UAE is a major business hub attracting investors from all over the world! The UAE has around 40 free zones, with more under construction. Starting a business in a free zone enhance the formation of companies with spacious work space and world-class amenities. The free zones are designed under commercial categories and only offer license to companies under the specific category. UAE Free Zone Formation allows entity to be free from foreign ownership restrictions. Free zone authority issue operating licenses and focus on regulating the activities of companies within the free zone. The entrepreneurs can choose the free zone entities and register in accordance with the legal requirements in UAE.
Free Zone entity in the UAE
Before initiating your venture, select the appropriate type of corporate entities that suits your business activity. There are three main types of free zone entities in UAE including
Free zone establishment or FZE
Free zone establishment have a single shareholder among the UAE free zone companies. The rules and regulations are equivalent to its MoA or Articles of Association. The FZE entity should have at least two directors and a secretary. Individual can jointly manage the offices of director and secretary. It’s similar to the Free zone Company with a single shareholder. International Business Company – it’s a company for operating business outside UAE. The offshore company has some benefits like,
Some of the documents required for starting a business in a free zone,
Free zone Company
Free Zone Company usually operates within the free zone boundaries. The company has two or more shareholders and popularly known as limited liability entity. Free zone companies, Dubai or UAE should submit their audited financial statements to the UAE free zone authority. They should submit the documents every three months from the end of the fiscal year. The entity should have at least two directors and a secretary. The offices of director and secretary can be jointly held by an individual person. Some of the features of Free Zone Company include,
Documents required for starting a business in a free zone,
Branch office in a UAE free zone, is a dedicated outlet of a company. It doesn’t constitute as a separate legal entity. Branch office serves as a means to expand their business across different countries. Establish your company presence in new regions and enhance prospects of sales or revenue. UAE free zone formation branch office is incorporated with the help of Local service agent through the ministry of commerce and economics.