A Freezone License in Dubai refers to a permit that enables businesses to operate within one of the designated free trade zones in Dubai, United Arab Emirates (UAE). These zones offer various advantages, including 100% foreign ownership, exemption from import and export duties, and simplified company registration processes. Businesses under a Freezone License can often benefit from modern infrastructure, business-friendly regulations, and access to a global market. They are typically not subject to UAE's mainland laws and regulations, which allows for greater flexibility. Each free trade zone may have its own set of activities and regulations, so it's crucial to choose the one that best suits your business needs.
A Dubai Mainland License is a permit that allows businesses to operate in the non-free zone areas of Dubai, United Arab Emirates (UAE). It covers various business activities, such as trading, professional services, and industrial operations. Mainland businesses are typically required to have a local sponsor or service agent, who is a UAE national or a UAE-owned company. These businesses must also have a physical office space within Dubai. Dubai Mainland Licenses are subject to UAE federal laws and Dubai-specific regulations enforced by the Dubai Department of Economic Development (DED). As of my last knowledge update in September 2021, there is generally no personal or corporate income tax for most businesses in Dubai Mainland. However, tax regulations can change, so it's essential to stay informed.
An offshore license, often associated with offshore company formation, refers to the establishment of a business entity in a jurisdiction outside one's own country of residence or primary business operations. Offshore licenses are commonly used for tax planning, asset protection, and privacy. These jurisdictions often offer favorable tax benefits, including low or zero corporate tax rates, along with legal and financial privacy. Offshore entities may not be permitted to engage in business activities within the country where they are registered and are typically used for holding assets, international trading, or investments. It's important to note that offshore activities must comply with relevant tax laws and regulations to ensure legality and transparency.
For a business setup in Dubai, a business license plays a vital role. There are three main types of business licenses namely: the mainland business license, the Free Zone business license, and the Offshore business license. To acquire any of these licenses, calls for a separate procedure.
In order to acquire a business license for a business set up one has to go through the following procedure:
1.Approval from government authorities for the business set up initiation
2.Verification of legal and identity documents
3.Verification of the space business set up by the legal and commercial authorities
Depending upon the area where the business is to be set up, there might be a slight variation in the documents that are required. However, mainly, the following is the list of documents that one must possess for a business setup in Dubai:
Apart from this, depending upon the type of business the list of documents varies to some extent.
Depending on the type of business the following are the requirements:
Also, it is necessary to note that a resident visa is not mandatory for an offshore establishment holder.
Dubai is a business hub for budding entrepreneurs and one of the most right places on the globe for setting up almost any business. Dubai not only is a home for worldwide investors but is also a platform to achieve outstanding business success. Apart from the high success rate that the land has to offer, there are several other benefits like better tax benefits, relaxed terms, and conditions on import and export activities, etc. The best-in-class infrastructure and top-notch lifestyle prove to be an added benefit.
A trade license or trading license in Dubai is one of the most widely demanded licenses in Dubai. Dubai encourages trading activities across the globe and even provides tax exemptions to a certain extent. Therefore, a trade license is made mandatory for all individuals and companies that are involved in trading, commercial activities, import, export, and re-export activities