If you wish to establish a business in the Dubai free zone, you must first decide on the type of business you want to start, whether through contracting out work or launching your own company and recruiting personnel. Freelancing can be a more affordable option. However, not all of Dubai’s free zones grant freelancing permits, which slightly limits your options in the Free Zone, but there are still many options in both sectors. So, the country’s explosive economic growth is the main justification for starting a business there.
5 Important Steps to Launch a Business in Dubai
Here are some starting points if you are considering establishing your business in a free zone:
1. Selecting the Professional Activity
Choosing the type of business you want to run is the first step in obtaining a free zone. It also depends on the type of license you filed for; if you receive it, you’ll be able to do things like professional services, trade, and other commercial operations. However, Dubai has specific criteria depending on the license type you hold and the activity you intend to conduct. Therefore, professionally working with a company formation in Dubai is advised for a start.
2. Identifying a Free Zone
The next step is choosing the appropriate free zone place in Dubai. It would help if you considered many factors while selecting a business place. Free Zone is an excellent place to start your business setup in Dubai. In addition, there are other choices for larger free zones. For instance, free zones like Dubai South and DMCC allow for various activities. Additionally, it would help if you examined whether the location is close to the airport and major highways, allowing for easy international trade.
3. Choosing a Company Name
Choosing a company name is now the most challenging stage. When selecting the name of your UAE firm, a few things should be considered. So, the first step is to ensure your company name is available for registration. No references to political parties or blasphemous language should be present in the name. Only full names, not initials or nicknames, are allowed if you want to keep the company name in a person’s name. This person must also be a partner and shareholder in your firm.
4. Fill out your Licensing Application
Now that you’ve decided on a company name, a line of business, and a location, it’s time to make the Dubai free zone company formation official by submitting your application. So, several legal papers may be needed to start a Dubai-free zone firm.
- If applicable, a color copy of the shareholder’s passport and visa
- The application forms
- Business strategy
- Board decision
- The memorandum and articles of incorporation.
Visa Application in Dubai, UAE
The process is the same whether you are applying for your visa or sponsoring someone else’s: entry permit, status adjustment, medical fitness exam, Emirates ID registration, and visa stamping. So, again, a company creation professional can help you with this.
5. Documents Required to Start a Business
First, make sure you have all of the necessary paperwork, including:
- A form for opening a corporate bank account.
- A resolution of the board of directors authorizing the opening of the account, as well as the signatories to the report.
- A duplicate of your share certificates.
The Advantages of Starting a Business in Dubai Free Zone
Here are some advantages of starting a business in Dubai:
- Complete foreign ownership.
- There are no currency restrictions.
- Exemption from Import/Export.
- Complete capital and profit repatriation.
- Simple Labor Recruitment.
- Simple Company Incorporation.
- Simple Immigration Procedure.
How Can I Renew My Current Dubai Trade License?
The Dubai Department of Economic Development (DED) requires commercial license holders to get all necessary licenses and authorizations from government and municipal bodies. So, this approach is used to renew the trade license every year. To keep the firm running properly. However, all essential paperwork includes a renewal form, lease contract, authorizations, approvals, and the identity and photocopies of shareholders and directors.
Can I change the Business Activity on my existing Trade License?
Follow the steps detailed below to alter your Business Activity.
- Apply the application to the appropriate government agency for review because the firm is subject to its jurisdiction.
- Attachment of required documents.
- Pay the fee for modifying the activities permitted by your business license.
- Get a new driver’s license.
How can I change my business name?
A company’s ability to change its trade name is subject to some requirements.
- Changes in activity made by the board of directors (for corporations)
- The government issues the first Trade License.
- Government approval of the required operations
- After changing a company’s economic activity, the UAE Ministry of Economy certifies the memorandum of association.
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