Starting a Business in Dubai Free Zone

Dubai Free Zone, also known as Dubai Free Trade Zone, is a special economic zone offering a wide range of benefits to businesses and corporations. These zones are strategically designed to encourage international business by providing 100% foreign ownership, full repatriation of earnings and significant tax breaks, among other incentives.

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Location and infrastructure

  • Strategic location: Located in Dubai, United Arab Emirates, these free zones are strategically positioned to serve as hubs for global trade, taking advantage of the city's geographic location that links East and West.
  • World class infrastructure: Dubai's free zones offer world-class infrastructure, including advanced logistics facilities, high-speed internet and telecommunications services, and high-end office and warehousing space designed to meet the needs of businesses across a variety of sectors.

Main advantages

Main Free Zones of Dubai

Regulatory environment

  • Making it easier to do business: Dubai's free zones offer a simplified set-up process with a 'one-stop shop' for administrative services, assisting with licensing, visas and other regulatory requirements.
  • Innovative regulation: Each free zone has its own regulatory authority, providing flexible and business-oriented regulations tailored to the specific needs of the industry.

Dubai's free zones are an integral part of its economic landscape, attracting investors and entrepreneurs from around the world by creating a favourable environment for business growth and development.

The 100% foreign ownership regulation in Dubai’s free zones is a key aspect that makes these zones particularly attractive to international investors and entrepreneurs. Let’s take a closer look at what this means and the benefits it provides.

General context in the UAE

Full control and management

In most areas of the UAE, foreign investors are required to have a local partner who must own at least 51% of the company's shares. This means that a foreign investor can control no more than 49% of the business. This requirement was designed to encourage local participation in the economy and ensure control over foreign investment.

100% Foreign Ownership in Free Zones

Dubai's free zones offer a unique exception to this rule, allowing foreign investors to own a 100% company registered in a free zone. This means that a foreign businessman can fully own and control his company without having to find a local partner.

Advantages

  1. Full Control: Investors can have full control over their business, making decisions without the need to coordinate with a local partner.
  2. Financial Benefits: 100% ownership provides investors with the right to full repatriation of profits and capital without restrictions.
  3. Simplified Procedure: The process of setting up a business in a free zone is simplified with a one-stop shop for all administrative services, reducing the time and effort involved in registering and managing a company.
  4. Tax Benefits: Companies in free zones also enjoy tax incentives such as exemptions from corporate and income taxes.

The 100% foreign ownership regulation makes Dubai’s free zones particularly attractive to international businesses, providing unique opportunities for growth and development without the traditional restrictions found in other parts of the UAE. This encourages foreign investment into Dubai, helping it grow as a global business hub.

Repatriation of capital and profits -

is the process of returning invested funds and profits from a foreign country to the investor's home country. In the context of Dubai's free zones, this means that foreign companies and entrepreneurs doing business in these zones can transfer their earnings back to their home country without restrictions. or to any other country of your choice.

Repatriation of capital and profits from Dubai free zones provides the opportunity to transfer funds not only to the investor’s country of origin, but also to any other country of the investor’s choice. This means that investors are free to move their earnings without restrictions, choosing the most suitable jurisdiction for themselves depending on financial, tax or strategic considerations. This flexibility is especially valuable in a global economy, where international business structures and personal financial portfolios can be diverse and geographically distributed. This gives entrepreneurs and companies additional advantages in planning and optimizing their financial operations at the international level.

Key aspects of capital and profit repatriation include:

  • 100% Repatriation: Investors and businessmen can remit back 100% both the originally invested capital and the profits earned without facing any local restrictions or repatriation taxes.
  • No currency restrictions: There are no restrictions on the currency in which repatriation is carried out. This provides flexibility in the choice of currency, optimizing financial transactions and protecting against currency risks.
  • Full control over earnings: Allows companies and investors to have full control over their earnings, facilitating decisions about further investment, business expansion or personal use of capital.

Importance for foreign investors:

Repatriation of capital and profits is a key factor that makes investing in Dubai’s free zones attractive to foreign investors. It provides them with the confidence that they can move their funds and profits freely without fear of restrictions or unexpected tax consequences. This policy contributes to a favourable investment climate and enhances Dubai’s reputation as a global financial centre, attracting a wider range of investors and contributing to the region’s economic growth.

Jebel Ali Free Zone (JAFZA) -

is a leading business hub in Dubai, United Arab Emirates, playing a key role in the region’s economy. Established in 1985, JAFZA has grown to become one of the largest free zones in the world, providing comprehensive solutions for trade, logistics and industry. Here are some key aspects that set JAFZA apart:

Geographical location and infrastructure

  • Strategic location: Situated at Jebel Ali Port, the largest manouche port in the world and the region's main logistics hub, JAFZA offers unique advantages for international trade and transportation.
  • World class infrastructure: The zone has modern infrastructure, including warehouses, office buildings, production facilities and high-tech service support.

Economic benefits

  • Tax incentives: Businesses operating in JAFZA are exempt from corporate income tax for up to 50 years (renewable), there is no personal income tax and no taxes on exports and imports.
  • 100% foreign ownership: Companies can be wholly foreign owned without the need for a local agent or partner.
  • Repatriation of capital and profits: Enterprises are allowed to repatriate 100% of their capital and profits without limitation.

Services and support

  • One window: JAFZA offers a one-stop shop for all administrative processes including company registration, licensing, visa and customs services, making doing business much easier.
  • Diversity of industries: The zone welcomes companies from various sectors including trade, logistics, manufacturing, finance, research and development and many others.
  • International community: JAFZA is home to over 7,000 companies from over 100 countries, creating a vibrant and multinational business community.

Innovation and Sustainable Development

  • Environmental responsibility: JAFZA is committed to sustainable development and green operations by implementing green initiatives and technologies in its processes.

Jebel Ali Free Zone continues to be a leading global business hub, attracting investment and supporting the UAE’s economic growth through its strategic location, high-quality infrastructure and business-friendly environment.

Cost of Company Registration in Jebel Ali Free Zone (JAFZA) in Dubai

may vary depending on the type of business, the license chosen, the size of the office or warehouse, and other factors. As of the latest available data, here is a rough range of costs:

  • Registration fee: The one-time registration fee for setting up a company can range from a few thousand to more than $10,000 depending on the type of company and its structure.
  • License fee: The annual license fee depends on the type of activity and can range from $1,000 to $5,000 or more.
  • Office or warehouse rental: Rental costs vary greatly depending on size and location. Minimum rental costs for a small office or ready-made warehouse space start at around $20,000 per year.

Additionally, potential investors should consider additional costs such as employee visa fees, health insurance, security deposits and other operating expenses.

The exact cost will depend on the specific needs of your business, so it is recommended that you contact the JAFZA administration directly or a consultancy company specialising in business registration in the UAE for up-to-date and detailed information on costs and requirements.

The high costs of registering and running a business in Jebel Ali Free Zone (JAFZA) and other similar zones in Dubai can be attributed to several key factors:

1. World class infrastructure and services

Free zones in Dubai, including JAFZA, offer world-class infrastructure and services. This includes modern office space, warehouses, manufacturing facilities, and high-tech communications systems. Such infrastructure requires significant investment in development and maintenance, which is reflected in the cost of services.

2. Strategic location

JAFZA is located next to one of the world’s largest ports, Jebel Ali, and offers a unique geographical location, providing easy access to international trade routes. This strategic advantage makes the zone ideal for companies involved in logistics, distribution and international trade.

3. Wide range of benefits

Companies in JAFZA enjoy a variety of economic benefits, including complete exemption from corporate and income taxes, no customs duties, 100% foreign ownership, and repatriation of capital and profits. These conditions create a favorable environment for business, but also require significant initial investment.

4. High level of safety and security

Free zones provide a high level of security and business protection, which requires investment in security, surveillance and appropriate technology systems.

5. Business support and administrative services

JAFZA and other free zones provide comprehensive administrative and business services, including assistance with company registration, licensing and visas, which reduces the administrative burden on companies but also impacts overall costs.

These factors create a favourable environment for business and attract high-quality companies willing to invest in the quality and benefits offered by free zones, despite the higher initial costs.

  • 100% foreign ownership
  • Dubai Free Zones
  • Exclusion of local partner
  • Full control and management
  • Repatriation of profits and capital
  • Simplified business registration
  • Exemption from corporate and income tax
  • Global Business Hub
  • Attracting foreign investment
  • Economic incentives for entrepreneurs
  • Diversity of industry sectors
  • Strategic geographical location
  • World class infrastructure
  • One stop shop for administrative services

Commercial proposal to start and support your business in Dubai Free Zone

[Your company name]
[Address]
[Telephone]
[Email]
[Website]

Dear Sirs!

As economic activity globalizes and new opportunities to expand your business are sought, Unique services WhatOx to successfully launch and develop your business in one of the most attractive economic zones in the world - the Dubai Free Zone.

Why Dubai Free Zone?

  • 100% foreign property without the need for a local sponsor.
  • Full repatriation of capital and profits without restrictions.
  • Zero corporate and personal taxes over a long period of time.
  • Strategic location with access to the world's largest markets.

Our services

1. Full range of consulting services
From choosing a suitable free zone to comprehensive support at all stages of business registration, including legal support and financial planning.

2. Organization of business space
Offering ready-made office solutions, including coworking and turnkey offices, as well as assistance in organizing a workplace in Ded Café for informal meetings and work.

3. Support for startups and access to investment
Mentoring program and networking events to interact with startups, as well as opportunities to attract investment.

4. Logistics and marketing support
Consultations on logistics, customs clearance of goods, as well as comprehensive services in the field of digital marketing and promotion of your business.

Why choose us?

  • Individual approach to each client, allowing us to find optimal solutions.
  • Deep knowledge local market and legislation.
  • Wide range of services from planning to implementation of your business.
  • Strong network of partners in Dubai Free Zone to support your business at every stage.

We invite you to discuss how we can help you implement your project in Dubai Free Zone. Our team is ready to provide you with detailed information on all issues of interest to you and begin fruitful cooperation.

Sincerely,
Oksana S.
CEO


We understand the challenges of starting and maintaining a business in the Dubai Free Zone, especially for those new to the international arena. Our team offers in-depth knowledge of the legal and regulatory framework, helping clients minimise risks and avoid costly mistakes. We also help overcome cultural and language barriers, ensuring smooth interaction with local authorities and business partners.

Choosing our company allows your business to start up quickly, optimizing the use of time and resources. We provide access to our extensive network of contacts, personalized solutions that exactly match your needs, and ongoing support to ensure your long-term success. With us, you minimize potential risks and optimize your chances of success in the Dubai Free Zone.

Pricing Model

To ensure the flexibility and accessibility of our services, we have introduced the following pricing model:

  • Basic commission: 20% of the total cost of services.
  • Daily maintenance: An additional fee for each day of service, ensuring continuous support and advice at all stages of your business.

Calculation example:

Let’s say you want to register a company in Dubai Free Zone and the total cost of services is $10,000. Your base fee will be 20% of this amount, which is $2,000. If the registration process takes 10 days and the daily fee is $100, the total daily fee will be $1,000. So your total cost of services will be $3,000.

Included Services:

  • Consultations on choosing a free zone: Selecting the optimal zone according to your business goals and requirements.
  • Assistance in company registration: Support at all stages of registration, including preparation and submission of necessary documents.
  • Legal and tax advice: Tips for tax optimization and compliance with Dubai laws.
  • Ongoing support: Daily consultations and assistance in resolving emerging issues throughout the entire process.

Advantages ours offers:

  • Pricing transparency: You will always know how much and what you are paying for.
  • Flexibility: We can tailor our services to suit your unique needs and budget.
  • Saving time and resources: Our expertise and support accelerate the process of starting and growing your business in Dubai.

We are confident that our offer will provide you with the necessary services and support to successfully start and grow your business in Dubai Free Zone. Our specialists are ready to answer any questions you may have and start planning your project.

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