Gradually and consistently, Dubai has become the business capital of the UAE due to the opportunities it provides. Unlike many other cities, it also offers free zones where you can set your trading post without paying anything at all.
However, such a convenient solution comes at a price, as you’ve probably guessed already.
Yes, following a few rules and regulations is required when you are opening a business center in a free zone. Through this article, we will try to offer some information regarding the same. So, make sure to stay with us till the end!
Opening A Business In Free Zones – A Step-By-Step Guide
Although it may not seem so, selecting a free zone for your business isn’t easy at all. If you are inexperienced, you can take the help of a dubai law firm or do it yourself. The first option is more preferred in our opinion.
Anyway, after you have chosen the free zone, you will have to start your business through a thoroughly-maintained legal procedure. Please keep reading to know more about it.
Step – 1: Choose Your Organization’s Name
The name of your business should be unique and discrete from every viewpoint. Also, make sure to create something short and memorable. As it’s going to be on the letterheads as well as signboards, you’ll want whoever is watching it to remember you.
Step – 2: Select The Business Activity
Once you have chosen a name, you’ll have to move on to the next step – opting for the desired business activity. It’s always best to offer something else rather than what others are offering in the zone. This way, you can grab more attention and generate a higher revenue than usual.
Step – 3: Pick The Right Company Structure
When opening a business in a free zone, most people usually go for an option known as the Free Zone Establishment. It consists of a single shareholder. However, if you have a partner in your business, you can also choose the Free Zone Company structure.
Step – 4: Have A Proper Office Space
Having an apt office space is crucial for fulfilling the core trade requirements of a business. For instance, specific organizations require frequent meet-ups with their clients. Hence, they will need a well-embellished office space for their purpose.
Step – 5: Gather Your Documents
The paperwork for opening a business in a free zone is pretty limited. For example, to finish up the same, you will only need to submit your –
Passport and Visa copy.
Trading license (if available).
Letter of intent.
RIC or Registry Identification Code.
Company shareholder’s specimen signature.
Aside from this, you will also have to reserve your trade name through documentation. Make sure to add three different options while you are at it. Only one of them will be selected.
Step – 6: Make Your Payment
Depending on the chosen office space, business license, and free zone, you’ll have to pay a certain amount of money to the authority. Make sure to do it while providing your documents so that you don’t have to visit the same place again and again.
Step – 7: Get Your License
Once you have submitted everything, the free zone authority will evaluate everything closely before offering you the license. However, if you belong to the healthcare, beverage, food, or educational sector, you’ll require special approvals before getting the business permit.
Step – 8: Create A Corporate Bank Account
Now, you will have to create a corporate bank account to collect your business revenue in a proper place. However, before you step into this segment, remember – the rule compliance and KNC norms are pretty strict in Dubai. Thus, hiring a lawyer would be ideal for you.
Unlike a well-built trading place, opening an organization in a free zone is much easier, especially from a legal viewpoint. However, if you are only starting out, we will ask you to be as careful as possible. Otherwise, you may end up making a mess out of it.
Anyway, now, we’ll be finishing up our article. If you have anything to ask or suggest, make sure to comment below. We will reply to you as soon as possible.