The various free zones in Dubai offer an attractive option for international business owners. In these free zones, there is 100% ownership of the business by the foreign business professional as well as no taxes and very limited import duties, making it a wise business decision.
It is marketed on the internet that company formation in the UAE is simple and easy. Whilst it is not complicated, there are some very critical decisions that have to be made in the early stages of the process. Making a poor choice in these decisions can impact several aspects of the company both immediately as well as in the future.
For a business owner planning a company formation in Dubai, working with an experienced, international law firm is an essential consideration. This will help companies to avoid the common mistakes that can be a serious issue for any business.
Wrong License and Business Type
As in any country, there are different business types allowed in the various free zones. However, each free zone has regulations as to the type of business which can locate in the designated area.
Additionally, companies will have to apply for a specific type of license. This license designates the primary function of the business and will limit what the business can manufacturer, produce or sell.
Not Understanding Current Policies
In Dubai, as with all other emirates, the free zone has a regulation-making authority. In addition, the Department of Economic Development or DED also sets regulations, and all of these can change at any time.
By working with a corporate law firm in the emirate with a focus on free zone company setup, current changes and additions to the requirements for each free zone will always be available. Relying on information online is not recommended as the website may not be updated to reflect the current regulations.
At STA Law Firm we provide current legal support and services for company formation throughout the UAE. For more information, contact our team of corporate lawyers at +971 5 27 28 29 1.