The United Arab Emirates, a global business hub, is widely known for its diverse and global business model. The UAE is popular among foreign investors due to the un- disturbing political conditions, efficient law and order, secured life, tax haven status, and many more business benefits. The investors have the options to choose between mainland and freezones for their business setup. However, UAE free zone business setup is the most selected option as it comes with innumerable benefits and profits for the foreign business.
The business support initiatives offered by the UAE Government and the Free Zone authorities mark it as a major trading hub all over the globe. Through this blog, we will get into the various options available for business setup and the process of incorporating business in Dubai freezone or any other freezones in the UAE.
UAE Free Zone
A freezone, also known as free trade zone, is a government-designated jurisdiction that offers special tax-free status and low trade barriers to industries. In a freezone, goods can be manufactured, imported/exported, stored without paying any customs duty. Furthermore, freezones are usually located in strategic geographical locations like national borders, airports, and seaports to maximize trading activities.
Free zones have become a popular form of business registration in the UAE as it allows 100% foreign ownership. The investor does not have to share the company rights with any UAE sponsor or agent to run the company in UAE.
There are over 45 freezones situated in multiple emirates of the UAE that facilitate diverse business operations across a range of industries. The key freezones established across the UAE are situated in the following cities:
- Dubai
- Abu Dhabi
- Sharjah
- Ajman
- Fujairah
- Ras Al Khaimah
- Umm Al Quwain
Benefits of UAE free zone business setup
Starting a business in UAE has many benefits. However, setting up a business in UAE freezones has its additional advantages. For example:
- 100% ownership of the business
- Exemption from corporate and income tax
- Exemptions from trade taxes
- 100% repatriation of UAE-earned capital and profits
- No restrictions in foreign exchange controls
- Option for choosing from a wide range of business activities
- Free transfer of funds
- Efficient and hassle-free administration
- Effective communication system and unique infrastructure
- Excellent support from authorities
- Easy availability of staff and labor
- Stree-free licensing procedure
- Liberal government policies and legal framework
- Availability of offices and equipment on lease
- Abundant and reasonably priced resources
- Ready-made factories, and warehouses
- Modern business solutions
- Ease to open a corporate account in the bank
- Vast opportunities to network and build global relations
- No timing restrictions for business operations
Types of licenses available in UAE freezones
- General trading license – The investor can trade in all kinds of products.
- Industrial license – Allows import and export of raw materials and finished goods across global boundaries.
- Commercial license – Companies can perform industrial, commercial, and consulting activities.
- Manufacturing license – Allows companies to manufacture products.
- Warehousing license – Investor can avail warehousing facilities for packaging and storage of goods.
- Service license – Allows individuals to deliver services in their field of expertise, such as accounting services, software developing services, law firms, consultancy firms, etc.
Types of entities allowed for establishment in freezones
The UAE government encourages foreign trade in the country by offering a business-friendly atmosphere to foreign companies. They frame pro-business policies to draw maximum foreign investment in the country and boost their economy.
Mainly, three types of entities are eligible for the establishment within the freezone jurisdictions –
- Branch of a foreign or domestic company
- Free Zone Establishment (FZE), with a single shareholder
- Free Zone Company (FZC), with multiple shareholders (minimum 2, maximum 5)
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Procedure for UAE free zone business setup
Anyone can set up a company in UAE freezone hassle-free with an affordable registration fee. The procedure to set up a business in freezones is plain and simple.
- Determine the type of business you wish to operate
While planning to set up a company in the UAE freezone, one has to decide the type of company and the business activity he wants to run in the region.
- Choose a unique trade name for your business
For running a business in UAE, the owner needs to choose a unique and distinguishable trade name for the company. The trade name should be cross-checked with the authorities to ensure that it isn’t resembling any existing company name.
- Apply for the required business license
The freezone authorities offer multiple types of business licenses to choose from. The investor can opt for a suitable license as per his business requirement.
- Choose an office space
The business owner can buy or rent an office to operate his business activities. Freezones offers registered office spaces and corporate buildings to foreign companies for their convenient functioning.
- Get initial approvals from the concerned departments
Before getting into the final step of the registration process, the owner needs to get the initial approvals from the relevant departments to move further with license acquisition.
- Submit the requested documents
Registration processes are incomplete without documentation and necessary paperwork. The documents required for registration depend on the type of legal entity you choose to set up in the UAE.
- Get the license
Last but not the least, get the final approvals and obtain the license from the authorities. Once you get the license, you are legally authorized to commence your business undertakings in the UAE.
Documents required for company setup in free zone
You require to submit the following documents to start with your company registration process:
- Application form for company registration
- Copy of certified passport of the business owner
- Valid UAE visa/Entry permit
- Residential proof
- Original bank reference letter
- Business plan
- Notarized and duly attested Memorandum of Association (MOA) and Articles of Association (AOA)
Conclusion
Undeniably, the UAE markets have the best to offer for budding entrepreneurs as well as established businesses. The UAE government ensures that the laws are equally accessible and welcoming for every foreign business that wishes to set its mark in the Arab land. The whole process of incorporating a business in UAE freezones has been made smooth and easy with the different provisions and business policies brought in by the government.
Now that you are familiar with the tactics and techniques of setting up a business in the UAE, Shuraa Business Setup has cost-effective, personalized solutions for your UAE free zone business setup. We provide transparent services to our valuable customers at reasonable costs required for incorporating business in Dubai or any other emirate.
Book a free consultation now to learn more!
Call us at +97144081900 or drop a WhatsApp message on +971507775554. For email assistance, mail your query at info@shuraa.com.
