Free Zone Company in UAE

An area with low trade barriers and special tax-free status is called a free zone. Here, there are no customs fees associated with the manufacturing, import/export, handling, or reconfiguration of goods. These are typically found in key geographic areas such as

• Borders Between Countries
• International Airports
• Important Seaports To Optimize The Benefits Of Trade.

Several free zones have been established by the UAE government, each with a specific purpose for conducting business. For non-resident corporates, UAE free zones provide profitable amenities such as:

• Single-window administration’s ease of use.
• 100% ownership with no bureaucratic red tape.

The United Arab Emirates has roughly forty-four free zones. These draw 200,000 businesses that contribute to GDP growth through foreign direct investment. The focus, setup fees, and documentation required for each free zone vary, but the fundamental prerequisites are the same.

Free zones are available in the majority of UAE Emirates for:

• Boosting the economy of the emirate
• Promoting foreign direct investment (FDI),

A free zone business setup in the United Arab Emirates has numerous advantages. However, if an investor chooses to establish a business in one of the free zones, the UAE offers some extra benefits. They’re

A free zone business setup in the United Arab Emirates has numerous advantages. However, if an investor chooses to establish a business in one of the free zones, the UAE offers some extra benefits. They’re

• • Fund transfers are completely free, and there are no restrictions on foreign exchange.

• infrastructure with a specific purpose and a unique clustering of industries.
• inexpensive personnel and simple hiring processes.
• liberal laws and policies of the government.
• All import and export taxes are waived.
• Freehold offices can be leased or purchased.
• Simple licensing and startup processes.
• flexibility to work around the clock.
• 100% ownership by foreigners.
• minimal freight costs.
• 3-year residency visa for the United Arab Emirates.
• Cheap and plentiful energy.
• Employing foreigners is unrestricted.
• 100% of profits and capital are returned home.
• prefabricated warehouses, factories, and offices.
• The expedited and efficient immigration procedure.
• visas and sponsorship for a skilled labor force at a reasonable cost.
• Complete exemption from income, personal, and corporate taxes.
• Effective communication protocols and administration through a single window.

When setting up a company in the UAE free zone, bear the following in mind:

When setting up a company in the UAE free zone, bear the following in mind:

• • In certain free zones, physical presence is only necessary during the visa

• application process and is not necessary during the company formation process.
• Working directly with government agencies is difficult.
• Value Added Tax does not apply to businesses operating abroad.
• With effect from June 2023, Freezone companies are exempt from the corporate tax.
• The type of business could be B2C in the free zone and abroad, or B2B anywhere in the United Arab Emirates.

There are mainly 3 types of entities you can set up in the UAE free zones. These are:

There are mainly 3 types of entities you can set up in the UAE free zones. These are:

Branch of a domestic or international business Free Zone Establishment (FZE), with one shareholder Free Zone Company (FZC), with two to five shareholders

Branch of a domestic or international business
Free Zone Establishment (FZE), with one shareholder Free Zone Company (FZC), with two to five shareholders

Without obtaining a business license, establishing a business in a free zone in the United Arab Emirates is not complete. You can obtain the following kinds of business licenses:

Having a general trading license enables investors to deal in a wide range of goods.

• A trading or commercial license gives you the temporary right to engage in commercial, industrial, or consulting activities.
• Law firms, accounting firms, and business consulting firms are permitted to operate with a service license.
• Importing raw materials, producing goods, and exporting completed goods across international borders are all made possible by industrial licenses.
• Warehousing License This license allows investors to rent warehouse space for the distribution, packing, and storage of goods.

The law governing commercial companies does not apply to businesses established in UAE free zones. The United Arab Emirates has no jurisdiction over its free zones. and follow the guidelines established by the relevant free zone authorities.

These free zones provide a liberal working environment, simple company setup procedures, and a great opportunity for investors from around the globe. The process is straightforward.

Choose the entity type you wish to establish in any of the free zones. The specific free zone in which you plan to establish your business will determine the capital needed for such an entity.

For instance, establishing a business in the Dubai Airport Free Zone (DAFZ) requires a minimum share capital requirement of AED 150,000, but in twofour54, there is no minimum capital requirement.

Once the legal entity type has been determined, pick a trade name for your business. Keep in mind that you should confirm the allowed trade names with the relevant free zone authority. and whether a registration for the intended name already exists.

You must apply for a business license after deciding on a trade name and registering it on the Free Zone authority’s website. As mentioned above, the free zone authorities have issued a list of various business licenses.

The main activity of your company determines the type of business license you need. When you apply for a license, you must provide the supporting documentation.

Flex-desk office services are offered by free zone authorities to assist new businesses. Office space in free zones is available for purchase or lease. The number of employees and the nature of your company’s operations determine the office requirements.

Obtain the relevant authorities’ initial approval as well as any business-related approvals. Get your license by registering your company on the portal. This process will be completed in no more than two to four weeks. You can launch your business as soon as you receive the license.

The following paperwork must be gathered in order to begin the UAE Freezone company setup process.

• Copy of business plan
• Visa with UAE entry stamp
• Duly filled application license form
• Business card of the contact person
• Passport copies of all the shareholders
• Address proofs (dated within 3 months)
• Passport copies of the partners and business managers
• Notarised and attested Memorandum of Association (MOA) and Articles of Association (AOA)
• Original bank reference letters and license of the partner’s existing company, if applicable

Documents for Consultancy License

A copy of the degree or diploma certificate mentioning the desired activities, or the experience certificate [any of these documents is a must]

Documents for Industrial License

Existing company profileBusiness feasibility studyDuly filled form for the investor’s project profile

Documents for Branch of Companies

• Attested copy of the registration certificate, incorporation certificate, and the Memorandum and Articles of Association (MAA).
• Original Board Resolution that guarantees the financial commitment of the branch.
• Original Power of Attorney of a legal representative and their passport copy.
• Last 3 months’ bank statements of the parent company.