Mixing professional and commercial free zone activities under one license
Free zone company formation offers numerous advantages to investors. One of which includes the option to mix activities under one license.
Over the years, the UAE has become one of the leading and most favourable business hubs in the world. The constantly evolving economy and its major advancements has provided the business community many opportunities to grow and thrive. This as a result has attracted global investors and entrepreneurs from around the globe.
Free zone company formation in particular stands out because of its various benefits. Some of these benefits include hassle-free company incorporation, no currency restrictions, exemption from corporate tax for 15 years. The rules and regulations of the free zone jurisdictions always stay the same. Not to mention, free zone is the only jurisdiction in the UAE that allows investors to mix free zone activities under one license.
Continue reading to learn more about the process and benefits of mixing activities.
What are professional and commercial licenses?
To simply state it, a professional license is a skill based license and is given to those who want to conduct business in the service sectors. These include service providers such as craftsmen, artisans or individuals in the educational sector. In most cases, service providers are not required to have a degree. However, in certain cases such as service providers in the educational field will require to have a degree as well as gain additional approvals from government bodies.
On the other hand, a commercial license is given to companies that are involved in any sort of commercial trade activity. Commercial licenses are more specific in nature and are limited to specific products as opposed to general trading licenses.
Why mix commercial and professional licenses as one in a free zone?
There are many benefits when it comes to mixing free zone activities under a single license. One of the main points that stands out is that this is only possible in free zones and cannot be done so on mainland.
Mixing activities under a single license would not only save time but would also be much more cost efficient and requires less documentation. It would also give you the option to have multiple businesses under a single brand and website domain.
For instance, you can have up to 3 activities under 1 license in IFZA free zone. This gives you the option to mix and match activities to fit your preference and the nature of your business. Not only that, you also get the opportunity to obtain 1 free investor visa for life with IFZA’s package. This package would cost approximately AED 21,900.
Benefits of forming your company in IFZA:
Some of the unique benefits of forming your company in IFZA include:
- No requirement for the investor to submit an annual audit report
- No paid-up share capital requirement
- Up to 3 years visa for owners and employees
- No requirement for employee guarantee deposit to the free zone
- Permission to have a virtual office
- No requirement of investors to be physically present during company formation
- No NOC required from the current visa sponsor
What is the process of obtaining a mixed license in Dubai free zone?
Determine the type of license and business activity
Choose the ideal free zone for your business
Determine the type corporate structure
The types of legal structures that you can form in a free zone are:
- Free Zone Company Limited Liability Company (FZC LLC)
- Free Zone Establishment Limited Liability Company (FZE LLC)
- Branch Company
- Free Zone Company
- Free Zone Establishment
Application and submission of all required documents
Once the previous steps are complete, you must acquire the following:
- Immigration card
- Entry permit
- Stamping, medical test & Emirates ID
The various documents that you must submit to open a business in Dubai free zone are:
- Passport copy
- Visa copy
- Emirates ID copy (if applicable)
- Passport photo
- Business plan (only applicable for certain free zones & certain activities)
Depending on the free zone that you opt for, you may have additional steps and documents that you will have to submit.
Choose an office space/ opt for virtual office (depending on the free zone)
Open a bank account
Obtain your mixed license with now with Shuraa Business Setup
If you want to start your business and have the option to mix free zone activities, look no further. Shuraa will help you get started with your company and ensure that the entire process runs smoothly.
Shuraa has been one of the leading business setup companies in the UAE for over 20 years. Furthermore, our goal is to help entrepreneurs build a foundation in the UAE’s thriving economy, from start to finish.
Our expert consultants will guide you through the entire process — from registering your business and helping you understand the entire process.