Let’s look at why the government created Free Zones in the first place now that we’ve discussed the objective of having them in the economy. The introduction of free zones supported the UAE’s expanded economic growth. They aimed to achieve this by putting in place favorable business structures in each of these specialist sectors. They also offer excellent incentives for international enterprises to set up shop in the UAE. Here are some of the benefits of forming a corporation in Dubai’s free zones.
In the UAE, there are approximately 40 free zones in existence for free Zone Company in Dubai, with more on the way. Each Free Zone is established around one or more commercial categories, and only those businesses are eligible for permits. One of the most appealing aspects of establishing a business in one of the UAE’s Free Zones is that there are no restrictions on foreign ownership, and companies are governed by an independent Free Zone Authority (FZA), which is in charge of issuing operating licenses and regulating the activities of companies within the Free Zone.
A Free Zone Company In Dubai (FZC) is a limited-liability company that can be formed by either legal or natural people. A Free Zone Establishment (FZE) is a new limited liability corporation with a single shareholder, whereas a Free Zone Company is a multi-shareholder entity (up to 5 shareholders). The UAE has evolved into a significant business hub that is excellent for establishing a company or a representative office. With over 40 different “Free Trade Zones” in the UAE, determining the right Free Zone through which to conduct business in the region can be a difficult undertaking.
Advantages of Free zone Company in Dubai:
Setting up a firm in a free zone company in Dubai has several advantages, including 100 percent ownership and full tax exemption, making it a perfect alternative for foreign corporations and business owners looking to use the UAE for regional manufacturing or distribution. These specialized economic zones in Dubai offer 100% ownership and full tax exemption, making them an attractive investment prospect for entrepreneurs.
While free zone companies in Dubai benefit from operating in these locations, company owners must keep in mind that obtaining the proper permits and approvals is required to properly register and maintain a business. Determining the sort of legal entity, choosing a trading name, applying for a business license, renting or buying an office, and obtaining other pre-approvals are all prerequisites for creating a Free zone company in Dubai.
- Free Zone Company in Dubai is special economic zones established in the United Arab Emirates (UAE) to provide tax-free and duty-free benefits to expatriate investors. The UAE Free Zones are designed to stimulate international trade by giving foreign businessmen entire ownership. UAE Freezone Company Formation In Dubai, and the UAE are governed by a unique set of rules and regulations that are specific to the free zone in question. The free zone authority in Dubai manages and operates the free zones. These free zones operate outside of federal law or Ministry of Labor regulations.
- A free zone company in Dubai is the most profitable legal entity because it provides investors and entrepreneurs with not only 100 percent ownership but also a slew of other exclusive benefits that other legal firms lack. Normally, expatriates need a local sponsor to form a company in the UAE mainland, but with a Free Zone Company in Dubai, UAE, an expatriate can form a company without a local sponsor and enjoy 100 percent capital profit repatriation. The UAE free zone provides a tax-free environment for both businesses and individuals.
After incorporation or registration of a Free zone Company in Dubai, a branch of a local/foreign company requires a separate License. Except for the first year of operation, which begins on the day of incorporation, the Financial Year follows the calendar year, i.e. January to December.
- It is permissible to own 100 percent of a foreign corporation.
- Import and export taxes are completely excluded.
- All business taxes are completely waived.
- Capital and profits can be repatriated in their entirety.
- There is no personal income tax and no corporate profit tax.
Starting a Free zone company in Dubai might have a lot of benefits. UAE Free zones is a specialized advice service that provides clear direction and helps clever investors seeking to Business Setup Dubai UAE, whether onshore or offshore. Every year, we endeavor to provide a diverse choice of practical and cost-effective solutions.
Steps and Procedure for the Free zone Company in Dubai
Steps & Procedures
Some specific stages or procedures must be followed once we have decided to incorporate our firm in any free zone in the UAE. The following are the steps:
- The client must choose the legal framework of their firms, such as FZE, FZCO, or LLC.
- The client must choose a name for their business.
- The client must choose a suitable free zone for their business based on its viability and feasibility.
- After deciding on a free zone, the client must submit the required documentation to the free zone.
- The Free zone authority must approve the application and issue the client a business license as the final step.
Formation of Free Zone Company in Dubai
Acquiring a Trade Mark
After the client has decided on the legal entity of the company he wants to start, he must register the company’s name (trade name registration). In addition, the UAE free zone authority must approve the proposed name. It should not be associated with the name of a country, a religion, or any governmental entities, etc. while choosing a name. Any public morality should not be violated by the name.
Business License Application
After the UAE free zone administration has approved the business’s trade name, the client can apply for a trade license. The documentation needed to form a company varies depending on the free zone. The shareholder’s passport copy, which must be valid for at least six months, is the most basic document necessary. Depending on the company activity, several UAE free zones require a detailed business plan and external clearance.
After we submit our application, the UAE Free zone authorities will send us an application form, which we must sign and return. We can form the company virtually in some UAE Free Zones, but the physical presence of the shareholders is required in others.
The application will be approved within 10 days by the UAE free zone authority, and the appropriate body will issue the business license, together with a share certificate and memorandum of organization.
Once the company is established, the shareholders can apply for the company’s establishment card. The link between the immigration department and the company is represented by the establishment card. The client can apply for e-channel registration after the establishment card is ready. E-channel registration is only required in a few UAE-free zones. After completing the e-channel registration, the shareholder can apply for a visa or a resident permit for themselves or their employees. Furthermore, after the shareholder has received the company license, he or she can create a corporate bank account with any bank in the UAE or abroad.
Legal Proceedings of free zone Company in Dubai
The company can be registered with or without an office in the Free Zone. To facilitate imports and exports, the company must be registered with the Chamber of Commerce and receive an Import Export Code. A Tax Residency Certificate from the UAE can be obtained after one year of the company’s incorporation. The Double Taxation Avoidance Agreement (DTAA) allows investors to save taxes in their native nation. In addition, any bank in the UAE with an active online banking facility, debit card, credit card, cheque book, and other trade facilities can open a free zone company bank account so the formation of a free zone Company in Dubai is the most cost-effective way to expand your business in the Middle East and North Africa.
Mainland Vs Free zone
If you are not sure which land to choose free zone or mainland for Business setup in Dubai As a result, firms must choose between establishing a presence on the mainland and establishing a presence in a free zone? Simply said, the answer is entirely dependent on the type of activities and business you wish to pursue. So, if you want a company set up in UAE or to do business in the UAE, you should go with a mainland setup, but if you want total ownership and control over your business activities, a Free Zone Setup should be your first choice. Both have their own set of benefits and drawbacks, as well as investment potential, and both are meant to appeal to various sorts of investors. The decision between the mainland and a free zone setup is entirely dependent on the type of activities and business you choose to pursue. Simply put, if you wish to do business in the UAE, you must choose a mainland setup, but if you want total ownership and control over your business activities, a free zone setup should be your first choice.
- The DCCA covers the following free zones in Dubai:
- Dubai Media City is a media hub in Dubai.
- Dubai Production City is located in Dubai,
- The United Arab Emirates.
- Dubai Internet City,
- Dubai Studio City,
- Dubai Outsource City is all located in Dubai.
- Dubai International Academic City (DIAC)
- Dubai Knowledge Park
- Dubai Design District Dubai Science Park
Locations for Free Zone Company in Dubai
You could, for example, consider establishing a business in the Jebel Ali Free Zone, Dubai Internet City Free Zone, or Dubai Airport Free Zone, among other locations. When you’ve figured out the basic benefits of entering this market, it’s time to seek professional advice. Get guidance from a staff with the knowledge and experience to guide you through the legal requirements for establishing a free zone. This includes registering your firm with the appropriate authority so that it is recognized and controlled because while they allow you to trade freely, they also require you to follow the law.
For a corporation to be approved for operation in this location of Free Zone Company in Dubai, it must have a certain minimum amount of capital. The specialists assisting you with the setup will notify you of this criterion as well as the time it will take the authorities to review your application and issue a green light. Because your organization should benefit the region, this period aids in examining your aims as well as your area of expertise.
For your Free Zone Company in Dubai to be registered, you must submit this application together with any relevant papers. Furthermore, you may require assistance with contracts that your firm will utilize for operations such as recruitment and shareholder agreements, among other things. When moving to this location, you’ll need these legal documents in a format and structure that is recognized by local law.
Limitations of the free zone companies
Without any doubt, the free zone company in Dubai is acquired with lots of benefits but still, there are some limitations.
A Free Zone Company in Dubai is not permitted to trade with the UAE market directly. Only locally approved distributors can do local business for the Free Zone Company. Or local businesses, a 5% customs duty is applicable. You must comprehend the free zone benefits and risks associated with establishing a business in a location with advantageous business rules and legislation. This will assist you in making an informed decision when you consider launching a business. By establishing a free zone, you will be able to work outside the constraints of customs and other regulations.
This means you are exempt from the region’s regulations, which can be beneficial to businesses and groups.
Because it is part of their incentive to support the growth of such businesses, the authority in that region will assist you in administering your company. As a result, there will be no need to be concerned that your firm is constantly under the authority’s scrutiny as long as you follow their recommendations when conducting business in this region. Furthermore, you will have no trouble locating a workforce that meets the company’s goals as well as its rules and objectives.
Why Choose Biztrack
If you’re trying to start a Business Setup Company in Dubai in Mainland or the free zone, Biztrack is here when someone thinks of a Business Setup configuration with promising outcomes. We ensure Dubai that we will take you through each step from start to finish, including registration of your trademarks, Business Bank Account, PRO, etc. We wish to facilitate your life and to achieve your aspirations!
If you choose biztrack for the Freestone Company in Dubai it will be time-saving. We assist you to establish a company for the continental, offshore and free area. In terms of corporate training in Dubai and UAE, Biztrack Business Setup consultants have established a track record in making expert advice. Our highly qualified Business Set-up Agent provides you with support in the creation of businesses in Dubai and other services around the USA. As a one-stop solution for all new businesses in the UAE, we offer comprehensive company establishment services.
Biztrack is a group of skilled professionals who can handle the entire process of registering a company in a free zone in the United Arab Emirates. We serve as a one-stop-shop for investors, reducing the headaches of forming a free zone company in the UAE and ensuring that everything is completed as quickly as possible. Our team at Biztrack is experienced in completing the following formation of Free Zone company Formation in Dubai services successfully.
- Creating a Free Zone Company in the United Arab Emirates
- Registration with the Chamber of Commerce,
- Getting a Business License.
- Opening a Bank Account.
- Obtaining a Director Visa through a company or family visa
- Organizing office personnel, accounting services, and any other company-related needs.