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.
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:
There are two main types of Freezone Companies:
- Freezone Establishment (FZE): FZE company is a single shareholder company. Individuals as well as corporate companies can also open Freezone Establishment company.
- Freezone Company (FZC): FZC has two or more shareholders.
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 | 11535 Onwards |
| 2 | E-channel Fees (Not Required for Dubai Freezones) | 7300 |
| 3 | Visa Fee | 4500 – 7000 |
| 4 | External Approval | Included in Company Formation |
| 5 | Flexi Desk | Included in Company Formation |
| 6 | Office Rent | Included in Company Formation |
| 7 | Warehouse Rent | Included in Company Formation |
| 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 help.