HomeUAE Free Zone Company
The United Arab Emirates is one of the most attractive places to establish and grow an international business. The country has more than 45 free zones to choose from, in which 56% of Fortune 500 companies are registered. And the total number of companies registered in UAE free zones exceeds 200,000.
Open a company in UAE free zones and get access to unique advantages such as 100% foreign ownership, zero corporate tax rate and simplified business requirements. With our law firm, you will receive professional advice on all matters relating to Dubai free zone company formation, guaranteed legal support and assistance with paperwork, as well as optimized tax and corporate structures to suit your business objectives.
What is a Free Zone License in UAE?
The United Arab Emirates has long established itself as one of the most favorable regions for international business. One of the key tools for a successful start in this country are UAE free zones.
UAE free zones is a specially designated territory with a special legal and economic status, which provides benefits and incentives to attract foreign investment.
Let’s consider the main types of UAE free zone establishment licenses:
- Trading License: for companies engaged in trade, import and export;
- Service License: for consulting, IT and other services;
- Industrial License: for manufacturing and industrial enterprises;
- Other specialized licenses: for example, for educational or media projects, depending on the specifics of the free zone company.
Free zone company formation allows entrepreneurs to obtain a number of significant advantages. Firstly, many UAE free zones allow 100% foreign ownership of the company without the need to engage a local partner or sponsor. There is no corporate income tax, VAT (in most cases for transactions within the free zone) and customs duties on imports and exports of goods, and dividend tax may be waived. Many UAE free zones offer a quick registration and licensing process, allowing businesses to start up quickly.
List of Top Freezones in UAE
Each UAE free zone specializes in certain industries, providing businesses with unique conditions and benefits. Let’s consider the most popular free zones for free zone company formation in the UAE:
- Jebel Ali Free Zone (JAFZA)
Location: Emirate of Dubai
Spheres of activity: logistics, trade, production, distribution.
One of the oldest and largest free zones in the UAE with developed infrastructure and direct access to the port of Jebel Ali. High reputation and a wide range of warehousing facilities. Optimal for companies focused on import-export operations and cross-border logistics. - Dubai Multi Commodities Center (DMCC)
Location: Dubai
Business areas: commodities trading (gold, diamonds, coffee, etc.), financial services, consulting.
Regularly recognized as one of the best free zones in the world for trading commodities and raw materials. Supports startups and international companies related to trade and financial transactions. Offers a developed business ecosystem and modern business infrastructure. - Dubai International Financial Center (DIFC)
Location: Dubai
Areas of activity: banking, insurance, investment, asset management
It is a world-class financial hub, regulated by its own independent legislation based on international standards. Attracts leading banks and insurance companies from around the world. Suitable for large financial organizations and professional service companies. - Dubai Silicon Oasis (DSO)
Location: Dubai
Business areas: IT and high technology, research and development (R&D).
Combines business incubators, R&D centers and universities, making it ideal for innovative projects and startups. Provides flexible office solutions and advanced technology infrastructure. Emphasizes the attraction of IT companies and technological developments. - Sharjah Airport International Free Zone (SAIF Zone)
Location: Sharjah Emirate
Areas of activity: manufacturing, logistics, trade, services
Close proximity to Sharjah International Airport and major ports, convenient transportation network. Ideal for businesses that require fast deliveries and regular transportation. Competitive rental rates and ample warehousing opportunities. - Ras Al Khaimah Economic Zone (RAKEZ)
Location: Emirate of Ras Al Khaimah
Areas of activity: a wide range of industries from light industry to services and commerce
Offers economically favorable conditions, low operating costs and easy registration. Combines several industrial zones, providing space for expansion of production. Popular with SMEs due to affordable rates and flexible requirements. - Ajman Free Zone
Location: Ajman Emirate
Areas of activity: trade, services, industrial production
Attractive for start-ups and companies with limited budgets, offering low registration and rental costs. Conveniently located near the seaport providing access to international markets. Variety of service packages for companies of different sizes. - Fujairah Free Zone (FFZ)
Location: Fujairah Emirate
Areas of activity: trade, logistics, manufacturing
The only emirate with access to the Gulf of Oman, which provides direct access to shipping routes. Developed infrastructure for warehousing and cargo handling. Excellent solution for companies that are focused on the markets of Asia and Africa.
Free Zone Company Formation Requirements
Free zone company formation requirements
Free zone company formation is an effective way to enter international markets using tax and administrative benefits. However, before starting business setup in dubai free zone, it is necessary to understand the basic requirements for foreign entrepreneurs.
Opening a company in the UAE Free Zone is an effective way to enter international markets and take advantage of tax and administrative benefits. However, before proceeding with registration, it is important to understand the basic requirements for foreign entrepreneurs. Below we look at the minimum conditions, required documents and key steps when setting up a business in one of the UAE’s free zones.
Each free zone offers different types of licenses based on the scope of the company’s business. The choice of license determines the subsequent requirements for documents, office location and business conditions.
In most UAE free zones the authorized capital is either not required at all or has minimal values, which may vary depending on the chosen zone and the specifics of the activity. For some types of licenses.
UAE free zones usually require a company to have a registered office or registered address in their territory. Formats may vary:
- Flexi-desk or virtual office: an option for startups and companies that do not need a permanent physical presence;
- Office space: individual offices or spacious office blocks with the possibility of organizing workspace for staff;
- Warehouse and production facilities: for companies engaged in logistics, production and storage of goods.
The choice of premises affects the cost of rent and licensing conditions.
Most UAE free zones allow 100% foreign ownership of the company without the involvement of a local sponsor. When registering it is necessary to specify: the full names of all founders (shareholders), the name and position of the director, as well as to establish the proportions of ownership shares and determine the management structure of the company.
Although the set of documents may vary depending on the specific free zone, the following are usually required:
- A copy of the passports of the founders and director (notarized in some cases);
- A color document photo of each founder/director;
- Proof of residence address (utility bill or bank statement);
- Business plan (in certain zones and for certain types of activities, a detailed project description, financial projections, etc. may be required);
- Constituent documents (if it is planned to transfer an existing structure to a free zone).
It is important to check whether legalization of documents and translation into Arabic or English is required.
The time frame for licensing varies depending on the selected free zone, completeness of the documents submitted or individual peculiarities of the project (availability of specific permits and approvals).
In addition to the main fee for registration and license, there may be additional costs: office or warehouse rent, resident visa (Investors / Partners / Employment Visa) for founders and employees, medical insurance, legalization and translation fees.
Types of Freezone Companies
When Free zone company formation, it is important to understand what legal forms are available:
- Free Zone Establishment (FZE)
Established by a single shareholder (individual or legal entity). 100% foreign ownership with no local partner required. Has the status of a separate legal entity, which ensures limited liability of the founder. Ideal if you are a sole proprietor or sole proprietor of a business. - Free Zone Company (FZCO, FZC or FZ-LLC).
Established by two or more shareholders (individuals or legal entities). Also assumes 100% foreign ownership and limited liability. Requirements for minimum authorized capital and other conditions may vary slightly depending on the specific free zone. Optimal option for expanding joint activities and attracting partners/investors. - Branch (Branch of a foreign or local company)
Not a separate legal entity, acts as a subdivision of the parent company. Uses the same license as the parent company, but requires a separate permit in the free zone. Allows to operate under the name and brand of the parent company, simplifies interaction with the foreign office - Offshore Company
Although offshore companies in the UAE are most often associated with individual jurisdictions (e.g. RAK International Corporate Center), some free zones also provide an opportunity to register offshore structures. Cannot conduct business directly within the UAE, as it is created for international operations. Possesses a number of tax and administrative advantages, such as the absence of corporate tax and mandatory financial reporting in some jurisdictions. - Freelancer License
In some UAE free zones you can obtain a Freelancer License, which allows one person to conduct professional activities – consulting services, design, marketing, etc. Allows you to officially work as an individual entrepreneur without creating a full-fledged company. It is suitable for specialists in creative, consulting, educational and technological spheres.
How We Can Help You?
Business setup in dubai free zone is a great way to gain a foothold in the international market, as well as to take advantage of a wide range of benefits and opportunities. However, in order to maximize the benefits and avoid common mistakes regarding free zone companies, it is important to know the nuances of local legislation. Our law firm is ready to provide a full range of services so that you can focus on the development of your business.
We study the specifics of your business, budget, license requirements and other important factors. Taking into account your priorities, we suggest several free zones that are most suitable in terms of profile specialization, cost and benefits. We advise you on the next steps, potential risks and prospects for entering new markets.
Our experts will help you gather all the necessary documents for business setup in dubai free zone taking into account the requirements of a particular zone. We provide notarization and translation of documents into English or Arabic. We check all materials for compliance with AML and KYC requirements to avoid delays or rejections.
We guarantee comprehensive support of registration and obtaining a license. Our lawyers submit all registration forms to the Free Zone Authority on your behalf. We negotiate with representatives of the Free Zone Authority, provide additional information in a timely manner and monitor the progress of the application. We organize the issuance of registration certificate, license and other official papers.
We help to issue resident visas for founders, directors and employees, if it is stipulated in the Free Zone package. We provide assistance with annual license renewal, insurance, renewal of incorporation documents and other operational issues.
How to select a Free Zone for your Business License?
Choosing the best UAE free zones is not easy, as each zone has its own features, fees and requirements.
Some free zones are focused on specific industries, so focus on the specialization of your free zone company when choosing one. Find out what specific types of licenses are issued by the selected zone to be sure that your project fits its profile.
If frequent interaction with ports or airports is planned, pay attention to the proximity of the free zone to logistics hubs. Consider how convenient it is to get to major urban areas to facilitate interaction with partners and employees.
All UAE free zones have their own rates for obtaining a license, executing incorporation documents and other registration services. Check what is included in the package: office rent, quota for work visas, etc. The license and office rent must be renewed once a year. Calculate in advance how much you can expect to pay to maintain your company’s status in the long term.
If you plan to increase production or add new services later, choose a vacant area where there are suitable sites for expansion. Pay attention to the zone administration’s loyalty to startups and innovative projects: somewhere there are incubators and grant programs.
Contact our specialists. Our company offers comprehensive support: from analyzing your business model and selecting a free zone to drawing up all the documents and opening a bank account
Free Zones & Tax Benefits
In most UAE free zones, there is no corporate income tax or it is reduced to zero for a certain period. If a number of conditions are met, a company can retain the “tax-free” status. This helps to significantly optimize costs and invest additional capital in business development.
One of the most important advantages of free zones is that there is no requirement for a local partner or sponsor. This means that foreign founders can own the company 100%. As a result, the entrepreneur gets full control over management decisions and profits.
Importation of goods into the free zone is often duty free, and when re-exported outside the UAE they are either minimal or nonexistent. Many UAE free zones are located near ports and airports, which speeds up logistics and minimizes bureaucratic barriers.
Most UAE free zones allow the free transfer of earned profits, dividends and invested capital abroad. The absence of currency controls ensures flexibility in financial transactions and increases the country’s investment attractiveness.
There is no personal income tax in the UAE. This means that owners and employees of free zone companies do not pay income tax on their salaries and dividends.
Contact Us For Legal Advice Today
Our team consists of qualified lawyers with years of experience in corporate law and tax planning. We know all the intricacies and regulations of UAE free zones, which ensures prompt and quality processing.
We offer a full range of services: from preliminary analysis of your business and selection of the most favorable free zone to full support of the registration process and post-registration service. You will not have to contact different specialists and waste time on coordination.
Contact us now for an initial consultation on free zone company formation. We will tell you about the current opportunities, the best options for registration and advise you on how to effectively utilize the benefits and advantages of this dynamic region.
