Given the rate of globalization in today’s world, everyone looks for new business prospects outside the home country. It is very important for the business to work where economic stability in the international market is at its best. Well, Dubai offers extremely great and satisfactory business prospects. The setting up of a company in a free zone is a risky but fulfilling step. However, there are few things that one needs to take care of. The Jebel Ali Free Zone is a business hub and a humongous commercial plot which takes care of all the procedures regarding the installation of a company. There is a need to get license in order to start the activities of the business. Free zone license is the key to start the activities and function systematically. Getting a free zone license in Dubai is not a difficult or weary step. It involves few basic or primary steps that can be done easily. There are various types of license available. One needs to opt for those license which are related to the business one wishes to start. Although there are many options for the free zones, it is believed and said that the Dubai airport free zone is the best. It eases the process of setting up the business and offers great future growing aspects.
Planing to Setup Free zone Company in Dubai? Read More : HOW TO SETUP FREE ZONE COMPANY IN DUBAI
TYPES OF FORMATION AND LICENSE
Jebel Ali free zone offers three types of formation, three types of license and wide variety of license activities to choose from. Depending on the number of shareholders and the business’s nature, you can choose any of the following:
TYPES OF FORMATION
2-50 shareholders are required to set up the company. The shareholder can be either individuals or non-individuals.
Either an individual or a company can register under the free zone establishment in JAFZA. Any existing established entity. Any entity registered outside the free zone area can also be the one to register the company under free zone establishment. The branch under the free zone will then be considered to be working under the name of the parent company.
TYPES OF LICENSE
After deciding the formation type, the business activity will help you in figuring out the license that you will require. After the approval of the company in the free zone area, the free zone authority issues a license. Until the lease agreement is in action, these license can be renewed annually. The companies with trade or industrial license are supposed to conduct business only within the free zone or abroad. An UAE official agent is required to sell the products in UAE. Following are the types of license to choose from:-
This license is issued if the activities are related to import, export, distribution and storage of specific products. Basically, as the name suggests all the trading activities require this license. No license is required from the economic department. 100% foreign ownership is allowed.
All the manufacturing activities are granted this type of license. The activities might include assembling of raw materials or packaging. Any sort of light manufacturing activities come under this. Similar to trade license, 100% foreign ownership granted and no license is required from the economic department.
CONSULTING AND SERVICE LICENSE
Consulting services in the field of management, investment, finance, marketing, labor relationships and legal matters are the activities that come under this license. It is necessary that all the requirements of the governing body are fulfilled.
NATIONAL INDUSTRIAL LICENSE
This license is also for the manufacturing activities. The difference lies in the fact that in this type of license, at least 51% of the ownership should belong to the local or GCC Company in UAE.
HOW TO GET THE LICENSE
There are several basic steps involved in getting a free zone license. The basic requirements are:-
- Proposed company’s name
- Passport copy of the shareholder’s name
- Short proposed business plan
- Contact information of the shareholders
Do not forget to read about Company formation in Dubai. Read More : IMPORTANT STEPS FOR COMPANY FORMATION IN DUBAI
There is a certain amount of fees that is involved to obtain the license. Once the license is obtained 100% ownership is granted. You need to fill a form for the registration and then further the license issue will be taken care of. Take your business forward to another level. You are all set to go if all the steps are followed.