Apart from being a cosmopolitan global city, Dubai is home to a thriving international community of creative and dynamic professionals. Therefore, entrepreneurs wishing to establish their businesses within the creative realm can move their project forward by establishing their business under a free zone. But what’s the first thing to do? Well, searching for the best lawyers in Dubai. A lawyer can considerably help you ease out things that might go quite difficult on you.
Under which authority should you open your Business?
Well, there are a number of authorities under which the entrepreneurs can kick start their business. However, there are few authorities that offer customized services for the creative industry. DCCA or Dubai Creative Clusters Authority is the main authority which specializes in dealing with opening businesses in the creative industries.
Formerly known as ‘Dubai Technology and Media Free Zone Authority’, DCAA is responsible for licensing, visa, and zoning regulations for around eight industries across ten free zone clusters. This free zone clusters include, not limited to, D3 (Dubai Design District) that focuses on the design industry. Dubai Science Park supports entrepreneurs in the science sector, Dubai Internet city helps the Information and Communications Technology industry and the Dubai International Academy City focuses on the high education sector.
What type of License You must get?
The license obtained depends completely on the chosen legal structure. The main legal structures available are a free zone company or a branch of a UAE/foreign company. For these two types of structure, entrepreneurs get a commercial license. Moreover, the sole proprietors can also choose a freelance permit that comes with an added advantage of allowing the entrepreneur to run business under his/her name as opposed to a brand name. However, things get simple if you choose lawyers in Dubai to help you uncomplicated the entire process.
Costs Associated and Time required obtaining the License
The costs associated depend not only on the authority under which the company is incorporated, but also on the legal structure chosen and the activity of the new entity. However, the registration cost is quite low. For instance, under DCAA, the registration fee is around AED 3500 when it comes to the establishment of a free zone company. But the license fee varies depending on the zone cluster. For instance, if you choose D3, license fee can range from AED 7500-20000.
With time, it varies with each authority. After the submission of all the required documents, it might take a month or two to get your license.
Pros and Cons of Free Zone Company
Let us enlighten you all with the pros of opening a free zone business:
- 100% foreign ownership
- Guaranteed 50-year exemption from your personal, income and corporate taxes
- Exemption from custom duty for various goods and services.
- Complete repatriation of capital and profits
Moreover, there are some free zone clusters that offer a well-developed social infrastructure that provide easy access to high-end residential accommodations and exciting retail options.
Now, coming to the cons of Free Zone Company is that these entities cannot organize any business activity outside of the free zone. Moreover, the fact that business is conducted online does not exempt it from this very requirement. And if entrepreneurs want to expand their business outside of the free zone, they will have to resort to the agents.
To conclude, creative and innovative entrepreneurs looking to kick start their business in Dubai enjoy a number of advantages in opening a free zone business entity. In addition to it, some free zone authorities offer additional services particularly aiming the creative industries which can provide their business an amazing start.