Introduction to Free Zones Trend
There are currently 40 free zones located in UAE, and this number is likely to increase in the next few years. As the UAE is a top international business hub, free zones are very attractive to business peoples and entrepreneurs to invest 100% staunchness.
Full international ownership, complete tax freedom, tax residency certificate, etc makes foreign investors the most favorable location in the Middle East for international operations.
Many entrepreneurs are stepping back from investing in the Middle East due to the compulsion of having a UAE national as a partner with 51% shares owned by them.
Because of this, UAE announced that 100% ownership to foreign investors, and this makes free zones more popular in UAE. Free Zone areas are certain areas within a country where imports, exports, services, goods, and products are exchanged or traded without any strict rules by the government.
The purpose behind planning Free zones Company setup in UAE was that the global business hubs for companies conducting business outside UAE were not licensed to operate within the UAE.
Benefits of free zones
Simple Registration Method
It mostly takes 3 weeks to complete the full registration and a very simple easy process to register in UAE. You need to follow these guidelines after selecting the preferred Freezone
- Select your company name
- Prefer your office room based on your needs
- Open a corporate bank account and put a minimum balance to start a company formation and get a statement from the bank.
- Get a business license from a valid free zone authority.
Zero Tax benefits
Companies situated in the UAE free zones have various tax benefits. Some of them are:
- Companies situated within the UAE benefit from 0% corporate and tax within the UAE. This also gets benefits from the double taxation avoidance agreement.
- One of the lowest value-added tax-free zone in the world
100% Ownership
- In the UAE LLC Company, an investor-only get 51 % share and the left share gets to the nations, while there are no restrictions in Free zones. 100% ownership and share will get to the foreign investor
For investors, Staff members, and family members they will allot 3-year visa
Good transportation and Network availability
24/7 working environment
Single window registration and Good communication procedures
Good infrastructure for the working environment and well-made office, rooms, factories, and warehouses
Free Zones Trend Major free zones in the UAE
- Dubai Airport Freezone
- Dubai World Central
- Dubai Multi Commodities Center
- Dubai Creative Clusters Authority
- HamriyahFreezone
- Sharjah Airports International Free Zone
- Ajman Freezone
- Ajman Media City Freezone
- RAKEZ
- Jebel Ali Free Zone Authority
- Sharjah Media City
- Sharjah Research, Technology & Innovation Park
- Fujairah Free Zone
- International Free Zone Authority, Fujairah(IFZA)
- Abu Dhabi Airport Freezone
Types of Licenses Available in the UAE Free Zones
A business license is very important to start up a company formation service in UAE. The following are the types of license we can see in UAE:
Common Business License
It allows investors to do any type of business
Commercial License
Allows time-limited permission to perform commercial, industrial, or consulting activities
Consulting License
Provides law field, accounting field, and business consultancy field to help
Industrial License
Licenses providing to import raw materials, manufacturing goods, and exporting products, across global boundaries and all other activities related to industrial.
Warehousing License
This license will give you to do warehouse facilities like distribution, packaging, and storage of goods.
Construction License
Permits applicants to do Constructions
Setup a new business in UAE is the perfect choice for international investors who want 100% ownership of their business. Businesspeople can choose from the various Free Zones in Dubai, Sharjah, and other emirates according to their professional elements and funds.
And the cost will differ. It completely depends on the free zones that you are chosen. Choose the right option and explore the UAE!
