UAE Free Zone Company Setup

Company Formation In Free Zones Across United Arab Emirates

UAE Free Zone Business Setup

 

Over the last 20 years the UAE has become a global business hub, location, diversification and investor friendly. From being an oil based economy it now has tourism, real estate, logistics and fintech as major sectors. A big contributor to this transformation is the establishment of Free Zones across all emirates to attract foreign investment and economic growth.

 

Each Free Zone has its own authority—like Dubai Free Zone Authority—which is responsible for company registration and issuing business licenses to foreign owned companies. Setting up a business in a UAE Free Zone is very attractive to USA investors as it offers 100% foreign ownership, full profit repatriation, zero import/export duties and simplified business setup. UAE’s tax free environment and world class infrastructure makes Free Zones perfect for USA entrepreneurs and SMEs to expand globally with ease.

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Why Start a Business in UAE Free Zone

With modern infrastructure, tax-free benefits and streamlined processes, UAE free zones—especially in Dubai—have become the go-to destination for USA entrepreneurs looking to go global. UAE free zone company formation offers many strategic and financial benefits for USA investors such as:

 

100% foreign ownership even for American nationals

 

Zero corporate and personal tax saving a lot on operational costs

 

Full repatriation of capital and profits ideal for US investors managing funds internationally

 

No import and export duties reducing business expenses

 

Affordable office and warehouse options perfect for SMEs and startups

 

Single owner company setup easy for USA solopreneurs

 

15 year corporate tax holiday renewable for another 15 years great for long term planning.

 

Confidentiality in business operations for sensitive ventures

 

Access to international markets especially for USA exporters and service providers

 

Lower renewal and setup fees for lean operational models

 

Permission to own assets, conduct various activities and open UAE bank accounts

 

Easy exit and liquidation for USA investors who want to evaluate risk

 

Staff visas, employee housing and admin services for USA businesses expanding abroad

Steps For UAE Freezone Business Setup for USA Entrepreneurs

1

Business activity

Business activity decides what kind of operations you will have for your company; so choosing business activity is important during UAE free zone business setup. So US investors must choose a suitable free zone company from the various free zones available.

2

Trade license

First you need to decide on the nature of your business and which industry you want to serve. Moreover, the trade licenses USA entrepreneurs can choose from are commercial trade, consultancy services, educational, media, E-Commerce, freelancer, manufacturing, and industrial.

3

Type of legal entity

For freezone business setup you can apply for two types of legal structures. But make sure your business activity and type of business matches the legal structure you are applying for. Moreover, these two types of legal structures are Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ CO.) or Free Zone Establishment (FZE).

4

Trade name

Also choose a trade name and get it approved by DED. Make sure your name is unique as it represents your business. Consider the following before choosing any name:

  • Indeed it should be as per the legal structure.
  • Don’t use offensive language and keep public sentiments in mind.
  • Should match your business activity.
  • No copyright violations.
  • Approved by the Department of Economic Development.
  • Trade name is mandatory for USA businesses planning to set up in UAE Freezone.

 

5

Location

You can choose the location as per your preference from 40+ free zones in the country. However, your office space can only be chosen after you have mentioned the number of employees and nature of business. USA business owners can choose if they want a furnished office or a partially furnished office for their UAE Freezone company.

6

Initial approval

Be ready with everything, submit all the documents to the concerned authority and make sure you have read all the mandatory requirements. So prepare all the documents, application form and business plan, copy of trade license, letter of intent, bank reference letter, registration application form and specimen signature of the company’s shareholders. US investors should ensure attestation of documents for smooth approvals in UAE Freezones.

7

Payment of fee

Submit all the documents and pay the fee to get the license. For US entrepreneurs setting up a UAE Freezone company, it’s important to keep track of the payment structure as the cost may vary depending on the free zone and business activity. Many USA investors prefer free zones with flexible payment plans and low startup fees to minimize the initial capital outflow.

UAE Freezone Business Setup Documents

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:

 

Corporate account opening form

 

Board of directors’ resolution for opening of account and signatories to the account

 

Company’s certificate of incorporation

 

Share certificate

 

Memorandum and Articles of Association (MAA)

 

Passports of 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).