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In the beginning, business ventures in UAE could only be operated with the help of a sponsorship from a UAE citizen. Free zones were formed in 1985 which gave 100% foreign ownership of the company and was highly appreciated by businesses. However, the rule of partnering with an Emirati still continued for Mainland businesses. In fact, until May 31st, 2021 a foreign national had a minor stake of 49% only in the business setup which has changed to 100% from June 01, 2021.
For decades, the UAE has been a popular location for ex-pats and investors. The UAE government is taking proactive measures to ensure that it remains an appealing and business-friendly location for ex-pats by implementing new regulations. One such regulation is the free zone visa procedure, which makes it easier for professionals and startups to take part in various business activities in the UAE. Read along to know about the advantages of UAE Free Zone Company. But before we do that, let’s understand what exactly is a free zone?
What are Free Zones in UAE?
A free zone, sometimes known as a free trade zone, is a special zone where items can be made, imported/exported, handled, re-exported or modified, generally without paying customs duty. To maximize economic benefits, free trade zones are often positioned in important geographical areas such as national borders, international airports, and major seaports.
The UAE government has launched a number of free zones throughout the UAE, each geared for a certain commercial activity. Non-resident corporates can benefit from UAE free trade zones, which include the simplicity of single-window administration, no bureaucratic red tape, and 100% ownership with business setup in UAE free zone. Many free zones or authorities specialize in particular sectors or company types.
Each free zone has unique and specialized offerings. Sharjah Media City (SHAMS), for example, cater to individuals in the creative business sector. In comparison, the Sharjah Research Technology and Innovation Park(SRTIP) is preferred by businesses involved in Research and Development(R&D).
Set up business in Dubai free zone with professional business consultants like A&A Associate for a smooth ride. Call us now!
Five Benefits of the UAE Free Zone Company
There are numerous benefits of business setup in UAE free zone like:
100% Foreign Ownership
Obtain complete ownership of your organization in a free zone. A foreign investor or a group of foreign nationals can entirely own a free zone company in UAE. They do not need a Local Sponsor for their business. All nationalities are welcome to own free zone businesses.
Confidentiality
When it comes to the information on assets owned by free zone firms, free zone authorities retain the highest confidentiality.
No Trade Barriers
All free zone firms are free to trade with other free zone companies as well as companies from all over the world, with no restrictions on trade or amount of business.
Trading inside the UAE
Free zone enterprises are not authorized to trade with the UAE’s domestic market. Fortunately, if important networks with investors in your business have been established, this barrier may be easily surmounted. Accessing and collaborating with a locally designated distributor is an excellent choice. In exchange for a charge, they may promote your goods and services.
Exemptions From Corporate Taxes and Import Charges
This is possibly the most convincing argument for UAE free zone company formation. Set up shop in a free zone and get exempt from paying any corporation or personal tax for your business. This applies to all products, commodities, and services in Dubai and the surrounding region. Furthermore, free zone enterprises are immune from exports and imports taxes and can deal in any currency.
Free zones are also segregated based on the industries. To know the best location for your business, call us now.
Free Zone Company Registration Steps
Free Zone company setup has many steps, which are relatively easier than mainland business setup. However, it can be a daunting task for many. Here are the steps involved in company registration in the free zone.
Step 1: Once the business type is chosen, select a license that matches its needs
Step 2: Identify the permissible activities under the selected license in the chosen FTZ
Step 3: Find the availability of all the necessary office premises. Even virtual offices can be selected if the business can be carried out without a physical office.
Step 4: Every free zone is subject to the laws of the respective emirate jurisdictions. Respective to the concerned FTZ’s administration department, submit all the required documents.
Step 5: Various registration and administration fees need to be paid.
Step 6: Establishment card, PO Box and other additionally required documents need to be applied.
Step 7: Open bank account
Step 8: Additional permits and approvals to be obtained(if applicable)
Step 9: Get company registration documents and business license
For hassle-free company setup in the UAE free zone, established business consultants like A&A Associate can be a real lifesaver. Call us now to start your dream business.
List of UAE Free Zones
Around 40+ free zones are located throughout the UAE that has drawn foreign direct investment in the form of 200,000 firms that contribute to GDP growth. Below mentioned are some of the popular ones from the seven emirates.
1. Dubai Free Zone
Meydan Free Zone, Jebel Ali Free Zone (JAFZA), Dubai Airport Free Zone (DAFZA), Dubai International Financial Centre (DIFC), )Dubai World Trade Center (DWTC), Dubai Media City (DMC), Dubai Silicon Oasis (DSO), Dubai Internet City (DIC) and Dubai Multi Commodities Centre(DMCC) are some of the famous free zones among a long list of Dubai Free Zones.
2. Abu Dhabi
Abu Dhabi Airport Free Zone (ADAFZ), Abu Dhabi Global Markets (ADGM), Khalifa Industrial Zone Abu Dhabi (KIZAD), Khalifa Port and Industrial Zone (KPIZ), Industrial City of Abu Dhabi, Masdar City Free Zone, and Higher Corporation for Specialized Economic Zones (ZonesCorp) are some of the famous free zones in Abu Dhabi.
3. Sharjah
Sharjah Media City(Shams) Free Zone, Sharjah Airport International Free (SAIF) Zone, Sharjah Publishing City(SPC) Free Zone, and Sharjah Research Technology and Innovation Park (SRTIP) are some of the famous free zones in Sharjah.
4. Ajman
Ajman Free Zone has one of the least expensive free zone business setup costs.
5. Fujairah
International Free Zone Authority (IFZA) and Fujairah Free zone are located in Fujairah.
6. Ras Al Khaimah
Ras Al Khaimah Investment Authority (RAKIA), Ras Al Khaimah Economic Zone (RAKEZ), Ras Al Khaimah Media Free Zone, and RAK Maritime City are some of the free zones in RAK.
7. Umm Al Quwain
Umm Al Quwain Free Trade Zone (UAQFTZ) is the sole free zone in UAQ.
Starting your business venture in UAE is highly profitable if you partner with the right business consultants who can make the process of setting up your business, a hassle-free experience. For any queries regarding Free Zone Visas and UAE free zone company formation, you can get in touch with the experts at the awarding-winning business consultant, A&A Associate LLC in Dubai.
