Each free zone has its own set of rules and guidelines for how it conducts business. Businesses registered in a free zone are prohibited from operating on the mainland. Only consumers located within the free zone or imports or exports may be handled by the businesses. However, some free zones, like Dubai Multi Commodities Center (DMCC), let businesses to conduct business on the mainland with a Dual License. The conditions and rules of DED will apply to the mainland operations covered under the Dual License.
The majority of free zones in Dubai are designed to support a particular industry with infrastructure and permits. The Dubai Multi Commodities Centre (DMCC), for instance, is a collection of businesses that trade in commodities including coffee, gold, silver, etc. The main goal of Dubai Silicon Oasis (DSO) is to promote investments in the ICT sector. Manufacturing, logistics, and industrial businesses are catered to by JAFZA. The first e-commerce free zone in the UAE is Dubai Commerce. As its name implies, Dubai International Financial Centre (DIFC) focuses on the financial services sector, including banking, insurance, Fintech, etc
Then there is Dubai Media City, a free zone for media enterprises; Dubai Design District (D3), a free zone for designers and design firms; and Dubai Internet City, a free zone for tech firms. For enterprises, clinics, and physicians involved in healthcare, Dubai Healthcare City grants licenses. Dubai Cars and Automotive Zone (DUCAMZ) provides support for the automotive industry. These free zones offer licenses for a variety of additional industries in addition to their primary emphasis business. In Dubai, there is a general-purpose free zone called the International Free Zone Authority (IFZA)
The most crucial need for starting a business in a free zone in Dubai is a business license. The majority of the free zones in Dubai offer the following as some of the most popular trade permits.
E-commerce Permit
License for General Trading
Commercial or Trading License
Service Permit
Industrial Permit
The list of business licenses granted by Dubai free zones is not all-inclusive. Various unique rights are offered by many free zones depending on the activities. Consult with Dubai business setup specialists that can give the business owners a list of the permits that each free zone authority has issued.
Although there are no taxes in the UAE, the government nonetheless charges a modest 5% Value Added Tax (VAT) on taxable products and services. Some free zones have been designated as Designated Zones by the Federal Tax Authority (FTA), which are governed by unique VAT regulations. The free zones that are not included on the FTA's list of approved zones are known as non-designated zones
The sale of items inside designated Zones is not subject to VAT. Similar to this, the transfer of products from one Designated Zone to another is similarly exempt from the VAT. However, VAT is charged on items that are shipped from a non-designated zone to a designated zone.
Choosing the right free zone
There are more than 30 free zones in Dubai, each offering different business activities and incentives. It is important to research and select the right free zone based on your business needs and requirements. Some of the popular free zones in Dubai include Dubai Multi Commodities Centre (DMCC), Dubai Airport Free Zone (DAFZA), Jebel Ali Free Zone (JAFZA), and Dubai Silicon Oasis (DSO).
Types of companies
Free zones in Dubai offer several types of companies for investors to choose from, including Free Zone Establishment (FZE), Free Zone Company (FZCO), and Branch Office. Each company type has different requirements and regulations, and it is important to select the one that is most suitable for your business.
Business activities
Each free zone in Dubai has specific business activities that are permitted within the zone. Before setting up your company, it is important to ensure that your business activity is allowed within the selected free zone. In addition, certain business activities may require additional permits and licenses from government authorities.
Company registration
The process of registering a company in a Dubai free zone involves several steps, including selecting a company name, submitting documents, obtaining approvals, and signing the necessary agreements. It is important to work with a reliable and experienced company formation service provider to ensure that all the requirements are met and the process runs smoothly.
Visa services
Free zone companies in Dubai can sponsor visas for their employees and dependents. The number of visas that can be sponsored depends on the size and type of the company. Visa services can be provided by the free zone authority or through a visa service provider.
