The United Arab Emirates currently has one of the best markets on offer, be it for new-age entrepreneurs or established businesses. It offers equal access and friendlier laws for every investor who is planning to start a business in the UAE. The whole concern on how to set up a business in UAE free zone has been eased and alleviated with the timely provisions brought in by the government for foreign companies.
An investor can start a business in the UAE at various locations, be it mainland or Freezone. However, when it comes to commencing a business set up in the mainland, the investor has to choose a local partner to start the business, which eventually kills their interest. Due to this compulsion, Freezone has become a big hit among investors as no such rule is required during a company formation in the UAE Freezone, allowing 100% ownership to the investors.
What is UAE Free Zone?
The UAE Free Zone is a special economic area where an investor can enjoy special tax fee status and trade conditions are such that any investor can manufacture, import/export goods without paying any customs duties. The ‘Free Zones’ were set up to enhance businesses in the UAE by foreign entrepreneurs and investors and offer the benefit of 100% ownership.
With its diverse and global business model, UAE Freezone facilitates miscellaneous business operations across an array of industries. These freezones play a significant role in the economic growth of the country, attracting global investments and boosting international business. This makes it a reliable destination for company formation in UAE freezone.
Why should you set up business in UAE Free Zone
The UAE government has set up multiple freezones in the Emirates, which offer lucrative facilities to the upcoming as well as established businesses. Free zones have been set up across multiple locations in the UAE open for numerous business activities. Since the freezones are out of the jurisdiction of the UAE, the registration of non-resident companies and issuance of business licenses are handled by the respective Freezone authorities.
Generally, three types of entities can be set up in the UAE free trade zones.
- Branch of a foreign or local company
- Free Zone Establishment (FZE), with one shareholder
- Free Zone Company (FZC), with two or more shareholders
Substantial benefits of Company formation in UAE Free Zones –
- Easy start-up and licensing procedures
- 100% ownership
- 100% repatriation of capital and profit
- Minimum capital investment
- Exemption from corporate and income tax
- Exemption from custom duties
- Low transportation charges
- Single window clearances for administrative work
- Easy recruitment procedures
- No visa restrictions
- No currency restrictions
- Liberal government policies and legal framework
- Logistical benefits
- Ready-made offices
- A wide range of business activities and licenses
- Modern office solutions
- Exceptional support from the authorities
Free Zones in the UAE for company setup
The UAE government has set up around 40 free zones in the Emirates to promote foreign investment and boost the country’s economy. Each freezone is designated for specific business activity. A pro reason for establishing an entity in the UAE freezone is the elimination of local sponsors and independent operation of the business. Moreover, the rules and laws of company formation in the UAE freezone are set by the freezone authorities. However, identifying a freezone in the UAE favoring your business activities can be a tedious task.
Below mentioned are some of the key freezones across the UAE –
- Jebal Ali Free Zone (JAFZA)
- Dubai Multi Commodity Centre (DMCC)
- Dubai Airport Free Zone Authority (DAFZA)
- Sharjah Airport International Free Zone (SAIF Zone)
- Sharjah Media City (SHAMS)
- Hamriyah Free Zone (HFZ)
- Khalifa Industrial Zone (KIZAD)
- Ras Al Khaimah Economic Zone (RAKEZ)
- International Free Zone Authority (IFZA)
Shuraa business setup consultants have expertise in incorporating UAE free zone company Setup in the above freezones and other emirates.
How to set up a business in UAE free zone
Freezones in the UAE provide a profuse working environment and easy company setup procedures for investors from all around the world. Company formation in UAE free zone is smooth and hassle-free.
- Determine the type of entity you want to establish –
The capital requirement in a particular freezone depends on the type of business you choose to run. The cost of setting up a business is different in each freezone.
- Choose a trading name for your company –
The trading name for your company should be distinctive and non-resembling to any other existing companies. For better decisions, you can cross-check with the respective free zone authority.
- Register the trading name in the free zone authority’s portal for a business license –
Business formation is incomplete without a business license. You need to submit the requested documents to the free zone authorities and get a valid license depending on the primary activity of your business.
- Lease an office space as per requirement –
One of the salient advantages of setting up a company in the UAE free zone is that they provide Flexi-desk, cabins, or office space to support start-ups. You can buy or lease offices as per your employee count and business requirements.
- Get final approvals from the relevant authorities –
You need to get all the business-related approvals from the specific authorities after duly submitting the supporting documents and forms. Post approval, the authorities issue the license within a nominal period.
Read the post : Easiest Way to do Company Setup in the UAE
Documents required for UAE Free Zones Company Setup
You will have to submit the following documents, to begin with, the process of setting up a Company in the UAE Freezone.
- Certified Passport Copy and UAE Visa
- UAE Visa/UAE entry stamp (if non-resident)
- Bank reference letters
- Memorandum of Association (MOA) and Articles of Association (AOA), attested and notarised by the Gulf Cooperation Council (GCC) or the Arab Embassy
- Copy of business plan
- License application form
Types of Licenses available in the UAE Freezones
A company needs to be duly registered and certified for its smooth functioning in a foreign land. One should procure a legal license before setting up his business in UAE Freezone.
The investors can apply for any of the below licenses as per their business requirements:
- Trading license – Trade in all kinds of products
- Commercial License – Perform commercial or consulting services
- Service License – Operate law firms, accounting firms, and business consultancy firms
- Industrial License – Manufacture, import, and export raw materials and finished goods globally
- Manufacturing License – Manufacture products
- Warehousing License – Avail storage facilities for distributing, packaging, and storing goods
Conclusion
Company formation in UAE free zone is rewarding, with tax absolutions, hassle-free establishment procedures, and business-friendly government policies. If you are looking for an expert in business consulting to ease your company formation process in the UAE and launch your business dreams into action, contact our team of Shuraa for assistance – we’ll be glad to assist you!
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To learn more about UAE’s best freezones to start your business, call +97144081900 or drop a WhatsApp message on +971507775554. You can also email us at enquiry@shuraa.com.