Starting a business in Dubai free zone

Free zones are economic areas where goods and services can be traded. These regions are also known as free trade zones or a free zone authority. Free trade zones attract 0% tax rates, preferential customs duty rates and 100% import and export tax exemption.

Free zones are particularly popular with privacy-conscious entrepreneurs. This is because there’s 100% foreign ownership with no open directory of company details. 

UAE Free Zones are the designated areas in UAE, where the expatriates can fully own and operate their business. Free Zone Company Registration in UAE is a prospective business investment for expatriates from all over the world. The Free Zones of UAE has become the major trading hub of the region due to the business support initiatives offered by the UAE Government and the Free Zone Authorities. 

The main attractions of establishing an entity in one of the UAE’s Free Zones is that there are no foreign ownership restrictions and companies are governed by an independent Free Zone Authority (FZA), which is responsible for issuing operating licences and regulating the activities of companies within the Free Zone.

Benefits of a Free Zone include:

• 100% foreign ownership (no requirement for a local partner/sponsor);
• 100% repatriation of capital and profits;
• 100% corporate and personal income tax exemption;
• Absence of currency restrictions;
• Wide variety of licensable activities;
• Abundant and inexpensive energy;
• Modern, efficient communications;
• Logistic efficiencies due to business cluster effect;
• Serviced desks and offices for SMEs and start-ups;
• Excellent support services.

Key steps to start a business

Setting up a business in a free zone is relatively easier. Free zone authorities require minimum paperwork and duration. Here are the key steps to set up a business in a free zone.

• Determine the type of legal entity
• Choose a trade name
• Apply for a business licence
• Choose an office space
• Get pre-approvals, register your business and get your licence

Determine the type of legal entity

Determine the type of legal entity your business would take up. In a free zone, you can set up one of the two types of companies:

• Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
• Free Zone Establishment (FZE)

The differences lie in the number of shareholders and whether the shareholder is a natural person or a legal person. All free zones might not register both types of companies. You need to check with individual free zone authorities about the type of company they can register. Refer to the list of free zones and their authorities.

Freezone list in Dubai 

Dubai CommerCity (DCC) free zone, Dubai Creative Clusters Authority :Dubai Internet City, Dubai Media City, Dubai Production City, Dubai Studio City, Dubai Outsource Cit, Dubai Knowledge Park, Dubai International Academic City, Dubai Science Park, Dubai Design District

Under Dubai Multi Commodities Centre Authority:

• Dubai Multi Commodities Centre (DMCC)
• Jumeirah Lakes Towers (it is now part of DMCC)

Others:

Jebel Ali Free Zone (Jebel Ali Free Zone Authority), Dubai Airport Free Zone (Dubai Airport Free Zone Authority), Dubai Silicon Oasis - (Dubai Silicon Oasis Authority), Dubai HealthCare City - (Dubai Healthcare City Authority), International Humanitarian City, Dubai Maritime City - (Dubai Maritime City Authority), Gold and Diamond Park, Dubai South, Dubai International Financial Centre, Meydan, National Industries Park.

For more information reach to CA Neetu Jain

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