UAE Free Zone Business Setup
In the past two decades, UAE has grown to become more renowned for its tourism and real estate sectors, but this wasn’t true two decades ago. Moreover, the city’s diverse business model drives the economy and has made UAE a global city and a significant business hub in the region. Additionally, free zones have been set up in the emirates to attract foreign investment and boost the economy by offering lucrative incentives to foreign entrepreneurs.
The Dubai Free Zone Authority handles registration formalities in UAE and issues business licenses to non-resident companies or foreign-owned businesses for company formation in free zones. UAE free zone business setup offers endless opportunities for networking, collaboration, and substantial growth in the business. UAE is the nation most preferred by investors for company formation due to its tax regime and numerous incentives offered by the free zone authorities.
Benefits of Setting up a Business in UAE Free Zone
With state-of-the-art infrastructure, duty exemptions, and top-notch amenities, Dubai free zones are the most ideal locations for setting up businesses. In addition to those factors, freezone business setup in UAE offer many more benefits, such as:
- 100% ownership to investors, regardless of nationality,
- Tax benefits on personal or corporate income or gains
- 100% repatriation of capital and profits
- Exclusion from all import and export duties
- Handy office and warehouse facilities
- Option for a company set up by an individual
- Exemption on corporate tax for 15 years, renewable for another 15 years
- Additionally, complete secrecy of operations
- Flexibility to engage in international business
- Fewer renewal charges
- Flexibility to hold properties, participate in multiple activities, and open a bank account in UAE
- Additionally, the option of liquidating anytime
- Moreover, assistance in housing facilities, staff visas, and other support services
Steps Required For UAE Freezone Business Setup
1. Business activity
Business activity decides what kinds of operations you will have for your company; therefore, choosing business activities becomes important during the UAE free zone business setup. Therefore, choose a suitable free zone company from the various free zones available.
2. Tade license
Additionally, to choose from various trade licenses, the first step will be for you to decide on the nature of your business and which industry you want to serve. Moreover, the trade licenses you can choose from are commercial trade, consultancy services, educational, media, E-Commerce, freelancer, manufacturing, and industrial.
3. Type of legal entity
Moreover, for a freezone business setup, you can apply for two types of legal structures. However, you must ensure your business activities and type of business align with the legal structure you are applying for. Additionally, these two types of legal structures are a Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ CO.), or a Free Zone Establishment (FZE).
4. Trade name
Additionally, choose an appropriate trade name and get it approved by DED. Please ensure that your name is distinguishable from others because it presents your business identity. Consider certain prerequisites before choosing any name, and those are:
- Indeed, it must be according to the legal structure
- Make sure you don’t use offensive language and keep public sentiments in mind
- Should align with your business activity
- Free copyrights violations
- Additionally, approved by the Department of Economic Development
- Trade name certificates
5. Location
Moreover, you can choose the location per your preference from the 40+ free zones available in the country. However, your office space can be chosen only after you have mentioned the employee number and the nature of your business. Additionally, you have the option to choose if you want a furnished office or a partially furnished office.
6. Initial approval
Moreover, be ready with everything submit all the essential documents to the respective authority, and make sure you have read all mandatory requirements. Therefore, prepare all the documents, such as the application form and plan for your business, a copy of the trade license, letter of intent, bank reference letter, application registration form, and a specimen signature of the company’s shareholders.
7. Payment of fee
Additionally, submit all the documents and pay the required fee to get the license certificate.
Documents Required for UAE Freezone business setup
For a business license:
- Colour copy of shareholder(s)’ passport and visa, if applicable
- Application form
- Business plan
- Board resolution
- Memorandum and Articles of Association (MAA)
For opening a bank account:
- A corporate account opening form
- A board of directors’ resolution sanctioning the opening of the account, and the signatories to the account
- A copy of your company’s certificate of incorporation
- A copy of your share certificate
- A copy of the company’s Memorandum and Articles of Association (MAA)
- Copies of passports for all partners in the company
Notes:
UAE’s free zones are extremely popular among entrepreneurs and business owners for setting up companies since they are tax-free zones with free trading ports that can be owned solely by the person setting it up (regardless of nationality). Moreover, the Freezone business setup UAE free zone does not require a local sponsor to act as a point of contact, which acts as a catalyst to increase foreign investment. Free trade zone company formation in UAE is quite simple and requires only that the share capital arrangements are made before applying for a license