UAE free zone company formation is the process of setting up a company across any designated free zone in the UAE in line with the local laws and compliance standards.
On the last count, 40 free zones were operating across all emirates while many more are in the pipeline. These designated zones are international business hubs, offering ownership, asset protection, tax, cost and other benefits to foreign companies operating within their jurisdiction. Initially, the majority of free zone companies in the UAE were importing-export oriented, but now they rely on the local distributors to carry out their business activities across the UAE and beyond.
Each free zone operates as a separate entity and themed around one or more specific commercial category/categories. Take, for instance, the Silicon Oasis free zone, a designated area with technology as the central theme. At the helm of affairs of every free zone is a Free Zone Authority that handles day-to-day affairs, facilitates Freezone company formation, issues licenses and provides registration. Although every free zone has its own set of procedures and regulations, the fundamental principles are more or less similar across the board.
Benefits of Company Formation in Dubai Free Zones
Are you looking for company formation in Dubai Free Zones to extend your business footprint and achieve a global reach? It’s a good idea, as several benefits await you. Here’re they.
Full Ownership: No need for a local sponsor for business setup in UAE free zones. Thus, the foreign entrepreneur has 100% ownership of his free zone company.
Tax waivers: No income tax, inherent tax, personal tax or corporate tax is applicable, making these designated areas a true tax haven. Plus, the import/export duty is nominal.
Easy repatriation: The entrepreneur is entitled to send home the earnings, fully and partially. The currency movement is also fast and hassle-free.
Progressive business environment: The UAE has everything that a business needs to thrive – business-friendly policies, excellent infrastructure, advanced communication system, ease of doing business, an upbeat economic environment and more.
Cost Benefits: Low Dubai Freezone company setup cost and operational cost, together with tax exemptions, ensure high profitability.
Fine-tuned infrastructure: Free zones feature world-class IT infrastructure and ready-to-occupy offices and warehouses. Professional business support services, such as labour assistance, sponsorship and more, are also readily available for hassle-free operations.
Fast incorporations: Thanks to a single entry point for licensing and registration, along with friendly legislation, the Dubai free zone business setup is fast and trouble-free.
Convenient recruitments: The recruitment and onboarding processes are fast and stress-free. Employees can be acquired from abroad in any numbers or hired locally.
Easily approachable: Each free zone is strategically located in the vicinity to airports, seaports and railway stations, ensuring logistics advantages.
Growing market: The consumerism and purchasing capacity in the Gulf Cooperation Council (GCC) countries is on the rise, providing a ready market for free zone companies.
Confidentiality: The pertinent information of the owners and directors, along with the nature of the business, is kept discrete with strict anonymity legislation.
How To Set Up a Free Zone Company?
Freezone company setup in UAE is governed by a set of procedures, each of which needs to be navigated skilfully. Populated below is a list of requirements and considerations to help your cause. However, if that sounds spadework, Danburite Corp is there to walk you through it.
Step 1: Decide on the jurisdiction
The free zones are designed with a particular commercial activity in mind. So, the choice of the free zone depends on the business activity you intend to involve in. Contact our representatives who are happy to help find the best jurisdiction for your individual situation.
Step 2: Decide the company structure
The company structure is a key decision with perks and minimum capital requirement depending solely on it. For instance, DMCC business setup requires AED 50,000 as minimum share capital for company formation while the same in Dubai Airport Free Zone is AED 150,000. With cutting-edge, experiential insights, we help you choose the most suitable company structure.
Step 3: Opt for a trade name
Next, opt for at least three suitable names for your free zone company. However, it’s not easy as it seems, as there are numerous restrictions involved. Here too, we kick in with our expertise, helping you choose an appropriate name while warding off hassles and delays.
Step 4: Apply for a license
For legitimate business setup in Dubai free zones, you require licenses and permits. To this end, first, register at the free zone authority’s official web portal and then apply for the required licenses with supporting documents. Our experienced and agile professionals not only suggest the required permits based on your business activity but also do all the spadework involved.
Step 5: Opt for office space
Now, purchase or lease office space as per your needs and budget. The authorities ensure a flex-desk office service for trouble-free Dubai Freezone company setup. However, if interfacing with the flex-desk for acquiring an office space is problematic for you, we’ll do it on your behalf.
Step 6: Get approval
The Dubai Free Zone company setup process concludes when you achieve approval and licenses from the concerned Free Zone Authorities and government departments/ministries. The process typically takes 2 to 4 weeks, provided you navigate each step properly.
At Danburite Corp, we pride in walking you through the entire process with end-to-end company formation services across all free zones in UAE. Whether it’s RAK free zone business setup or Ajman free zone business setup, trust our personalized and professional services for fast and easy incorporations. We offer the best prices across all services to bring down the UAE free zone company formation cost significantly.