Since free zones in the UAE have become popular, many foreign investors want to set up their companies there now. And if you are one of those investors, you must learn about the company registration in UAE free zone. This way, you’ll be able to learn how to set up your business and operate it as soon as possible.
In this article, you’ll learn everything that you should know about this registration process and the steps to complete it. Besides, here you will also find useful information about the business licenses, costs, benefits, and other elements regarding free zones. Furthermore, you can also get some tips to register your company more efficiently. Let’s observe:
- What is a free zone in the UAE and why should set up your company in one of them?
- How many benefits can you get by setting up your company in a free zone?
- Which free zones are available in the UAE for setting up your business?
- What are the steps you should follow to register your company in a free zone?
- What documents are necessary for completing the registration process in a UAE free zone?
- How many business licenses can you find in the UAE free zones?
- Learn about the cost of registering your company in a free zone in the UAE.
- Where else can you register your business in the UAE?
- How can Connectfz help you register your business in your chosen UAE free zone?
1. What is a free zone in the UAE and why should set up your company in one of them?
Free zones are special locations that investors choose to set up their companies or businesses and trade their products. In the UAE, they can find many different free zones to achieve their goals and make their businesses thrive. And if you want to do the same, you should learn how complete the company registration in UAE free zone.
Nonetheless, you should first learn about the reasons why investors like you choose these places as their business locations. And the main one is that they can boost their business by enjoying the different advantages of these trade zones. For example, they can trade their products or services at preferential tax and customs rates.
On the other hand, free zone companies in Dubai or any other emirate can have access to workers, facilities, and more. Furthermore, many specific free zones are also strategic locations for doing business internationally, which is convenient for many entrepreneurs. Keep reading below to find out more favorable elements that free zones in the UAE offer.
2. How many benefits can you get by setting up your company in a free zone?
In case you decide to establish your company in a free zone in this country, you will get several benefits. For example, you can have 100 percent of your company ownership and enjoy multiple tax exemptions as well. Therefore, we should take a look at the most common advantages that all free zones offer to investors:
- 100 percent of foreign ownership of your business.
- Full exemption from several taxes, such as corporate and personal income tax.
- There are no taxes on import and export duties either.
- And there is also full repatriation of profits and capital.
- Investors can also enjoy a favorable environment due to the business-friendly rules and regulations.
- You can have access to world-class resources and infrastructure to boost your business, and also excellent customer support.
- Also, it is possible to obtain hi-tech facilities to operate your company, including office space, warehouse space, and land availability.
- You can choose between a variety of free zones, and each of them will offer you many other benefits.
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3. Which free zones are available in the UAE for setting up your business?
There is a great variety of free zones that you can choose from, specifically 45 of them. Although they share a lot of common benefits, some of them may vary according to the location. Besides, the company registration in UAE free zone also varies depending on the free zone that the investor selects.
Some of the cheapest free zones in UAE that you can choose to set up your business are these:
- International Free Zone Authority (IFZA).
- Jebel Ali Free Zone Authority (JAFZA).
- Ajman Media City Free Zone (AMCFZ).
- Ras Al Khaimah Economic Zone (RAKEZ).
- Khalifa Industrial Zone Abu Dhabi (KIZAD).
Each of them counts on a list of the thousands of companies that operate in those free zones. And you are free to choose to join any of them whenever you feel ready to set up your own company. For instance, you can join the Jebel Ali Free Zone companies list by setting up in this free zone.
If you want to find a cheap location, here you can compare some of the cheapest free zones in the UAE.
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4. What are the steps you should follow to register your company in a free zone?
In order to complete the company registration in UAE free zone, you must follow 6 simple steps. But keep in mind that you don’t have to do it alone; you can request help from a specialist.
4.1. Determine your company’s business activities.
The first thing you need to do is deciding on your business activities. You can choose between a variety of industries and business sectors that operate across the 45 available free zones. And this first step will help you choose your location and license.
4.2. Select a free zone that covers your business needs.
Something that you should keep in mind is that some free zones are special for certain industries. For example, Ajman Media City Free Zone is the ideal location for the media sector. Therefore, make sure to select a free zone that suits your business activities and covers all of your needs.
4.3. Choose a suitable name for your company.
The process of the company registration in UAE free zone also requires you to pick a trade name. You can choose any name as long as you follow certain rules, such as not including religious or sensitive content.
4.4. Select your business license and submit your documents and application.
According to the business activities that you chose, you need to apply for a license that covers them. For instance, if you decide to offer consultancy services, a service license will fit an activity like this. And after this, you must submit your license application along with the documents that it requires.
4.5. Open a business bank account for your company.
After getting your license, you’ll be able to open a corporate bank account to continue the registration process. And you are free to choose between a variety of both local and international banks operating in the UAE. Furthermore, you can let your business partner complete this process for you if you so desire.
4.6. Complete the visa process.
And lastly, you need to complete the immigration and visa processing to start operating your business. All that this final step requires is some general documents and a couple of hours to be finished. And just like the previous step, you can request help from a business setup specialist to manage this process better.
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5. What documents are necessary for completing the registration process in a UAE free zone?
The main documents that you’ll need for the company registration in UAE free zone are these:
- Passport copies of the business partners and managers.
- A copy of the owner’s business plan.
- A duly filled application license form.
- A few copies of the passports and visas of the shareholders.
- Board Resolution.
- And the Memorandum and Articles of Association.
6. How many business licenses can you find in the UAE free zones?
Besides a variety of free zones, there is also a variety of business licenses for free zone companies. Previously, the cheapest free zone license in UAE 2020 was determined by the setup cost of the free zone company. For example, among the cheapest licenses, you can find the one from Ajman Free Zone.
However, you can now find more than one cheapest free zone license in UAE 2021. For instance, licenses in RAKEZ and UAQFTZ are also among the most affordable business licenses in the country. But the cost also depends on the type of license you choose, which could be a commercial, industrial, or service license.
7. Learn about the cost of registering your company in a free zone in the UAE.
Many elements can vary depending on the free zone in which your business is located, including the setup cost. And a good example could be the Dubai free zone company setup cost. In this emirate, you can find several free zones with different costs, like DMCC (AED 50,000) and DSOA (70,000).
Nonetheless, the Dubai free zone license cost will also influence the company setup cost. And at the same time, the type of license that the investor chooses will vary. For example, a commercial license can be cheaper than an industrial or service license. On the other hand, you also must consider other costs, including visas and facilities.
8. Where else can you register your business in the UAE?
However, if you do not desire to join the UAE free zone companies list, there are other alternatives for you. For example, you can set up an LLC (Limited Liability Company) in the UAE mainland. Or you could also open an offshore company in an offshore jurisdiction. Each of these options can bring you a lot of benefits for sure.
And in case you decide to set up in the UAE mainland, you will find other types of entities available. For instance, opening a Professional Company (Civil Work Company) is also an excellent choice for a business. And it is also possible to open a branch or representative office of a foreign company in the UAE mainland.
9. How can Connectfz help you register your business in your chosen UAE free zone?
Registering your company in a free zone in this country can be an easier process with Connectfz by your side. Because having a partner like us can help you speed up the registration procedure and make multiple improvements too. Besides, you can get professional advice and guidance to understand better how free zones in the UAE work.
And apart from helping you with the company registration in UAE free zone, we can help you with other details. For example, we can help you decide which free zone and licenses suit better your kind of business. Also, you are free to choose among the different packages that we offer according to your chosen location.
Selecting our support services to help your business thrive is also possible and affordable for you. And the main reason why you should choose us is that we’ll make your company even more efficient. For instance, you can enter the local market in no time with our UAE market entry services. Other services like tax advisory and banking are also available.
Would you like to contact Connectfz to obtain more useful information about the company registration process in any of the available UAE Free Zones? If you have any questions, you can call us on +97143316688. Or you can email us at email@example.com, and you will talk to one of our representatives who will gladly answer your questions.