Dubai’s business laws are extremely transparent and well planned. Whether you want to set up a company in the Mainland area or one of Dubai’s fully developed free zone, you need to follow certain rules and regulations. However, choosing the latter option has its own advantages. It is really simple to form a company in a free zone as it requires minimum paperwork, time and is much more affordable than the mainland option. However, free zones do not allow businesses to participate in local markets.
Mentioned below are some of the key steps in starting a Smart business in Dubai free zone.
- Opting for the right company formation.
- Selecting an appropriate trade name.
- Based on it, one then needs to apply for a trade license.
- Renting an office space within the selected jurisdiction.
- Payment of fees and further approvals.
Free zone company formation in Dubai is available in two flavors:
- Limited Liability Company or FZ LLC.
- Free Zone Establishment or FZE.
One of the important differences between the above two is the number of shareholders it allows. Moreover, certain free zone jurisdictions may provide just one option for company formation. Entrepreneurs need to ascertain this fact before assigning someone for this task.
Mentioned below is the cost of free zone business setup in general:
|Free Zone Company Formation Pricing Breakup||Amount|
|Free zone (FZ) company formation||Starting from AED 13000|
|Rental cost||Included FZ company formation|
|Smart desk||Included FZ company formation|
|Office units||Included FZ company formation|
|Permanent office / Warehouse||Included FZ company formation|
|Dubai free zone license cost||Included FZ company formation|
|Share capital requirements||Included FZ company formation|
|Free zone visa fees||AED 5000 to 7500|
|Bank guarantee for free zone||Included FZ company formation|
Please note: All government charges are based on actual, and therefore may vary from time to time. Moreover, other additional fees may be applicable depending on the client’s requirements.
Company setup cost in Dubai free zone starts from AED 13000 which is a onetime cost paid to the free zone authority during the early formation. The fees may vary depending on the type of firm that is being setup – FZ LLC or FZE.
Free zone license fee, which is already included in the package is a yearly charge paid to free zone jurisdictions. This cost is applicable to trading, services and industrial companies. Incidentally, this is a single window process.
Cost of Dubai free zone business setup also includes rent which is bundled with FZC registration and one of the first expenditures that entrepreneurs incur while setting up a company. However, it does provide 100% ownership of assets and liabilities. There are three options to rent an office in the free zone – monthly, yearly or long term lease. While some jurisdictions are really cheap in terms of fees and rent there are others which are a little more expensive.
A rented place also defines the activities that will be carried out and also the number of visas that can be fetched.
Business Link UAE, renowned business setup consultant in Dubai assists existing and aspiring entrepreneurs in setting up Smart business enterprise in Dubai’s free zones at an affordable price point. Call or mail for an instant quote.