Free Zone Company Formation in UAE
For one thing, Dubai is one of only a handful few places on Earth where business setup is a monotonous task. Free zone company formation is a very famous type of business setup in the United Arab Emirates. It provides great benefits and it allows different options that you may avail that you sometimes didn’t get if you are willing to set up a business organization outside of a free zone.
As indicated by the World Bank’s Survey, Dubai is positioned at 33rd place between the easiest spots to conduct business — considering its low rankings, we can securely say that beginning a business in the city will be hard, particularly if it’s your first time.
This is for the most part credited to the government authorities that are responsible for spots stringent measures to fit the bill for a business in the city. In case you’re intending to put one up in the city.
Free zones in UAE ease the process of business setup and provide unlimited benefits. Some of the benefits are specific to a free zone a company or business is located. The best part is you can fully own your free zone company and most of the free zones provide 0% tax jurisdictions.
The following are the main benefits that you can get by incorporating a free zone company in the United Arab Emirates.
- Free zone company formation allows you to get 100% ownership of your business or company
- Free zone company can also be formed by individual
- You can open a bank account in Dubai or any other Emirates by incorporating free zone company
- Free zone offers different option, benefits and Tax exemptions
- Free zone companies have low license renewal charges
- Free zone offers an easy option for company liquidation
- Free zone company formation will allow you to conduct your business internationally
- Multiple activities may be allowed for a free zone company
- You may be able to hold properties after authorization from free zone authority
- Free zone allows easy recruitment process of your workforce
- Almost every free zone in UAE has state of the art infrastructure
Requirements of Free zone company formation
Here are some of the requirements for the Establishment of free zone Company in UAE.
- Reservation of your business or trade name
- Obtain Initial Approval from authorities
- Approval of your Business Plan from authorities
- Board Resolution to start a free zone company in UAE
- MOA and AOA of your company
- Free zone company formation may need approved Tenancy Contract
- Submission of your application to governing authorities for getting the License of your business activity
- Residence Visa’s
- Issuance of Emirates ID
- Registration of your free zone company
Note: Free zone company formation requirements vary From Free Zone To Free Zone and all the above-mentioned requirements may not apply to all the free zone operating in the United Arab Emirates.
After registering a Free Zone Company with the relevant Free Zone Authority, you can then continue to obtain a License by completing the relevant documents and forms by the authority:
- License Application for free zone company formation
- Copy of Title Deed/ Lease agreement under the name of the newly formed Free Zone Company.
- Proof of Deposit of the minimum capital in the bank
- Confirmation and reference letter from the bank to the Free Zone Authority.
- Companies Memorandum & Article of Association (MOA).
- Approved Office area by the Free Zone Authority
- Civil Engineering Department and EHS NOC
Type of Legal entities in the free zone
Mainly there are two types of free zone companies you may be able to establish in any free zone area across UAE.
- A new company incorporation
- A branch of an international or local company