Freezone Company Formation in UAE
Why Businesses are choosing UAE for their Free zone Company Formation?
Long Term Value
Stable Economy
Safety & Security
UAE is ranked №1 regionally & №7 globally in terms of long term value creation of their resources among 62 other countries
The UAE has a robust economic outlook moving away from the oil-driven economy by diversifying its income resources via the Vision 2021 strategy set forth by the ruler
The UAE is known to be one of the safest and most secure countries in the world. In an official survey conducted recently, over 96.1 % of citizens said they feel safe and secure in the country
Competitiveness
Government Spending & Support
Ease of Doing Business
UAE’s Competitiveness is ranked №1 worldwide across 23 indicators, including Government Decision and Global Talent
The UAE has injected over 300 Billion AED to encourage economic growth via innovation initiatives. So far, over 100 Initiatives are ongoing, all promoting a versatile digital economy
UAE is ranked 1st in the Arab World and 11th internationally in the “Ease of Doing Business Report” published by World Bank that evaluated 190 countries across several factors
The UAE laws outline the rights of every citizen and promote equality regardless of race, religion, gender, nationality or social position. It also has well-defined laws to protect the interest of business owners and their businesses
Excellent Arbitration System
What is Freezone in UAE?
A freezone entity is an economic area where the trade of goods and services at typically a preferential tax and customs rate is permitted. The idea to launch free zones in the UAE was to attract and increase foreign companies to establish their presence in UAE leveraging on benefits such as 100 % foreign ownership.
Currently, more than 45 free zones are operating in the UAE with Dubai taking the majority. Some for the well-known free zones in UAE are JAFZA , DWC, DMCC, DAFZA, DWTC, Dubai Silicon Oasis Free Zone, KIZAD, Hamriyah Freezone, SAIF, AJMAN Freezone, RAKEZ, Umm Al Quwain Freezone, SHAMS, etc.
Currently, more than 45 free zones are operating in the UAE with Dubai taking the majority. Some for the well-known free zones in UAE are JAFZA , DWC, DMCC, DAFZA, DWTC, Dubai Silicon Oasis Free Zone, KIZAD, Hamriyah Freezone, SAIF, AJMAN Freezone, RAKEZ, Umm Al Quwain Freezone, SHAMS, etc.
Among the numerous advantages of setting up a company in a free zone is that it primarily allows the foreign investor to hold 100 % shares of the company. The free zones offer Trading, Service, Industrial and Branch licenses.
Why Do Entrepreneurs Choose Freezone Company Formation in the UAE?
Some of the significant advantages of a Free zone company in UAE are as follows:
0% Corporate or Income Tax
The process of recruiting staff is relatively more straightforward in freezones
100 % Ownership
A diverse selection of Business Categories
100 % Repatriation of capital and profits
Local Partner or Local Sponsor not required
Minimum paperwork required to incorporate a freezone company
High-quality infrastructure facilities
Wide range of choice for business activities
Competitively priced operational cost
Exemption from custom duties
A wide choice of ready-made Offices and Warehousing facilities for leasing
List of free zones in the UAE Dubai
Jebel Ali Free Zone (JAFZA)
Dubai Multi Commodities Centre (DMCC)
Dubai Airport Free Zone (DAFZA)
Dubai World Trade Centre Free Zone (DWTC)
Dubai Science Park
Dubai Car and Automotive City Free Zone (DUCAMZ)
Dubai Design District
Dubai Gold and Diamond Park
Dubai Healthcare City (DHCC)
Dubai Industrial City (DIC)
Dubai International Academic City
Dubai International Financial Centre (DIFC)
Dubai Internet City (DIC)
Dubai Knowledge Village
Dubai Logistics City
Dubai Media City
Dubai Outsource Zone
Dubai Silicon Oasis
Dubai Studio City
Dubai Techno Park
Dubai Technology and Media Free Zone
International Media Production Zone ( IMPZ)
Dubai Multi Commodities Centre (DMCC)
Dubai Airport Free Zone (DAFZA)
Dubai World Trade Centre Free Zone (DWTC)
Dubai Science Park
Dubai Car and Automotive City Free Zone (DUCAMZ)
Dubai Design District
Dubai Gold and Diamond Park
Dubai Healthcare City (DHCC)
Dubai Industrial City (DIC)
Dubai International Academic City
Dubai International Financial Centre (DIFC)
Dubai Internet City (DIC)
Dubai Knowledge Village
Dubai Logistics City
Dubai Media City
Dubai Outsource Zone
Dubai Silicon Oasis
Dubai Studio City
Dubai Techno Park
Dubai Technology and Media Free Zone
International Media Production Zone ( IMPZ)
Free Zones in Dubai
Free Zones in Abu Dhabi
Abu Dhabi Global Markets (ADGM)
KHALIFA INDUSTRIAL ZONE ABU DHABI (KIZAD)
Twofour54
Masdar City Free Zone
KHALIFA INDUSTRIAL ZONE ABU DHABI (KIZAD)
Twofour54
Masdar City Free Zone
Free Zones in Sharjah
Hamriya Free Zone (HAFZA)
Sharjah Airport International Free Zone
Sharjah Publishing City Free Zone
Sharjah Media City Free Zone (SHAMS)
Sharjah Airport International Free Zone
Sharjah Publishing City Free Zone
Sharjah Media City Free Zone (SHAMS)
Free Zones in Fujairah
Fujairah Free Zone
Fujairah Creative City
International Free Zone Authority (IFZA)
Ras Al Khaimah
Free Zones in Ras Al Khaimah
Ras Al Khaimah Economic Zone (RAKEZ)
RAK Maritime City Free Zone Authority (RMCFZA)
Fujairah Creative City
International Free Zone Authority (IFZA)
Ras Al Khaimah
Free Zones in Ras Al Khaimah
Ras Al Khaimah Economic Zone (RAKEZ)
RAK Maritime City Free Zone Authority (RMCFZA)
Free Zones in Ajman
Ajman Free Zone
Ajman Media City Free Zone
Ajman Media City Free Zone
Free Zones in Umm Al Quwain
Umm Al Quwain Free Trade Zone (UAQFTZ)
Types of Entities for Freezone Company Formation in the UAE
In the UAE, Foreign Investors can choose between incorporating a Freezone Establishment, also known as FZE or a Freezone Company, also known as FZCO, FZC or FZ LLC.
Factors Freezone Establishment (FZE) Freezone Company (FZCO)
Shareholder There is only be one shareholder which can either be an individual or a company A min of 2 a and maximum of 5 Shareholders are required for this type of freezone company formation
Share Capital Depending on the type of activity and free zone this can vary between AED 1000- AED 300,000
Shareholder There is only be one shareholder which can either be an individual or a company A min of 2 a and maximum of 5 Shareholders are required for this type of freezone company formation
Share Capital Depending on the type of activity and free zone this can vary between AED 1000- AED 300,000
What is the main difference between an FZE and FZCO?
A freezone LLC is established by its individual or corporate shareholder or a combination of the two as an independent legal entity with limited liability corporation. It is 100 % owned by the foreign investor, unlike the mainland LLC
FZ LLC vs Mainland LLC in UAE: What is the difference?
Type of Business Licence of Freezone Company Formation in the UAE
The type of trade licence you require for your freezone company in UAE depends on what kind of business are you going to conduct. Below is the kind of licences for freezone company formation in the UAE.
General Trading Licence
Industrial Licence
Service Licence
Freelance Permit
E-commerce Licence
Innovation Licence & Tech Start-Up Licence
National Industry Licence
Dual Licence (Abu Dhabi)
Freelance Permit
The Freelance permit, in essence, is not a trade licence but rather a permit that enables you to offer services and expertise as a sole practitioner. You cannot employ staff. The permit can be considered as legal permission for you to render your services as an independent, individual contractor. The permit holder can also apply for VISA for him once permit is issued .Once his VISA is stamped to th passport ,he can sponsor his family visa.
Innovation Licence & Tech Start-Up Licence
This type of licence is provided only by select freezones and is usually only granted to tech startups with a focus to scale regionally and to Tech start-ups aligned with the UAE National Innovation Priority Sectors. This type of licence is not available for technology service providers.
Dual Licence (Abu Dhabi)
All the free Zone companies in Abu Dhabi can apply for Branch of Free Zone company license from DED Abu Dhabi ,without the requirement of an Emirati National as the LSA(local service agent) and Office space in the Mainland . The free Zone will act as the LSA and the companies office space in the freezone will be the office of the branch.
Freezone Setup Process
How to start your business in a Freezone in UAE
At PELAGONIA, we guide you and hold your hand through each step of your business journey.
Although the process is quite detailed, below is an 8 Step Process highlighting the essential incorporation procedure for your freezone company formation in the UAE with our highly experienced staff.
Although the process is quite detailed, below is an 8 Step Process highlighting the essential incorporation procedure for your freezone company formation in the UAE with our highly experienced staff.
1
step
Determine your type of business activities
2
step
Determine legal form
3
step
Finalization of your tradename
4
step
Submit all required document for approval
5
step
Get notified when licence
is issued and collect documents
is issued and collect documents
6
step
Open your Bank Account.
We can Introduce to Bankers we deal with
We can Introduce to Bankers we deal with
7
step
Get your immigration card if opted in for a visa package
8
step
Get your visa processed if applicable
What are the documents required for a Freezone Company Formation?
List of Document for Freezone Company Formation in UAE:
Passport copy of the Shareholder(s); Director(s); Manager
Address proof for all the above
Professional CV of all the above
Proposed names of the company
Specimen Signature document for the Shareholder/Director
Business Plan (based on activity/Freezone)
What is the price for a freezone company formation in UAE?
The cost will depend on the free zone, a number of visas required, Type of Office selected, and other factors; however, for setting up a company in a free zone the cost can start from AED 9000 onwards in UAE.
