The UAE free zone company formation
Establishing a business in the United Arab Emirates can be a highly rewarding venture, particularly when you leverage the benefits of the UAE free zones.
What is a free zone?
A free zone is a special economic area in the UAE where businesses are taxed minimally or not at all in order to encourage economic activity.
What are the various free zones for company registration?
The UAE offers numerous free zones across its 7 emirates. They are Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain.
Difference between FZE and FZCO:
A FZE (Free Zone Establishment) is a single shareholder entity, whereas a FZCO (Free Zone Company) is a multiple shareholder entity.
Advantages of company formation in the free zone
Free zone companies enjoy numerous benefits including 100% foreign ownership, tax exemptions, repatriation of capital and profits plus minimal bureaucratic red tape.
Disadvantages of company formation in the free zone
Some of the drawbacks include restrictions on trading within the UAE, separate licensing for operations outside the free zone and initial setup costs.
Choose precisely while registering a company in Dubai free zones:
Selecting the right free zone is crucial and depends on factors such as your business type and your business needs. Plus you should bear in mind the specific advantages each free zone offers.
Your UAE free zone company starts here
Embarking on your business journey in a UAE free zone involves several key steps.
Steps to set up a company in the UAE free zone:
1. Decide the type of legal entity
Identify the most suitable business entity for your operations/ It may be a FZE, FZCO or a branch of an existing company.
2. Choose a name for the business or the entity
Select a unique and relevant business name and get it approved by the respective Free zone authority.
3. Apply for a Business trade license
The type of business activity you intend to carry out will determine the type of license you need.
4. Find an office space
Lease a physical office space, a flexi-desk or a shared office within the free zone.
5. Obtain pre-approvals, register your business and get the license
Submit all required documents, pay the necessary fees and obtain your business license to start operating.
List of top free zones in the UAE
Each of the free zones in the UAE offers unique advantages. Some of the top free zones include:
Abu Dhabi
Ajman
DMCC (Dubai Multi Commodities Centre)
DTEC (Dubai Technology Entrepreneur Centre)
Dubai
Hamriyah
Jebel Ali
RAK (Ras Al Khaimah)
Sharjah
Umm Al Quwain
What is a free zone license in the UAE?
A free zone license is an official permit that allows you to conduct business activities within a particular free zone.
What is a free zone company in the UAE?
A free zone company is a business entity registered in one of the UAE free zones governed by the rules of the respective Free zone authority.
How to select a free zone for your business license?
Choosing the right free zone involves considering factors like the type of business activity, the specific benefits offered by the free zone, the costs involved and proximity to clients and/or suppliers.
Free zones & tax benefits
Free zones offer significant tax benefits, including zero corporate and personal tax, zero import and export duties plus no currency restrictions.
Low-cost business license packages in the free zones in the UAE
Several free zones offer cost-effective business license packages making it affordable for startups and SMEs to set up their businesses.
Free zone company license in Dubai
A free zone company license in Dubai allows you to enjoy all the benefits of a Dubai-based company with the added perks of a free zone.
Key highlights about free zone company formation in the UAE
Key benefits include 100% foreign ownership, full repatriation of profits, a tax-free environment and ease of setting up and operating your business.
Why set up a business in the UAE free zones?
The UAE free zones are ideal for businesses seeking a cost-effective, tax-friendly and business-friendly environment with world-class infrastructure, strategic location and access to a vast market.
FAQs
1. What types of business can I conduct in a free zone?
Most free zones allow a wide range of business activities from trading and consulting to manufacturing. However, the specific activities allowed may vary from one free zone to another.
2. What process should I follow to set up a business in a free zone?
Setting up a business involves choosing a legal entity type, selecting a business name, applying for a business license, finding a suitable office space and obtaining pre-approvals and registration.
3. How do I choose a trading name? Are there any rules?
Choosing a trading name involves selecting a unique name that has not been already registered. The name should not violate public morals or the public policy of the UAE.
4. What are the top 3 low-cost free zones in the UAE?
Among the most cost-effective free zones in the UAE are the Hamriyah free zone, the Ajman free zone and the Fujairah creative city.
5. Who are the best business setup consultants for the UAE free zones?
There are several reputable business setup consultants with in-depth knowledge of the UAE free zones. The choice would depend on your specific requirements and budget.
6. Do free zone registered companies need to submit an audit report?
Yes, most free zones in the UAE require companies to submit an annual audit report to ensure transparency and compliance with the financial regulations.
