Among different Free Zone jurisdictions in Dubai, Dubai CommerCity is the most prominent and attractive avenue for individuals interested in capturing the digital world with the eCommerce business venture. Dubai CommerCity Free Zone offers a state-of-the-art infrastructure and a business-friendly ecosystem to support local and international eCommerce.
Irrespective of the scale of your business, you can start your journey that leads to company formation in Dubai CommerCity Free Zone without any hassle. The skyrocketing UAE economy, high potential market, and perfect geolocation make your decision to set up a business in Dubai CommerCity a sure choice. This blog post will help you discover
- What is Dubai CommerCity?
- Why should you choose Dubai CommerCity for your eCommerce business setup?
- How to set up a business in Dubai CommerCity?
Let’s discuss all the privileges and aspects associated with company formation in Dubai CommerCity.
What Is Dubai CommerCity Free Zone?
Dubai CommerCity came to the limelight as the first dedicated free zone jurisdiction for eCommerce businesses in the Gulf region. Its geostrategic location places it at the heart of the world’s most diverse and high-potential market, making it a perfect ecosystem for eCommerce business setups. Dubai is the nearest point to Asia, Africa, Europe, and GCC countries, with modern airports and seaports. It makes Dubai the first choice of eCommerce businesses that want to expand their exposure to international markets.
Dubai CommerCity offers some remarkable privileges that we will discuss in the following blog. It makes this dedicated free zone second to none. Dubai CommerCity attracts many foreign investors and entrepreneurs and contributes to the booming UAE economy.
It is divided into three main clusters as sub-divisions of the entire Free Zone.
1. Business Cluster
It is based on 12 office buildings covering an area of 240,000 square meters. You can choose office spaces in the business cluster for your corporate presence in Dubai CommerCity.
2. Logistics Cluster
The cluster facilitates the fulfillment needs of eCommerce businesses. The facility is managed by registered service providers of Dubai CommerCity and offers a pay-as-you-go costing structure to make business operations more seamless and budget-friendly.
3. Social Cluster
This cluster is dedicated to different food chains, cafeterias, restaurants, art & cultural venues, and hackerspaces located at the center of Dubai CommerCity.
What are the Benefits of Starting a Business in Dubai CommerCity Free Zone?
Being a Free Zone, Dubai CommerCity offers many benefits that attract foreign investors and entrepreneurs. Some of these perks and benefits include:
- 100% business ownership without any need for a local sponsor or shareholder
- 0% personal or corporate tax
- Negligible custom duties and hassle-free trading environment
- No need to show a minimum capital investment for company formation
- Budget-friendly infrastructure to encourage entrepreneurs to set up their business in Dubai CommerCity Free Zone
- Located near Dubai International Airport with quick access to signal-free highways
- Allow businesses to trade with the local and international markets for maximum business exposure
Best Businesses to Start in Dubai CommerCity Free Zone?
Dubai CommerCity, a dedicated free zone to strengthen and boost eCommerce business activities, is the perfect place for businesses linked with an online business. The perfect geolocation and business-friendly ecosystem make it an ideal free zone in the entire UAE for foreign investors and entrepreneurs looking for a dedicated place to open their eCommerce business.
Besides, businesses linked with the food industry, like cafeterias or restaurants, are profitable in Dubai CommerCity. The social cluster is a dedicated sub-division in Dubai CommerCity free zone to facilitate business activities like food hubs and art galleries.
How to Set up a Business in Dubai CommerCity Free Zone?
If you are wondering how to set up a business in Dubai CommerCity, the answer is to secure a trade license. The Dubai Department of Economic Development issues a trade license as a legal permit to start your business activities in any free zone of Dubai. The steps below are mandatory for company formation in Dubai CommerCity by securing a trade license.
Step 01 – Choose Your Business Activity
Search the business activity allowed in Dubai CommerCity and choose the right one that serves your business needs. Your business activities define the limits and role of your business throughout your business lifecycle in Dubai CommerCity. You can integrate up to 5 business activities under the same tradename. Later on, the legal framework of your business setup and the type, as well as a trading license in Dubai CommerCity, is determined by your selected business activities.
Step 02 – Select a Tradename
Choosing a unique company name is the most vital step in your journey of company formation in Dubai CommerCity. Below are some necessary suggestions that you must consider while finalizing your tradename.
- Choose a tradename that must be unique.
- It must align with your industry, target market, and company values
- Your tradename must not collide with the religious sentiments, and moral values followed in the UAE
If you fail to take care of these essential factors, you might face rejection from the Dubai Department of Economic Development (DED). First, check your tradename’s availability, then apply for tradename registration with DED.
Step 03 – Finalize Your Office Space
The size of your office space determines the number of employee visas you can apply for with a single trade license. You are allowed one employee visa for 800 square feet of office space. You can find different types of furnished or non-furnished office spaces in a business cluster of Dubai CommerCity to physically secure your location in the corporate setup of this remarkable free zone. You can either rent or purchase office spaces of different sizes per your budget.
Step 04 – Apply for Trading License in Dubai CommerCity Free Zone
The type of trade license you are issued in Dubai CommerCity is determined by the business activities you opted for in the first step. You are ceased to start your business activities until you get your trading license in Dubai CommerCity. Dubai Department of Economic Development, a Free Zone regulatory body in Dubai, issues your trade license.
The process starts with applying for a trade license on DED online portal and submitting all the required documents. The documents required for trade license issuance will be discussed later in this blog. The requirement may vary slightly if your application involves some business activities requiring additional approvals and verifications. Airzone can help you find experienced company formation partners that assist you in all the stages of company formation in Dubai CommmerCity.
Step 05 – Get Final Approval
Once you get your trade license, you can start your business activities and leverage the business-friendly ecosystem of Dubai CommerCity. The UAE government makes company formation easier for SMBs and enterprise-grade organizations. The policies are friendly and flexible to attract foreign investors and encourage entrepreneurs to begin business ventures in UAE. Partnering with the right business formation consultancy and service provider is recommended to avoid rejection and follow the right company formation roadmap.
Requirements for Company Formation in Dubai CommerCity Free Zone?
Company formation in Dubai CommerCity needs you to meet the following criteria set by the government and concerned regulatory bodies.
- Initiate a business registration application with the Dubai DED
- Providing your business’s memorandum of association
- Acquiring the Trade License
- Submitting an application for an establishment card to the Ministry of Labor (issued by the UAE Ministry of Foreign Affairs). The documents required for the said case include the following:
- Original Emirates ID
- Passport of UAE sponsor/shareholder (in case of shared partnership in Mainland – Shared partnership is not obligatory after 2020)
- Old Immigration card
- A valid Trade License
- Copy of Passport with valid visa page of all partners for Free Zone Company
- Confirmed and potential employees must be registered with the Ministry of Labor, with the documents required as under:
- UAE’s Residence Visa/Work Visa
- Copy of Passport with valid visa page
- Employment Agreement
- Labour card
- Emirates ID
Business Setup Cost in Dubai CommerCity Free Zone
The cost of company formation in Dubai CommerCity ranges from AED 29,000 to AED 73,000 depending on your office space rent, establishment card fee, and trading license cost. The cost of employee or work visas you apply for under your trade license is exclusive of this cost.
Other Best Free Zones in Dubai
- Dubai Media City Free Zone
- DAFZA Free Zone
- DPC Free Zone
- DIAC Free Zone
- Dubai South Free Zone
- Dubai Auto Free Zone
- Dubai Internet City Free Zone
- JLT Free Zone
Business Activities Allowed in Dubai CommerCity Free Zone
The business activities allowed on your trading license in Dubai CommerCity are regulated and permitted by the license issuance authority of Dubai free zones, the Department of Economic Development (DED). The trading license issued by DED allows businesses to carry out different business activities related to import, export, storage, and distribution. Businesses linked with the service industry can also offer different professional services to support businesses and lifestyles in Dubai CommerCity Free Zone.
How Airzone Can Help You in Dubai CommerCity Free Zone
It is recommended not to take a chance to avoid rejection at any stage of company formation in Dubai CommerCity. If you are looking for a professional service to help you guide and assist in the entire process, connect with Airzone. Airzone’s trusted partners offer company formation services for businesses of all scales. You can onboard with our experienced business formation service providers for:
- Opening of free zone company bank account
- Registering a tradename
- Applying for a Dubai trade license
- Completing legal liabilities and immigration requirements
- Applying for a Dubai free zone visa
- Applying for Emirates ID
- Applying for Establishment Card, etc.
Connect with Airzone to start a business in Dubai and start leveraging the perks of skyrocketing UAE economy and its state-of-the-art business infrastructure.
FAQs About Dubai CommerCity Free Zone
Do I Need to Have a Local Sponsor to Start My Business in Dubai CommerCity Free Zone?
Dubai CommerCity is a free zone business jurisdiction in Dubai that allows foreign investors 100% ownership of their free zone business without any need for local sponsors or shareholders.
How Many Days Would It Take To Get My License for My Business in Dubai CommerCity Free Zone?
It may take up to 7 working days to issue a trading license in Dubai CommerCity. Once the Dubai Department of Economic Development issues your trade license, you can start your business activities without further delay.
Can I Transfer My Company From Dubai CommerCity Free Zone to Another Free Zone in the UAE?
It is impossible to relocate a free zone company from one Free Zone to another. Suppose you have a trade license for Dubai CommerCity. In that case, you can only carry out your business activities within the same free zone but are allowed to trade with other free zones and local or international markets. But you open a branch office in another Free Zone to gain more business exposure. Connect with Airzone to get on board with authentic business formation service providers for dedicated guidance.
To relocate your business entirely to another Free Zone in Dubai, you need to shut down and cancel your existing business license and apply for new business registration from the beginning.
Conclusion
The eCommerce industry has witnessed a sudden boom after the COVID-19 pandemic hit the entire world resulting in strict lockdowns and prohibition of public activities. Today, the eCommerce industry is a vital source contributing to all countries’ GDP. The same is the case with the UAE. The Dubai CommerCity is intended to further fuel the business activities associated with a digital or online business. Dubai CommerCity Free Zone attracts most entrepreneurs and foreign investors due to its business-friendly infrastructure and facilities dedicated to the eCommerce industry.
Currently, UAE is leading the race in the eCommerce industry. It continues to experience growth as more people look forward to opening a branch office or shifting their eCommerce businesses to UAE. If you don’t want to miss the chance and crack the opportunity at the right time, choose Dubai CommerCity as your first and final choice for your eCommerce venture.
Don’t forget to read our dedicated blog about the list of Free Zones in the UAE and explore a variety of different available options to choose from.