Get Free Advice
Phone Number
+971 50 656 5829
Email Address
Zionuae999@gmail.com
Office Location
18 Melton, Lucas City 1200
Freezone Company Setup in Dubai, UAE
A free zone is a special area within the UAE where businesses benefit from unique regulations and tax advantages designed to attract foreign investment and support economic growth. These zones offer strategic locations near key ports and airports, along with excellent infrastructure and business-friendly services. Setting up a company in a UAE free zone comes with major benefits such as 100% foreign ownership, zero corporate and personal taxes, and full repatriation of profits. The registration process is quick and straightforward, with minimal paperwork and fast-track approvals, making it an efficient and cost-effective choice for entrepreneurs and international companies.
What is a Free Zone Company?
Free zones, often called free trade zones, are economic areas where products and services can be exchanged at preferential tax and customs rates. These zones foster economic activity by offering businesses various incentives such as tax exemptions, simplified customs procedures, and modern infrastructure. A common misunderstanding is that free zones and offshore corporations are the same. However, free zone companies are onshore entities that can operate within Dubai if specific requirements are met. In contrast, offshore companies are established to conduct business outside their registration jurisdiction or the location of their principal owner. The UAE boasts around 67 free zones, with new ones added annually. Over 150,000 enterprises are located in these zones, and the number continues to grow. Free zone companies can now also create branch offices on the mainland. To do this, the investor must register the branch with the Department of Economic Development (DED) and the Ministry of Economy under the same commercial name. Unlike the previous norm requiring a local partner, the free zone firm can wholly own the branch business. Click here to learn more about What is Freezone in UAE.Advantages of Freezone Company Setup in Dubai
- Complete Ownership of Business: Allows 100% foreign ownership without the need for a local sponsor, offering more control and flexibility.
- Full Profit Repatriation: Enables businesses to transfer 100% of profits and capital back to their home country without restrictions.
- 9% Corporate Tax: Businesses earning below AED 375,000 are exempt from corporate tax, while those above pay only 9%.
- Simplified Import and Export Processes: Customs duties are waived for goods traded within free zones, streamlining operations.
- Strategic Location: Proximity to ports, airports, and borders reduces costs and enhances logistics efficiency.
- Global Connectivity: Access to major regional and international markets through Dubai’s world-class transport infrastructure.
- Thriving Expat Entrepreneurs: A diverse, global business community supports collaboration and networking.
- Range of Business Activities: Free zones support a variety of sectors including trading, manufacturing, IT, media, healthcare, and consulting.
- Time-saving and Simple Registration Process: Fast-tracked administrative services and easy licensing make company setup hassle-free.
How to Select a Freezone for Your Company Setup?
Choosing the right free zone for your company setup in Dubai is a crucial decision that can significantly impact your business’s success. Start by identifying your business activities’ specific needs and nature, as different free zones cater to various industries such as technology, media, healthcare, or trading. Consider the strategic location of the free zone, ensuring it provides easy access to major seaports, airports, and transportation networks, which is essential for logistics and supply chain efficiency. Evaluate the infrastructure and facilities, such as office spaces, warehouses, and support services, to ensure they align with your operational requirements. Assess the costs involved, including setup fees, annual renewal fees, and other associated expenses, to ensure they fit within your budget. Additionally, consider the free zone’s regulatory environment, the ease of doing business, and any special incentives or benefits they offer, such as tax exemptions or simplified import-export procedures.
Zionuae can help you select the right free zone based on your needs, providing expert guidance and tailored solutions to ensure you make the best decision for your business.
Documents Required for Freezone Company Setup
For Individual Shareholders
- Passport Copy: Provide each shareholder and manager a copy of the passport.
- UAE Entry Stamp / Visa Copy: Include the latest UAE entry stamp, visit visa copy, or residence visa copy along with the Emirates ID for shareholders and managers who are UAE residents.
- Proof of Address: Submit proof of address for each shareholder and manager.
- Passport-Sized Photo: Include a recent passport-sized photograph of each shareholder and manager.
For Corporate Shareholders
- Memorandum of Association (MOA) and Articles of Association (AOA): Provide copies of the company’s MOA and AOA.
- Trade License: Submit a copy of the trade license for the existing company.
- Certificate of Incorporation: Provide the company’s certificate of incorporation.
- Board Resolution: Include a board resolution authorising the establishment of the new company.
Freezone Company Setup Procedure: Easy Steps to Set Up a Company in a Free Zone
-
Determine the Type of Free Zone Entity:
The first step is to decide the legal entity your company will take. In the UAE, a free zone company can be one of the following:
- FZ LLC or FZCO: Can have up to 50 shareholders (individuals, companies, or both).
- FZE: Can have only one shareholder.
- Branch of a Company: An extension of an existing local or foreign company with the same name and activity.
-
Name Your Free Zone Company:
Choosing a compliant name is crucial. It must:
- Match the business activity and legal status
- Include legal suffix (e.g., FZE)
- Not reference religion or public order
- Exclude names of UAE emirates or authorities
- Be unique and respectful
-
Apply for a Trade License:
License types include professional, commercial, industrial, or a combination. Some free zones offer multi-activity or multi-year licenses (e.g., IFZA).
-
Choose an Office Space or Flexi-Desk:
Select the best option based on your needs:
- Flexi-desk (free with license)
- Fixed desk
- Furnished/unfurnished offices
- Shell & core spaces
- Warehouses and storage facilities
-
Register Your Company and Obtain the Trade License:
Submit the required documents, which typically include:
- Application forms
- Passport copies of shareholders and directors
- Proof of address
- Business plan
- Bank reference letter
- Articles of incorporation
Upon approval, the trade license will be issued by the free zone authority.
Open a Bank Account
Set up a corporate bank account under your free zone company’s name. You’ll need the company’s legal documents and the trade license.
Employee Visas and Labor Cards
Apply for employee visas and labour cards through the free zone authority. The process is usually simplified for hiring foreign staff.
Commence Operations
After completing all legal formalities, you can begin operations. Always ensure compliance with free zone regulations to avoid legal issues.
By following these steps, you can efficiently set up your company in a free zone and enjoy the many advantages and strategic opportunities Dubai offers.