UAE Free Zones Company Formation
The United Arab Emirates federal constitution, the federal laws linking to free zones as well as the authorities secured by the single Emirates under the federal framework, enable each Emirate to establish ‘free zones” for general or for those industry-specific enterprises. The objective of free zones is to motivate foreign direct investment into the United Arab Emirates. Free zone entities are not typically required to have any UAE nationals as owners. This opposes with most firms integrated in the UAE outside of the free zones, wherein UAE nationals are generally required to own a minimum of 52% of the firm’s investment.
If you are taking into account physically moving your business to the United Arab Emirates, a Free Zone firm is the best option. Here, you will obtain local presence and make business in the core of Dubai. Indeed, you may consider leasing an office space and attain visas for you and your staff immediately.
Different free zones have been established in the UAE, wherein most of them are located in the Emirate of Dubai. Furthermore, free zones are licensed to execute their very own laws and regulations in particular locations wherein there are events when some cases supersede Emirate and federal law.
For instance, the Dubai International Financial Centre or DIFC which is considered as a financial free zone inside Dubai, possess its very own body of law, comprising of contracts law, corporate law, employment law and it also has its very own court system.
Each of the free zones possesses their own free zone power. These refer to the money-making entities; their main reference of income is frequently coming from gathering license fees, leasing office space and rendering services to the firms running in the free zone. Everyone shares the features guided below but vary along:
- Focal point of the free zone; usually enticing businesses from a specific sector even though there’s remarkable flexibility
- Office lease, lease or rents outside Dubai are extremely low
- There’s a minimum office space required
- There are support facilities granted by the free zone
- Yearly license fees
- There are paperwork required in establishing the business
- Investment or capital requirement
- The number of visas allotted per square meter of office space
Setting up a business entity in one of the United Arab Emirate’s Free Trade Zones (FTZs) may be an engrossing alternative for foreign investors. Ever since, the free zones are fruitful in enticing considerable number of firms and foreign direct investment and growing net non-oil exports.
Moreover, the United Arab Emirates free zones are deemed as part of the strong backbones of the nation’s economic performance inviting the majority of foreign investments, boosting job opportunities and administering the necessary technology transfer of technology into the nation. Additionally, the free zones account for over one half of the nation’s non-oil exports and base the United Arab Emirates’ status as the third most notable re-export centre in the globe.
Forms of Free Zone Firms
- Branch Office (associate of an already existing mother firm in UAE or overseas)
- Free Zone Establishment = FZE (one partner – which may be individual or a legit entity)
- Free Zone Company = FZCO, FZC, FZ-LLC (a minimum of 2 partners or shareholders)
- Offshore Firm (requires a registered agent, businesses are not permitted to run inside UAE, the number of permitted activities is stringently monitored)
Main Benefits of UAE Free Zones comprised of (but are not restricted to)
- 100% Foreign ownership
- 100% Tax exemption intended for corporate, import or export, personal income
- 100% Repatriation of capital & profits
- Avant-garde purpose built infrastructure
- No foreign exchange controls
- Firms can run 24 hours, security around the clock
- Easy recruitment of the required staff
- Guarantee for fifteen up to fifty years against the future imposition of corporation tax
Free Zone Set up Support ready for use both for Local & International Investors
- Exhaustive firm formation consultation setup
- Preparation and submission of all legitimate and necessary application documents
- Negotiation, dealings and clarification of all complications amidst investors and the free zone
- Acquire business license and all legit documentation from Free Zone
- Support with all complications in terms of firm formation
- Management of visa application formalities (for instance, medical test)
- Arrangement of Office fit out work
- Creation of bank account in UAE
What are the Factors required in order to be considered when selecting a Free Zone
- Distance from intercontinental air and seaports
- Facilities and infrastructure provided at the free zone
- Real estate alternatives
- Kinds of activities permitted by the respective free zone authority and outside the zone
- Yearly rent for office space and the size of office units
- Lowest amount of investment or capital required; registration, trade license fees as well as the processing time of application