Company formation in a Free Zone

Company formation in a Free Zone

In order to effectively form a company in a Free Zone, there are certain formalities that the owner of the company has look at first.
September 19, 2016
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Confirm Business Facilities

Many people assume that business facilities will be provided to the company once they open a Free Zone license. However, this is not the case at all. It is important for the owner of the company to take initiative and ensure that vital facilities (such as business centers, office space, warehouse) are available. Issues arise when it comes to availing business facilities as there are many companies being registered in Free Zones each year. It is important to work closely with professionals in order to not face any hassles when the time comes.

Clearly Understand Every Amount You Pay

The cost of anything is always a large contributing factor on what decisions investors make. There are many incidences where there can be hidden costs and overheads.  The final cost should be the Initial setup cost for the company formation and the Yearly renewal costs for business set up.

Many investors become victims of certain packages that free zone agents and consultants offer without the knowledge that the package comes with annual charges. That is why company owners need to find a trusting consultancy firm such as Peninsula Business Solutions (PBS) who disclose all the pricing information during the initial time of investment.

Ensure all Documents are Submitted on Time

It is important that all the application forms and legal documents are submitted on time for verification or else the license to set up a company in the Free Zone can be denied. Depending on certain factors, the documents required to register vary according to the nature of the business.

The main universal documents required are:

  • Business plan
  • Visa copy (if you have an existing UAE visa).
  • Passport copies of shareholders
  • Bank statement
  • Free zone application form
  • No objection certificate from the current sponsor (for UAE residents only).

The extra documents will be required if you are planning to set up a subsidiary or branch of a foreign company in Dubai free zones.

 Things to Remember

There are free zones in the UAE that tend to ask for certain approvals from governing departments, some of which include:

  • Environment Department

This approval is required if the company is engaging in some form of industrial activity

  • Immigration Department

Sometimes it is required that the proper immigration document be submitted at the time of lodging the free zone application. This is an important step as it helps eliminate any problems in the visa application after the company is incorporated.

Ministry of Health

Companies that engage in Medical, Pharmaceutical, Food related businesses usually have get clearance certificates from the Department of Health.


Many Free Zones allow investors to pay in installments. The important thing to look at here is the total cost and how the charges increase due to installments by a minimum of 10% and up to 50%.

Sign Agreements and Other MoUs

There are certain legal documents that will require the owner to sign in the presence of an official or executive from the free zone authority, as the documents will be providing by them.

Once the steps mentioned above are followed, the investor will be allowed to setup their company in the Free Zone. This stage is when the owner of the company receives their Receive Free zone business License and other documents (such as certificate of incorporation and share certificates)

In order to set up a business in the Free Zone without any hassles, it is best to hire a consultancy firm such as Peninsula Business Solutions (PBS) that can help facilitate the setting up process from start to finish.

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Peninsula Business Solutions (PBS) Ltd was established in the UK in 2004 and licensed by the UK OFT (Office of Fair Trading) to provide Consumer Credit Services. We are regulated by the OFT and follow the strict guidelines provided by the UK FSA (Financial Services Authority). In 2007 PBS established a branch in the UAE which provided us international presence and the ability to expand and diversify our services along with our International network and affiliations. We specialise in providing high end professional consultancy on Company Registration in Dubai, company setup services across the UAE and Debt Recovery Services