Business Setup in UAE Free Zone
With so many free zones to choose from, doing business in the UAE has never been more exciting. Free zones provide a healthy, positive work environment and improve international investment by allowing all nationalities to own 100% ownership of their businesses. Business Setup in UAE Free zone operations are simplified with the assistance of professional service providers because of their experience and efficiency in this field.
HLB HAMT can guide you through free zone business setup in UAE by streamlining the entire registration and administrative procedure so you can focus on growing your business in UAE.
The free zones in UAE provide a regulated and secure business environment where a diverse array of company operations can be permitted. They boost the economy, stimulate foreign investment, and help new entrepreneurs expand faster, paving the way for the development of UAE free zone companies.
Advantages of Dubai Free Zone Company Formation
The laws and regulations of the free zone in which a company is formed define a free zone company. Some of the benefits of a UAE free zone company formation are as follows:
Major Free Zones in Dubai
Which free zone is optimal for you will be determined by the type of business activity you intend to embark on? The key free zones in which we can help you launch a business are listed below.
Jebel Ali Free Zone (JAFZA) has become one of Dubai’s newest and most coveted free zones, with international facilities in general commerce and logistics.
The Dubai Multi Commodities Centre (DMCC) is the proper business centre for Dubai and the United Arab Emirates.
The Dubai Airport Free Zone (DAFZA), one of the city’s most renowned and fastest-growing free zones, is home to a multitude of enterprises from a range of sectors.
The Dubai International Finance Centre (DIFC) is a free zone in Dubai that allows corporations to hold 100% of their assets. It was established to help Dubai achieve its strategic goal of strengthening its financial assets and attracting cash and investment to the area.
International Free zone Authority (IFZA) Dubai provides Free Zone Permits depending on a number of customizable company setup options and provides affordable packages, prompt service, and up-to-date understanding of standards and procedures to guarantee that its clientele’ businesses are built on solid ground.
Meydan Free Zone in Dubai that offers low-cost company setup options. The Meydan free zone attracts a large number of businesses from all around the world.
Sharjah Airport International Free Zone (SAIF) provides a diverse variety of options for businesses looking to establish a presence in Dubai. They offer some of the most appealing business incentives in the region, such as quick service and ease of use.
Dubai South (Dubai World Centre)
The Dubai South free zone, originally known as Dubai World Central, connects the Middle East, Africa, and South Asia.
The Dubai Silicon Oasis Authority is a government-owned free zone that encourages and supports innovative tech giants.
What are the steps to opening a free zone business?
The free zones in the UAE are an integral feature of the country’s developing economy. There are several free zones in UAE alone that contribute considerably to the country’s economic growth. In a free zone, two types of businesses can be formed:
Free Zone Establishment (FZE)
FZE is a single-shareholder limited liability company.
Free Zone Limited Liability Company (FZ LLC)
A limited liability corporation (LLC) with a maximum of fifty shareholders is known as a FZLLC.
Key steps to setup a Business in UAE Free Zone
In a free zone, it is much easier to start a business. The free zone’s officials just require the absolute minimum of paperwork and time. The processes to founding a business in a free zone are outlined below.
- Determine the commercial activity of the legal entity.
- Should choose a name for the activity’s business.
- Fill out a business license application.
- The memorandum and articles of association are being prepared.
- Choose a location for your office.
- Fill out the application form and bring your business plan to the meeting.
- Obtain pre-approval from the authorities, then register your business and apply for a license.
Documents Required for Setup a Company Formation in UAE
For Individual Shareholders
- Passport copies of shareholders
- Copies of the Manager’s, Director’s, and Secretary’s passports
- Utility bills of shareholder, Manager, Director & Secretary
- Resume/CV of shareholder & Manager
- Bank Reference Letter (for selected jurisdictions only)
For Corporate Shareholders
- License copy
- Incorporation/Registration Certificate
- Memorandum & Articles of Association
- Board resolution calling for the incorporation of the proposed entity
- Incumbency certificate
- Good Standing Certificate
All the above documents from 1 to 4 need to be attested by the UAE embassy overseas.
Note: Additional documents will be required depending on various jurisdictions.
Major Freezone in UAE
JAFZA – Jebel Ali Industrial Zone
Jafza is one of the most service-driven and customer-oriented free zones that offer a vibrant, dynamic working
DMCC – Dubai Multi Commodities Centre
Dubai Multi Commodities Centre, situated in the heart of new Dubai, is the largest and fastest-growing free zone in the UAE.
DAFZA – Dubai Airport Free Zone
Dubai Airport Free Zone(DAFZA) is one of the fastest-growing free zones in UAE, contributing 4.7 percent of Dubai’s GDP.
Frequently Asked Questions – Free Zone Business Setup
Is it possible for a free zone company to do business in UAE?
Companies registered with free zone authorities are not permitted to conduct business in UAE Mainland
Where can I establish a free zone in the UAE?
The majority of the free zones are in UAE, the UAE’s business capital, with specially designated free zones encompassing a wide range of commercial industries.
In a free zone, what sorts of enterprises should an individual start?
Financial, educational, retail, hotel, logistics, and media are among the areas in which you can work. Checks with the various free zone authorities to learn what kind of businesses are permitted on their land.
Which is the cheapest free zone in Dubai?
The International Free Zone Authority (IFZA), Ajman Media City (AMC), Sharjah Media City free zones are considered the cheapest free zones.
What are the free zone’s tax regulations?
Income tax is not applied to companies established in the free zone. Several designated free zones are exempted from VAT too by the FTA.
Why is HLB HAMT the best free zone business consultant in Dubai?
What are the legal obligations of a free zone Company?
Since each free zone has its own regulatory authority, practices vary from one to another. A Sole Establishment (FZE) with one shareholder and a Free Zone Company (FZC) with two or more owners are the two types of enterprises that can be established in the Free Zone. Shareholders might be individuals or corporations.
How many residence visas should an individual is given?
This should be mostly determined by the sort of office/premises chosen. A Virtual Office/Flexi-Desk option will often be awarded 2 to 3 visas; however, the scale of an actual office space will determine how many visas are allocated.
Will I be issued a license once the onshore business is formed?
Yes, all Free Zone businesses are required to get a trade license that matches their operations. Licensing is available for operations such as trading, manufacturing, industrial, consulting, and services.
Are there any limitations on commercial activities?
Yes. Regardless of the nature of the firm, different ministries or regulatory agencies may demand external authorization for specific actions.
Latest insights, case studies and news from across the network
UAE unveils new public-private partnership (PPP) law to establish a stable, functioning economy
In an effort to boost the contribution of the private sector to the advancement of the economy, the UAE has declared the introduction of a new public-private partnership (PPP) law.
HLB Monthly Insights
Recognizing Your Risk Indemnity for Professional Services
In recent years, professional risks have significantly evolved with the regulatory environment.
New UAE Visa Policy Reforms to Roll Out from September 2022
Visas are a hot topic of conversation as the UAE continues to implement new regulations in the aftermath of the COVID-19 outbreak.