Free Zone Company Formation
In the UAE, there are approximately more than 40 free zones in use, with more under construction. Each Free Zone is organized into one or more commercial categories, and only those businesses are eligible for licenses.
One of the most appealing aspects of establishing a business in one of the UAE's Free Zones is that there are no limitations on foreign ownership, and businesses are governed by an independent Free Zone Authority (FZA), which is in charge of authorizing business licenses and governing the operations of companies within the Free Zone.
The UAE has evolved into a global business hub that is suitable for establishing a company or a representative office. With over 40 different "Free Trade Zones" in the UAE, determining the best Free Zone to conduct business in the region can be a difficult task.
In addition to enabling shareholders, directors, and employees to obtain residency visas in the UAE, the benefits of a Free Zone includes 100% foreign ownership, 100% refurbishment of capital and profits, full corporate and personal tax exemption, absence of currency restrictions, a wide variety of licensable activities, abundant and inexpensive energy, modern and efficient communications, logistic efficiencies due to business cluster effect, service desks and offices for SMEs and startups, excellent support services.
The list of free zones established across the UAE are:
1.DUBAI FREE ZONES:
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Jebel Ali Free Zone (JAFZA)
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Dubai Airport Free Zone(DAFZA)
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Dubai International Financial Centre (DIFC)
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Dubai Healthcare City (DHCC)
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Dubai World Trade Centre(DWTC)
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Dubai south free zone
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Dubai knowledge village
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Dubai logistics city
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Dubai media city(DMC)
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Dubai Silicon Oasis (DSO)
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Dubai Academic City
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Dubai Biotechnology & Research Park (DuBiotech)
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Dubai Car and Automotive City Free Zone (DUCAMZ)
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Dubai Design District
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Dubai Gold and Diamond Park
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Dubai Industrial City
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Dubai International Academic City
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Dubai Internet City (DIC)
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Dubai Multi Commodities Centre or Jumeirah Lakes Towers Free Zone
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Dubai Outsource Zone
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Dubai Studio City
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Dubai Techno Park
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Dubai Technology and Media Free Zone
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International Media Production Zone
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Economic Zones World
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Dubai Flower Centre
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Meydan Free Zone
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International Humanitarian Day
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International Free Zone Authority (IFZA)
2. ABU DHABI:
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Abu Dhabi Airport Free Zone (ADAFZ)
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Abu Dhabi Global Markets (ADGM)
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Khalifa Industrial Zone Abu Dhabi (KIZAD)
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Twofour54
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Abu Dhabi Ports Company (ADPC) – Khalifa Port and Industrial Zone (KPIZ)
3. SHARJAH:
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Hamriyah Free Zone
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Sharjah Airport International Free (SAIF) Zone
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The U.S.A. Regional Trade Center (USARTC) Free Zone
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Sharjah Publishing City Free Zone
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Sharjah Media City Free Zone
4. AJMAN:
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Ajman Free Zone
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Ajman Media City
5. FUJAIRAH:
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Fujairah Free zone
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Creative City
6. RAS AL KHAIMAH
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Ras Al Khaimah Economic Zone (RAKEZ)
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RAK Maritime City
7. UMM AL QUWAIN
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Umm Al Quwain Free Trade Zone (UAQFTZ)
TYPES OF ENTITIES ALLOWED TO SET UP IN THE UAE FREE ZONE
The business set up in the UAE is easy as the Emirates Government has eased the process of business formation in the UAE to draw maximum foreign investors with minimum capital investment.
Mainly 3 types of entities can be set up in the UAE free zone:
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Branch of a foreign or local company
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Free zone establishment with a single shareholder
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Free zone company with 2 to 5 shareholders
TYPES OF LICENSES AVAILABLE IN THE UAE FREE ZONES
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General trading license
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Trading/commercial license
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Service license
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Industrial license
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Warehousing license
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Manufacturing license
HOW TO SET UP BUSINESS IN UAE FREE ZONES
Free Zones in the UAE are independent of the UAE's jurisdiction and are governed by rules and regulations established by the relevant free zone authorities. These free zones have a liberal working climate and simple company formation procedures, making them an excellent business opportunity for investors from all over the world.
PROCEDURE
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Type of legal entity: Select what kind of industry you want to start in one of the free zones. The minimum capital requirement for such an organization varies depending on which free zone you choose to form a company in; for example, for the media-related activity, you can select a media-related free zone.
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Choose a Trade Name: Choose a trading name for your company after agreeing on the form of a legal corporation. It's essential to double-check the approved trade names with the relevant free zone authority, as well as whether the desired name has already been registered.
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Apply for a business license: You must apply for a business license after selecting a trading name and registering it with the free zone authority's portal. The following is a list of the various business licenses granted by the free zone authorities. The form of business license you need is determined by your company's primary operation. When applying for a license, you must request supporting documentation.
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Choose an office space: To assist start-ups, free zone authorities provide a flex-desk office facility. In free zones, you can either purchase or lease office space. The size of your office is determined by the number of employees and the nature of your company.
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Get pre-approval, register your business and get the license: Obtain initial and relevant business licenses from the relevant authorities, then register your business on the portal and obtain your license. This procedure would only take 2-4 weeks to complete. You are now ready to start your business once you have received your license.
DOCUMENTS REQUIRED
GENERAL DOCUMENTS
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Duly filled application license form
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Passport copies of the partners and business managers
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Original bank reference letters and license of the partner’s existing company
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Copy of business plan
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Business card of the contact person
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Notarised and verified Memorandum of Association(MOA) and Articles of Association (AOA)
DOCUMENTS FOR CONSULTANCY LICENSE
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A copy of the degree or diploma certificate stating the desired activities, or an experience certificate.
DOCUMENTS FOR INDUSTRIAL LICENSE
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Business feasibility study
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Existing company profile
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Duly filled form for the investor’s project profile
DOCUMENTS FOR BRANCH OF COMPANIES
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Attested copy of the registration certificate, incorporation certificate, and the Memorandum and Articles of Association .
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Original Board Resolution that guarantees financial commitment of the branch
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The original power of attorney of a legal representative, and their passport copy
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Last 3 months’ bank statement of the Parent company.
WHY SET UP BUSINESS IN UAE FREE ZONES?
One of the primary reasons why global investors swarm to UAE free zones for investment is that companies registered outside of the UAE free zones cannot be owned solely by a foreign national. Besides that, there are various advantages to launching a company in a free zone. The UAE's free zones are the most coveted areas for establishing a business because of the lucrative incentives and wide range of opportunities available to investors. There are several reasons why one should start a business in the UAE, as listed below.
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A wide range of business licenses: A company in the UAE free zone can engage in a variety of business activities and obtain a variety of licenses. The only industry in which UAE free zone companies are prohibited from operating is insurance.
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Privacy: The identity of a free zone company's owners, directors, and activities are protected by the UAE's highest level of confidentiality, which is consistent with international standards.
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Bank account and Registered office: A free zone company is permitted to have a registered office in the free zone area in which it is licensed. Apart from the UAE, anyone can open a bank account anywhere in the world.
The UAE free zone company setup process takes about a week, and obtaining a UAE residence visa takes about 2 to 3 weeks. Tax exemptions, lower establishment costs, business-friendly government policies, and hassle-free administration are all advantages of forming a free zone company in the UAE. If you're looking for a business partner to help you through the process of forming a company in the UAE and putting your business plans into action, contact Corppluse management consultancy for help and support, we'll be happy to assist!