Company Formation in Dubai World Central Free Zone

Dubai World Central (DWC) Free Zone is a free economic zone in Dubai, United Arab Emirates (UAE). It was established in 2006 as a strategic initiative of the Dubai government to create a world-class integrated logistics and aviation hub. 

DWC Free Zone is one of the largest free zones in the UAE and is designed to facilitate trade, commerce, and logistics. The free zone is adjacent to Al Maktoum International Airport, one of the world’s largest airports and a major cargo and logistics hub. 

In addition, the Free Zone of DWC offers a range of business services, including company registration, licensing, and visa services, to help businesses establish and grow their operations in the UAE.

In this blog, we will closely examine company formation in Dubai World Central Free Zone, its requirements, costs, and license options.

How to Setup Business in DWC Free Zone?

By following these easy steps, learn how to navigate setting up a business in the DWC Free Zone. 

Step 1: Choose Your Business Activity

Choosing your business activity is crucial in forming a business in the DWC Free Zone. The investor must select a business activity that aligns with the free zone permitted activities list and obtains the relevant license and permits before proceeding with company registration and other formalities.

Therefore, it is essential to ensure that the selected business activity is suitable for the investor’s goals and objectives and complies with the free zone’s regulations and requirements to avoid any legal or operational issues in the future.

Step 2: Register Your Trade Name

This is a crucial step in setting up a business in the DWC Free Zone. First, the investor must register a unique trade name representing their business activities and comply with the free zone’s naming guidelines. 

This involves conducting a name availability search, selecting an appropriate name, and submitting the required documents and fees to obtain the trade name registration certificate. 

This certificate is necessary to proceed with the company registration process and conduct business activities in the free zone.

Step 3: Apply For Your Free Zone Trade License

This step is essential in establishing a business in Dubai World Central Free Zone, where the investor must obtain a trade license that permits them to operate their chosen business activities within the free zone. 

This involves submitting the required documents, such as the trade name registration certificate, lease agreement, and business plan, and paying the necessary fees to obtain the license. 

The type of license required may depend on the business activities and the investor’s preferences. It is essential to ensure the license is renewed annually to avoid legal or operational issues.

Step 4: Open a Free Zone Company Bank Account

Setting up a business in the DWC Free Zone means that the investor must open a Free Zone Company bank account with a bank registered with the free zone authorities. 

This involves submitting the required documents, such as the trade license, passport copies, and proof of address, to the bank and fulfilling the bank’s minimum balance requirements. 

It is essential to have a free zone company bank account to conduct business transactions and comply with the free zone’s regulations and requirements regarding financial transparency and reporting.

Step 5: Final Approval

This is the last step in the business setup process in DWC Free Zone, where the investor must obtain final approval from the free zone authorities to commence business activities. 

This involves submitting all the necessary documents and obtaining clearance from various government departments, such as the Department of Economic Development (DED) and the General Directorate of Residency and Foreigners Affairs (GDRFA), to ensure compliance with the legal and regulatory requirements. 

Once the final approval is obtained, the investor can commence business activities in the free zone and enjoy the various benefits offered by the free zone.

DWC Free Zone Company Formation Requirements

Several requirements must be met to set up a company in the DWC Free Zone. Here are some of the essential requirements:

• Business activity: The first step is to determine the business activity you want to engage in, as DWC Free Zone offers licenses for various activities, including trading, services, and manufacturing.
• Business plan: A comprehensive business plan must be prepared, outlining the nature of the business, the products or services offered, and the market analysis.
• Share capital: A minimum share capital must be deposited with the free zone authority, which varies depending on the type of license and business activity.
• Office space: A physical office space must be leased within the free zone, which can be either a flexi-desk, shared office, or a private office, depending on the company’s requirements.
• Legal structure: The company can be set up as a Free Zone Establishment (FZE), Free Zone Company (FZCO), or Branch of a Foreign Company.
• Trade name reservation: A trade name must be selected and reserved with the free zone authority.
• Application submission: All necessary documents, including the business plan, shareholder and director details, passport copies, and other relevant documents, must be submitted to the free zone authority for review and approval.

Once all the requirements are met, the company can be established, and the free zone license will be issued.

DWC Free Zone Company Formation Costs

The cost of setting up a company in the DWC Free Zone can vary depending on several factors, such as the business activity, the company’s size, and the type of license required. Here are some of the costs associated with company formation in the DWC Free Zone:

• License fees: The license fees for a trading, service, or industrial license in the DWC Free Zone range from AED 15,000 to AED 25,000 per year.
• Share capital: The minimum share capital required for a company in DWC Free Zone is AED 50,000 to AED 100,000.
• Office space: The cost of leasing office space in the DWC Free Zone varies depending on the type of office and its size. For example, a flexi-desk can cost around AED 10,000 to AED 12,000 annually, while a private office can cost between AED 25,000 to AED 40,000 annually.
• Visa fees: Companies may need to apply for employment visas for their staff. The visa fees for an employment visa in DWC Free Zone are AED 3,340 for a three-year visa.
• Other costs: Other expenses associated with the business formation in the DWC Free Zone may include company registration fees, name reservation fees, notarization fees, and legal fees.

It is recommended to consult with a reputable company formation service provider to get an accurate estimate of the costs involved in setting up a company in the DWC Free Zone.

License Options & Costs in DWC Free Zone

DWC Free Zone offers three business license types: trading, service, and industrial licenses. Here is an overview of each license type and the associated costs:

• Trading License: This license allows businesses to engage in trading activities, such as buying and selling goods. A trading license in DWC Free Zone costs AED 15,000 per year.
• Service License: This license allows businesses to offer services, such as consulting, IT, or marketing services. A service license in DWC Free Zone costs AED 15,000 per year.
• Industrial License: This license allows businesses to engage in manufacturing or industrial activities, such as production, assembly, or packaging. The cost of an industrial license in the DWC Free Zone is AED 25,000 per year.

It’s important to note that these license fees are subject to change, and additional fees may be applicable for specific activities or services. 

Moreover, depending on the license type and business activity, additional requirements, such as office space, equipment, and personnel, may also impact the overall cost of setting up a business in the DWC Free Zone.

Alternative Dubai World Central Free Zones

• 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
• Dubai Science Park free zone
• Dubai Knowledge Park Free Zone
• Dubai Production City Free Zone

Facilities in DWC Free Zone

DWC Free Zone offers a range of facilities to support businesses operating in the free zone. Here are some of the facilities available in the DWC Free Zone:

• Office Space: DWC Free Zone offers a variety of office spaces, including flexi-desks, shared offices, and private offices, to suit the needs of businesses of different sizes and requirements.
• Warehouses: DWC Free Zone offers a range of warehouses and storage facilities to support businesses engaged in logistics and warehousing activities.
• Land for Development: DWC Free Zone provides land plots for businesses to develop custom-built facilities, such as factories, warehouses, or logistics centers.
• Logistics Services: DWC Free Zone offers various logistics services, including freight forwarding, cargo handling, and transportation services, to support businesses engaged in import-export activities.
• Business Support Services: DWC Free Zone provides business support services, such as company formation, licensing, visa processing, and other administrative services to help businesses establish and grow their operations.
• Banking and Finance: DWC Free Zone partners with leading banks and financial institutions to provide businesses access to financial services and solutions, such as banking, financing, and insurance.
• Amenities: DWC Free Zone offers a range of amenities, such as food and beverage outlets, retail shops, fitness centers, and recreational facilities, to provide a comfortable and convenient working environment for businesses and their employees.

These facilities make DWC Free Zone an attractive location for businesses looking to establish or expand their operations in Dubai.

Business Activities Available in DWC Free Zone

DWC Free Zone offers a wide range of business activities across various sectors. Here are some of the business activities available in the DWC Free Zone:

• Aerospace and Aviation: Activities related to aerospace engineering, aircraft maintenance, and aviation services.
• Automotive and Transport Equipment: Activities related to the manufacturing, assembly, and distribution of automotive and transport equipment.
• Business and Professional Services: Activities related to business consulting, legal services, accounting, marketing, and advertising.
• Construction and Building Materials: Activities related to the manufacturing, distributing, and trading of construction and building materials.
• Energy and Environmental: Activities related to the generation, distribution, and trading of energy, renewable energy, and environmental services.
• Healthcare and Pharmaceuticals: Activities related to healthcare, pharmaceuticals, medical equipment, and supplies.
• Logistics and Freight: Activities related to logistics, freight forwarding, and transportation services.
• Technology and Innovation: Activities related to software development, IT services, telecommunications, and digital media.
• Trading and Distribution: Activities related to the trading and distributing of consumer goods, electronics, textiles, and other products.

It’s important to note that the availability of specific business activities may be subject to certain conditions or requirements, such as licensing, permits, and certifications. Therefore, it is advisable to consult with a reputable business setup service provider or the DWC Free Zone authorities to ensure that your business activity is permitted in the free zone and to determine the specific requirements and procedures for obtaining the necessary licenses and permits.

FAQs about Company Formation in DWC Free Zone

How Airzone can help you set up business in DWC Free Zone 

Airzone is a business setup consultant that can assist you in company formation in DWC Free Zone. Airzone can match you with business setup companies who provide guidance and support throughout the process, from initial consultation to forming a company, licensing, and ongoing business support services. 

Some of the services offered by Airzone-partnered companies include company registration, license application, visa processing, office space rental, and banking and finance solutions.

Additionally, Airzone has a team of experienced professionals who are well-versed in the requirements and procedures for setting up a business in Dubai Free Zone, making the process smooth and hassle-free.