UAE Free ZONE

Key Considerations For Establishing a Free Zone Company In The UAE

Keep these important points in mind when setting up a Free Zone Company in the UAE:
No Physical Presence Required: In some free zones, physical presence during company formation is not obligatory; it is only necessary during the visa processing stage.

• Limited Interaction with Government Agencies: Free zone companies may need to have direct dealings with Government agencies.
• VAT Exemption: Businesses operating outside the UAE are exempt from Value Added Tax.
• Corporate Tax Exemption: Free zone companies have to file tax even if they are below the threshold.
• Diverse Business Options: Free zone companies have the flexibility to engage in B2B activities anywhere in the UAE and B2C operations within the free zone and internationally.

Entity Options for Free Zone Company Formation in the UAE

Setting up a business in the UAE’s free zones is a simple and uncomplicated process, thanks to the government’s efforts to attract foreign investors with minimal capital requirements. When establishing a company in the UAE free trade zones, entrepreneurs can choose from three primary entity types:

• Branch of a foreign or local company
• Free Zone Establishment (FZE) with a single shareholder
• Free Zone Company (FZC) with 2 to 5 shareholders

Variety Of Business Licenses Offered In The UAE Free Zones

A variety of business licenses are available in the UAE free zones for individuals to consider obtaining for their specific business activities.

• General Trading License

Investors can apply for a General Trading License which permits them to trade various products.

• Trading/Commercial License

A Trading/Commercial License gives a time-limited authorization to engage in industrial, commercial, or consulting activities.

• Industrial License

The Industrial License allows for the importation of raw materials, manufacturing of goods, and exportation of finished products internationally.

• Service License

A Service License enables the operation of law, accounting, and business consultancy firms.

• Manufacturing License

An applicant can acquire a Manufacturing License to establish and operate manufacturing facilities for goods production.

Steps To Set Up A Business In The UAE Free Zones

1. Select the type of legal entity you wish to establish in the free zone, taking into account the specific capital requirements for that zone.
2. Choose a unique and allowable trade name for your company, ensuring that it has not been previously registered.
3. Submit the necessary documents and apply for the relevant business license based on your company’s primary activity.
4. Identify suitable office space, whether through purchase or lease, depending on your business’s requirements.
5. Obtain initial approval, business approvals, and register your company on the free zone authority’s portal.
6. Upon completion of the process, you will receive your business license, allowing you to commence operations within 2-4 weeks.

Required Documents For Setting Up A Business In The UAE

General Documents: 

• Passport copies of the partners and business managers
• Passport size photograph
• Trade names
• Documents for Branch of Companies: 
• Attested copy of the registration certificate, incorporation certificate, and the Memorandum and Articles of Association (MAA)
• Original Board Resolution that guarantees the financial commitment of the branch
• passport copy of the shareholder
• Passport size photograph