Incorporation
Doing Business in the Zone
Incorporating a Company
in a
UAE Free Zone
Contact: Christine Orth, co@globaloffice24.biz
Mobile +971-50-8462421
Dubai Free Zones – Attractive tax-free Business Incentives & Solutions
Based on many years of hands-on project management and dealing with UAE free zones Global Office provides comprehensive set up assistance and guidance to international investors:
• Comprehensive company formation consultation detailing costs, pros and cons of each type of set up.
• Preparation and submission of all legal and application documents.
• Negotiation and clarification of all issues between investor and the free zone.
• Set up of corporate bank account in UAE (incl. check book, online banking).
• Obtain business licence and all legal documentation from Free Zone.
• Assistance with all issues regarding company formation.
• Handling of visa application formalities (medical test).
• Coordination of Office fit out work.
In order to get a comprehensive quote, pls. provide the following information:
1) What type of activity are you planning (service, manufacturing, trading)?
Please give a brief description of your proposed activity.
2) Free Zone or Sponsor LLC set up?
3) If Free Zone: Dubai, Abu Dhabi or Northern Emirates?
4) How many shareholders?
5) Individual shareholders or corporate shareholder (e.g. Ltd, Plc. or similar)
6) How many visa needed?
7) How much office / warehouse space needed?
Nationalities of shareholders
9) Start of Project
Why locate your business in a free zone?
Dubai’s global marketing efforts have proven to be extremely successful over the past years and have brought substantial investment and new businesses to the UAE. Normally operating a business and obtaining a trade license would require partnering with a local sponsor who owns 51% of the business by law. The UAE has chosen to offer attractive alternatives in the form of Free Zones which guarantee the investor 100% ownership and a completely tax free status up to 25 years and more. Each free zone has its own specific requirements regarding minimum office/warehouse space and permitted activities.
Due to increased competition among the various free zones, fees are currently going down and some free zones have also lowered or waived share capital requirements.
Also see cost-effective set up E-Office / Virtual Office. Link
What is a Free Zone?
According to the World Federation of Free Zones (FEMOZA) a Free Zone is a portion of a clearly defined and isolated land or setting, with a special tax, customs and imports regime, usually involving a status of extra-territoriality. Free Zones provide state of the art infrastructure and are designed as special investment models allowing total ownership of the business in the UAE. Therefore, to establish a business entity in one of the UAE’s many Free Trade Zones (FTZs) can be an attractive option for foreign investors who wish to keep 100% ownership of their business.
An independent Free Zone Authority (FZA) governs each free zone, and is the agency responsible for issuing FZ operating licenses (which can be service, trading or industrial/manufacturing). However, not all businesses will fit into a free zone. Purpose of the business has to be clearly defined and laid out in a detailed business plan.
Investors can either register a new company in the form of a Free Zone Establishment (FZE), which means the company has one shareholder (individual or corporate person), or a Free Zone Company (FZC, FZCO, FZ-LLC are common forms). In this case the company needs a minimum of two shareholders (usually maximum of 5 shareholders permitted). Alternatively investors can establish a branch office of their existing or parent company. Free Zone companies are in general limited liability companies.
Types of Free Zone Companies
Branch Office (associate of an already existing mother company in UAE or abroad)
Free Zone Establishment = FZE (single partner – can be individual or legal entity)
Free Zone Company = FZCO, FZC, FZ-LLC (minimum 2 partners/shareholders)
Offshore Company (registered agent required, businesses are not allowed to operate within UAE, number of allowed activities strongly regulated)
Typical benefits of UAE Free Zones include (but are not limited to):
100% Foreign ownership
100% Tax exemption for corporate, import/export, personal income
100% Repatriation of capital & profits
State-of-the art purpose built infrastructure
No foreign exchange controls
Companies can operate 24 hours, security around the clock
Postal services, banking facilities, food courts in close reach to all free zones
Residence visas granted for 3 years (renewable)
What are the factors that need to be considered when choosing a free zone:
Distance from international air- and seaports
Facilities and infrastructure offered at the free zone
Real estate options
Types of activities allowed by the respective free zone authority
Annual rent for office space and size of office units
Minimum capital required, registration, trade licence fees
Processing time of application
List of Dubai Free Zones
• Jebel Ali Free Zone – JAFZA
• Dubai Media City
• Dubai Internet City
• Dubai Knowledge Village
• Dubai Outsource Zone
• Dubai Airport Free Zone – DAFZA
• Dubai Cars & Automotive Zone – DUCAMZ
• Dubai Multi Commodities Centre – DMCC
• Dubai Aid City
• Gold & Diamond Park
• International Media Production Zone
• Dubai Maritime City
• Dubai Studio City
• Dubai Biotech & Research Park – DuBiotech
• Dubai Healthcare City – DHC
• Dubai International Financial Centre – DIFC
• Dubai Silicon Oasis – DSO
• Heavy Equipment & Trucks Free Zone
• Dubai Industrial City
• Dubai Flower Centre
• Dubai Logistics City
• Dubai Carpet City (upcoming)
• Textile Village
List of Northern Emirates Free Zones
• Sharjah Airport Free Zone
• Hamriyah Free Zone
• Ajman Free Zone
• Ras Al Khaimah Free Zone
• Fujeirah Free Zone
• Fujeirah Creative City
Abu Dhabi Free Zones
• Masdar City
• Abu Dhabi Airport Free Zone (ADAFZ
• Higher Corporation for Specialized Economic Zones (HCSEZ)
• Industrial City of Abu Dhabi (ICAD 1 and 2)
• Khalifa Port and Industrial Zone (KPIZ)
• twofour54 Media Free Zone
