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Today, Dubai has approximately 45 free zones in total, with more being under construction.
Free zones can be found in each of the seven Emirates, but Dubai boasts by far the largest share. UAE free zones offer excellent business opportunities, world-class amenities, and a variety of other benefits for entrepreneurs from all over the world. Each UAE free zone is run by an independent free zone authority that is responsible for allocating Dubai free zone licenses and providing office space and other amenities. Free zones are generally exempt from taxes as well as import and export duties.
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This first step to obtain a UAE freezone license can often be carried out online from abroad. However, once a prospective business owner has chosen a specific free zone such as Dubai freezone and provided all the necessary information and documentation, the free zone administration will take care of issuing the business license.
The licenses offered vary from free zone to free zone. The type of license required is determined by the business activity.
The most common types of licenses are:
Dubai or UAE business licenses in any freezone are usually valid for one year. In some cases, the validity may last up to three years. If the validity of a Dubai free zone license expires soon, you should renew it as soon as possible. Otherwise, you will end up getting hefty fines and it will affect your business operations. The prices and conditions for issuing and renewing business licenses vary from free zone to free zone.
Determine the type of business activity you intend to engage in your chosen freezone. Business activities such as food trading, marketing or management consultancy, or IT are allowed in each free zone.
Select a specific free zone in the UAE based on your business activities. Always choose three unique names for your company and submit them for approval.
Next step is to prepare required documentation. However, all the necessary documents, which may include passport copies of all the shareholders, application forms, business plans, and others.
The Free Zone Authority of the selected freezone will review your application. After verification, you will receive your freezone business license.
Free zone businesses are subjected to a limited number of resident visas. In a free zone company setup, the exact number of resident visas depends on the specific free zone.
It is very challenging to open your corporate bank account in UAE. Banks will require the presentation of some personal and business-related documents.
Free zone companies are restricted from doing business with international companies. Moreover, if you have to trade or sell your products or any services in the UAE mainland, then a freezone license might not be sufficient. You will require a mainland license, as certain activities may not be licensed in free zones but are allowed in mainland companies.
Freezone company setups offer a limited number of resident visas. However, the exact number of resident visas depends only on the specific free zone where you will start your business setup. If you anticipate hiring a larger number of international employees, you will require a mainland license.
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