Starting a business in the healthcare sector can be challenging, especially when dealing with complex regulations and high costs. Many entrepreneurs often feel overwhelmed by these barriers which hinder their dreams of launching successful medical or healthcare ventures.
Did you know that Dubai Healthcare City (DHCC) offers an easier path? Launched in 2002, DHCC provides a specialized free zone specifically for healthcare businesses. It is governed by Dubai Healthcare City Authority (DHCA) and follows high-quality standards accredited by ISQua.
This blog post will guide you through the Dubai Healthcare City Free Zone company formation process. We’ll cover key advantages like tax benefits and foreign ownership, steps to register your business, types of licenses available, legal structures you can choose from, and much more.
Read on to find out how!
Key Takeaways
- Tax Benefits and Foreign Ownership: DHCC business setup offers 0% personal and corporate tax. Companies enjoy a 50-year tax exemption and customs duty-free goods. Businesses can also have 100% foreign ownership.
- High-Quality Infrastructure: Businesses in DHCC Free Zone provide world-class facilities over its vast area in Oud Metha and Al Jadaf. Businesses benefit from advanced tech and dedicated support.
- Simple Company Registration Process: Follow clear steps to set up your business in DHCC. Choose your activity, get a license, open a bank account, lease office space, and obtain visas for employees efficiently.
- Types of Licenses Available: DHCC offers licenses like Trading License for buying/selling goods, Service License for professional services, and Healthcare Facility License for operating medical centers in Freezone.
- Flexible Legal Structures: Entrepreneurs can choose between setting up as an FZ-LLC or as a branch of their foreign company depending on their needs without needing local partners or minimum capital requirements.
Advantages of Business Setup in DHCC Free Zone
Business setup in Dubai Healthcare City (DHCC) offers favorable conditions. DHCC is ideal for companies where valued healthcare providers and wellness services are supported by a robust community infrastructure, including pharmacies, retail, and personal care. Entrepreneurs gain access to a supportive environment and world-class facilities.
Tax Benefits
Dubai Healthcare City offers many tax benefits for businesses. Companies enjoy 0% personal income and corporate tax within the Free Zone. This means you keep more of your earnings.
There is also a 50-year exemption on personal, income, and corporate taxes. You can plan long-term without worrying about sudden amendments in tax policy. Goods and services are exempt from customs duties too.
These tax perks create a great environment for growth. Foreign investors find it appealing to set up healthcare facilities here.
100% Foreign Ownership
Businesses in DHCC enjoy 100% foreign ownership. This means you can fully own your company without needing a local partner. It permits you to make all business decisions on your own.
No restrictions exist on capital or trade barriers. You can invest any amount of money and trade freely within the zone. This freedom attracts many investors from around the world.
The healthcare industry, dedicated to healthcare services, benefits greatly from this setup. Medical practitioners, hospitals, clinics, medical institutes, and medical institutions find it easier to operate here due to these policies.
Access to World-Class Infrastructure
Established in 2002, DHCC is the world’s largest healthcare-free zone. It is comprised of two phases, Phase 1 of DHCC covers 4.1 million square feet in Oud Metha. Phase 2 is dedicated to wellness centers, and occupies 22 million square feet in Al Jadaf, overlooking the historic Dubai Creek.
DHCC is the healthcare center where there are hospitals, outpatient centers, clinics specialized health centers, diagnostic laboratories, research health centers, other medical institutions, and licensed health care professionals operating in DHCC.
Establishing a company in DHCC offers top-notch infrastructure. Companies in DHCC benefit from advanced technology and dedicated support services. This helps businesses thrive and grow easily.
Steps to Register a Business in DHCC
For a company set up in Dubai Healthcare City (DHCC), follow these key steps. They help you set up your company smoothly and efficiently.
Choose Business Activity and Structure
First, decide on your business activity. DHCC allows both clinical and non-clinical activities. Clinical includes patient care like hospitals or clinics. Non-clinical covers services like medical equipment sales or research labs.
Next, choose your business structure. You can set up a Free Zone Limited Liability Company (FZ-LLC) or a Branch of an existing company. FZ-LLCs offer 100% foreign ownership and limited liability protection.
A branch of a foreign company benefits from the parent’s experience but must follow local rules. After deciding these, figure out the minimum paid-up share capital you need. For non-clinical businesses, it’s $13,615*; for clinics, it’s $27,230*; for hospitals, it’s $81,670*.
Obtain Business License
After choosing your business activity and structure, get your business license. You can apply for different license types in Dubai Healthcare City (DHCC). Options include a trading license, service license, or healthcare facility license.
The cost to obtain a business license starts from AED 14,999*. Submit the necessary documents like your Memorandum and Articles of Association. Provide proof of identity for all partners involved. The DHCC Authority will review and approve your application.
Open a Corporate Bank Account
After obtaining your business license, the next step in bank account opening. You must open a corporate bank account. This step is crucial for managing your financial transactions and boosting credibility. Choose a reputable bank within Dubai Healthcare City (DHCC).
You will need to submit documents such as your commercial license, passport copies of shareholders, and the company’s Memorandum of Association.
Some banks may require a minimum deposit to open the account. Once all paperwork is in order, approval usually takes around 1-2 weeks. Opening this account helps streamline payments, salaries, and other business expenses efficiently.
Select Office Space
Choose the right office space for your business in Dubai Healthcare City. You can pick from clinical spaces, fully fitted offices, shell and core options, and retail units. Business center services are also available.
Leasing a location is key to setting up in DHCC. Executive offices offer privacy and world-class infrastructure. This helps you provide top healthcare services to clients.
Obtain Visa for Employees
To obtain a visa for your employees in Dubai Healthcare City, follow these simple steps. First, submit your company’s trade license and other documents to the immigration office. Then, fill out the visa application form for each employee.
Employees undergo medical tests at approved centers. This ensures they meet health standards set by Dubai Health City Authority. After passing the test, secure an Emirates ID card for each employee.
Lastly, visit the General Directorate of Residency and Foreigners Affairs (GDRFA). Submit all required documents here to finalize visas for your staff.
Types of Business Licenses Offered in Dubai Healthcare City
Dubai Healthcare City offers various business licenses. These cater to different activities like trading, services, and healthcare facilities.
Trading License
A trading license in the Dubai Healthcare City (DHCC) lets you buy, sell, import, and export goods. This includes medical devices and pharmacies. It offers 100% foreign ownership and customs duty exemption on imports.
To get a trading license, follow these steps: Choose your business activity. Then apply for the license from DHCC authorities. Also open a corporate bank account to handle business finances.
Service License
A Service License in Dubai Healthcare City (DHCC) allows companies to offer professional services. Businesses like consultants, medical tourism agencies, and financial audit firms benefit from this license.This type of license is ideal for those who wish to provide specialized services without engaging in trading or manufacturing activities.
Service License holders can enjoy tax benefits and 100% foreign ownership. They also gain access to the world-class infrastructure within DHCC. After obtaining a service license, businesses must follow other steps such as opening a corporate bank account and securing office space.
Healthcare Facility License
A Healthcare Facility License is essential for starting a medical center in Dubai Healthcare City (DHCC). The license cost depends on the number of hospital beds you have. For less than 50 beds, the fee is $25,000*. If you have between 51 to 100 beds, it costs $29,000*. Facilities with 101 to 150 beds pay $37,000*. Hospitals with more than 151 beds must pay $45,000*.
This license allows businesses to operate medical centers and provide health services within DHCC. It ensures patient safety and high standards of care. Companies can offer services like diagnostics or treatment using advanced medical technology. Operating under this license helps maintain reputation and trust in healthcare services in Dubai and beyond.
Different Legal Business Structures in DHCC
Learn about the various business structures you can choose from when starting a company in Dubai Healthcare City Free Zone.
Free Zone Limited Liability Company (FZ-LLC)
A Free Zone Limited Liability Company (FZ-LLC) in Dubai Healthcare City requires at least two shareholders and one director. The minimum share capital needed starts from AED 100,000*
This type of company allows investors to fully own their business without needing a local partner. It provides flexibility for business setup within the healthcare sector.
Setting up an FZ-LLC offers many advantages. Owners enjoy tax benefits and can repatriate profits entirely. They also gain access to world-class infrastructure and facilities like medical centers and offices close to key locations such as Dubai International Airport and Sheikh Zayed Road.
Branch of a Foreign Company
A branch of a foreign company in Dubai Healthcare City (DHCC) has no minimum capital requirement. This makes it easier to set up.
The parent company remains liable for the branch’s operations and debts. The branch can access world-class infrastructure and facilities in DHCC. Foreign businesses can benefit from 100% ownership and tax benefits.
There are many medical centers, clinics, and health care services available in this zone as well.
Conclusion
Dubai Healthcare City company formation offers great benefits. You get 100% foreign ownership and no taxes on personal or corporate income. The process is simple and efficient, from choosing your business activity to obtaining visas for employees.
DHCC also provides various types of licenses for company setup to suit your needs. Ready to start a new venture? Explore the opportunities in DHCC today!
FAQs
1. What is Dubai Healthcare City Free Zone?
Dubai Healthcare City Free Zone is a special area in Dubai for healthcare businesses like medical centers and clinics which offers many clinical facilities.
2. How can I form a company in the Dubai Healthcare City Free Zone?
You can form a company as a sole proprietorship, limited liability company, or branch of an existing UAE or foreign company.
3. Are there tax benefits for companies in this free zone?
Yes, companies often enjoy no corporate income tax and full repatriation of profits to their home country.
4. What documents are needed for incorporation?
You need notarized copies of identity cards, licenses, and other documents required by the Companies Registrar.
5. Can I open branches in other parts of the UAE like Abu Dhabi or Al Ain?
Yes, you can open branches in places like Abu Dhabi or Al Ain after registering with relevant authorities such as the Companies Register and ensuring compliance with local regulations.
