Company Formation Dubai



Why Should You Open a Company in a Dubai Free Zone?

Updated on Tuesday 19th April 2016

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Why-should-you-open-a-company-in-a-Dubai-free-zoneDubai is currently one of the easiest places to register a company in the world. Apart from that, Dubai offers other advantages which is why the number of foreign investors opening companies here is constantly growing. Enterprisers have two options for starting a business in Dubai and various types of legal entities to choose from. They can open a company within the Emirate or in one of its free zones. Dubai has more than 20 fully operational free zones and few others in the development phase.

Types of companies available in Dubai free zones

Foreign enterprisers can choose to register free-zone limited liability companies or work as sole traders, while foreign companies can establish free zone companies with a corporate shareholder or branch offices. Investors can also operate as sole proprietors, provided that they apply for one of the professional licenses issued by the free zone authorities.

No matter the type of company one decides to set up in one of Dubai’s free zones, the following licenses are available:

  • -          general trading licenses;
  • -           trading licenses;
  • -          industrial licenses;
  • -          national industrial licenses,
  • -          service licenses.

For certain types of activities, minimum share capital requirements apply depending on the free zone where the company will be registered.

Advantages of setting up companies in Dubai free zones

One of the greatest advantage of opening a company in a Dubai free zone is the fact full foreign ownership is permitted. Compared to any free zone, incorporating a company in Dubai implies having a national partner who will own 51% of the shares in the company. The other reasons what make Dubai free zones so attractive are:

  • -          investors can benefit from a 3-year visa and can sponsor their families;
  • -          hire employees without the appliance of the UAE labor legislation;
  • -          quick and easy company incorporation procedures;
  • -          excellent infrastructure for any type of business;
  • -          no taxes.

Depending on the free zone where the company will be located, tax exemption can be granted for a 50-year period of time.

If you want to open a free zone company and need assistance, you can contact our company formation agents in Dubai who can handle the registration and licensing procedures.


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