complete guide to dubai free zones company foundation

Many businesses all across the globe fear to invest in the UAE as UAE imparts the compulsion of having a partner with 51% shares owned by them. But thanks to the Free Zones which became super popular for the business registration in the UAE and grow the venture. The free zone or the free trade zone is the area with special tax-free status and also entitled to the low trade barriers where the manufacturing of the goods takes place, import/export activities, or reconfigured everything without paying any customs duties.

Generally, the strategic geographical locations like national borders, international airports, and the major seaports are the hub for the Free Trade Zones which also provides you the best trading advantages. The Government of UAE has made multiple free zones in the Emirates specifically for particular business activity and the domains. They offer lucrative offers and appealing deals to all the non-resident corporates like single-window administration, no bureaucratic red tapes, and the 100% ownership here. 

In total there are about 44 free zones spread all over the UAE, attracting FDI (Foreign Direct Investment) where 2,00,000 companies contribute to the GDP Growth. There are a variety of factors that affect the free trade zones like focus, setup costs, the paperwork required, but in all of them, the requirement is the same.

Content Overview:

• Free Zones Company Foundation.

• Benefits of Business Set up in Free Zones in UAE.

• Types of Entities allowed in Free Zones in UAE.

• Types of the License Available in Free Zones in UAE.

• Setting up your business in Free Zones in UAE.

• Process of setting up business in Free Zones in UAE.

• The Documents required in Free Zones in UAE.

What are the Benefits of Setting Up a Business in the Free Zones of the UAE?

• 100% Foreign Ownership.

• 100% Return of the Capital and Profits.

• 100% Exemption from the corporate, personal, income taxes.

• 100% Free Transfer of the funds.

• No Foreign Exchange controls.

• Exemption from all the import and export duties.

• The Low Fright Charges.

• The Abundant and Inexpensive Energy.

• The Inexpensive Workforce and easy recruitment process.

• Efficient communication procedures.

• The single-window administration.

• The Liberal government policies and the legal framework.

• Timely and streamlined immigration process.

• Sponsorship and the Visas for an affordable skilled workforce. 

• Operation Flexibility 24/7.

• The freehold offices are available for the sale or a lease.

• Ready-made offices, factories, and warehouses.

• The Easy start-up and the licensing procedures.

• The Unique Industry Clustering and the infrastructure build according to your business purpose.

• UAE 3 years Resident Visa.

• No restrictions on hiring workers.

What are the Types of Entities which are allowed for Setting Up a Business in the Free Zones of the UAE?

The UAE Free Zone Business setup is super easy and hustles free. Thank the UAE Government which had made the company foundation and formation process very easy, so that foreign investors can take maximum benefit with minimum capital investment. 

• Branch of a Foreign or any Local Company.

• Free Zone Establishment (FZE), with a single stakeholder.

• Free Zone Company (FZC), with 2 to 5 stakeholders.

What are the Types of Licenses Available in the Free Zones of the UAE?

• General Trading License: This allows you to trade in the domain of all kinds of products.

• Trading/Commercial License: This grants you a limited-time of authorization for performing the industrial, commercial, or consulting services.

• Service License: This allows the operation of all the law firms, accounting firms, business firms.

• Industrial License: This allows the import of raw materials, manufacturing goods, and the export of finished products across all the global boundaries.

• Warehousing License: This allows all the investors to avail of the warehousing facilities on lease for the goods distribution, packaging, and storage.

• Manufacturing License: This allows all the applicants to manufacture the goods.

How you can set up your Business in the Free Zones of the UAE?

The companies that are set up in the free business zones of the UAE are not relating to the effect of the commercial company’s law. 

These free zones are outside the control and proper jurisdiction of the UAE government. Their particular rules and regulations are governed by the free zone authorities.

These free zones particularly offer the investors from all across the globe the best opportunity to connect and stay under the liberal work environment. 

What is the process to set up your Business in the Free Zones of the UAE?

• You have to determine the type of the legal entity: 

• First, you need to make sure that which type of entity of your business you need to set up in the free zones of the UAE.

•  Also, it depends upon the particular free zone where you want to set up your company.  

• Then you have to choose your Trade Name:

• After you decide your legal entity then you have to choose the trade name of your company.

• You need to check the respective free zones authorities for the same that provide the particular trade permit names.

• They’ll also inform you about the already registered names.

• Then you have to apply for the Business License:

• After choosing your trade name and then registering the name in the free zone authority’s portal, you got to apply for the business license.

• The type of business license completely depends upon the primary activity of your business.

• Then you need to submit the supporting documents when you’ll apply for the business license.

• You have to choose the space for your office:

• The free zone authorities provide you the flex-desk office services if you are a startup looking for your business setup.

• You have two options, either you can buy the office space or take that on lease in the free zones.

• Those office requirements completely depend upon the total number of the employees and the business activity type.

• Then you have to get the pre-approval, register your business, and then get your license:

• Then you need to get the initial approval for the license and setup from the specific authorities.

• Then you need to register for your business at the portal provided by them.

• Finally, you’ll get your license.

• Within 2-4 weeks the process will get done.

• And then after getting the license, you can start with your business.

What are the documents required to set up your Business in the Free Zones of the UAE?

You have to translate many documents into English Language, then attest them and then finally notarize them by the Gulf Cooperation Council (GCC) or the Arab Embassy.

• The General Documents:

• The Duly filled application license form.

• The Business card of the contacted person.

• A copy of the Business Plan.

• The Notarized and the attested Memorandum of Association (MOA) and the Article of Association (AOA).

• The Passport Copies of the partners and the business managers. 

• The original bank reference letters and the license of the partner’s existing company, if it is applicable.

• Documents for the Consultancy License:

• A copy of the degree or diploma certificate that mentions the desired activities, or the particular experience certificate.

• Documents for the Industrial License:

• The Business feasibility study.

• The existing company profiles.

• The duly filled form for the investor's project profile.

• Documents for the Branch of the Companies:

• The attested copy of the registration certificate, incorporation certificate, the Memorandum, and the Article of Association (MAA).

• The Original Board Resolution guarantees the financial commitment of the company branch.

• The Original Power of Attorney of a legal representative, and also their copy of the passport. 

• The last 3 month’s bank statements of the parent company.