Business Setup in UAE Free Zones
The United Arab Emirates (UAE) is a renowned business destination due to its flourishing business opportunities and favourable business environment. Given this fact, entrepreneurs look to start a business in the UAE.
For business incorporation in the UAE, you get the option of three jurisdictions, namely mainland, free zone and offshore. Each jurisdiction offers certain benefits to entrepreneurs for setting up a business. Here, we learn about business setup in the free zones of the UAE, associated benefits and other related things.
What are Free Zones in the UAE?
A designated business zone that is governed by the Free Zone Authority is known as a free zone in the UAE. Every free zone in the UAE has a separate governing authority. The country has these specific zones in every Emirate. As an entrepreneur, you need not pay any personal tax and a corporate tax of 9 percent for business setup in most of the UAE free zones. In addition to that, you can enjoy full foreign ownership.
Some of the free zones located in different Emirates of the UAE are listed below:
Free Zones in Dubai
- Dubai Healthcare City
- Dubai Airport Free Zone Authority (DAFZA)
- Dubai Media City
- Dubai Industrial City
- Dubai Biotechnology and Research Park
- International Humanitarian City
- Dubai Techno Park
- Dubai Academic City
- Dubai Media City
- Economic Zones World
- Dubai Creative Clusters Authority
- Dubai Logistics City
- Dubai Media City
- Dubai Car and Automotive City
- Dubai Knowledge Village (DKV)
- Dubai Design District D3
- Dubai Flower Centre
- Dubai Textile City
- Dubai Silicon Oasis
- Dubai International Financial Center (DIFC)
- Dubai Gold and Diamond Park
- Dubai Outsource City (DOC)
Free Zones in Sharjah
Free Zones in Abu Dhabi
Free Zones in Ajman
Free Zones in Ras Al Khaimah
Free Zones in Umm Al Quwain
Free Zones in Fujairah
Process of Company Formation in UAE Free Zones
For starting a company in a freezone located in the UAE, a specified process needs to be followed. Let us take a look at it:
- Select Business Activity
The initial step is to determine the nature of the business. There are numerous free zones in the UAE which allow you to conduct different business activities related to commercial trade, industrial, educational, media, e-commerce and freelancing, among others.
- Determine Business Structure
Finalise a business structure by complying with the legal regulations. Three types of company structures are available in the UAE free zones. They are Free Zone Limited Liability Company (FZ LLC), Free Zone Establishment (FZE), and Free Zone Company (FZ Co.).
- Trade Name Registration
Select an appropriate trade name for your business by complying with the regulations. The trade name must not contain any offensive language and should include the acronym of the chosen legal structure.
- Rent Office Space
In the next step, you may have to rent or buy a business space for company formation in the free zones of the UAE. The number of employees and type of business activity will determine the office space requirements.
- Obtain Initial Approval
Fill the application form and submit it along with the required documents to obtain an initial approval from the authorities. Certain business activities like tourism and health require additional approvals from concerned authorities.
- Avail Business License
Pay the requisite fees to obtain the relevant business license. Once you get the license, the company can be registered with the authorities.
Documents Required for Company Formation in UAE Free Zones
You have to submit certain documents to register a free zone company in the UAE. Some of these documents include:
- Copy of the business plan
- Completed application form
- Passport copies of the shareholders and managers
- Copy of bank reference letter (for freelancers/professionals)
- Curriculum vitae (for freelancers/professionals)
- Registration application (for freelancers/professionals)
*Note: Kindly refer to the official website or contact consultants at Business Setup Worldwide to know the full list of required documents.
Advantages of Business Setup in the UAE Free Zones
You can avail numerous benefits by setting up a business in the UAE free zones. Some of them include:
- A foreign national can own a company in the UAE free zone without appointing a local sponsor.
- UAE free zones charge no personal tax and import/export duties.
- You can enjoy 100 percent repatriation of capital and profits.
- Simplified processes for recruitment of suitable workforce at affordable prices.
- There are no fees associated with funds transfer.
- Business setup in the UAE is simple and can be completed within a few working days.
Why Choose BSW?
Business Setup Worldwide keeps your business vision and objectives at the forefront. We have designed our services to assist you in completing the legal formalities required for company setup in the UAE Free Zones. Our advisors handle all banking, visa, legal, and licensing formalities, allowing you to focus on business setup. Reach out to us for further information.
