Free zones are geographically defined jurisdictions for of company formation in UAE. Mostly, businesses that aim to sell their goods and services internationally incorporate companies in Free zones to benefit from their company setup incentives and operational privileges.
After the introduction of the first free zone, Jebel Ali Free Zone in Dubai 1985, the concept took several leaps and numerous other free zones were created by the UAE government to cater the specific needs of investors. Currently there are over 45 free zones in UAE.
Advantages of Setting up Free Zone in UAE
- Allows 100 % foreign ownership with no requirement of Emirati National or LSA.
- 0% corporate taxes
- 0% personal taxes and import & export taxes.
- 100 % repatriation on profits.
- Least documentation and fast incorporation
- Long-term leasing options with flexible plans (25 years).
- Simplified and fast recruitment with affordable workforce
- Availability of housing, immigration, legal and labor facilities.
- Remote incorporation available
- 100% free tax free transfer of funds
Types of licenses
There are 5 major types of licenses offered by free zones in UAE
A trade license is permitted to companies involved in import and export activities with 100% foreign ownership. These companies can incorporate without any approval from the Economic Department.
An Industrial license is granted to companies that are involved in manufacturing activities such as production plants, factories and mills etc. Companies can have specialized incentives for infrastructure and logistics in suitable zones
Companies involved in the services sector can have a valid license for contracting their services in free zone. This can include banking, security, hospitality, consulting and financial services etc.
E-Commerce license is given to companies involved in the buying and selling of goods and services through online networks via electronic payment gateways. These companies must rent/purchase warehouses to stock their products
National Trading License
A National Trading License allows businesses to carry out manufacturing activities with the exception of 51% shares owned by an Emirati national or GCC national
A free zone company setup license cost varies from one zone to the other. Our free zone company registration packages start from AED 14,500 for Sharjah Media City and ends at AED 58,865 for DMCC.
Investors are granted a 3-year visa
- Valid Business/trade license of the chosen zone
- Minimum capital deposit
- Valid documents of Memorandum of Association
- LSA Contract
- Completed Visa application form
- 4 passport size pictures in white background
- Original passport and passport copy of the applicant
- Copy of entry stamp or valid UAE visa (in case already in UAE)