The commercial license in the Dubai Free Zone is one of the most important elements that enables companies to carry out their commercial activities freely and independently. Thanks to the encouraging economic environment and competitive advantages it offers, Dubai has become a preferred destination for international and local companies alike. This license allows companies operating in various fields such as trade, manufacturing, services, and consulting to benefit from a set of unique privileges. These privileges include complete tax exemption, 100% foreign ownership, freedom to transfer funds, and no restrictions on employment or residence. Free zones in Dubai also contribute to providing advanced infrastructure and integrated support services, which enhances the efficiency of business operations. Through cooperation with specialized companies such as Itqan, the procedures for obtaining a commercial license can be facilitated and compliance with all legal and regulatory requirements can be ensured, ensuring a successful start of business in an ideal environment for growth and prosperity.
Dubai Free Zone
The Dubai Free Zone is considered one of the most prominent economic zones in the world, representing an ideal environment for attracting international investments and companies. These areas provide advanced infrastructure and high-quality logistics services, making them a major center for trade and business in the region. Free zones in Dubai are characterized by flexibility of laws and legislation, which makes it easier for foreign companies to establish and expand, and this includes privileges such as full tax exemptions, 100% foreign ownership, and the freedom to transfer funds. In addition, the support services provided by the competent authorities contribute to accelerating and simplifying administrative and operational procedures, making Dubai’s free zones an attractive environment for companies seeking growth and success in a competitive global market.
Advantages of a commercial license in the Dubai Free Zone
All sizes of commercial licenses are granted, starting from small to medium and large companies, and to all types of nationalities of companies. There are many advantages that the commercial license grants to companies, which we will learn about in the following points:
- Full Foreign Ownership : Foreign investors can own the entire company without the need for a local partner.
- Tax exemption : Free zones provide complete exemption from corporate and individual taxes, in addition to exemptions from customs duties on import and export.
- Full profit transfer : It allows investors to transfer profits and funds outside the country without any restrictions.
- Advanced Infrastructure : Dubai’s free zones have a modern and advanced infrastructure that includes advanced logistical facilities and transportation, which facilitates business operations.
- Ease of establishing companies : Free zones provide simplified and quick procedures for establishing companies, including issuing commercial licenses in a short time.
- Multiple options : Free zones in Dubai provide a wide range of commercial, industrial and service activities that investors can choose and suit their needs.
- Financial facilities : Some free zones provide various banking and financing services that support emerging, small and medium-sized companies.
- Government support : Companies in free zones enjoy strong government support, including administrative and legislative facilities that help in business growth.
- Suitable business environment : Free zones provide an integrated business environment that allows companies to focus on growth and expansion by providing various services such as administrative support, marketing and consulting.
In short, a commercial license in the Dubai Free Zone is an ideal choice for investors who want to establish and develop their businesses in an environment that supports innovation and growth and provides many advantages that encourage investment.
Types of companies registered under a commercial license in the Dubai Free Zone
Dubai’s free zones allow multiple types of companies that can be registered under a business license, catering to the needs of different investors and entrepreneurs. The main types of registered companies include:
- Free Zone Limited Liability Company (FZ-LLC) :
- It can be established by one or several individuals.
- It has an independent legal entity and limited liability for members.
- Branch of a foreign company :
- Foreign companies can establish a branch in the free zone.
- The branch does not have an independent legal entity, but is considered an extension of the parent company.
- Branch of a local company :
- Local companies in the UAE can establish a branch in the free zone.
- This allows local companies to benefit from the benefits and privileges offered by the free zone.
- Free Zone Establishment – FZE :
- It can be established by only one individual.
- It has an independent legal entity and limited liability of the founder.
- Free Zone Limited Liability Company – FZ-LLC :
- It can be established by several partners.
- It has an independent legal entity and limited liability for partners.
Steps to obtain a commercial license in the Dubai Free Zone
Obtaining a commercial license in the Dubai Free Zone requires following a set of steps aimed at facilitating the process and ensuring compliance with applicable laws and regulations. Here are the main steps to obtain a commercial license in the Dubai Free Zone:
- Determine the business activity : Choose the business activity you wish to practice in the free zone.
- Choosing a free zone : Determine the free zone that best suits the needs of your business in terms of location and available services.
- Submitting a commercial license application : Fill out the commercial license application form and submit it to the free zone authority.
- Determining the trade name : Choosing a trade name for the company, verifying its availability and registering it with the free zone authority.
- Preparing legal documents : Preparing and submitting the necessary legal documents such as the company’s articles of incorporation and articles of association.
- Renting an office or work space : Choosing and renting an office or work space within the free zone.
- Payment of fees : Payment of fees related to issuing a commercial license, which may include registration fees, rental fees, and other services.
- Obtaining approvals :
- Waiting for final approvals from the free zone authority.
- Some businesses may require additional approvals from other regulatory bodies.
- Receiving the commercial license : After completing all procedures and paying the required fees, the commercial license is issued. You can receive the license and start practicing your business in the free zone.
By following these steps carefully, you can obtain a commercial license in the Dubai Free Zone and start practicing your commercial activity with ease and effectiveness.
Documents required to obtain a commercial license in the Dubai Free Zone
To obtain a business license in the free zone in Dubai, you need to submit a set of papers and documents that differ slightly depending on the type of business activity and the free zone chosen. However, there is a set of basic papers that are usually required in most free zones. Here is a list of required documents:
- Fill out and submit the commercial license application form for the selected free zone.
- Submit a valid copy of the passport to all shareholders and directors. Providing recent personal photos of shareholders and directors (passport size).
- If the shareholders or directors are residents of the UAE, a copy of the residence visa must be submitted. If they have recently entered the UAE, a copy of the entry stamp must be submitted.
- Submit a business plan that describes the business activity and the services or products that will be provided. Submitting a lease contract for an office or work space within the free zone.
- Submit an application to determine and register the company’s trade name. Submit a copy of the company’s articles of association and articles of association.
Documents must be certified by the relevant authorities if they are issued from outside the Emirates. - Submitting the Board of Directors’ decision to open a branch or representative office in the free zone.
- If a shareholder or director is an employee of another company within the UAE, a no-objection letter from his or her current employer may be required.
