UAE Free Zone Company Formation
Free Zone Company
Free Trade Zones are areas in the United Arab Emirates (UAE) that are entitled to certain tax, customs, and imports regime. Each Free Zone caters to a particular commercial category of business and licenses to companies within those categories. These zones offer the benefit of full ownership to entrepreneurs. These areas are of special economic importance and can exercise their authority, and can freely work under their own regulations.
An FZE or FZC can also be a limited liability company (LLC) governed by the rules and regulations of the Free Zone in which it is established. It is exempted from the provisions of the UAE Commercial Companies Law (CCL). With more than 40 Free Zones, the UAE has become the ideal business hub for foreign investors. You are free to open offices in any of the UAE free zones across Dubai, Abu Dhabi, Sharjah, Fujairah, Ras Al Khaimah, and Umm Al Quwain.
A Free zone offers a host of advantages. The prominent among these are:
- 100% Foreign Ownership
- Freedom to open multi-currency Corporate bank accounts
- 100% Repatriation of Capital and Profits
- 100% Corporate and Personal Income Tax Exemption
- Freedom to undertake a range of licensable activities
- Modern and efficient communication
- Ability to leverage logistic efficiencies due to business cluster effect
- Serviced desks and offices for SMEs and start-ups
- Excellent support service
- Robust Start-up processes, labor, and immigration procedures
Requirements to Set up a Free Zone Company
You have the option to set up a Free Zone Establishment (FZE) or Free Zone Company (FZC). The only distinction between an FZE and FZC is the number of shareholders. FZE can be formed with a single shareholder while FZC can have two or more shareholders. You can establish a Branch or Representative Office of your existing Parent Company based within the UAE or abroad.