Classification based on time frame for company set-up

First of all, it is important to note that companies in the free zones based in the Northern emirates can be set up generally quicker, while Dubai free zones and certain free zones in Abu Dhabi take significantly more time. What may take you one or two three days in the northern emirates, will take you seven days to to weeks in Dubai and Abu Dhabi. Let’s discuss, why it happens so.



   And we will start with the Northern Emirates. In the northern part we have Ajman, Sharjah, Umm Al Quwain, Ras Al Khaimah and Fujairah with their one, two or three free zones in the emirate. Some of the free zones advertise issuance of a company’s license in a matter of a day, while others take 7 to 10 days to register your company. The reason for such discrepancy is that some of the free zones in the Northern Emirates issue corporate documents for a company, as soon as they receive all relevant documents from you together with a completed application. These free zones do not submit any documents for pre-approval to the immigration authority of the respective emirate. In other words, you bring all required documents, as per the list from the free zone, make the payment, free zone checks that the list is complete and conducts certain due diligence with respect to your personality. All of this can be done in a matter of a day, maximum two, and your company is registered. Other free zones, before they issue you a license, apply for pre-approval with the immigration authority. In other words, what happens in this case, a free zone authority receives from you all required documents, payment, reviews that the list of documents provided is complete, conducts due diligence and then submits an application for pre-approval with the immigration authority of the relevant emirate. Because of applying for pre-approval externally, it takes significantly more time before the pre-approval comes from the immigration authority due to the workload of the immigration office. In this case a free zone cannot specify the exact time frame for processing of pre-approval and gives a broad indication, such as, say, 10 to 14 days. Otherwise, these free zones would be also issuing a license in a matter of a day or two. Additionally, there are free zones, that will complete company registration process within four to five days, but for an additional charge a license can be processed in a matter of a day or two.


   As such, if you are extremely pressed on time, you may look for free zones, which offer company registration in a matter of a day or two, such as, Ajman Free Zone, Umm Al Quwain Free Zone, Sharjah Airport Free Zone and a number of others. Sharjah Media City, Fujairah Creative City would take four to five days. RAKEZ in Ras Al Khaimah will take slightly longer than the free zones mentioned, due to the application for pre-approval with immigration authority. While it may seem that pre-approval extends the waiting time for license issuance, it is an extremely positive step, as a pre-approval issued by immigration authority gives you a higher degree of assurance that your UAE resident visa application will be later approved and visa will be issued. 


   As we already mentioned, free zones in Dubai and Abu Dhabi take more time with respect to company registration, and several reasons can be named to justify the same. Firstly, the number of companies registered in Dubai free zones as well as the number of applying businessmen is often higher, therefore, Dubai free zones especially, have a significant workload to manage, both with respect to new applications and existing clients. Secondly, most of Dubai free zones require depositing of the share capital, which oftentimes happens during the registration process. You may revisit module 1, a chapter on share capital, if required. Therefore, to apply for account opening with the bank and deposit a share capital on its own takes about 10 to 14 days. Thirdly, free zones in Dubai and Abu Dhabi often require a business plan, to draft which you will again require time. Next, the review of business plan by respective free zone authority needs some more time. All the said factors influence the general time frame for registration of free zone companies in Dubai and Abu Dhabi. Therefore, if you necessarily need to be established in Dubai or Abu Dhabi, plan everything according to the company set-up timeframe, so that you have your company established and your UAE resident visa issued on time.


   Now that you know exactly why registration in some free zones takes only a day or two, and some require a week or much longer, you will plan everything accordingly and you will showcase a greater degree of understanding to those free zone representatives, who will be assisting you with a company set-up. Remember, that sometimes, there are external factors that effect timeframes, and a free zone sales representative has no much influence on the same. Therefore, when you understand the reasons behind longer company registration process, which sometimes happens, and you demonstrate the understanding of the matter, you may expect that whenever it is not beyond the free zone’s control, the registration process will be expedited and you will receive your corporate documents accordingly.


    If you want to know more about Dubai freezone company formation, feel free to get in touch with our professional consultant team and we would be delighted to assist you and help you to compare Dubai freezone company setup costs and help you to find that free zone, which would suit your business needs the most.


 Disclaimer: Business Boutique is not affiliated with any particular government or legal entity. Business Boutique does not give professional legal advice nor any other professional advice subject to a public office in the government. This article merely sets out a simple and basic idea as to the reasons of Dubai freezone company setup and Dubai free zone company formation cost. Business Boutique in no way holds nor imposes any official governmental or legal authority and the article herein is only to be taken as a guide. All further governmental or legal issues should be addressed to the corresponding authorities.

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