Freezone Company
What is a Free Zone Company?
A free zone company can be an LLC which is allowed only in a special jurisdiction under a particular Emirate. Companies registered in free zones are considered offshore companies. They are exempt from dealing with customs authorities and the Ministry of Economy. They only have to deal with the authorities responsible for a specific free zone. A foreign investor can also have 100% ownership in companies here. A free zone company can operate only within the free zone and not in the mainland.
Benefits of Free zone Company Setup in Dubai
Eligibility for the Green Visa depends on the applicant’s category, with specific financial or professional criteria for each.
Free zone business setup allows 100 percent ownership in a company. There is no mandatory requirement for a local sponsor or service agent.
Waiver of Corporate taxes.
Exemptions of personal tax, export, and import tax
Long term lease options up to 25 years available to investors at attractive terms.
Easy and faster recruitment process of workforce.Faster registration and commencement of business in the Free zone compared to other areas.
Easy access to housing, immigration, labour, and legal services.
One hundred percent free repatriation of funds.
There’s differences between the UAE Free Trade Zones also known as the FTZ and the UAE mainland in terms of location, restrictions, bureaucratics, pre-requisis and taxes.
For foreigners, starting a business in a free trade zone is very attractive because of all the benefits and advantages. The complexity is which area in the free zone is the best for your business?
Currently there are over 45 different zones where you can launch your business in the UAE free zone. With First Gate Business Service, you don’t need to worry about making the wrong choice. We recommend the right zone, depending on your requirements and business conditions. We also take into consideration other factors that we share with you upon consultation. First Gate Business Service offers the best PRO Service to successfully launch your business.
Authorities regulating free zone activities
Abu Dhabi
Abu Dhabi Media Free Zone (Media Zone Authority)
Masdar City
Khalifa Industrial Zone Abu Dhabi (KIZAD)
Abu Dhabi Global Market (ADGM)
Dubai
Dubai CommerCity (DCC) free zone
The following free zones work under Dubai Development Authority
Dubai Internet City
Dubai Media City
Dubai Production City
Dubai Studio City
Dubai Outsource City
Dubai Knowledge Park
Dubai International Academic City
Dubai Science Park
Dubai Design District
Under Dubai Multi Commodities Centre Authority
Dubai Multi Commodities Centre (DMCC)
Jumeirah Lakes Towers (it is now part of DMCC)
Others
Jebel Ali Free Zone (Jebel Ali Free Zone Authority)
Dubai Airport Free Zone (Dubai Airport Free Zone Authority)
Dubai Silicon Oasis - (Dubai Silicon Oasis Authority)
Dubai HealthCare City - (Dubai Healthcare City Authority)
International Humanitarian City
Dubai Maritime City - (Dubai Maritime City Authority)
Gold and Diamond Park
Dubai South
Dubai International Financial Centre
Meydan
National Industries Park
Sharjah
Sharjah Airport International Free Zone (Sharjah Airport International Free Zone Authority)
Hamriyah Free Zone (Hamriyah Free Zone Authority)
Sharjah Media City – Shams (Free Zone)
Ras Al Khaimah
Ras Al Khaimah Economic Zone (RAKEZ)
RAK Digital Assets Oasis
Ajman
Ajman Free Zone (Ajman Free Zone Authority)
Ajman Media Free Zone (announced)
Umm Al Quwain
Umm Al Quwain Free Trade Zone (Umm Al Quwain Free Trade Zone Authority)
Fujairah
Fujairah Free Zone Authority
International Free Zone Authority (IFZA)
Creative City
Special cases
Apart from the respective free zone authorities, certain industries/sectors of businesses are additionally governed by other government entities. Some of them are mentioned below.
Media
The following entities govern media organisations in the UAE:
Sharjah Media Council
Fujairah Culture and Media Authority
Food and beverage
The following entities govern food and beverage businesses in the UAE:
Abu Dhabi Agriculture and Food Safety Authority
Dubai Municipality
Sharjah Municipality
Ras Al Khaimah Municipality
Ajman Municipality and Planning Department
Umm Al Quwain Municipality
Fujairah Municipality
What are the advantages of starting your business in UAE’s freezone?
You will get a residence visa
100 % repatriation of capital
100 % ownership of the company
100 % repatriation of profits
No trade barriers
Reduced policies in terms of import/ Export
No trade quotas
Simple Import, Export Policies
Less restrictions
You can hire expatriates
No income taxes
How to go ahead and set up a Free Zone Company?
To set up a business in a free zone an investor is required to do the following:
Choose a name for the business
Apply for a Business License
Select an office space
Get pre-approvals, register the company and get a business license
Apply for Visa Service: You will need to apply for a residence visa
Open a bank account
The steps to register a business in a UAE Free Zone
The first important step is getting the business license as everyone is required to have it. This business license is also called a trade license. It is usually valid for one year and it must be renewed on a yearly basis.
- CHOOSE YOUR LICENSE : Every business activity falls under a specific license type that you need to respect. The rules of these business activities and licenses change a bit from a free zone to another but the concept remains the same. The main concept is that a commercial activity can’t at any cost be registered and mixed with service activities under one license. So you either apply for a Trading/Commercial License or a Service License.
- CHOOSE YOUR FREE ZONE : As we mentioned, there’s more than 45 zones you can choose from. We as business consultants will give you recommendations on the best choice for your business type.
- CHOOSE YOUR CORPORATE STRUCTURE:
A corporate structure can mean of the following:
Company with individual shareholder(s)
Company with corporate shareholder(s)
Company with a mix of individual and corporate shareholders
Branch of a a Foreign Company - SELECT YOUR TRADE NAME : A trade name is the future name of your company. You are required to give three trade name proposals with the order of preference. Each of these names must respect certain rules and guidelines that are appropriate to the rules set by the UAE government.
- PREPARE YOUR DOCUMENTS : The standard list includes:
Valid visa,
Valid passport,
NOC (if you’re a UAE resident),
Proof of residency,
CV. - APPLY FOR INITIAL APPROVAL : The next step is now to apply for an Initial approval. This approval usually covers the trade name and your corporate company structure.
- FIND YOUR PHYSICAL BUSINESS LOCATION : Now that you have decided on what zone you want and started with the initiation project you need to find a physical location. Here is where you need to sign a tenancy contract and get the ejari certificate.
- COLLECT YOUR BUSINESS LICENSE