What is a freezone company?
The Free Zones are geographically and economic demarcated areas in UAE, where goods and services can be traded. Free Zone Company Registration in UAE is a prospective business investment for entrepreneurs from all over the world by offering 100% foreign company ownership, currently more than 45 free zones across the UAE were rolled out to boost international business in the region.
Each free zone has its own specific industry hence specific requirements regarding, minimum capital requirements, office or warehouse required space and permitted activities; with each possessing the relevant licences and adequate legislation to enable their dedicated industry to flourish. EBDA Consulting assists with company incorporation across more the different UAE free zones. There’s no doubt a lot of information to review and much to consider when making the decision on which free zone is best suited to your specific business requirements, including location, price, business type, flexi-desk or office options, auditing and bookkeeping and share capital requirements, and much more.
That’s where the EBDA Consulting team comes in, walking you through it step-by-step, steering you in the right direction, saving you money, and ultimately making the entire experience a stress-free one.
Benefits of UAE Free Zone
- 100% foreign ownership for free zone companies.
- 100% exemption from corporate, personal, and income taxes
- The possibility to repatriate 100% of capital and profits
- No customs duties levied on imports and exports,
- Low freight charges
- Easy Procedure of Company Formation in UAE Free Zones
- Inexpensive workforce, and easy recruitment procedures
- The UAE free zones are sector specific. This gives its entrepreneurs ready access to a hub of knowledge and expertise from others within their field.
The are 3 main types of free zone corporate entities
- Freezone establishement
- Freezone company
- Branch company
The main difference between an “establishement” and a “company” is the number of shareholders required, establishement is a signle-shareholder entity while a company is actually a limited liability company and generally requires more than 1 shareholder.
The principal types of Free zones Licenses
Allows service providers production, re-production, transformation, and distribution of services. The service license includes rendering services as the primary objective and utilising associated goods to provide those services.
Allows the holding of standalone assets and/or shares in other companies. Holding companies are commonly used for controlling other companies and entities, property , stocks , assets , trademarks…
General Trading License
This enables the licensee to trade in a wider range of activities and gives the freedom and flexibility to trade in any commodity which is permitted within the UAE.
This enables the licensee to import raw materials, then production, re-production, manufacture, package the specified products, and finally export them.
Suitable for business professionals providing expert and professional consultancy services across all industries.
professional Authorises the import, export, distribution, and storing of items specified on the license.
To know before choosing the free zone
Each freezone is set to register companies in their own line of business and each of them has a different set of requirements, cost and legal structure. The right juridiction depends on the objectives of the firm and cost difference
- The right free zone according to your requirements. Few of these free zones support businesses on wider scale while others are for specific types of business activities.
- Different free zones have their own rules and regulations to start a business. Number and type of required documents may also differ according to the type of business activity.
- There is difference in share capital requirement of various free zones. Few of these may not require any share capital to start a business while others require minimum capital.
- Trading between free zones and import/export activity is freely allowed without any tax or duty.
- You will be required to pay 5% duty on goods and services if your business deals in Dubai mainland. This business activity is only possible through a distributor or agent.
List of some freezones in UAE
UAE there has several free zones across different areas such as Dubai, Ras al khaimah ,sharjah ,Ajman ,….