Company Formation in the Free Zone of the United Arab Emirates
What are Free Zones?
Free zones, commonly referred to as free trade zones, are specific geographic regions within each emirate. More than 40 specialized free zones facilitate company formation in free zones, offering investors in the United Arab Emirates the opportunity for full foreign ownership. The UAE’s free zones stand out due to their highly efficient infrastructure and distinctive business incentives.
The establishment of companies in free zones is becoming a trend for SMEs due to its numerous advantages. Since no taxes or duties are levied in certain free zone jurisdictions, this encourages business activities, particularly the import and export of goods. For example, a company can have its products manufactured in a foreign country, import them tax-free into a free zone, and then re-export them tax-free to another destination.
Company formation in free zones helps connect the region to the global economy by manufacturing goods for export, facilitating currency exchange, and providing opportunities for companies outside the free zone area to engage in business with international firms.
When forming a company in a free zone, it is important to be aware of the specific rules and regulations of that free zone to determine if it aligns with your business activities and establishment objectives.
What are the benefits of establishing a company in the UAE Free Zone?
100% customs duty exemption
100% foreign ownership
100% repatriation of profits and capital
Easy and fast business setup procedures
Easy access to global markets
Easy access to regional markets
Independent laws and regulations
What types of licenses are available in free zones (based on the nature of the business)?
Commercial/Trade
Consulting/Services
E-commerce
Educational
Freelancers
Industrial
Innovation
Manufacturing
Media
Warehousing
Others
What are the legal forms of company formation in a Free Zone?
1.
Free Zone Limited Liability Company (FZ LLC) A limited liability company established in a free zone.
2.
Free Zone Company (FZ Co.) - Requires two or more shareholders.
3.
Estabelecimento de Free Zone (FZE) – Can be formed by an individual shareholder or a corporate shareholder.
What are the steps to obtain a Free Zone license?
As long as the required documents are complete and in order, obtaining a free zone license is simple and quick.
Here are the steps to obtain a free zone license:
Identify the nature of your business activity.
Identify the legal structure of your business
Register the trade name
Choose a commercial space in the free zone (virtual offices are allowed for certain types of activities)
License issuance
Free Zone Licensing Authorities for each emirate
Dubai Development Authority:
- Dubai Internet City
- Dubai Production City
- Dubai Studio city
- Dubai Outsource City
- Dubai Science Park
- Dubai Design District
- Dubai wholesale city
- Dubai Knowledge Park
- Dubai Media City
- Dubai International Academic city
- Dubai International Financial Centre Authority
- Dubai Silicon Oasis Authority
- Dubai Maritime City Authority
- Department of Planning & Developing- Trakhees
- Dubai Healthcare City Authority
- Dubai Multi Commodities Centre Authority
- Meydan
- International City for Humanitarian Services Authority
- Dubai South
- Dubai World Trade Center Authority
- Dubai Airport Free Zone Authority
Dubai Airport Free Zone Authority:
- Commerce City
Jebel Ali Free Zone Authority:
- Jebel Ali Free Zone
- Dubai Textile City Dubai Auto Zone
- Dubai Industrial Park
- Dubai Gold and Diamond Park
Abu Dhabi Free Zone Licensing Authority:
- Masdar
- Media Zone Authority – TOWFOUR54
- Abu Dhabi Airports Free Zone
- KIZAD
- Abu Dhabi Global Market
Sharjah Free Zone Licensing Authority:
- Sharjah International Airport Free Zone
- Hamriyah Free Zone Authority
- Sharjah Publishing City
- Sharjah Research Technology & Innovation Park
- Sharjah Media City – Shams
Ajman Free Zone Licensing Authority
- Ajman Media City
- Ajman Free Zone
Ras Al Khaimah Free Zone Licensing Authority
- RAKEZ
- Ras AlKhaimah Maritime
Umm ALQuwain Free Zone Licensing Authority
- Umm AlQuwain Free Trade Zone
Fujairah Free Trade Zone
- Fujairah Free Zone
- Fujairah Creative City
