The free zones of Dubai are an international magnet for businesspeople looking for an easy route to business ownership in a booming economy. Choosing the valid license type is a key step in Dubai free zone company setup. It determines your scope of operation and adherence to regulations for company setup in Dubai Free Zone.
In this blog, we’ll explore the three leading license categories: trading, service, and industrial, their applications, and how to choose the best one for your company setup.
Trading License: Powering Commerce
The trading license, also known as a commercial license, is designed for businesses engaged in buying, selling, importing, exporting, and distributing goods during the company setup in the Dubai free zone. Whether you trade in electronics, fashion, or commodities, this license supports wholesale or retail without manufacturing.
A general trading license permits dealing with several lines of products; some of the zones have a minimum share capital, such as AED 1 million. It’s ideal for e-commerce or import-export companies seeking company establishment in the Dubai free zone to reach the Middle East, African, and Asian markets.
Service License: Expertise-Based Businesses
The service license, also referred to as a professional license, is ideal for companies providing intangible services such as consulting, IT, marketing, or legal consultancy in a company establishment in the Dubai free zone.
Ideal for digital marketing agencies or software developers, it thrives in free zones like Dubai Silicon Oasis or Dubai Media City. With 100% foreign ownership and tax exemptions, this license supports knowledge-based industries, making it a top choice for professionals.
Industrial License: Manufacturing and Production
The industrial license aims at manufacturing, assembly, or processing operations for a company setup in Dubai Free Zone, such as food processing, pharmaceutical products, or automobile parts. Free zones like Hamriyah Free Zone or Ajman Free Zone provide strong storage facilities, assembly, and export capabilities.
The license demands proof of production and environmental approval, but provides exemption from customs duty on machinery imports. It’s necessary for heavy-duty operations with expanding production.
Picking the appropriate License for Your Business
The initial step in selecting the correct license for company establishment in the Dubai free zone is to audit your core activities: Are you dealing in goods, providing services, or producing goods?
Align your business with a free zone’s specialisation tech parks, such as Dubai Internet City, which prefer service licenses, whereas logistics zones such as DAFZA are appropriate for trading or industrial. Take into consideration expenses, as specific licenses are more capital or fee-intensive, and confirm with the free zone’s activity list.
read more:- https://consultzone1.livepositively.com/understanding-dubai-free-zone-company-license-types/
