The United Arab Emirates is a popular country among investors and entrepreneurs from all around the world and there are benefits of the UAE Freezone. And the most outstanding reason for this is the UAE free zone locations that you can find across the country. You can start your business in any location of this type and get several benefits from it.
In this article, you will learn everything you should know about free zones in the UAE and their benefits. Besides, here you will be able to find relevant information about the business setup process in these locations. On the other hand, make sure to learn the advantages of each available free zone before starting your company. Let’s observe:
- What is a free zone in the United Arab Emirates?
- Why should consider setting up your company in a free zone in the UAE?
- What benefits do these business locations offer to investors like you?
- How many free zones can you find available in this country?
- What steps should you follow in order to set up a free zone company?
- What documents do you need to complete the company setup process in a free zone?
- How many licenses can you find in popular free zones in the UAE?
- Learn how much can cost to set up your company in a free zone.
- How can Connectfz help you set up your company in your ideal UAE-free zone?
What is a free zone in the United Arab Emirates and What are the benefits of UAE Freezone?
If you’re trying to find a good place to set up your business, consider setting up in a free zone. But before we get any further, you need to learn what is a free zone is. It is a place in which many entrepreneurs can establish their companies and trade their products. However, the main reason why free zones are so popular is due to the benefits they provide.
In the UAE, investors and entrepreneurs have access to a variety of free zones that are available across the country. And each of those locations is equipped with the facilities they need to set up profitable businesses. Besides, free zones in this country can also provide support services to help investors operate their companies.
Therefore, a UAE-free zone can be an attractive business location for both foreign and local business people. But they can be even more favorable when you choose the right place since each of them is different. In other words, some free zones were designed to boost certain industries and businesses.
If you’re interested in setting up your business in a Dubai free zone, here is what you need to learn.
Why should consider setting up your company in a free zone in the UAE and What are the benefits of UAE Freezone?
Setting up in a UAE-free zone is one of your best options to achieve success. Nonetheless, it would be good for you to learn about some outstanding advantages that free zones can offer. Even though each location is different, they all have some things in common when it comes to benefits for investors. Let’s take a look at some of them:
- Foreign ownership: this is one of the main reasons why entrepreneurs look forward to setting up in free zones. Unlike the mainland, there’s no need for them to work with a sponsor or local partner to run their businesses. In other words, they can establish their companies in free zones and retain 100% ownership.
- Trading within the country: setting up an FZE means that you cannot trade with the local market directly. However, you have two options to overcome this situation. Firstly, you can work with a distributor to put your products on the market. And secondly, you can open branch offices throughout the country after opening your free zone company. With these branches, you’ll be able to market your offerings, besides undertaking business within the mainland.
- Simple setup process: another great advantage of these locations is the setup process, which is straightforward and takes around a week or two. In most cases, the documents that this process requires are basic information, like passport copies and other paperwork. However, requirements could be different depending on the business activities that you choose. Also, take into consideration that free zones also offer different virtual packages, Flexi-desk, and facilities.
- And lastly, free zones are known for the tax exemptions that investors can enjoy. For example, they are exempted from corporate and personal tax, and also from VAT Registration. Besides, they can also enjoy full exemption from import and export tax as well.
What benefits do these business locations offer to investors like you and the What are benefits of UAE Freezone?
Besides the ones we previously mentioned, you can find even more advantages of doing business in a UAE-free zone. All free zones in this country share some similarities when it comes to benefits for investors. However, some of them might offer additional advantages depending on the kind of business you decide to build.
Among the most common benefits that you can find in free zones, there are these:
- 100 percent foreign ownership and repatriation of profits and capital.
- Full exemption from several taxes, including corporate and personal tax.
- There’s also a total exemption from all export and import duties.
- Investors have easy access to many facilities, such as office space, warehouse services, global connectivity, transportation, and more.
- You can open your corporate bank account in any local or international bank.
- The business legal framework is flexible enough to allow investors to trade securely and with ease.
- There’s a variety of business licenses and activities that you can choose to start your business.
Here you can learn some useful tips to follow if you are setting up in a free zone in Abu Dhabi.
How many free zones can you find available in this country and What are the Benefits of UAE Freezone?
Currently, there are 45 free zones available in the UAE, and most of them are located in Dubai. In fact, the most popular locations are also in the emirate of Dubai. But you can find other favorable free zones in many other emirates. Let’s see some locations that investors and entrepreneurs consider the most attractive:
- Dubai Silicon Oasis Authority (DSOA).
- Dubai Airport Free Zone Authority (DAFZA).
- International Free Zone Authority (IFZA).
- Ajman Media City Free Zone (AMCFZ).
- Sharjah Airport International Free Zone (SAIF).
- Ras Al Khaimah Economic Zone (RAKEZ).
- Umm Al Quwain Free Trade Zone (UAQ FTZ).
What steps should you follow in order to set up a free zone company and the benefits of UAE Freezone?
If you’re interested in doing business in a UAE-free zone, you need to learn how to do it. The first thing you have to do is build your business, which is a simple process. Besides, it does not take too much time to be complete. All you need to do is to follow these easy steps to set up your company:
- Firstly, you need to understand the free zone meaning to then determine your business activities. You are free to choose several similar activities that can be covered by a single license. Besides, this will also help you choose your ideal location.
- Decide on a name for your company by following some important rules. It could be a complicated task, but you can get help from a professional if needed.
- Then, meet all requirements and submit the required documents along with your application. You can find information about the necessary documents below.
- After applying for your business license, you’ll receive a notification. Then you’ll need to open a business bank account and process your visa.
What documents do you need to complete the company setup process in a free zone?
The documents that you’ll need to register your company will vary according to several factors. And the main factors would be your chosen jurisdiction and the business activities you want to carry out. However, there’s a list of the general documents that the business setup requires regardless of your chosen UAE free zone:
- A few passport copies of the business managers and partners.
- A duly filled application license form.
- Copy of your business plan.
- Copies of the passports and visas of the shareholders.
- The Memorandum and Articles of Association.
- A board resolution.
Keep in mind that additional documentation might be necessary during your setup process. Therefore, we suggest getting help from your business setup partner or specialist to obtain more information about it.
How many licenses can you find in popular free zones in the UAE?
Opening your company in a UAE-free zone will require obtaining a business license to cover your activities. You must know that certain free zones are dedicated to specific industries, which is why their licenses are limited. Nonetheless, most free zones offer a variety of business licenses for many different activities. For example, these are some common licenses:
- Trading / Commercial license.
- General Trading license.
- Service license.
- Industrial license.
- Professional license.
- Freelance license.
- E-commerce license.
Depending on the kind of business that you want to operate, you can apply for more specific licenses. For example, in case you want to open a restaurant, you’ll need a food license and also a restaurant license.
Here you will discover everything you should know about the available business licenses in the emirate of Abu Dhabi.
Learn how much can cost to set up your company in a free zone.
Free Zones in the UAE are also popular due to the affordable prices for setting up businesses. However, you should be aware of the different features that each UAE free zone has. And based on those elements, the cost for setting up a company can vary. For example, let’s see how much costs to set up a business in these free zones:
- In Dubai Airport Free Zone Authority (DAFZA), the setup cost is around AED 50,000.
- On the other hand, there are cheaper free zones available, such as Dubai South Free Zone (AED 32,000).
As you can see, costs will vary according to the location you choose. In addition, other elements could make the cost vary too. For instance, your chosen business license, activities, and facilities are some of them. Therefore, make sure to contact a specialist before deciding your ideal free zone.
Do you want to know the cost of setting up a company in a free zone in Dubai, UAE? Here you can find it.
How can Connectfz help you set up your company in your ideal UAE-free zone?
In case you have made your mind, the first thing is that you should find is a good business setup partner. This way, you’ll be able to complete the setup process in no time and without going through tedious processes. For instance, with Connectfz by your side, you can establish your company in your desired location and obtain certain benefits.
Nonetheless, we can also help you choose your ideal free zone if you still haven’t decided on one. Depending on the kind of business you want to establish, we will find the most favorable location for it. Besides, you will have the opportunity to select one of the many packages we offer to boost your setup process.
After you have completed your company’s setup process, you should also request other services to benefit your business’s growth. For example, you can find the employees you need in a more efficient way with our recruitment services. Or in case you want to improve your HR department, you can request HR consultancy and payroll services.
Would you like to contact Connectfz to obtain more tips and useful information about the business setup process in free zones in the UAE? If you have any questions, call us on +97143316688. You can email us at firstname.lastname@example.org, and you will talk to one of our representatives who will answer your questions.