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UAE Free-Zone Company Formation Procedure

Company Formation is the Procedure of Officially Registering a Limited Company.

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Company Formation in UAE

Two Types of Models:

– Free-Zone Setup

– Offshore Setup

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Information of Company Formation Free-zone

Dubai free zone company formation procedure varies from free zone to the free zone.

If you are reading this article, the chances are that you are planning to set up a busin

ess in Dubai and would like to know more about Dubai Free Zone company formation

procedure. In this article, we will try to describe the general procedure for Dubai Free

Zone company formation. Though we mention Dubai Free Zone for the ease of under

standing, please note the following;

The term Dubai Free Zone is used to represent all the Free Zones in Dubai.

There is no individual entity called the Dubai Free Zone

Free Zones in UAE, in general, follow similar procedures for company formation, with

some differences between the Free Zones.

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General Procedure of Free-Zone Company Form-

ation

As for when of any start-up business, we assume that you have done your preparatio

ns well before proceeding with Dubai Free Zone company formation procedure. Esse

ntial steps of your preparation for Dubai Free Zone company formation should include

the following.

Market Research.

Confirm your business requirements.

Identifying the best site that meets your business requirements. Dubai Free Zone Co

mpany Formation Procedure

Evaluating the various Free Zones in UAE.

The business plan for your new venture etc.

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Each Free Trade Zone has its own rules, regulations, and procedure. Dubai

Free Zone company formation procedure varies between Free Zones. In ge

neral, the procedure to set up a Free Trade Zone company in UAE can be s

ummarized in the following steps.

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Dubai Free Zone Company Formation Procedure

1. Determine the free zone license type.

2. Confirm the activities.

3. The legal structure of the company.

4. Confirm the business facilities required.

5. Verify the fees and other charges.

6. Submit the application form and other documents.

7. Secure the preliminary approvals.

8. Payment of the fees.

9. Sign the agreements and other legal documents.

10. Receive your business license and other certificates or documents.

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Determine the Free Zone license type.

The very first step in Dubai free zone company formation procedure

is to decide the license type that allows your business activity. In ge

neral, Free Zones offer the following types of business license;

1. Free Zone Trading License.

2. Free Zone General Trading License.

3. Free Zone Consultancy / Service License.

4. Free Zone Industrial License.

5. Free Zone Commercial License.

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Confirm the business activities.

Not all Free Zones allow all activities. Some Free Zones

specializes in certain activities. So it is important that you

confirm that your intended activities are permitted by the

Free Zone of your choice. Moreover, there are restriction

s over the number activities allowed.

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Determine the legal structure of the company.

The legal structure of the company varies according to th

e number and nature of the partners involved. Document

ation required, costs, etc. also change depending on the

legal structure of the company. Documents required for a

corporate partner (or a branch entity) would be different f

rom those required for an individual shareholder.

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Confirm the business facilities.

Do not assume that all Free Zones offer all types of busi

ness facilities. Though most of the Free Zones in UAE of

fer office space, warehouse, etc. availability can be a limi

ting factor. So you need to assess the availability of the e

ssential facilities provided by the Free Zone before com

mitting to set up the business with them.

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Verify the fees and other charges.

This is the most important step in FreeZone Company Formation in Dubai

procedure. Many investors who wish to register their company in one of the

Free Zones in UAE go for the cheapest option available based on the obvio

us costs. They do not understand the hidden charges and extra fees to be p

aid for the services that are essential for the survival of their businesses. Th

e total cost of your Free Zone business can be categorized into two.

The first-year cost for Dubai Free Zone company formation

Yearly renewal costs

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Some Free Zones offer packages that are cheaper than the normal

company formation costs. Investors fall prey to these packages offer

ed by certain Free Zones and business consultants without realizing

that they have to pay the package charges every year. The normal y

early renewal charges could be cheaper than the cost of the packag

es. Moreover, most of these packages include only a business licen

se and not office space. This may not be very useful if you are serio

us about your business and investment. On the positive side, your ef

forts to decide the real cost of free zone company formation is very li

mited in the case of company formation packages.

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Submit the application form and other documents to the

Free Zone.

The application form and other legal documents are necessary to start the r

eal application procedure. Depending on the nature of the business (branch

/subsidiary, establishment /partnership, trading /industrial /services), the doc

uments required may vary. In general, you would need the following docum

ents.

Free Zone application form.

Passport copy.

Visa copy (if you have an existing UAE visa).

Business plan.

Bank statements (to prove the capital amount).

No objection certificate from the current sponsor (for UAE residents).

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Secure the preliminary approvals.

Currently, some Free Zones in UAE may demand prior approvals from other regulator

y departments to start the free zone company formation process. These approvals co

uld be from.

Immigration Department: Some Free Zones process this request for the clients; some

require the client to process it by themselves where some Free Zones do not need thi

s approval at all. Though it helps to make sure that your visa application would not fa

ce any major issues after the company formation, it would delay the entire process by

a few weeks.

Environment Department: For certain activities, especially industrial activities, clearan

ce certificate from the Environment Department is necessary.

Ministries of Health: Some Free Zones demand a certificate from the Department of

Health to carry out activities related to pharmaceuticals, food products etc.

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Payment.

Now you are ready to make the payments. With some Free Zones, y

ou have the option of making the payments in installments, however,

pay attention to the total cost in this case could be higher than the n

ormal charges with a minimum of 10% and up to 50%.

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Sign the agreements and other legal documents

After you make the payments, the concerned Free Zone

authority would prepare the relevant legal documents an

d you would be asked to sign them in the presence of an

executive/official of the Free Zone.

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Receive your Free Zone Business License and o

ther documents

Here you are! It is time to receive your Free Zone Business License.

Along with the business license, some Free Zones give associated d

ocuments such as share certificates, certificate of incorporation, etc.

Deciding on the best free trade zone in UAE for your business requir

ements depends on many factors. So it is important that you spend

quality time on evaluating the options available for your business req

uirements. For certain business activities, it would be ideal to form a

business outside the Free Trade Zone (mainland / local business).

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Jitendra Consulting Group

If you can start the business, then Jitendra Consulting Group is the o

ne of the best company in Dubai Free Zone Company Formation.

this company is 10 years old company and Our Expert team has vas

t experience in Free Zone Company Formation in Dubai, we make y

our process easy and hassle free.

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e for Business Setup in Dubai, Trademark Registration in UAE, Acc

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http://www.jitendragroup.ae/business-set-up-and-formati

on-services-uae

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971 6 5746324

Fax: 971 4 3438033

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h Floor, Al Attar Tower (Near DIFC)

Sheikh Zayed Road, P.O. Box 43630

Dubai, United Arab Emirates

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No. E2-115F-40, Hamriyah Free Zone

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P.O. Box 49124, Sharjah, United Arab

Emirates

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P.O. Box 262053

Jebel Ali, Dubai, United Arab Emirates

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