What is a Free Zone Company in UAE?
A company which has a legal entity established
in any of the free trade zone of UAE. The most common structure for a company
used in Free Trade Zone is the Free Zone Establishment. There is only one
shareholder in a FZE company. Whereas, if there are more than one shareholder
then the company will be registered as a Free Zone Company.
Provinces of UAE
In UAE there are 7 provinces which consists of
various free zone areas for incorporation of a company.
- Dubai
- Abu Dhabi
- Ras Al Khaimah
- Ajman
- Fujairah
- Sharjah
- Umm-Al-Quwain
The cost range
for incorporating a company in any of the free zone areas of the provinces
goes from 5000 AED to 25000 AED. |
Free Zones & Tax Benefits
There are various benefits in terms of
business if a company is registered as a Free Zone Company. Free zone companies
are onshore companies that fulfil the criteria to trade across the world and
also within the country.
Free Trade Zones in UAE are considered to be
advantageous for foreign investors in terms of tax savings. Free Zones in UAE
offer different licenses for company formation to the investors based on their
business activity.
Benefits of Free Zones Areas in UAE
- There is a 100% foreign ownership of business
- The corporate tax is 0%
- No import or export tax
- Strategic location
- Connectivity with the world
- There are no currency restrictions
Procedure for Setting up a Company in Free
Zone Areas
Legal Structure
The owner shall decide the category of the
company like limited liability company, subsidiary, sole proprietorship, or any
other. This could also depend on factors whether
Trade Name
Once the structure of the company is finalized
a different and appropriate trade name for your company that has compliance
with major regulations made by the authority.
Apply for License
After you get the trademark done for your
company name, apply for the business license to the relevant authority of free
zone area. When you have obtained the business license it will clear out the
activities for your company to get engaged in and are important for conducting
the business.
Selection of Office Space
When you acquired the business license for
your company, depending upon the regulations mentioned for particular free zone
areas you need to select an office space within the jurisdiction of free zone
area.
Obtaining the Pre-Approvals from Authority
When all the steps are done and finalized you
need to obtain pre-approvals from the free zone authority. The process can
involve submission of necessary documents, details of the
director/shareholders, etc.
