FREE ZONE COMPANY FORMATION IN UAE

WHAT IS A FREE ZONE COMPANY IN UAE?

A Free Zone Company is a registered legal entity within the UAE’s 45+ Free Trade Zones. The most common company structure in these zones is the Free Zone Establishment (FZE). In an FZE, there is typically only one shareholder. However, if there are multiple shareholders, it will be registered as a Free Zone Company (FZC). Opting for a Free Zone Company in the UAE enables investors to streamline trade and other business operations effortlessly, without unnecessary complications.

Establishing a Free Zone Company in the UAE entails numerous business advantages. Investors are provided with a wide array of office spaces tailored to their specific requirements. The UAE’s Free Zones present a plethora of enticing company formation packages, simplifying the process of setting up a company in UAE.

HOW TO SELECT A FREE ZONE FOR YOUR BUSINESS LICENSE?

Free Zones in the UAE are designated areas aimed at promoting Free Trade. With over 45 Free Zones, global investors can choose from a range of business license packages. Each Freezone operates under its own set of rules and regulations, regulated by a dedicated authority. However, investors often face challenges in identifying the right authority to establish their company and obtain the necessary business license.

With its reputation for safety and opportunity, the UAE has seen a significant increase in company registrations and visa applications. As a result, Freezone authorities are fiercely competing to attract investors. To entice entrepreneurs, some Freezones now offer licenses at nominal fees, which can be particularly attractive to small startups looking to test the market.

However, it is important to note that cheap trade licenses have their limitations. Ultimately, the decision to establish a company in a highly reputed Free Zone lies with the investor. Setting up a company is just the beginning of an entrepreneur’s journey, as there are numerous legal compliances to consider. Therefore, it is wise to seek the guidance of a seasoned business consultant with extensive experience in the UAE.

FREE ZONES & TAX BENEFITS

Free Zone companies are onshore entities that meet all the requirements to engage in global trade and establish connections both within the UAE and worldwide, while adhering to customs laws governing the transportation of goods. By registering as a Free Zone Company, investors are granted a 2-year Investor Residence Visa and have the flexibility to recruit employees based on the allocated visa quota, which can be adjusted as needed.

Each Free Trade Zone in the UAE operates under the supervision of its own Free Zone Authority. Although these Licensing Authorities generally abide by UAE laws and regulations, they are autonomous entities with separate regulations. They issue Trade Licenses, offer the necessary business infrastructure, approve employee visa applications, establish guidelines for fair business practices, and more.

Moreover, Free Trade Zones in the UAE provide significant tax advantages for foreign investors. There is no Personal Income Tax in the UAE, and starting from June 2023, only a 9% Corporate Tax will be imposed on companies that meet specific criteria. Additionally, certain designated Free Zones in the UAE exempt certain transactions from the 5% Value-Added Tax (VAT). Consequently, UAE Free Zones serve as a favorable tax haven for foreign investors, with minimal tax obligations compared to their home countries.

Furthermore, Free Zones in the UAE present investors and business owners with a wide range of incentives to establish their ventures in the country. These Free Zones offer various types of company licenses tailored to suit different business activities. However, selecting the most suitable Free Zone based on budget and time constraints can be challenging for investors. This is where AURION can assist you in choosing the ideal Free Zone for your business.

LOW-COST BUSINESS LICENSE PACKAGES – FREE ZONES IN UAE

Free Zones in the UAE provide a wide range of Low-Cost Business License Packages, making it convenient for investors to establish their companies in the UAE. With multiple Free Zones offering these affordable Business License Packages, entrepreneurs and start-ups can take advantage of the attractive offer of setting up an office in the UAE at a business setup cost of AED 8,050 for a service license from Sharjah Media City. This cost-effective solution is particularly appealing to professionals such as Consultants, Marketing Professionals, Legal Professionals, Software Professionals, and others, with a Free Zone License Cost of AED 11,743 (Visa Cost & Other fees not included). Additionally, for service professionals seeking a 3-Year Business License, the Free Zone license cost is AED 32,712. The UAE boasts more than 45 Free Zones, each offering competitive packages tailored to specific business license types, nature of business activity, pre-approvals, office space, location preferences, and budget considerations.

FREE ZONE COMPANY LICENSE IN DUBAI

Dubai’s Free Zone Company License is a sought-after business license category for foreign investors. The cost-effective Company License offered by the Free Trade Zones in Dubai has empowered numerous new companies to establish themselves in the region. With a wide range of business activities and robust infrastructure, the Free Zones in Dubai provide an ideal environment for business growth.

The process of company formation and obtaining a Free Zone Company License in Dubai is straightforward. It follows a simple registration process, allowing for the establishment of a maximum number of companies. This seamless process facilitates the realization of investors’ goals of settling, working, and living in the UAE. The cost of a Dubai Free Zone Company License starts from AED 11,900 for a Zero Visa Quota. Additionally, investors have the option to upgrade for more visas, office space, and other business requirements.

Also, Free zone company bank account can be opened in any of the banks in UAE with an active online banking facility, debit card, credit card, checkbook, and other trade facilities.

In summary, opting for UAE free zone company formation presents the most viable approach to foster business growth in the Middle East and North African region. This strategic choice not only enhances business prospects but also ensures optimal conditions for success.