The United Arab Emirates has been attracting foreign investors, international companies as well as local firms into their freezones for years. The installation of several free zones across the country, each offering numerous business advantages, has collectively accommodated thousands of professionals and institutions. This well-thought-out policy of the UAE Government has facilitated an easy and affordable UAE free zones company setup.
Freezones offer a competitive environment for developing a profitable business with the most attractive business laws. From offering low tax to simplifying trade activities, freezones are committed to nurturing and supporting businesses.
While diving through all the important aspects of setting up a company in UAE free zone, let’s throw some light on the big benefits and features of persisting in UAE freezones.
What is a Free Zone?
Also known as free trade zones, Freezones are government-nominated special areas where businesses enjoy privileged tax status and custom rates. Freezones offer ever-increasing advantages to the companies operating within to increase their productivity and profit. This will compel more businesses to enter the UAE, thus, enhancing the trade and boosting the economy of the country.
Today, the UAE has around 50 active freezones lodging specialized sectors which are not just limited to trade, but media, communications, finance, metals, basic commodities, healthcare, IT, aviation, and many more.
Business registration in UAE freezones is quicker, simpler, and easier. The unusual and unique features of freezones make them the go-to licensing option for global investors. The business consultants at Shuraa Business Setup possess wide knowledge about the company formation and license registration process in the UAE freezone.
Advantages of UAE free zones company setup
There are plenty of reasons to choose a free zone as your business ground.
- 100% foreign ownership of the business
- No intervention of local sponsor
- Exemption from personal and corporate tax
- Exemption from import/export tariffs
- Full repatriation of capital and profits
- Easy and time-saving procedure
- Affordable and convenient
- Strategic location
- World-class infrastructure
- Well-organized networking with other countries
- Accommodating a large number of international firms
- Abundant and inexpensive resources like water, electricity, etc.
- Single-window administration
- Efficient communication structure
- Liberal government and legal framework
- Availability of office spaces and equipment
- Facilitates foreign recruitment and immigration process
- Endless support from the government
- Confidentiality of investor information
- Business-friendly environment
- Wide range of business activities
Types of entities permitted for UAE free zones company setup
The procedure of company formation in the freezone starts with deciding the type of entity you wish to establish in the UAE. Mainly, three types of business entities are allowed for establishment in UAE freezones:
- Branch of a foreign or local company – An extensive branch of an existing foreign or local company.
- Free Zone Establishment (FZE) – Can be formed with a single shareholder.
- Free Zone Company (FZC) – Require two to five shareholders for the institution.
Types of licenses available in UAE free zones
A business license legalizes the company to operate confidently in the UAE. UAE freezones suggest different types of licenses to the companies according to their business type and deeds.
- General trading license – The company can trade in all kinds of goods and commodities.
- Service license – Allows individuals to deliver professional services such as law firms, consultancy services, accounting firms, etc.
- Industrial license – Permits trade of raw materials and manufactured goods across global boundaries.
- Commercial license – The company can import and export goods specified in the license.
- Manufacturing license – Allows firms to manufacture goods.
- Warehousing license – The company can avail the warehousing facilities for storage, distribution, and packaging of products.
Procedure for setting up a company in UAE free zone
Freezones have their own set of rules and regulations, supervised by the respective freezone authorities. They operate outside the jurisdiction of the UAE. therefore, the process of company formation in freezones is cost-effective as well as time-saving compared to the UAE mainland company setup.
- Determine the type of legal entity and business activity as per your requiremen
- Choose a suitable trade name for the business, unique and non-resembling to any other existing business
- Apply for a business license depending on the business activity you choose
- Find an office space as per your employee count and business activity
- Get the required approvals, submit the requested documents and obtain your license
Also read: Steps for Business Setup in Ajman Mainland
Documents required for UAE free zones company setup
The general documentation for the UAE freezone company formation includes:
- Duly filled application form
- Passport copies of the owner and the business officials
- Valid UAE visa/entry permit
- Business plan
- Validated and duly attested Memorandum of Association (MOA) and Articles of Association (AOA)
- Original bank reference letter
The applicant must ensure that the forms and documents are translated into English, attested, and approved by the Gulf Cooperation Council (GCC) or the Arab Embassy. After essential verification and checks, the applicant receives the license within five to seven working days. It should be noted that the license is renewed annually before the due date.
Conclusion
UAE free zones company setup is certainly rewarding with all the benefits and assistance offered to the companies situated in the jurisdiction. Setting up a company in the mainland demands the involvement of a UAE sponsor who would be eligible for 51% of the company shares. Moreover, the firms established outside the freezone are subjected to the UAE Commercial Companies Law, which is comparatively different and unapproachable from freezones’ business policies. This is the major reason why so many MNCs and firms flock to the UAE’s shores to do business in freezones.
So, if you are planning to make an entry into the UAE’s business community, and are looking for a business companion to ease your company formation process, Shuraa Business Setup is at your service.
We are a registered company, well versed in the UAE’s company formation rules and regulations, and have been helping companies gain a foothold in the Arab land for over 20 years. We provide consultation at all stages of company formation in the UAE and help you launch your business dreams into action.
Contact our team for assistance – We will be glad to help!
For more details about setting up a company in UAE free zone or mainland, book a free consultation with Shuraa now. Call on +971 44081900 or send a WhatsApp message at +971 50 777 5554. You can also send your query over email at [email protected].
