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Business Setup in UAE: LLC vs Free Zone

Name: HLB HAMT
Address: Level 18, City Tower-2,, Sheikh Zayed Road, Dubai, 32665, United Arab Emirates
Telephone: +97143277775
Rating: 4.9

HLB HAMT Team

HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
Mobile:- +971 55 160 1291
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

Setting up a business in the United Arab Emirates (UAE) offers immense opportunities for growth and expansion. Whether you are considering LLC company formation in Dubai, LLC company formation in UAE, or exploring business setup in a UAE free zone, it is important to understand the different aspects and benefits.

In this blog post, we will address some pressing questions about UAE free zones, the advantages they offer, and the key differences between LLC and free zone business setups, as well as between free zones and the mainland.

What are the different types of free zones?

In the UAE, free zones are categorized into two main types: industry-specific free zones and general-purpose free zones.

Industry-specific free zones focus on specific sectors such as technology, media, healthcare, or finance. General-purpose free zones, on the other hand, accommodate a wide range of business activities across different industries. Each type of free zone has its own set of regulations and benefits, allowing businesses to choose the one that aligns with their specific requirements.

What are the benefits of a free zone in the UAE?

Free zones in the UAE offer several advantages for businesses:

100% Foreign Ownership: Free zones allow full foreign ownership, enabling international investors to have complete control over their businesses.
Tax Incentives: Free zones typically offer tax incentives, including zero or reduced corporate tax, import/export duty exemptions, and no personal income tax.
Simplified Company Setup: Free zones provide streamlined processes and efficient company registration, making it quicker and easier to establish a business.
Infrastructure and Facilities: Free zones offer state-of-the-art infrastructure, modern office spaces, warehousing facilities, and access to specialized services.
Business Support: Free zones provide access to business support services, networking opportunities, and a supportive community of like-minded entrepreneurs.

How can I pick the best free zone for the business I run?

When choosing a free zone for your business, it is important to consider the following factors:

Industry: Select a free zone that specializes in your industry or sector. This will give you access to specialized infrastructure, facilities, and networking opportunities.
Location: Consider the location of the free zone in terms of its proximity to your target market and suppliers.
Regulations: Review the free zone’s regulations and requirements to ensure that they meet your business needs.
Cost: Compare the costs of setting up and operating a business in different free zones.

What are the steps involved in setting up a free zone company in the UAE?

The steps involved in setting up a free zone company in the UAE vary depending on the free zone you choose. But the overall procedure is as follows:

Choose a free zone and business activity: Select a free zone that specializes in your industry or sector and choose a business activity that is permitted within the free zone.
Apply for a business license: Submit an application for a business license to the free zone authority. The application will typically require you to provide information about your business, shareholders, and proposed activities.
Pay the required fees: Once your application is approved, you will need to pay the required fees to the free zone authority.
Obtain a visa (if required): If you are a foreign investor or employee, you will need to obtain a visa to work in the UAE. The free zone authority can assist you with this process.
Open a corporate bank account: Open a corporate bank account in the UAE to manage your business finances.
Lease office space: Within the free zone, lease office space.
Start your business: Once you have completed all of the above steps, you can start operating your business from the free zone.
It is important to note that some free zones may have additional requirements, such as a minimum share capital or a local service agent. It is advisable to contact the professional business consultants to learn more about their specific requirements.

What separates a UAE freezone from an LLC?

Limited Liability Company (LLC) formation in the UAE and free zone company formation are two distinct options for business setup. LLCs are entities registered within the mainland of the UAE and require a local Emirati partner or service agent.

Free zone companies, on the other hand, are established within designated free zones and offer 100% foreign ownership. The choice between LLC and free zone depends on various factors, including business objectives, market access, and the desired level of ownership and operational freedom.

What is the difference between Freezone and mainland?

Differentiating between free zones and the mainland is crucial when considering business setup in the UAE. Free zones offer specific benefits such as tax incentives, simplified regulations, and 100% foreign ownership.

Mainland companies, while requiring local Emirati partners or service agents, allow businesses to operate outside the boundaries of free zones and access the wider UAE market. The choice between free zone and mainland depends on the nature of the business, target market, and growth plans.

Conclusion:

Choosing the right business setup option in the UAE, whether it’s LLC company formation in Dubai, LLC company formation in the UAE, or establishing a business in a UAE free zone, requires careful consideration. Understanding the advantages of free zones, the types of free zones available, and the differences between LLC and free zone setups, as well as between free zones and the mainland, will help you make an informed decision.

Contact HLB HAMT today for expert guidance and support in navigating the intricacies of business setup in the UAE.

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HLB HAMT - Audit, Tax, Accounting and Business Advisory

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Varun R Chandra

07:38 25 Apr 21

HLB Hamt is highly recommended! They have the quality of services that would satisfy your needs. I'm glad I found them.

Giuseppe Assi

06:20 31 Jan 21

I HAD A GOOD EXPERIENCE WITH HLB HAMT DUBAI. THEY HAVE A VERY PROFESSIONAL TEAM, GOOD QUALITY OF SERVICES, GOOD VALUE FOR PRICE.I RECOMMEND THIS COMPANY.

Mohamed Sheriff

16:16 28 Jun 20

Experience with HLB Hamt in audit experience is great pleasure. They deploy well qualified accounts team for audits. And the amount of checking they perform give the management of the company confidence that internal controls are well in place. We are glad to see they have high standard of audit practices.

218141 JOSEPH THOMAS

16:20 23 Jun 20

Professionally managed firm with commitment to the engagements taken. My company and its group are assigning our requirements for last 12 years to HLB and we don’t have any negative remarks on any assignments.

PMI

07:14 23 Jun 20

In my opinion, HLB Hamt is one of the best professional firms in UAE after big4. Excellent client service, professional and competent staff and timely delivery are their strength. Over the years they have developed the infrastructure and skill set to handle multiple verticals ie, audit, tax services, consulting, IT support etc.

Wishing HLB Hamt team all the very best.

RAVI CHOKSI

08:28 21 Jun 20

Thank you Team HLB hamt...

Your internal auditing team put the good amount of time and inputs in helping the organisation making considerable improvements throughout the organisational working structure and helps in building the better business.

Thanks.

Maharajan Subramaniam

18:17 06 Jun 20

High-Performing IT Teams, I'm impressed with the knowledge level of their deputed staff, audit procedures, and checklist adopted. Mr. Vimal especially understand the requirement and provide solution not only technical feasibility and also considered budgeting. We’re confident in their abilities.

Mohammed L

08:07 05 Jun 20

We have been working closely with them on payroll services for quite sometime.They provide very professional services,experts in domain and excellent support. Would recommend them.
Cheers.

ROY ROSHAN VIVIAN

06:32 04 Jun 20

Very professional team. Vimal has always given us good solution advice for various Software and IT Infra projects. We are very Extremely satisfied working with him and his team. Wishing them success.

Basil Daniells

05:55 03 Jun 20

I have worked with HLB as a partner of Sage for about 2 years, they were dedicated to the success of the partnership and kept aligned with the business plan that was agreed between our two companies. They are always ready to go the extra mile for a customer and don’t shy away from challenging circumstances. Keep up the good work and wish you all the success in the future.

Amar Kashyap

19:28 02 Jun 20

Team of well qualified and organised professionals. Their reports are not based on numbers first they will understand their client and their business. They are highly recommended and trust worthy.

Radz de Jesus

16:03 02 Jun 20

We're glad to have found HLB Hamt to conduct the IT audit and risk assessment for our organization. We have learned a lot from their team during that first project. And since then, we've continued to be in touch with them. Mr. Vimal especially is very good at presenting technical concepts in simple yet interesting ways that non-IT and business people alike would easily catch. We are very happy with the professionalism and quality of service they provide. They leave their clients nothing short of satisfied. Highly recommended.

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