Commercial license in Dubai Free Zone – features and types of companies

Commercial license in the Dubai Free Zone – features and types of companies. Dubai is considered one of the most attractive cities for investments and businesses in the world, as it provides an active, advanced, and supportive economic environment for entrepreneurs and investors. Among the most prominent features of Dubai are the free zones that offer a wide range of facilities and benefits to companies and commercial institutions. Obtaining a commercial license in the Dubai Free Zone constitutes an important strategic step for those wishing to establish their businesses and expand their activities in the markets of the Middle East and the world.

Dubai’s free zones offer companies the opportunity to benefit from numerous benefits such as tax exemptions, full foreign ownership, and logistical facilities, making it an ideal destination for startups as well as major international companies. The commercial license in the free zone is the main key that opens the doors for companies to benefit from these advantages. In this article, we will review the types of commercial licenses available, the requirements necessary to obtain this license, in addition to the advantages of establishing a business in free zones in Dubai.

Commercial license in Dubai Free Zone

Types of commercial licenses

The commercial operation in the Dubai Free Zone includes several types of commercial licenses that can be obtained based on the activity that the investor would like to practice. These licenses give investors the opportunity to choose the most appropriate type for their business and ensure compliance with applicable laws and regulations. In this section, we will review the main types of business licenses available in the Dubai Free Zone:

• General commercial license

A business license in the public free zone is the ideal option for companies that want to engage in traditional business activities such as retail, wholesale or distribution. This license enables companies to import, export, distribute and sell products inside and outside the free zone. The general commercial license is considered one of the most common licenses and is suitable for various types of businesses.

• Professional license

The professional license is granted to companies that provide specialized services, such as management consulting, legal services, technical services, and medical services. This license requires that the company have a team of qualified and experienced professionals in the field in which they intend to provide their services. The professional license provides companies with the opportunity to work in an environment that stimulates innovation and skills development.

• Industrial license

If you are planning to set up a factory or production facility in the Dubai Free Zone, an industrial license is the perfect option for you. This license is intended for companies that engage in industrial activities such as production, manufacturing, and assembly. An industrial license requires the availability of appropriate facilities and high safety standards to ensure the quality of production and the protection of workers.

By understanding the different types of free zone business license , investors can choose the most appropriate type for their business and achieve success in a flexible and supportive business environment.

Requirements for obtaining a license

Obtaining a business license in the Dubai Free Zone is an essential step in starting a business and taking advantage of the benefits these zones offer. Obtaining a license includes several requirements and procedures that must be adhered to to ensure the process is smooth and effective. In this section, we will discuss the required documents, necessary procedures, and conditions and controls that must be observed.

Required Documents

To obtain a business license in the Dubai Free Zone, you must submit a set of necessary documents that ensure that all legal and regulatory conditions are met. These documents usually include:

• a copy of the passport: A clear copy of the passport of the founder or shareholders must be submitted.
• Personal Photos: A number of recent personal photos with a white background.
• Company profile: This file includes details about the activity of the company to be established, its objectives, and its organizational structure.
• Copy of lease contract: Lease contract for office or commercial space in the free zone.
• Action Plan: A document that explains a company’s strategic and operational plans.
• Approval of the competent authorities: In some cases, additional approvals from certain regulatory authorities may be required depending on the type of business activity.

Measures necessary

After preparing the required documents, a set of procedures must be followed to successfully implement the process of obtaining a commercial license. These procedures include the following:

• Submission of the application: The application to obtain the license is submitted to the competent authority in the free zone, accompanied by all required documents.
• Request review: The competent authority reviews the application and documents to verify that all conditions and requirements are met.
• Payment of fees: You must pay the prescribed fees to obtain the license, which vary based on the type of activity and the size of the company.
• Obtaining approvals: Additional approvals from certain regulatory bodies may be required, especially if the business requires it.
• Issuing the license: After fulfilling all conditions and paying the fees, the competent authority issues the commercial license.

Terms and controls

The process of obtaining a commercial license in the Dubai Free Zone requires adherence to a set of conditions and controls that ensure that the commercial process is organized legally and effectively. These conditions include the following:

• Compliance with local laws: Businesses must comply with all local laws and regulations related to business activity.
• Determine business activity: The type of business activity must be determined accurately to ensure obtaining the appropriate license.
• Foreign ownership: Foreign companies can own 100% of the company in free zones, which constitutes a great advantage for international companies.
• Compliance with environmental standards: Companies must adhere to the environmental standards specified by the competent authorities to ensure the preservation of the environment.

By following these requirements and procedures, entrepreneurs and investors can easily obtain a business license in the Dubai Free Zone and benefit from the many benefits these zones provide.

Advantages of the free zone in Dubai

Advantages of the free zone in Dubai

Dubai Free Zone is considered one of the most attractive destinations for investors and entrepreneurs from all over the world. These areas offer a host of unique benefits that make them an ideal choice for setting up a business. Below we review some of the most prominent advantages of the free zone in Dubai:

• Tax exemptions

Tax exemptions are one of the biggest advantages offered by free zones in Dubai. Investors benefit from complete exemption from personal income tax and corporate tax for periods of up to 50 years, with the possibility of renewal. This tax break is a great incentive for startups and investors seeking to reduce costs and increase profits.

• Full foreign ownership

Another notable advantage offered by free zones in Dubai is allowing foreign owners to own 100% of companies. This differs from the laws in force in the rest of the Emirates, which require a certain percentage of local partnership. Thus, investors have complete freedom to manage their business and make strategic decisions without the need for a local partner.

• Logistics facilities

Dubai’s free zones provide advanced infrastructure and advanced logistical facilities that make it a global center for trade and business. These facilities include sea and air ports with the highest level of readiness, in addition to modern road networks linking the free zones to the rest of the Emirates and the world. This integrated infrastructure helps companies facilitate import and export operations and save time and costs.

Through these multiple advantages, Dubai’s free zones are able to attract a variety of companies from different sectors, contributing to strengthening the local economy and achieving sustainable growth.

Commercial license in the free zone

In conclusion, Dubai Free Zone is an ideal destination for entrepreneurs and investors seeking to establish or expand their businesses on a global level. By providing a flexible and encouraging business environment, the free zone enables companies to benefit from a wide range of competitive advantages such as tax exemptions, full foreign ownership, and advanced logistics facilities. These advantages not only facilitate the process of starting a business, but also contribute to promoting growth and innovation within the market.

The process of obtaining a business license in the free zone is required requires some procedures and documents, but it is considered simple and easy compared to many other countries. By adhering to the specified terms and regulations, investors can easily obtain the required license, enabling them to start their business in a short time and achieve their business goals.

Understanding the different types of business licenses and the requirements for obtaining them is a crucial step towards achieving success in the thriving business environment within the Dubai Free Zone. Therefore, we advise all investors and entrepreneurs to seriously consider this promising opportunity and exploit the available advantages to achieve sustainable success and a bright future for their businesses.

Frequently asked questions about a commercial license in the free zone