If you are setting up a company in Dubai free zone, there are many benefits to choosing this location. The following article will explore some of those benefits, the costs involved, the license required to form a company in a free zone, and the steps to get your company up and running. Hopefully, these tips will help you decide between forming your business in the free zone.
Cost of setting up a company in a free zone:
A free zone business license is a good option for companies that do not need to register a business name. However, there are a few things to remember when choosing a company name. You cannot use an offensive word, reference to Allah, or a phrase related to religion. Also, the name of the company should contain its full name. To get the best name for your business, you should consult with an expert in company formation. The best way to minimize costs is to opt for a low-cost free zone license.
Registration fees vary in the UAE free zones and range from a few thousand dirhams to over AED 9,000. Nevertheless, while the registration fee is essential for registering your company in Dubai, you should also remember that the license fee is separate from this amount. You need to factor this into your calculation. If you plan to sell your product in the UAE mainland, you need to hire a distributor. Limited liability companies, however, are not restricted by this rule.
License required to form a company in a free zone:
The license required to form a company in Dubai-free zones will depend on the type of business you want to run. Some zones will allow multiple types of business and are more industry-specific than others. When choosing a free zone, make sure that you research which is most suitable for your business type. Dubai’s free zones are also divided into different sectors, including IT, healthcare, commerce, trading, and more.
Steps to apply for a license to form a company in a free zone:
Depending on the free zone you choose, company formation may take between eight and ten weeks. In some cases, bank accounts can take two to three weeks to open, depending on the type of corporate structure you choose. Despite the UAE’s popularity, there is still a high red tape. It is crucial to select a competent Dubai Free Zone company formation consultant to avoid any unexpected delays.