Business Start up: UAE
Business setup in the UAE Free Zones
The main benefits investors enjoy when starting a business in the UAE Free Zones are:
100% Foreign Ownership
100% Repatriation of Capital and Profits
0% Corporate, Personal Tax
Exemption from all Import and Export Duties
Free Zone Company Formation is Quicker than Incorporation outside of the Free Zones
Inexpensive Workforce and Easy Recruitment Procedures
Typically, no restrictions on recruiting labour
On-site Customs Inspectiona
Free Zone Limitations
A Free Zone Company is not allowed to trade directly with the UAE market. The Free Zone Company can undertake the local business only through locally appointed distributors.
Custom Duty 5% is applicable for the local business.
Even though all free zones provide many attractive schemes for the benefit of the investors, not all are the same when we consider the facilities offered by them. Therefore it will be worth while to have a glance over the facilities offered by each, one by one. The details mentioned below are for the guidance of the investors, and the facilities may be subject to change from time to time when such decisions are being taken by the Free Zone Authorities.
It is important that new investors get in touch ABM GLOBAL ACCOUNTANTS for latest details before they plan a business activity in any UAE Free Zone. UAE is the only country in the Middle East where a big number of Free Trade Zones and Free Industrial Zones
Documents Required for Registering a Business in the UAE Free Zones
There are some similar formalities to be completed with regards to the documents which are submitted to each free zone depending upon the type of business an investor chooses. In general, the following are the main options:
Free Zone Establishment (FZE) (One individual share holder).
Free Zone Company (FZCO) (More than one member).
All of the above types may not be available to every free zone, therefore an investor should seek the advice of a consultant to finally arrive at whether his choice is possible in the concerned free zone and also to know about the details of documents needed . However for the advantage of the investors, descriptions of documents commonly needed are being listed below:
Free Zones Establishment (FZE)
Application form duly filled
Business profile of the owner
Passport copy of the owner
Original bankers reference
Free Zones Company (FZC)
Business profile of individuals
Passport copy of owners
Original bankers reference
Manager’s valid passport copy
Specimen signature of the manager
Original FZCO application
Certificate of Registration
Memorandum and Articles of Association
Manager’s passport copy and his attested signature
Parent company‘s profile
Application for license, Passport copy & Bank reference of each individual, Project summary and Application for registration are common for any business set-up available for investors who wish to gain more from their investment. The first Free Zone formed was Jebel Ali , Dubai, in 1985 which witnessed a tremendous growth in the years to come by way of increased number of investors. Many have established their offices, factories or warehouses and invested millions which in turn had given them huge returns from the UAE Free Zones. That is precisely the reason why even more foreign investors are being attracted nowadays to the UAE Free Zones.
Currently, over 12.000 companies, many of which being major brands, operate under the UAE Free Zones Authority.