Have you considered launching a business with international advantages? Freezones offer a powerful platform to do just that. These special economic areas provide clear benefits, but operating within one requires following specific legal rules. Identifying these requirements from the start builds a strong base for your business.

This guide outlines the key legal steps for a successful freezone company formation in Dubai.

Pick your business shape:

First, decide on your company’s legal type. This choice affects your operations, ownership, and liability. Common options include a Free Zone Establishment (FZE), which has a single owner, or a Free Zone Company (FZC), which can have multiple shareholders. Your selected business activity will influence which structure is available to you.

Choose an allowed activity:

You cannot do any type of business in a freezone. Each authority has a list of approved commercial, industrial, and service activities. You must select one that matches your plans. Your chosen activity will guide your license application and determine if you want a physical office space or can operate with a virtual flexi desk.

Secure your business name:

Your company name must be unique and follow set guidelines. It typically should not imply any connection to government bodies or use offensive language. The freezone authority will check and approve your proposed name as part of the initial process.

Handle your capital requirements:

Some freezones have minimum share capital requirements for certain licenses or activities. You want to understand this amount and deposit it as required. Even if no minimum is set, you must define your company’s capital in the official formation documents.

Complete the paperwork:

This step involves submitting the necessary documents for review. Standard papers include copies of shareholders’ and managers’ passports, a business plan, and signed application forms. All documents from outside the country might want attestation.

Get your official licenses:

Once approved, you will receive two crucial documents. The first is your trade license, which permits you to conduct your specific activity. The second is your registration certificate, which acts as your company’s official birth certificate in the freezone. Renting an office space or desk is often a step tied to finalizing this process.

Follow the ongoing rules:

After formation, you must obey ongoing legal duties. This includes renewing your license annually, filing any required audit reports, and adhering to local laws. Maintaining good legal standing is key to keeping your business active and in good shape.