FAQs

Free zone businesses have the freedom to engage in trade with other companies within their own free zone as well as internationally. However, it is important to note that direct trading with customers located in Dubai and the UAE mainland is not permitted for free zone companies.

Setting up a business in Dubai is beneficial for an entrepreneur in many ways. Here are the main advantages of setting up a business in Dubai:

• Huge tax benefit.
• Easy and quick setup process.
• Can Retain 100% ownership if set up in the free zone.
• No local sponsor is required if set up in the free zone.
• 100% exemption from import and export duties.
• 100% repatriation of capital and profits.
• Availability of skilled workforce.
• No limitations or restrictions regarding minimum starting capital.
• Available and flexible office spaces.
• No limitations when recruiting.

Besides these, there are countless benefits of starting your business in one of the free zones in Dubai. Different free zones provide different benefits and cater to the needs of different businesses, so do your own research before selecting an economic zone for your business.

When establishing a company in the free trade zone of the UAE, the requirement for a local sponsor is eliminated, granting free zone companies 100% ownership of their businesses. However, it is important to note that opting for a free zone setup restricts trading and conducting business activities solely within the designated free zones. Consequently, direct engagement with customers in the UAE mainland may not be possible.

Here are the available types of company structures to set up a business in Dubai:

• Sole Proprietorships
• Partnerships
• Corporations
• Limited Liability Company (LLC)
• Free Zone Company
• Holding Company

Non-residents can open bank accounts in Dubai. However, most of the banks in Dubai allow non-residents to open a saving account, not a current account. Non-residents also cannot receive a checkbook. They are issued debit cards that can be used to withdraw money.

It depends on the type of business you’re setting up. If you’re establishing a Mainland company, you’ll need a physical office space as per the regulations of the DED. However, if you’re setting up a free zone company, many free zones allow for flexi-desk options, which is a more cost-efficient alternative to a full-time office space. Alternatively, there’s the option of a virtual office. A virtual office in Dubai allows entrepreneurs to conduct business without needing physical premises.

The visa processing times in Dubai typically range from 1 to 2 weeks. However, this timeframe can vary depending on several factors, such as the type of visa applied for and the completeness of the application and supporting documents. As for the associated fees, they can vary significantly based on the type of visa and other related services.

Yes, you can now have 100% foreign ownership of your company in the UAE mainland. A recent cabinet resolution makes it possible to set up a mainland company in UAE without the need for a local sponsor.

Each free zone in the UAE is designed to cater to specific industries. For instance, JAFZA or Jebel Ali Free Zone Authority is ideal for businesses engaged in logistics or manufacturing due to its proximity to Jebel Ali Port and Al Maktoum International Airport. On the other hand, Dubai World Trade Centre (DWTC) free zone is perfect for businesses that want to be at the heart of Dubai’s business district. The Ras Al Khaimah Economic Zone (RAKEZ) caters to a wide range of sectors, offering cost-effective solutions, and DUQE, located on the Queen Elizabeth Cruise Ship, provides a unique business environment. Lastly, Creative City is designed for media, communications, and creative businesses. Each free zone has its own rules, benefits, and processes, so it’s important to choose one that suits your business needs best.

Firstly, you need to ensure that your tenancy contract is valid for at least three more months from the date you apply for renewal. Then, you’ll need to complete a renewal form and gather the necessary documents, which often include attested authorization and approval letters, copy passports of all business partners, as well as the payment number for renewal fees. Once all these are in order, you can submit them to the DED. After your application is approved, you can pay the renewal fees and your license will be renewed.

The process for obtaining employment visas and residence visas for staff involves several steps:

• 1. Apply for an entry permit or employment visa for your employee. This is a temporary visa valid for 60 days while the residence visa is being processed.
• 2. Once the entry permit is issued, you’ll need to conduct a medical check-up for the employee.
• 3. Apply for an Emirates ID and then apply for the residence visa. Please note that if your business operates within a free zone, you’ll have to liaise with the relevant free zone authority to initiate the work permit and residence visa process.