Freezone Company Formation in UAE
ADAM Consulting – Your Partner in Business for Freezone Company Formation in the UAE
ADAM Consulting is a name trusted since 2002 for Companies like yours from all over the world to set up, scale & expand their business in the Middle East and specifically the United Arab Emirates. We put your ambitions at the centre of everything we do and hold your hand throughout your business journey.
Are you interested to know, understand and learn all about Freezone company formation in the UAE? Browse through these quick links on this page;
Quick Facts about the United Arab Emirates (UAE)
The United Arab Emirates is a country situated on the end of the Arabian Peninsula, bordering the states of Saudi Arabia and Oman as well as sharing a maritime border with Qatar and Iran.
The country is a federation of the seven emirates or cities and constitutes of Abu Dhabi (the capital), Dubai, Sharjah, Ajman, Ras Al Khaima, Fujairah and Umm Al Quwain
The UAE enjoys a quite strategic location, substantial financial reserves, sizeable sovereign wealth fund, promising investor home economies as well as consistent government spending.
Foreign Direct investments contribute to a stable and progressive economy with the focus of the government being primarily on economic diversification.
Why Businesses are choosing UAE for their Free zone Company Formation
Long Term Value
UAE is ranked #1 regionally & #7 globally in terms of long term value creation of their resources among 62 other countries.
UAE’s Competitiveness is ranked # 1 worldwide across 23 indicators, including Government Decision and Global Talent.
Ease of Doing Business
UAE is ranked 1st in the Arab World and 11th internationally in the “Ease of Doing Business Report” published by World Bank that evaluated 190 countries across several factors.
The UAE has a robust economic outlook moving away from the oil-driven economy by diversifying its income resources via the Vision 2021 strategy set forth by the ruler.
Government Spending & Support
The UAE has injected over 300 Billion AED to encourage economic growth via innovation initiatives. So far, over 100 Initiatives are ongoing, all promoting a versatile digital economy.
Excellent Arbitration System
The UAE laws outline the rights of every citizen and promote equality regardless of race, religion, gender, nationality or social position. It also has well-defined laws to protect the interest of business owners and their businesses
Safety & Security
The UAE is known to be one of the safest and most secure countries in the world. In an official survey conducted recently, over 96.1 % of citizens said they feel safe and secure in the country.
The Business Environment- Understanding Free zone Company Formation in UAE
What is Freezone in UAE?
A freezone entity is an economic area where the trade of goods and services at typically a preferential tax and customs rate is permitted. The idea to launch free zones in the UAE was to attract and increase foreign companies to establish their presence in UAE leveraging on benefits such as 100 % foreign ownership.
Currently, more than 45 free zones are operating in the UAE with Dubai taking the majority.Some for the well known freeznes in UAE are JAFZA ,DWC,DMCC,DAFZA,DWTC,Dubai Silicone Oasis Free Zone,KIZAD,Hamriyah Freezone,SAIF,AJMAN Freezone,RAKEZ,Umm Al Quwain Freezone,SHAMS etc.
Why Do Entrepreneurs Choose Freezone Company Formation in the UAE
Among the numerous advantages of setting up a company in a freezone is that it primarily allows the foreign investor to hold 100 % shares of the company. The freezones offer Trading,Service,Industrial and Branch licenses. Some of the significant advantages of a freezone company in UAE is are as follows:
- 0% Corporate or Income Tax
- 100 % Ownership
- 100 % Repatriation of capital and profits
- Minimum paperwork required to incorporate a freezone company
- Wide range of choice for business activities
- Exemption from custom duties
- The process of recruiting staff is relatively more straightforward in freezones
- A diverse selection of Business Categories
- Local Partner or Local Sponsor not required
- High-quality infrastructure facilities
- Competitively priced operational cost
- A wide choice of ready-made Offices and Warehousing facilities for leasing
List of Offshore Jurisdictions - In the UAE
There are currently three offshore jurisdictions in the United Arab Emirates. ADAM Consulting is an award-winning registered offshore agent for all three.
Ras Al Khaima
Corporation (RAK IBC)
List of free zones in the UAE Dubai
Free Zones in Dubai
- Jebel Ali Free Zone (JAFZA)
- Dubai Multi Commodities Centre (DMCC)
- Dubai Airport Free Zone (DAFZA)
- Dubai World Trade Centre Free Zone (DWTC)
- Dubai Science Park
- Dubai Car and Automotive City Free Zone (DUCAMZ)
- Dubai Design District
- Dubai Gold and Diamond Park
- Dubai Healthcare City (DHCC)
- Dubai Industrial City (DIC)
- Dubai International Academic City
- Dubai International Financial Centre (DIFC)
- Dubai Internet City (DIC)
- Dubai Knowledge Village
- Dubai Logistics City
- Dubai Media City
- Dubai Outsource Zone
- Dubai Silicon Oasis
- Dubai Studio City
- Dubai Techno Park
- Dubai Technology and Media Free Zone
- International Media Production Zone ( IMPZ)
Free Zones in Abu Dhabi
- Abu Dhabi Global Markets (ADGM)
- KHALIFA INDUSTRIAL ZONE ABU DHABI (KIZAD)
- Masdar City Free Zone
Free Zones in Sharjah
- Hamriya Free Zone (HAFZA)
- Sharjah Airport International Free Zone
- Sharjah Publishing City Free Zone
- Sharjah Media City Free Zone (SHAMS)
Free Zones in Fujairah
- Fujairah Free Zone
- Fujairah Creative City
- International Free Zone Authority (IFZA)
Ras Al Khaimah
Free Zones in Ras Al Khaimah
- Ras Al Khaimah Economic Zone (RAKEZ)
- RAK Maritime City Free Zone Authority (RMCFZA)
Free Zones in Ajman
- Ajman Free Zone
- Ajman Media City Free Zone
Umm Al Quwain
Free Zones in Umm Al Quwain
- Umm Al Quwain Free Trade Zone (UAQFTZ)
The Process of Offshore Company Formation Documents: What are the documents required for an Offshore Company Formation?
To register an offshore company in the UAE, the applicant who is either natural or juristic must submit, along with other supporting documents, a duly signed application form to the offshore company’s registrar.
The application form contains information on the proposed capital. The application form will require the shareholder’s full name and addresses as well as the number of shares held by each along with their proposed value. The shareholder may decide to either nominate minimum one director who can be from among them or appoint an outside individual. The application is to be submitted along with the company’s proposed memorandum and articles of association.
Other Documents include the following
1. CV/Resume of the applicant
2. Applicant’s Passport Copy
3. Reference letter from Bank
4. Proof of Residence (any document such as utility bills that verifies the address of the applicant)
5. Passport copy of nominated Director
6. A notarized Power of Attorney duly attested by UAE Embassy/Consulate in favour of ADAM Consulting to pursue the incorporation procedure on behalf of the applicant.
The following documents shall be duly attested by the UAE embassy in the country of incorporation.
1. Company’s Registration Certificate
2. Certificate of good standing
3. Applicant Company’s Memorandum & Articles of Association
4. Board Resolution for offshore company establishment, director’s appointment and legally permitting ADAM Consulting as a legal representative of the company.
5. Reference letter from Bank
Types of Entities for Freezone Company Formation in UAE
In the UAE, Foreign Investors can choose between incorporating a Freezone Establishment, also known as FZE or a Freezone Company, also known as FZCO, FZC or FZ LLC.
What is the main difference between an FZE and FZCO?
|Factors||Freezone Establishment (FZE)||Freezone Company (FZCO)|
|Shareholder||There is only be one shareholder which can either be an individual or a company||A min of 2 and maximum of 5 Shareholders are required for this type of freezone company formation.|
|Share Capital||Depending on the type of activity and freezone this can vary between AED 1000- AED 300,000|
FZ LLC vs Mainland LLC in UAE: What is the difference?
A freezone LLC is established by its individual or corporate shareholder or a combination of the two as an independent legal entity with limited liability corporation. It is 100 % owned by the foreign investor, unlike the mainland LLC
|Mainland LLC||FZ LLC|
|Requires local partner or sponsor who will own 51 % of shares.||Can be 100 % foreign-owned|
|Can trade across UAE as well as internationally||Can only trade within the designated freezones . Requires mainland distribution agent to do business within UAE, i.e. outside of the freezone in which the company is registered.|
|Can conduct commercial, professional or industrial activities||Can conduct commercial, professional or industrial activities|
Type of Business Licence of Freezone Company Formation in the UAE.
The type of trade licence you require for your freezone company in UAE depends on what kind of business are you going to conduct. Below is the kind of licences for freezone company formation in the UAE.
General Trading Licence
This type of licence allows you to do trading activities such as import and export, and deal the in trade and distribution of goods and commodities
With an industrial licence, you are permitted to manufacture, package and process.
If you are looking to offer professional services such as accountancy or consulting, then this type of licence is the ideal choice.
National Industry Licence
If the UAE government has acquired at least 51% Ownership of your manufacturing business in the UAE, you need to apply for a National Industry Licence.
Innovation Licence & Tech Start-Up Licence
This type of licence is provided only by select freezones and is usually only granted to tech startups with a focus to scale regionally and to Tech start-ups aligned with the UAE National Innovation Priority Sectors. This type of licence is not available for technology service providers.
In UAE you must legally register your online store to sell goods. This type of licence enables you to carry out e-commerce activities.
The Freelance permit, in essence, is not a trade licence but rather a permit that enables you to offer services and expertise as a sole practitioner. You cannot employ staff. The permit can be considered as legal permission for you to render your services as an independent, individual contractor. The permit holder can also apply for VISA for him once permit is issued .Once his VISA is stamped to th passport ,he can sponsor his family visa.
Dual Licence (Abu Dhabi)
All the free Zone companies in Abu Dhabi can apply for Branch of Free Zone company license from DED Abu Dhabi ,without the requirement of an Emirati National as the LSA(local service agent) and Office space in the Mainland . The free Zone will act as the LSA and the companies office space in the freezone will be the office of the branch.
The Process of Freezone Company Formation
Documents: What are the documents required for a Freezone Company Formation?
List of Document for Freezone Company Formation in UAE
- Passport copy of the Shareholder(s);Director(s);Manager
- Address proof for all the above
- Professional CV of all the above
- Proposed names of the company
- Specimen Signature document for the Shareholder /Director
- Business Plan (based on activity /Freezone)
Costs: What is the price for a freezone company formation in UAE?
The cost will depend on the freezone, number of visa required,Type of Office selected and other factors; however, for setting up a company in a freezone the cost can start from AED 9000 onwards in UAE.
Freezone Setup Process: How to start your business in a Freezone in UAE
At ADAM Consulting, we guide you and hold your hand through each step of your business journey. Although the process is quite detailed, below is an 8 Step Process highlighting the essential incorporation procedure for your freezone company formation in the UAE with our highly experienced staff.
Determine your type of business activities
Determine legal form
Finalization of your tradename
Submit all required document for approval
Get notified when licence is issued and collect documents
Open your Bank Account. We can Introduce to Bankers we deal with.
Get your immigration card if opted in for a visa package
Get your visa processed if applicable
Avail attractive freezone packages ! Apply now for a free consultation
Frequently Asked Question on Freezone Company Formation in UAE
All you need to know about freezone company formation in the UAE. Browse through this section to get a quick overview or schedule a consultation with an expert business advisor
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