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Company formation in Dubai


Dubai and UAE as a whole is a tax free business environment no matter if it is mainland or free zone in Dubai. It is really appreciable by many that starting business in Dubai is really great. The city has become a popular destination for individuals because Dubai gives them the freedom to enjoy and invest their money.

What is a free zone?

Basically, free zone is a free trade zone in Ajman, United Arab Emirates. First established in 1988, it is one of a number of unboned free zones in the UAE offering offshore company setup and operation to investors.

Many investors tend to start their business or we can say form their company here.

There are options of offshore and onshore available to set up your business or company in UAE. Basically, these free zones are popular with foreign entrepreneurs because they offer 0% corporation and personal tax, 100% company ownership, 100% repatriation of capital and profits, no currency restrictions and 100% imports and exports exemption. This tempts an entrepreneur to extreme and obviously who won't be tempted after listening this much benefits that's why it attracts way more entrepreneurs.

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How do we setup company in UAE free zones?

By following a simple step by step guide you can easily form a company in Dubai. It is really straightforward and affordable than you might think. Let's get started with the first step that is:


1. Choose your business activity - First of all, I would like to clear the fact that free zones do not allow all types of business for example like some free zones only allow certain types of activities like media, medical or transport other offers different thing. Like if you want to establish a company which do the exports and imports thing so you will probably want to choose one of the free zone situated near the airport or any port.

Choosing business type helps you to eliminate some options which are not necessary early on. Also you can have multiple business activities under one trade license it is also possible no issues in that.

2. Choose your company name wisely – UAE has some strict naming conventions you cannot name your business anything which is not acceptable. Offensive names of the company, or companies name that refers to Allah or something like that is seriously prohibited there. Names like Mafia or FBI or names relating to them are also prohibited. So before choosing your company or business name you should make it sure that it conforms.

Also, if you choose to name the business after a person, that person must be a partner or owner of the company and their full name must be used, no initials or abbreviations must be used on behalf of the person.

A business setup expert will be able to give you chapter and verse on all the naming conventions. Choosing a name for your company can be difficult process only when you have ideas of the names that are restricted there.

3. Finalise all incorporation paperwork – After choosing type of business activity and name you will need to provide an application for your chosen company name and activity along with the copies of shareholder's passports to the relevant government authorities.

Some free zones require additional documents as well like a business plan or NOC (non-objection certificate) which is a letter from current sponsor confirming that you are allowed to set up business in UAE. The paperwork does not have to be too taxing providing it is undertaken with expert help. Your business set up partner can easily help you and can advise you on the paperwork required and help you complete it in no time.

4. Receive your license notification – Probably this is the easiest step of all. Once your application has been processed and received, the government will issue you the company license.

5. Open a bank account – Once your paperwork has been returned, you will have documentation now all you need is to open a corporate bank account. The UAE is known to be the home to many banks, both local and international, including Emirates NBD, Abu Dhabi commercial bank and the commercial bank of Dubai, along with some global names such as HSBC, Citibank, etc.

You can either approach any bank by your own of your own choice or ask your business set up partner to arrange meetings with a number of institutions to help you choose the best suitable option according to your requirements.

6. Process your visa – So this is the final step of company formation in Dubai, after applying for your own visa, many free zones also offer or allows you to put in applications for staff and dependents. So if you wish to apply visas for spouse, children, maid, etc. it is best to seek expert advice to ensure that firstly, it is possible to do that in your chosen free zone, secondly, that both you and anyone you are hoping to sponsor for a visa must meet all the required criteria. This process includes some simple stages which are as follows:


  • Entry permit
  • Status adjustments
  • Medical fitness test
  • Emirates ID registration and Visa stamping

These are some simple steps which one needs to take to form a company in Dubai it is not at all some difficult task all you need is proper information with you.

Company formation in Dubai is not only simple, but a big thanks to the accommodating conditions of the free zones, but with the right experienced support, the process can be done in just period of almost one week.

Dubai is really worth to start up a new business or company because it offers various services which are not provided by other cities, tax benefits and also some other services which an entrepreneur looks for.

All you need is a great idea to start up a new business every business can grow if you are well focussed towards it and you know what steps needs to be taken to grow your business.

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