A Dubai Freezone company formation is a relatively simple and quick procedure. The government has set up a number of free zones in order to attract more foreign trade investment, which is being addressed by the free zone authority. Free zones have the authority to create their own business regulations that are not governed by Dubai or the mainland’s corporate laws. It also necessitates the least amount of paperwork and time. Foreign companies are allowed to conduct their complete operations in a free zone. Any business in the financial, educational, media, retail, hospitality, and other fields can be recognised by the appropriate free zone authorities for enterprises permitted on their premises.
However, there are a few apparent requirements that an entrepreneur must meet before starting a firm in the Dubai Free Zone. The six important factors that will help you integrate a business procedure are listed below.
Choose the right type of legal entity
First and foremost, decide what type of legal entity your company requires. You have the option of forming a Free Zone Limited Liability Company, a Free Zone Company, or a Free Zone Establishment in a free zone. The differences between these two include whether the shareholder is a natural person or a legal entity, as well as the total number of shareholders. Furthermore, each of these has its own set of benefits and drawbacks. Management must determine which business entity will be most advantageous to the organisation.
Choose a business activity
The second step is determining what kind of business you want to start. Because many free zones enable numerous commercial activities, you have a wide range of options for starting a company. This will have an impact on the region in which you can register your business. However, because Dubai has a few particular rules for what activities are permit, working with a company formation professional is the best way to ensure a smooth process.
Choosing the Name of the Company
Before choosing on a name for your firm in Dubai, you must consider a number of factors. To begin, double-check that the chosen name is accessible for use and that no other company is utilising it to conduct business. You should also avoid using words that are heretic or have a political or religious connotation. In the same way, if you want to name your company after someone, that person must be a partner and shareholder. Also, instead of acronyms or initials, make sure to use entire personal names.
Prepare your license application
Following your choice on the type of entity, industry sector, and name for your firm, you must next submit your licence application to make your Dubai free zone business official. The laws of the individual free zones take precedence over businesses formed within them. You must refer to the documentation to obtain the necessary approvals. Also, bear in mind that the required documents will differ according to the area of industry, the type of organisation, and the free zone council’s legislation.
However, you must first obtain preliminary approval from the appropriate authorities. You must supply the documents indicated below in order to do so.
- Incorporation of a company application form
- A comprehensive business plan
- a copy of an existing trade licence or certificate of registration
- Copies of the company’s shareholder and the appointed manager’s passports in colour.
- Specimen signatures of the company’s shareholder and the new business’s selected management.
- 2 years of audited financial statements for business companies or a certificate of reference from the shareholder’s personal bank.
- The current sponsor’s approval is required.
- Deed of title to the unit
- The Letter of Intent
- Form for the management or director’s registry identification code.
You might be required to show documentation of work orders or invoices as a freelancer. In the vast majority of circumstances, they must supply the following:
- Registry Identification Code Form
- Application for registration
- Bank reference letter
You must pay registration and licence costs after receiving first clearance. The cost varies depending on the type of licence required. After that, you must give the following documents in order to register your business:
- a filled-out registration application
- Resolution of the Board of Directors appointing a Manager/Director
- Power of Attorney given to Manager/Director
- Articles of Association and Memorandum
- Manager/Director signature sample
- Photo of the Manager or Director in passport size
- Share capital data
- Visa applications
Following the registration of your firm, you can begin your visa application. You can also apply for a visa for your hireling as well as any other household workers. The status adjustment, getting entry permits, Emirates ID registration, medical fitness test, and visa stamping are all part of the application process. During this period, a company formation professional can readily assist you.
Open a Bank Account
Opening a bank account is critical because it allows the firm to have a separate identity from the account holder. However, opening a corporate bank account in Dubai is not simple, and there are various considerations to make. A professional company formation expert, on the other hand, can aid and advise you on the ideal bank to meet your specific needs. You will be ask to produce the necessary documentation in order to open a bank account. The following are include in these documents:
- An account opening form
- A signed copy of the board of directors permitting the starting of the bank account.
- A copy of the share certificates
- Copies of the passport
- A copy of the memorandum of association and the article of association.
These are some of the issues that should be consider by management prior to establishing a business in a free zone. Keeping these considerations in mind will simplify the procedures involved in Business Set up Dubai. Want to know about Dubai Mainland Company Formation? Contact us today!