In the United Arab Emirates (UAE) Free Zones are special economic zones set up with the objective of offering tax-free, and free customs duty benefits to expatriate investors. The Free Zones in the UAE are designed for boosting international business by providing complete ownership to foreign investors. UAE Free Zones in Dubai and the UAE are governed pursuant to a special framework of rules and regulations applicable to the concerned free zone. Free zones in Dubai are managed and operated by free zone authority. These free zones operate outside the federal Law or Laws of the Ministry of Labor.
A free zone company is the most fruitful legal entity that not only offers the benefit of 100% ownership to the investors or entrepreneurs but a host of other exclusive advantages that other legal forms do not have. Normally for company formation in UAE mainland, the expatriates need a local sponsor but through Free zones Company Set in Dubai, UAE the expatriate can set up their business without the local sponsor and he can enjoy 100% repatriation of capital profits. UAE free zone offers 100 % corporate and personal income tax benefit.
Most of the free zones in Dubai, UAE broadly offer trading, service, industrial, national industrial, and branch licenses to investors looking to set up their businesses. In UAE free zones are either attached to a port or industry-specific.
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A Free Zone Company (FZC) is a limited liability entity and can be incorporated by natural persons or legal entities. A new limited liability company with a single shareholder is incorporated as a Free Zone Establishment (FZE); while a multi-shareholder entity is a Free Zone Company (up to 5 shareholders).
Once we decided to incorporate the company in any free zone in UAE, there are certain steps or procedure has to follow. Those steps are mentioned below:
As the initial step to form the company the investor has to decide the legal entity like;
Only a few free zones have the options to form Limited Liability Companies.
The procedure to form a free zone company in the UAE is mentioned below:
Once the client decided about the legal entity of the company which he wants to form, then he has to register the name of the company which is known as trade name registration. The suggested name should be approved by the UAE free zone authority also. While selecting the name, it should not be related to the name of a country or name of religion or name of any GOVT bodies etc. The name should not violate any morals of the public.
Once the UAE free zone authority approved the trade name for the business, then the client can apply for the trade license. The documents required to incorporate the company differ from different free zones. The basic documents required are the passport copy of the shareholder, which should be at least valid for more than six months. Some UAE free zones require detail business plan and external approval which depends upon the business activity.
Once we submit the application, the UAE free zone authority will provide an application form where the shareholders have to sign and submit back. In some UAE free zones we can form the company remotely and in other free zones, the physical presence of the shareholders is required.
The UAE free zone authority will approve the application within 10 days and the concerned authority will issue the business license along with share certificate and memorandum of association.
Once the company is formed the shareholder can apply of the establishment card for the company. Establishment card means the link between immigration department and the company. Once the establishment card is ready, the client can apply for e – channel registration. Only a few UAE free zones require e – channel registration. After completing the registration of e – channel, the shareholder can apply for visa or resident permit for the shareholders or for the staff.
Also, once the shareholder receives the business license, they can open the corporate bank account with any banks in UAE or outside UAE.