forms are available for establishing a company. Common legal forms include:

Steps to establish a company in the free zone in Dubai 

Determine the type of activity

Identifying the activity is the first step in obtaining a business license. Through the activity, the parties associated with this activity and the permitted legal forms are identified.

The legal entity of free zone establishments in the country takes one of the following two types:

• Free zone limited liability company
• Free zone establishment

The difference between the two types lies in the number of shareholders and the nature of the shareholder, whether a natural or legal person. Not all free zones are obligated to register these two types of establishments.

Therefore, we advise the investor to refer to the body responsible for managing each free zone separately to inquire about the legal structure available for the type of activity that he wants to practice.

The Dubai Multi Commodities Center allows the establishment of a limited liability company, which takes the form of a subsidiary wholly affiliated with a local or foreign company.

 – Existing local and foreign companies can establish branches in other free zones.

  Capital requirements in free zones in the country vary according to the region and activity.

Choose a trade name

When determining the type of legal entity for your business activity, you should also think about choosing a trade name that is appropriate for the activity.

In most cases, you must refer to the relevant free zone authority, or the relevant Department of Economic Development, to find out the authorized trade names and whether the name intended by you has been previously registered by a company.

On the other hand, the Departments of Economic Development require certain conditions to approve a trade name, including:

• It must not be contrary to public order and morals
• It must be followed by something indicating the legal entity of the company, such as: (LLC, PJSC, PJSC, FZE, FZE)
• Must not be registered or used for the same or similar type of activity
• It must comply with the nature of the activity and the required legal form
• It must not include sectarian or sectarian names, the names of the ruling authority, or the names and logos of local, Arab and international bodies, institutions and organizations.
• It must not be identical or similar to a local or international trademark registered with the Ministry of Economy

Selection of offices and work facilities

 In free zones, you can buy or rent office space, and office requirements depend on the number of employees and the type of business activity of the company.

 Obtaining initial approvals, registering the activity and obtaining the license

Establishments established in free zones are subject to the laws and regulations that govern each specific free zone body or authority.

In order to obtain the necessary approvals, you must apply for the necessary documents. The list of documents varies according to the type of activity and the requirements of the free zone authority.

 Below are general instructions on the steps and documents needed to obtain approvals.

 Initial approvals

 In order to obtain initial approvals, you need the following:

• An application form for initial approval, complete with the required data
• Action Plan
• A copy of the existing business license/registration certificate (for existing companies, this applies to local companies only)
• Color copies of the passports of the company’s shareholders, and the director or member of management appointed to the new company
• A signature form for both the shareholders of the company, and the director or member of management appointed for the new company
• Audited financial reports on the company’s budget for two years, or a reference certificate from each shareholder’s bank
• No objection letter from the current sponsor (for individuals)
• Title deed for the real estate unit
• Letter of intent
• A form with the commercial registry identification code for the manager/member of management (submit the original copy officially certified by a notary public)

 The freelancer needs to provide a smaller amount of documentation, and in most cases must:

• Submit a registration request
• biography
• Reference letter from the bank
• A form with the commercial registry identification code (submit the original copy, officially authenticated by a notary public)

 Establishment registration

 After obtaining initial approvals, you must pay the registration fees and license fees. Fees depend on the type of license required.

Documents required to establish a company in the Dubai Free Zone

Dubai Free Zone is a major destination for investors seeking to establish their companies in a developed and prosperous economic environment. Establishing a company in the Dubai Free Zone has many advantages, such as enjoying tax exemptions, full foreign ownership, and advanced infrastructure. However, setting up a company in a free zone requires preparing and submitting a set of documents necessary to ensure compliance with local laws and regulations, usually requiring the following documents:

• Copy of founders’ passport: A certified copy of the passports of all founders and shareholders of the company must be submitted.
• Registration Application Form: You must fill out the official registration application form provided by the competent authority in the free zone, such as the Free Zones Development and Investment Authority (FZA) in Dubai.
• Corporation contracts: The texts of the corporation, limited company, or joint stock company contracts must be submitted, and they specify the ownership and management structure and the proposed business activities of the company.
• Contribution agreements: If there are other shareholders in the company, contribution agreements may need to be submitted that specify their shares in the capital and the rights and obligations relating to them.
• Financial Reports: You may be required to submit company financial reports, such as financial statements for the past year and financial projections for the coming years.
• Office address: The address of the office where the company will be located in the free zone must be provided. This could be a physical office address or the use of an inbox service.
• Commercial activity permit: The commercial activity that the company will undertake must be determined and its permit must be obtained from the competent authority in the free zone.

This is just a general list of required documents, the exact requirements can vary depending on the type of company and the free zone you choose. It is always advisable to check the legal requirements and current legislation and consult with Itqan experts to ensure full compliance with legal and administrative requirements.

Fees required to establish a company in the Dubai Free Zone

The fees required to establish a company in a free zone in Dubai vary depending on the type of company and the free zone you choose. Here are some common fees that may apply:

1. Registration fees: Includes fees for submitting a registration application, issuing licenses, and registering the company. These fees may vary based on the type of company, size of capital and the free zone selected.
2. License renewal fees: You need to pay an annual fee to renew company licenses and maintain their validity.
3. Additional Services Fees: If you request additional services such as incoming mail, outgoing mail services, or shipping and customs clearance services, additional fees for these services may apply.
4. Legal Consulting Fee: If you engage a legal advisor or business consultant to assist with the incorporation process, you will be charged a consulting fee for the services provided.
5. Work Visa Fees: If you intend to employ foreign employees, you will incur work visa costs and fees related to each employee.

Establishing a company in the free zone

The UAE is distinguished by the fact that it has more than 40 free zones in addition to some areas that are being established. Therefore, establishing a company in a free zone is one of the difficult matters facing the investor, as it is difficult to choose between many areas. Therefore, Itqan Company, through its great experience in business management, undertakes By helping many investors choose the appropriate free zone for their commercial activity, it also helps in establishing and establishing a company in the free zone in the shortest time and at the lowest costs.

Advantages of starting your business in Dubai free zones

What is a free zone in Dubai and what are the benefits of starting a business or establishing a company in the Dubai free zone? Simply put, free zones in Dubai are economic zones launched by the government and offer:

• Corporate and personal tax exemptions, customs benefits and other incentives for foreign investors
• Dispose of the full profits without any decrease
• Complete individual ownership
• There are no restrictions on cash transactions
• Complete exemption from import and export tax
• These special rules and regulations have been set by the government to establish such free zones in Dubai.

Frequently asked questions about establishing a company in the Dubai Internet Free Zone