Free Zone Company Formation in the UAE
UAE free trade zones can provide a wide range of incentives for investors from around the world. The following information will help you decide whether establishing your company in one of the UAE free zones is beneficial for achieving your business objectives.
Healy Consultants Group assists with all facets to register a new company in the form of a Free Zone Company (FZCo), including i) company registration; ii) assistance in obtaining the trade license; iii) lease premises and iv) assistance in opening a corporate bank account. Our staff will handle all formalities without our Client needing to visit Dubai.
International entrepreneurs can establish one of the following entities in the free zone. Healy Consultants will be pleased to assist our Clients in choosing the optimum business entity:
- A free zone company (FZC) – this entity requires a minimum of two shareholders;
- A free zone establishment (FZE) – this entity requires a minimum of one shareholder;
- Branch of a foreign company;
- Representative office from the parent company.
-
Advantages of setting up your business in a UAE free zone
- Investors who choose to setup in the UAE free zones enjoy the following benefits: i) 100% foreign ownership; ii) 100% import and export tax exemptions; iii) 100% repatriation of capital and profits; iv) corporate tax exemption for up to 50 years; v) personal income tax exemption and vi) assistance with labor recruitment and additional support services, such as sponsorship and housing;
- Other benefits include i) low bureaucratic requirements for incorporation; ii) fewer restrictions relating to staff recruitment; iii) high quality infrastructure facilities and iv) competitively priced energy and utilities;
- There are more than 35 operational free zones in the UAE. These include more than 25 in Dubai, 7 in Abu Dhabi and 8 in the Emirate of Sharjah and the Northern Emirates;
- Free zone activities allowed include i) import of raw materials; ii) manufacturing; iii) processing, assembling and packaging; iv) export of finished products and v) storage/warehousing of products.
- FZ companies are considered tax resident entities and therefore can benefit from UAE tax treaties.
-
Disadvantages of a UAE free zones entity
- To be fully established in a FZ, every company must i) lease premises and ii) obtain a free trade zone license. The type of license will restrict the activities that can be conducted in the company. Company licenses are renewable annually after FZ laws are complied with, including submitting annual audited financial statements to the authorities;
- The paid-up share capital varies from US$14 to US$300,000 depending on i) the free zone chosen and ii) the company structure. After incorporation, the share capital can be used to fund the daily business activities of the company;
- A FZ company must rent an office within its zone and majority do not allow to rent an office in Dubai city center.
-
Trading within the UAE
A FZ company can:
- Conduct business with and issue invoices to clients located outside the UAE or in other UAE free zones;
- Custom duty of 5% would be levied on free zones company sales within the UAE.
-
List of various free zones in the UAE
-
Abu Dhabi free zones
All Abu Dhabi Free Zones Popular Free Zones in Abu Dhabi Abu Dhabi Global Market (ADGM) Abu Dhabi Global Market (ADGM) Masdar City Free Zone twofour54 Khalifa Port Free Trade Zone Abu Dhabi Airport Free Zone twofour54 Free zone for defence and security sector in Tawazun Industrial Park -
Dubai free zones
All Dubai Free Zones Best Use Dubai Multi Commodities Centre (DMCC) All type of services including commodities trading. Dubai International Financial Centre (DIFC) Financial services, banking, insurance, legal services, foundations. International Free Zone Authority (IFZA) Trade, logistics, import, export Meydan Free Zone General purpose, E-commerce, startups, SMEs. Jebel Ali Free Zone (JAFZA) Logistics, manufacturing, trade, and industrial activities. Dubai World Trade Centre (DWTC) Events, exhibitions, conferences, trade fairs. Dubai Healthcare City (DHCC) Healthcare services including hospitals, clinics, wellness centers. Dubai Internet City (DIC) IT and tech companies, digital communication, software development. Dubai Media City (DMC) Media and advertising companies, broadcasting, publishing. Dubai Silicon Oasis (DSO) Tech startups, semiconductor manufacturing, IT services. Dubai Airport Free Zone (DAFZA) Aviation, logistics, electronics, luxury goods. Dubai Knowledge Park (DKP) Education, training institutes, human resource management. Dubai Design District (d3) Fashion, design, luxury goods, creative industries. Dubai Production City (DPC) Printing, publishing, packaging, media production. International Media Production Zone (IMPZ) Media production, printing, publishing. Dubai Science Park (DSP) Life sciences, biotech, research and development. Dubai South Technology (AI), events, restaurants and new / futuristic industries. Dubai International Academic City (DIAC) Higher education, universities, academic institutions. Dubai Maritime City (DMC) Maritime activities, shipbuilding, maritime services, marine industries. Dubai Outsource City (DOC) Outsourcing services, call centers, BPO, IT support. Dubai Gold and Diamond Park Jewellery manufacturing, trading in gold and diamonds. Dubai Logistics City (DLC) Logistics, supply chain management, freight forwarding. Dubai Textile City Textile trading, garment manufacturing, fabric sales. Dubai Studio City Film and TV production, broadcasting, music, entertainment. Dubai Industrial City (DIC) Manufacturing, logistics, light and heavy industry. International Humanitarian City (IHC) NGOs and charitable organisations Dubai Biotechnology and Research Park (DuBiotech) Pharmaceutical company, research and development, biotech Dubai TechnoPark IT, software development, automation and robotics Dubai Flower Centre Floral Industry Business DUQE Free Zone Startups, SMEs, tech, innovation, maritime industries. Dubai Commercity Warehousing, last mile delivery, e-commerce tech and consulting. Dubai Auto Zone (DAZ) Auto industry Expo City Dubai Future city -
Sharjah free zones
All Sharjah Free Zones Popular Free Zones in Sharjah Sharjah Publishing City Hamriyah Free Zone Hamriyah Free Zone Sharjah Media City (SHAMS) Sharjah Media City (SHAMS) Sharjah Airport International Free Zone The Sharjah Research, Technology, and Innovation Park Sharjah Oasis for Technology and Innovation (SOTI) Sharjah Healthcare City -
Ajman free zones
All Ajman Free Zones Ajman Free Zone Ajman Media City Free Zone -
Ras Al-Khaimah free zones
All Ras Al Khaimah Free Zones Popular Free Zone in RAK Ras Al Khaimah Maritime Ras Al Khaimah Economic Zones (RAKEZ) Ras Al Khaimah Economic Zones (RAKEZ) -
Fujairah free zones
All Fujairah Free Zones Creative City Free Zone Fujairah Free Zone -
Umm Al Quwain free zones
All Umm Al Quwain Free Zones Umm Al Quwain Free Zone
-
-
UAE free zones comparison
-
Dubai free zones
DMCC Meydan Free Zone Jebel Ali free zone Healy Consultants fees (US$) 24,874 26,348 28,255 Incorporation time 3.5 months 3 months 3 months Cheapest yearly flexi-desk (US$) 5,600 1,225 10,000 Yearly warehouse rent estimate (US$) Not available Not available 25,000 Paid up share capital estimate for free zone company (US$) 14,000 0 0 Paid up share capital estimate for free zone establishment (US$) 14,000 0 0 Virtual office allowed No No No All shareholders must travel required for company formation No No No Minimum number of shareholders 1 1 1 Minimum number of directors 1 1 1 Corporate shareholders allowed Yes Yes Yes Corporate directors allowed No No No 100% foreign ownership allowed Yes Yes Yes Public register of shareholders and directors No No No Annual tax return to be submitted Yes Yes Yes Statutory audit required Yes Yes Yes Access to UAE double tax treaties Yes Yes Yes Type of business activities allowed View document View document View document Can rent office premises outside free zones No Yes, with NOC No Allowed to import raw materials? Yes Yes Yes Allowed to export goods? Yes Yes Yes How long to get work permit approved 4 weeks 4 weeks 4 weeks Free zone work permit fee per person US$ 4,950 US$ 4,950 US$ 4,950 Draft Invoice Here Here Here -
Sharjah and Northern Emirates free zones
RAKEZ Free Zone Hamriyah Free Zone Total Healy Consultants fees (US$) 19,605 21,980 Incorporation time 3 months 3 months Cheapest yearly office rent estimate (US$) 2,000 2,500 Estimated warehouse cost / sq feet AED 15 -20 AED 25 - 30 Paid up share capital estimate for free zone company (US$) 0 0 Paid up share capital estimate for free zone establishment (US$) 0 0 Virtual office allowed No No All shareholders must travel required for company formation No No Minimum number of shareholders 1 1 Minimum number of directors 1 1 Corporate shareholders allowed Yes Yes Corporate directors allowed No No 100% foreign ownership allowed Yes Yes Public register of shareholders and directors No No Exempt of corporate tax on profits Yes Yes Annual tax return to be submitted Yes Yes Statutory audit required Yes Yes Access to UAE double tax treaties Yes Yes Types of licenses allowed Trading
Industrial
Logistics
ServiceTrading
Industrial
Logistics
ServiceCan rent office premises outside free zones No No Allowed to import raw materials? Yes Yes Allowed to export goods? Yes Yes How long to get work permit approved 4 weeks 4 weeks Free zone work permit fee per person 4,950 4,950 Draft invoice View invoice PDF View invoice PDF -
Other options
-
-
External videos
