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Business Setup in Dubai, UAE | Beyond View

Freezone Company Formation

Free zone Company Formation UAE

Affordable Free zone license options

Freezones or Free trade zones are special economic zones in UAE which allow the investors to own 100% shares of a company. These authorties are intended to provide single window operations and improve business in the country to Freezone Companies.

 

Setting up a freezone company implies that you will work usually at preferential tax and customs rates. This implies you are exempted from the mainland laws of the country, which might be extremely favorable for investors.

 

The specific authority of the country will help you in forming up a business license in order to improve the business efficiency for the investors.

Free zones in Dubai provide a range of benefits such as 100% foreign ownership, full repatriation of profits and capital, exemption from import and export duties, and a tax-free environment. These advantages make free zones an attractive option for entrepreneurs and businesses.

 

The licensing process is a crucial step in free zone company setup. Choose the right type of license for your business activity, whether it’s a trade license, service license, or industrial license. Work closely with the free zone authorities to complete the application process efficiently.

Benefits of the Freezone Company:

  • Local or Foreign Companies can own 100% shares in Freezone.

  • 100% Repatriation of capital and benefits

  • No personal income and corporate tax.

  • There is no customs duty on import and exports.

  • Inexpensive workforce and simple enrollment process.

  • ‘One-stop-shop’ Easy services.

  • Facility to work round the clock without any restrictions.

Restrictions of the Freezone Company:

  • A Freezone company is not permitted to deal directly with the local market in United Arab Emirates. Company needs to trade with local allocated distributors if they want to deal in local market.

  • There is a custom duty of 5% for local market trading.

  • Some of the Freezones require a paid up capital which depends on the structure of the company and freezone authority.

Legal Types in Freezone

Types of Company Formation in Freezones

When establishing a business in a freezone, understanding the various legal structures available is crucial. Each legal type offers distinct advantages and considerations, allowing you to tailor your company’s formation to your specific goals. Here are the primary legal structures commonly found in freezones:

Free Zone Establishment (FZE)

A Free Zone Establishment is a legal entity formed by a single shareholder, whether an individual or a corporate entity. FZE offers full ownership to the shareholder and provides an excellent option for entrepreneurs looking to operate independently within the freezone.

Free Zone Company (FZC)

Similar to FZE, a Free Zone Company allows multiple shareholders to come together and form a corporate entity. FZC is an ideal choice for businesses with partners or investors who wish to collaborate on ventures within the freezone.

Branch Office

Establishing a branch office allows you to extend your existing company’s presence into the freezone. This is suitable for companies looking to expand their operations while maintaining a connection to their parent company.

Subsidiary Company

A subsidiary company is an independent legal entity with its own management and operations, but it’s fully owned by a parent company. This structure can offer flexibility in terms of financial liability and operational control.

Joint Venture

In a joint venture, two or more parties collaborate to create a new legal entity. This can be an effective strategy to leverage the strengths of each partner and pursue mutual business objectives.

Special Purpose Vehicle (SPV)

An SPV is often used for specific business projects, investments, or holding assets. It provides a separate legal entity for these specialized purposes while minimizing risk to the parent company.

Each legal structure comes with its own set of requirements, benefits, and obligations. Before making a decision, it’s advisable to consult with legal and business experts who can help you choose the best legal type for your business objectives. Whether you’re a startup, an established business, or an investor, the right legal structure in a freezone can be a strategic advantage on your path to success.

Cost of Business Setup in Freezone:

Business setup cost varies from freezone to freezone. Normally Dubai freezones are little expensive because of the high rental cost. There are so many freezone options available in Ajman, Ummal Quwain, Ras al Khaimah and other states of United Arab Emirates.

Sr. No. Service Type Government Fee (AED)
1 Freezone Company Formation 5,750 Onwards
2 E-channel Fees (Not Required for Dubai Freezones) 2,500
3 Visa Fee 3,500 – 5,000
4 External Approval not included for all freezones
5 Flexi Desk not included
6 Office Rent not included
7 Warehouse Rent not included
8 License Registration Cost Included in Company Formation

List of Freezone in United Arab Emirates:

Dubai Free Zones Dubai Airport Free zone (DAFZA)
  Dubai Silicon Oasis (DSO)
  Jebel Ali Free zone (JAFZA)
  Dubai South
  Dubai Multi Commodities Centre (DMCC)
  Dubai Studio City
  Dubai Internet City
  Dubai Media City
  Dubai Knowledge Village
  Dubai Academic City
  Dubai Outsource City
  Dubai Production City
  Dubai Biotech Research Park
  Gold and Diamond Park
  Dubai Auto Zone
  Dubai Healthcare City
  Dubai International Financial Centre
  Dubai Logistics City
  Dubai Maritime City
  Dubai Flower Centre
  International Humanitarian City
   
Sharjah Free Zones Sharjah International Airport Free Zone (SAIF)
  Hamriyah Free Zone
  Sharjah Media City Free Zone (SHAMS)
   
Umm Al Quwain Free Zone Umm Al Quwain Free Trade Zone Authority
   
Ajman Free Zones Ajman Freezone Authority
  Ajman Media City Free Zone
   
Ras Al Khaimah Free Zones RAK Investment Authority
  RAK Free Trade Zone
  RAK Maritime City
   
Fujairah Free Zones Fujairah Free Zone Authority (FFZA)
  Fujairah Creative City Free Zone
   
Abu Dhabi Free Zones Abu Dhabi Global Market
  Masdar City
  Abu Dhabi Ports Company
  Abu Dhabi Airport Free Zone
  Twofour54 Media Zone

All the freezones in UAE has different requirements and criteria depending on the business activity you select for the license. To know more about the details, contact us and we will be happy to he