Throughout the United Arab Emirates territory, free zones have been established in all seven emirates of the UAE, namely Dubai, Sharjah, Ajman, Fujairah, Umm Al Quwain, Abu Dhabi, and Ras Al Khaimah. In addition, other free zones such as the Crop Zone, Building Materials Zone (BMZ), and Heavy Equipment and Truck Zone (HETZ) have been established in some parts of the UAE.
As we know that nowadays, almost everyone dreams of setting up their business in a vast and resourceful country like the United Arab Emirates; therefore, investors are interested in learning about the procedure of company formation in the tax-free zone. The UAE. Another reason behind the growing popularity of free zones in the UAE is when the company is developed in a free zone.
You can also set up an offshore company in Dubai. The process of setting up a company in the UAE Free Zones is relatively simple, and the requirements, costs, and time for setting up a company in the UAE depend on the choice of the Free Zone and the activities of the company involved. It is going to start.
There are more than enough places to do business – warehouses, offices, manufacturing facilities, etc.; therefore, the incorporation of the company in the Sharjah media city free zone and Ajman free zone authority can be done easily. Dubai is famous for free zones and onshore and offshore businesses, which can be established in different parts of this country.
Company registration in the UAE free zone can be done in places like Dubai, Abu Dhabi, Sharjah, and Ajman. Furthermore, in Sharjah, Hamriyah free zone can also be established for customers to easily get all necessary resources. Moreover, all the modern facilities and essentials can be easily found here, which enables all the investors to set up their free zone companies in the UAE.
Every aspiring entrepreneur who wants to start a business in the UAE dreams of being their boss while having full control of their company. However, foreign investors see the local sponsorship requirement as an obstacle when setting up a company in the UAE. There are more than forty free zones spread across the seven emirates of the UAE that, in some way, solve this concern of foreign investors by offering 100% ownership, as well as providing additional advantages such as a favorable tax regime, the total repatriation of the capital, ultra-modern facilities, etc.
More importantly, the UAE’s free zones are governed by their regulatory authorities, encouraging entrepreneurship for foreign business owners as installation procedures are easier.
In addition, there are specific free zones for each sector, such as DIFC, DSO, Dubai Media City, Dubai Healthcare City, Ajman Media City, and Dubai Internet City, etc., which are additional attractions for foreign investors. Business creation consultants in Dubai, UAE, recommend investors set up their companies in the UAE-free zones to access these advantages.
Why should foreign investors choose to incorporate companies in the UAE-free zones?
The UAE government has created free zones to attract large foreign investments and diversify its economy from oil to trade, tourism, and services. The UAE’s free zones enjoy a high reputation among investors around the world and help strengthen the country’s economy by encouraging more business enterprises, boosting foreign direct investment (FDI), fostering entrepreneurship, and creating more job opportunities.
Free zones like JAFZA, Ajman Free Zone, SHAMS in Sharjah, RAKEZ, KIZAD, Umm Al Quwain Free Zone, etc. have contributed significantly to the UAE economy. The following are some of the main reasons why setting up business in the UAE Free Zones is important for foreign investors:
100% ownership, full control of the business
Entrepreneurship rises only when the business owner can fully own the business he has started. Incorporating a free zone company in the UAE is a great boon for foreign investors as they can enjoy 100% ownership. Unlike the incorporation of mainland companies in Dubai or the UAE, the investor does not need to appoint a UAE citizen as a local sponsor who owns at least 51% of the company’s shares.
Full repatriation of profits plus tax benefits
Registering a company in any UAE Free Zones provides foreign investors with the benefit of 100% repatriation of profits. The opportunity to take home the full earnings is very beneficial, especially for forming a branch company in the UAE. Except for companies in the oil and banking sectors, companies in free zones are not required to pay any corporate tax. However, businesses must register for Value Added Tax (VAT) if the total value of their taxable supplies exceeds AED 375,000.
Simple company formation procedure in UAE free zones
Free zones are governed by an independent regulatory authority, which offers great flexibility for investors while setting up business in the UAE. Free zone approvals take less time than company formation in Dubai or any other emirate. Investors need to make sure that all the documents are available. The documentation process could easily be over if the companies hire the best business creation consultants in Dubai, UAE.
Modern infrastructure setting up a company in the UAE Free Zones, entrepreneurs can trade with foreign countries as they are not allowed to trade directly in the UAE market. The main commercial activities in the free zones are based on imports and re-exports, which require a highly developed infrastructure. The UAE’s free zones offer greater sea, air, and land connectivity and proximity to seaports, international airports, and crucial commercial hubs.
Types of business structures that can be established in the UAE Free Zones
Company formation consultants in uae Free Zones has the advantage of choosing the most efficient legal arrangements available. Depending on the business activities and the licenses held by the investors, the following types of companies can be incorporated in the UAE free zones:
Free Zone Company
A free zone company (FZCO) usually has between 2 and 5 shareholders
Free Zone Establishment
A Free Zone Establishment can be established with a single shareholder
Local UAE companies are located outside the free zone, and foreign companies can establish their branches in the free zones.
Types of licenses available in various free zones in the UAE
The UAE Free Zones are known for offering investors a variety of licenses to choose from. The licenses cover almost all types of profitable industries in the UAE, facilitating a strong business registration in the UAE. Foreign investors wondering how to get a business license in the free zones should get professional assistance from the best business creation consultants in Dubai, UAE. The following are some of the main types of licenses in the UAE Free Zones.
The following are some of the common licenses provided by various free zones in the UAE:
- General Business License
- Service/consulting license
- Trade/commercial license
- e-commerce license
- education license
- industry license
- self-employed permit
- manufacturing license
How to create a company in the free zones of the UAE?
The UAE Free Zones follow the rules and legal procedures established by the respective Free Zone Authority, which must be followed to start the company formation process in the UAE Free Zones. Investors unfamiliar with the legal procedures should consult reputable company formation consultants in the UAE to avoid unnecessary delays during company registration. The following are the steps to follow to register a company in the UAE Free Zones, and you have to remember that the requirements may vary from one Free Zone to another.
- Identify business activity
Investors must first determine the business activity they intend to carry out and select the appropriate free zone that allows such activity. Conduct thorough research on the activity and identify which free zone has the appropriate facilities. The consultancies that offer the best business establishment services in Dubai, UAE, will greatly help avoid confusion about choosing the right free zone.
- Determine the legal structure
Investors must choose the most appropriate legal structure for the entity depending on the number of shareholders and the business activity. The number of shareholders determines whether the company must be an FZCO or an FZE.
- Choose a business name.
The next step in setting up a company in the UAE free zone is selecting the appropriate business name for the company. When choosing the company’s name, investors must follow the guidelines of the respective free zone authorities.
- Apply for a business license
Entrepreneurs can choose the appropriate license for the free zone entity, depending on the activity. The application for a business license can be submitted to the free zone authority through reputed business consultants in the UAE to quickly complete the company registration procedure.
- Choose office space / Flexi Desk.
Free zones offer co-working spaces or Flexi desks along with most of their license packages. For companies with fewer employees, it is better to use the Flexi desktop facility. Flexi desk facilities are more appropriate for start-ups, e-commerce platforms, and freelancers. If the company has more employees, an office space with good facilities should be taken advantage of.
- Register the company and obtain the license
The free zone authorities will verify the documents presented, and the license will be issued if all the documentation is valid. Company registration in the UAE Free Zones can be completed quickly, which is one reason most investors prefer to launch their business in the Free Zones.
Special business packages that investors can take advantage of to establish their business in the UAE free zones
The UAE Free Zones are at the forefront of offering innovative business solutions to investors regardless of age group or gender. Some free zones in the UAE offer special company formation packages for young entrepreneurs and women.
The RAKEZ free zone offers attractive business creation packages for young and women entrepreneurs. RAKEZ led the way by becoming the first free zone in the UAE to offer a special package for women entrepreneurs. Ajman Free Zone also supports budding entrepreneurs by designing a special “Pioneer Package” targeted at the young population.
Why choose Jitendra Business Consultants?
The UAE’s free zones have played a key role in attracting large numbers of investors to the country with a host of benefits, including 100% ownership, highly developed infrastructure, and ultra-modern facilities. The UAE Free Zones are home to thousands of companies in different sectors and play a huge role in boosting the economy and creating employment opportunities.
Since each free zone is governed by different regulations established by the respective free zone authorities, investors require professional assistance to comply with the regulations. This is where reputable business creation services in Dubai, United Arab Emirates, such as Jitendra Business Consultants (JBC), come in handy for entrepreneurs.
Investors need help with requirements like company registration, issuing licenses, drafting documents, processing visas, sponsoring dependents, etc. JBC consultants are the best business start-up consultants in Dubai and help investors with all these services. JBC comes to the rescue of investors who are unfamiliar with UAE labor laws and immigration laws by facilitating a quick and hassle-free business creation process.
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