Essentially, free zones or free trade zones in Dubai are business zones where companies operating in them are exempt from all types taxation such as Value Added Tax (VAT), Income Tax, Corporate Tax and Customs. Business owners in the free zone areas in Dubai have 100% ownership of the business.
Is Dubai a free trade zone?
- Cons of Dubai free trade zone: Restrictions on trade: a free zone company can only trade within the zone or outside UAE. Restriction on the type of business: a company in a particular free trade zone is limited to the activities authorized in that particular free zone, it cannot indulge in activities other than that.
What does free zone mean in Dubai?
Free-trade zone in Dubai, (FTZs) are special economic zones set up with the objective of offering tax concessions and customs duty benefits to expatriate investors. Most of the free zones in Dubai broadly offer trading, services, and industrial licenses to investors looking to set up their businesses.
What are free zones in the UAE?
Free zones are geographically demarcated areas within the UAE (even if most of them are not fenced or gated) permitting 100% foreign ownership and are in most cases, dedicated to a specific industry.
How does a free zone work?
A free trade zone is a geographical area within a country and can be designated or located anywhere within a country. Equally, a company could move their production facilities to another country and import the resulting goods to the free zone without paying customs duties or tax.
What is meant by free zone?
Definition of free zone: an area within which goods may be received and stored without payment of duty.
What are the benefits of a free zone?
Free Zone Benefits and Costs
- 100% foreign ownership.
- 100% repatriation of capital and profits.
- 100% import and export tax exemption.
- 100% exemption from income and corporate taxes.
Which free zone is best in UAE?
List of best free zones in the UAE:
- Jebel Ali Free Zone Authority (JAFZA)
- Dubai Multi Commodities Centre (DMCC)
- International Free Zone Authority (IFZA)
- Fujairah Creative City Free Zone.
- Sharjah Media City Free Zone (Shams)
- Sharjah Publishing City Free Zone (SPCFZ)
- Ras Al Khaimah Economic Zone (RAKEZ)
Is JVC a free zone?
Currently, there are 23 neighbourhoods which have been designated as freehold location in Dubai, with most popular freehold areas in Dubai being Dubai Marina, Downtown Dubai and Jumeirah Village Circle (JVC).
Is D3 a free zone?
About Dubai Design District (D3) Dubai Design District (D3) caters to the creative industries, particularly design and fashion. The free zone is suitable for businesses of all sizes and is home to local designers as well as international fashion houses.
Which is the cheapest Freezone in UAE?
Ajman Media City is the cheapest free zone in UAE. This freezone offers investors a range of business activities and business license types at the lowest cost.
Who owns free zone?
Port and Free Zone World, a wholly-owned subsidiary of state investment vehicle Dubai World, is to acquire the 19.55% of shares listed on the Nasdaq Dubai, according to a stock filing. Port and Free Zone World already owns 80.45% of ordinary share capital of DP World.
What is the difference between Dubai and free zone visa?
What is the difference between the Dubai mainland visa and a free zone visa? The validity of mainland company’s employment visas is two years, while the free zone visa is valid for three years. Whereas with a free zone visa you have to consult a local agent to be able to work in non-free zone companies.
What is difference between mainland and Freezone UAE?
The fundamental difference between mainland and free zone is that Free Zone Company cannot conduct its operation in non-free zone without the support of a local agent whereas a mainland company freely operates its business activities anywhere in UAE. There are numerous free zones in Dubai.
What are the different types of free zones?
There are three types of Free Zones:
- Industrial Free Zone for the importation of raw materials for manufacturing of products for exportation.
- Commercial Free Zone for the importation of general goods for subsequent sorting, mixing, re-bagging, re-labeling or further processing into finished products for re-export.
List of free-trade zones in Dubai – Wikipedia
Free-trade zones (FTZs) in Dubai are special economic zones that were established with the goal of providing tax breaks and customs duty exemptions to foreign companies that invest in the area. In Dubai, there are more than 30 Free Zones that are operational. The Free Trade Zones inDubai and the United Arab Emirates are controlled by a unique set of laws and regulations. A Free Zone Authority is a government agency that grants business permits to foreign-owned corporations. Each Free Zone is organized around one or more industrial groups, and it only grants licenses (for example, for a Free Zone Enterprise (FZE)) to enterprises that fall into those categories.
Free zones in Dubai are governed and operated by the appropriate government agency or organization. For example, the Jebel Ali Free Zone Authority in Dubai is in charge of administering, running, and overseeing the Jebel Ali Free Zone, which is one of the largest seaport free zones in the world and one of the largest in the world. On the country’s Foreign Direct Investment, a subsidised rate of 32 percent is offered to investors (FDI). The Dubai Multi Commodities Centre (DMCC) is one of the several Free Zones in Dubai, and it has 7,330 active registered firms (as of 2013), has a retention rate of 94 percent, and expects to receive over 200 applications each year.
It contributes 12 percent to the GDP of Dubai and is expected to increase at a rate of 27 percent over the next five years (as per 2015).
The Dubai Airport Freezone (DAFZA), the Dubai Internet City, and the Dubai Media City are among the other facilities in the city.
A free trade zone in Dubai known as the International Free Zone Authority (IFZA) is one of the most cost-effective and rapidly expanding free trade zones in the world.
It is estimated that there are more than 20 Free Zones functioning in Dubai, which include the following facilities:
- Airport Free Zone
- Dubai CommerCity
- Dubai Design District
- Dubai Gold and Diamond Park
- Dubai Healthcare City
- Dubai International Academic City
- Dubai Internet City
- Dubai International Financial Centre
- Dubai International Free Zone Authority (IFZA)
- Dubai Logistic City
- Dubai Knowledge Park
- Dubai Maritime City
- Dubai Media City
- Dubai Multi Commodities Centre (DMCC)
- Dubai Production City
- Dubai Science Park
- Dubai Silicon Oasis
- Dubai Studio Cit
- Dubai Studio Cit.
- List of Free Trade Zones in the United Arab Emirates
- List of company registries
- List of offshore financial centers
- List of financial districts
Dubai-based UAE Freezones (a well-established online platform for Global Resources) has been created for entrepreneurs who have a business concept but lack the knowledge, resources, or experience necessary to take that concept to fruition and kickstart their business in the United Arab Emirates for more than a decade. In order to assist clever investors who wish to establish their operations in the United Arab Emirates, whether onshore or offshore, UAE Freezones provides a unique consultancy service that provides clear direction and assistance.
As one of the most influential agents in guiding foreign players towards globalization through the UAE market and vice versa, Global Resources has played a key role.
UAE Free Zones Offer
It is feasible to change the nation of jurisdiction while yet maintaining the legal identity of the firm. As a result, relocating a company’s domicile from one country to another is referred to as domiciliation. More information may be found here. The VAT implementation and continuing compliance are all aspects of which we can provide a comprehensive variety of services to assist you. More information may be found here.
What is a free zone and why should you consider one?
The United Arab Emirates has long been a popular business location for people from all over the world. It’s not difficult to understand why, given the country’s low tax rates, strategic location in the core of the world’s largest and fastest-growing emerging markets, and a government that is devoted to nurturing and supporting business. The reality is that, while these are undoubtedly important considerations in attracting business to the UAE, there is another important reason why so many people come to the country to do business: free zones.
What is a Free Zone?
The term “Free Zone” refers to an economic zone where goods and services can be exchanged with the benefit of advantageous tax and customs rates, which are normally available to foreign investors. They were first introduced to encourage international business in the region by providing incentives such as 100 percent foreign ownership of foreign-owned corporations. There are now 45 free zones in the United Arab Emirates. Free zones in the United Arab Emirates have grown in sophistication throughout time, providing ever-increasing benefits to the firms who operate within them.
So, what is it about free zone company formation that makes it such an appealing alternative, and what may it imply for your firm?
Why set up in a free zone?
If you’re considering establishing a business in the United Arab Emirates, there are several advantages to doing so in a free zone. Setup is simple: The process of establishing a business in most free zones is quite basic. The specific application process will depend on your company activity and chosen free zone but in many situations you are simply asked to present some basic documentation such as passport copies and business paperwork. The entire process is usually completed in a week or two.
- Taxes and duties: The tax system in a free zone is possibly the most persuasive argument in favor of doing business there.
- That’s not all, either.
- When you establish your business in a free zone, you will not only profit from zero percent corporate and personal tax, but you will also be exempt from VAT, which is presently set at 5 percent.
- The majority of foreign entrepreneurs who wish to establish a firm on the United Arab Emirates mainland must collaborate with a local partner in order to succeed.
- Trading inside the United Arab Emirates: Businesses in free zones are not authorized to deal directly with the local market in the United Arab Emirates, however this restriction is readily circumvented.
- Alternatively, it is feasible to create your free zone firm and then open branch offices of your free zone company throughout the Emirates at a later period.
- Support and assistance: The authorities of the free zone are on hand to provide assistance during the setup process and thereafter.
- Many may also assist with the creation of corporate bank accounts, advise on the best bank to fit your needs, and even organising meetings in-branch for you and your employees.
Protection of personal information: Finally, free zones are particularly popular with entrepreneurs who value their privacy because there is no open directory of firm ownership, and corporate information such as shareholder data is never made public.
What is a free zone and how to set up in one?
If you’re convinced of the advantages of operating in a free zone, there’s even more good news: setting up your firm requires only five simple steps. Step one: Select a business activity to engage in. The number of business activities to choose from is in the hundreds, and it is possible to choose many activities under a single licence. Your company’s operations will play a role in determining the cost of your license application as well as the free zone that is most appropriate for your needs.
- Choosing a company name may be difficult anywhere in the globe, but in the United Arab Emirates, where there are special restrictions governing naming standards, this is a chore you’ll want to do as soon as possible after starting your business.
- There are a few extra idiosyncrasies to the UAE naming procedure, therefore working with a company formation professional is recommended.
- Step three: Complete all of the necessary documentation and submit your application.
- Some free zones may also ask you to submit a business plan as part of the application process.
- It is advisable to consult with a business formation professional at this point, who can check that everything is in order before submitting your application, so avoiding any needless delays.
- You’ll be contacted as soon as your license application has been granted, allowing you to gather your company paperwork and start to work as quickly as possible.
- Your selected free zone, as well as a business formation specialist, will almost always be able to assist you in locating a suitable bank.
Step number five: Processing of visas.
It is possible to have free zone authorities or a company formation specialist manage this procedure on your behalf, aiding with your application and contacting with appropriate government agencies on your behalf.
All it takes is a few hours of your time and some simple documentation, and you could be trading from a free zone in the United Arab Emirates — and collecting the perks that come with it – within a few weeks.
Virtuzone takes care of everything so that you can concentrate on what really matters – growing your business.
Disclaimer The rules and regulations of the United Arab Emirates, as well as the price associated with business creation, are subject to change without notice.
Furthermore, the complete responsibility for any information included in external links is with the owner of the third-party website from which the connection was obtained.
Starting a business in a free zone
The process of establishing a business in a free zone is pretty simple. The paperwork and time required by free zone officials are kept to a bare minimum. The following are the essential procedures in establishing a business in a free zone.
- Determine the type of legal entity that will be used
- Make a decision on a commercial name. Make an application for a business license
- Choose a location for your office
- Obtain pre-approvals, register your company, and obtain your license
Determine the sort of legal entity you want to create. Determine the sort of legal entity that your company would operate under. In a free zone, you can establish one of two sorts of businesses: manufacturing and distribution.
- Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
- Free Zone Establishment (FZE)
- Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
The distinctions are in the number of shareholders and whether or not the shareholder is a natural person or a legal person, among other things. It is possible that not all free zones will accept both sorts of businesses. It is necessary to verify with individual free zone authorities to see what kind of businesses they are permitted to register. Consult the list of free zones and the authorities in charge of them. In this article, you will learn about new company establishment packages in the Dubai Multi Commodities Centre (DMCC).
- Capital expenditures are required.
- In KIZAD, you can register a limited liability company (LLC) with a minimum paid-up capital of AED 150,000.
- Each share should be worth AED 1000, and there should be 100 shares in total.
- A minimum of AED 1 million in share capital is required for a firm to be granted a General Trading Licence in the United Arab Emirates.
- Decide on a business name.
- It is usually best to verify with either the relevant free zone authority or the relevant Department of Economic Development about the authorized trade names and whether the proposed name has already been registered before going through with the registration process.
- Consult the DMCC’s list of banned trade names for more information (PDF, 207 KB).
- It must not be in violation of public morals or public order in the country
- It must be consistent with the legal form of the company, for example (LLC, FZE, DMCC, etc.)
- It must not have been previously registered
- It must be compatible with the required type of activity and legal status
- It must not contain the names of any religion or governing authority, nor the names or logos of any external bodies
- And it must not contain the names or logos of any external bodies.
Sites related to this one:
- Obtaining a trade name registration using the Abu Dhabi portal
- Doing a trade name search through the Abu Dhabi Government site
- Trade name search courtesy of Dubai Economy
- Trade name inquiry courtesy of Sharjah Economic Development Department
- Trade name issuance courtesy of Sharjah Economic Development Department
Make an application for a business license.
The sort of business license you will need to get will be determined by the core activity of your company. There are several different types of business activity that you might engage in. In twofour54, you may do the following types of business activities:
- Marketing, advertising, animation, corporate film production, corporate print material, digital content production (such as computer generated imagery, 3D, etc.), educational content material, film production, gaming development, graphic design, and illustration are all examples of services available. Mobile media (for example, material for interactive media services delivered via mobile phones)
- Online electronic content creation (websites, e-books, travel guides, etc.)
- Music production and recording
- Music videos
- The arts of performance and theatre
- Production of print material (e.g. magazines, journals, periodicals, newsletters, guidebooks, and handbooks, among other things)
- Web design and development (for example, portals, search engines, social networking sites, web production, and online libraries)
- Radio content creation
- Script writing
- Software development (for example apps)
- Songwriting and composing
- Television production
Various other commercial operations
- The following industries are represented: branding agency
- Information services (for example, media related market research)
- Marketing communications
- Media content management (for example, digital archiving)
- Post production (e.g. television and film editing services)
- Professional associations (for example, non-profit organizations)
- Public relations
- Rights management
- Training (for example, media-related).
Publishing and broadcasting are two different things.
- A book or magazine or newspaper can be published. A satellite/terrestrial television channel or a satellite/terrestrial radio channel can also be broadcasted.
An application for a distribution license would be required in this situation. More than 600 business activities from more than 20 sectors are available to you when you join DMCC. These sectors include the following: energy; commodities; gold and diamonds; technology; construction; fast-moving consumer goods (FMCG); healthcare; aviation; shipping; education; media; financial services; personal and community services. Consult the list of enterprises that you are permitted to operate in DMCC. The Dubai International Financial Center (DIFC) allows you to operate financial and non-financial enterprises.
A non-financial business might be anything from a retail store to a restaurant to a five-star hotel to an art gallery or an educational institution.
As a result, the following types of business licenses are available:
It is possible to establish’single family offices’ at the Dubai Multi Commodities Centre (DMCC). These follow the conventional FZ LLC organizational structure. They can give services to a family individual, a family company, a family corporation (corporate structure), or a family trust, amongst other things. It might be owned by one or more individuals, or it can be owned by a corporate body in which all shareholders are members of the same family, for example. Select an office location. In free zones, you have the option of purchasing or leasing office space.
- There are several options at DMCC, including a flexi desk of 20-30 square meters, a flexible office of 200-265 square meters, and offices that span multiple floors and total up to 2,000 square meters apiece.
- The Hamriyah Free Zone Authority offers approximately 100 executive office suites ranging in size from 15 m2 to 42 m2, all of which are equipped with conference and internet access.
- Companies that are founded in free zones are subject to the norms and regulations of the individual free zones.
- In accordance with the kind of economic activity, corporate structure, and regulations of the relevant free zone authority, a list of papers is compiled.
The following is a broad outline of the procedures and supporting documentation required for approvals. A. Approval from the outset First and foremost, you must obtain approval. You are needed to supply the following information:
- Completing the application form
- Submitting a business plan
- Submitting a copy of your current trade license/registration certificate (if you are an established firm
- This is only relevant to local companies)
- Passport photos with color copies of the company’s shareholder(s) and the newly appointed Manager/Director for the new corporation
- Formal signatures of the firm’s shareholder/s and the newly appointed Manager/Director for the new company are required. 2 years’ worth of audited financial reports for a corporate entity or a letter of recommendation from a personal bank of the individual shareholder
- A letter of recommendation from the present sponsor (for individuals)
- Deed of conveyance for the unit
- Documents required: Letter of Intent
- Registry Identification Code (RIC) for Manager/Director (original and notarized)
Freelancers must provide fewer documentation than employees. In the majority of circumstances, they must supply the following:
- Application for registration
- Curriculum vitae
- Bank reference letter
- Registry Identification Code (RIC) (original and notarized)
- And any other documentation as required.
B. RegistrationFollowing initial approval, you will be required to pay registration costs as well as licensing fees. The fees are determined on the type of license that is necessary. After that, you must provide the following documents:
- The completed and notarized registration application
- The Board Resolution appointing the Manager/Director (notarized and attested)
- (Notarized and certified) Power of Attorney granted to Manager/Director Note that the Memorandum and Articles of Association (notarized and attested) are required. Representative signature of the Manager/Director (notarized and certified)
- Photograph of the Manager/Director at passport size on a white backdrop
- Information about the company’s stock capital
C. The licensing and visa application process
- It will be the authority’s responsibility to create lease agreements. After that, a business license will be given. The processing of visas will begin.
Please keep in mind that certain actions may be subject to clearance by external authorities. Please refer to the specific instances.
What are the conditions for making a capital investment in a business? These differ depending on the type of company and the authority in charge of the free zone. What kinds of enterprises may I start up in a free zone and how can I get started? You may run any type of business in any industry, including financial, educational, retail, hotel, and media, to mention a few examples. Inquire with the relevant free zone authorities about the types of enterprises that are authorized on their grounds.
The United Arab Emirates (UAE) provides investors more than 40 specialized free zones in which expatriates and international investors can own 100% of the firms they establish. These zones are distinguished by their highly efficient infrastructure, as well as specialized services that support seamless processes, therefore saving organizations a significant amount of time and resources.
Efficacy in the healthcare industry
100%Repatriation ofCapital and Profits
Efficacy in healthcare
Fast and EasyBusiness Set-upProcedures
Efficiencies in healthcare
NumerousOptions atCompetitive Costs
Efficacy in the healthcare industry
100% Exemptionfrom Corporate andIncome Taxes
Efficacy in healthcare
100%Exemption fromCustoms Duty
Efficiencies in healthcare
Easy Regional, Global Market Access
Efficacy in the healthcare industry
Efficacy in healthcare
- Jebel Ali Free Zone is a special economic zone in Jebel Ali, United Arab Emirates. Economic Activities is a category of economic activities. The Free Zone of Jabel AliMasdar is located in Jabel AliMasdar City. Renewable Energy is a subcategory of the category Renewable Energy. Abu Dhabi is a city in the United Arab Emirates. Dubai Maritime City is located in Dubai, United Arab Emirates. Maritime Services is a category of services. Al Ain Industrial City is located in Dubai. Industrial ActivitiesAbu Dhabi is a category of industrial activities. Khalifa Industrial Zone is a special economic zone in the Kingdom of Saudi Arabia. Abu Dhabi (KIZAD) is a category of city in the United Arab Emirates. Industrial ActivitiesAbu DhabiIndustrial City of Abu Dhabi (ICAD)Category Industrial City of Abu Dhabi (ICAD) Activities in the Industrial SectorAbu Dhabi Sharjah Publishing City is a city in Sharjah, United Arab Emirates. SharjahHamriyah Free Zone is a category of free zone. ClassificationSharjahDubai Commercial City CategoryDubaiDubai Textile CityDubai Textile City Listed in the category DubaiKhalifa Free Trade Zone. Trade and LogisticsAbu Dhabi is a category within the trade and logistics industry. Creative City is a tax-free zone. Creative DesignFujairahAjman Free ZoneFujairahAjman Free Zone CategoryTradeAjman Fujairah Free Zone is a special economic zone in Fujairah. Trade and LogisticsFujairahDubai South Category: Trade and Logistics Artificial Intelligence and Futuristic Activities is a category that includes a wide range of activities. DubaiDubai World Trade Center is located in Dubai, United Arab Emirates. Events and Conferences is a category that includes a variety of events and conferences. DubaiDubai Design District is a design district in Dubai. Dubai Science Park is located in the category of Creative Design. CategoryScientific ResearchDubaiInternational Humanitarian CityDubai International Humanitarian City Humanitarian Hub is a category. DubaiDubai Multi Commodities Center is located in Dubai, United Arab Emirates. Commodity TradingDubai is a category.
Everything You Need to Know about Dubai Free zones
In layman’s terms, a “free zone” is an unique economic zone where company owners have the advantage of maintaining 100 percent control of their companies while also benefiting from tax exemptions. As a business owner, you have the right to keep all of the earnings you have earned and reinvest them back into your company. Free zones in Dubai, on the other hand, provide you with all of this and more. Here are eight compelling reasons why you should consider establishing a business in one of Dubai’s free zones.
- Dubai provides a tax-exempt environment, allowing you to invest your money and reap the greatest rewards and benefits while the rest of the world is overhauling its tax rules. Free zones provide 100 percent ownership of your firm, in contrast to the Certain Liability Company (LLC) clause, which restricts your involvement as a foreigner to a limited amount of shares in the company. Unlike other business environments, where you must have a local sponsor or promoter, under the legislation of the Dubai Free Zones, a single individual can establish a firm. Possibilities for ownership and leasing: Furthermore, you will be eligible for extra benefits such as 25-year lease options, assembling and manufacturing facilities, and warehousing facilities
- And Participate in more than one activity: If you are searching for a Dubai company setup, one advantage you will have is that you will not be constrained to carrying out only one type of business-related activity
- This is a significant advantage. Confidentiality in the workplace Relaxation of bank account regulations: In Dubai, you have the option of opening a bank account in your name. Renewal rates that are reasonable
- Wrap things up according to your wishes and prudence
Naturally, the Dubai Free Zone Company is divided into numerous categories based on the field of activity in which they are engaged in. If you are considering establishing a business in one of Dubai’s free zones, the information provided below will be beneficial.
- Aviation, education, finance, information and communication technology (ICT), information and logistics, media, tourism, and hospitality are some of the industries represented.
Dubai Aviation Citicorp-Dubai World Central (DWC) and Dubai Airport Free Zone (DAFZA) are two strategic aviation initiatives of the Government of Dubai, both of which aim to propel the economy in the right direction. Dubai Aviation Citicorp-Dubai World Central (DWC) and Dubai Airport Free Zone (DAFZA) The Al Maktoum International Airport is located just beneath the DWC. A total of 160 million people and 12 million tonnes of freight may be handled yearly by this facility, which is situated on 6.7km sq of land.
The Dubai Airport Free Zone (DAFZ), on the other hand, is one of the fastest-growing free zones in the world, not only in Dubai, but around the world as well.
A total of around 1600 businesses, including construction, electronics, logistics, and aviation industries, are located inside the DAFZ. Because of its state-of-the-art infrastructure and sophisticated facilities, Dubai International Airport serves as a thriving economic hub for the region.
Dubai International Academic City and Dubai Knowledge Village are two of the most notable developments in Dubai. Dubai International Academic City is a one-stop-shop for investments in the higher education sector, as it is home to students from 137 different nations and offering more than 400 different education programmes. Facilities such as office and retail space, as well as business centers in the fields of human resource management and related fields, are available in Dubai knowledge villages.
The Dubai International Financial Center and the Gold Diamond Parks are two of the most prominent features of Dubai’s financial Free zone, which is home to a variety of businesses. With no restrictions on capital conversion or profit repatriation, the Dubai International Financial Centre is a Free zone devoted to integrating the economies of America, Europe, and Asia through international trade and investment. Several financial institutions, insurance companies, and consulting firms have established offices in Dubai.
As the name implies, GoldDiamond Park is a jeweler’s and shopper’s paradise that caters to the needs of both.
Information and communication technology (ICT)
Dubai Internet City, Dubai Outsource Zone, and Dubai Silicon Oasis Authority are examples of ICT facilities in the city. Dubai Internet City is the largest free zone IT setup in the Middle East, and it was established with the goal of assisting the growth of the telecom and information technology industries. Retail and office space in huge business parks, as well as advertising venue management services, are among the items and services that will be provided. As the name implies, the Dubai Outsource Zone facilitates the establishment of outsourcing businesses in the areas of contact center operations, business processes, human resources, information technology, and back-office operations, among others.
Industrial and logistics
The Jebel Ali free zone, often known as JAFZA Dubai, is the most important free zone of the Dubai government in terms of industrial space. In this 50 sq. ft. business center, over 6400 enterprises (including 120 Fortune 500 companies) are based and are prospering thanks to tax-free trade and a constantly expanding business environment.
TECOM Investment is a well-known brand in the world of business parks. In TECOM business parks, there are around 4500 enterprises functioning in the above-mentioned fields of information and communications technology, education, and manufacturing. TECOM has established the groundwork for Smart Cities such as SmartCity Malta, which is one of the most creative initiatives to be conducted in the Dubai business community. The Dubai Media City Free Zone and Studio City are home to some of the world’s most successful businesses in the media and advertising industries.
Aside from the Jumeirah Lakes Tower Free Zone (JLT Free Zone), there are additional undeclared Free zones such as the Dubai Health City, Meydan Free Zone, and the International Humanitarian City (IHC).
Dubai is home to some of the world’s most advanced infrastructure and sophisticated facilities.
We, at Commitbiz, are Company Setup Consultants in Dubai that can aid you in determining the most profitable business operational area and forming a business in a Dubai free zone to ensure that your business endeavor is as successful as it possibly can be.
Contact us now to see how we may help you enhance your company outputs.
Free Zone in Dubai, UAE: World’s #1 Free Trade Zone
Come and be a part of our award-winning community. Today, more than 20,000 firms, ranging from global corporations to start-ups, name the DMCC their headquarters. Every month, an additional 170 firms join us, with 95 percent of them being first-time visitors to Dubai. Every member organization, regardless of size or position, is united in the fact that they are able to take advantage of unrivaled access to world-class business services, connections, and infrastructure. More than 100,000 people live and work in the area, drawn here by the active community, gorgeous real estate, and high-quality lifestyle on offer.
DMCC is definitely “Made for Trade,” as evidenced by the awarding of the “Global Free Zone of the Year” by the Financial Times fDi magazine for the past seven years running.
Set up a new company
Come and be a part of our community by establishing your company with DMCC. Create a new corporation.
Open a branch
Participate in our community by establishing your company with DMCC. Incorporate a new business venture.
Transfer a business
Transferring your company to DMCC is a simple and straightforward process that provides you with access to unrivaled services, worldwide markets, and a new platform to grow. Obtaining ownership of a company
Free Zone benefits
Learn about the numerous benefits of being a member of our Free Zone.
0% PERSONAL AND CORPORATE INCOME TAX
As an expatriate, you have the freedom to own 100 percent of the firm you are establishing and to send all earnings back to your home country with no limitations.
THRIVING BUSINESS CENTRE
Join a network of more than 20,000 member firms from 180+ countries and 20+ industry categories in a global marketplace with limitless prospects.
DMCC is strategically located in the heart of Dubai, within quick and easy access to both airports, the Jebel Ali Port harbour, and the Expo2020 site, while also being next to some of the most prominent visitor, shopping, and residential areas in the world.
LIVE AND WORK IN ONE VIBRANT COMMUNITY
There are more over 100,000 individuals that live and work in the DMCC. A high quality lifestyle with excellent restaurants, hotels, educational institutions, and healthcare can be had in this city with its outstanding coastline, attractive community park, and breathtaking skyline of 87 skyscrapers, among other features.
It is possible to find almost every type of business activity you can conceive of in the DMCC. You have the option of forming a branch, a subsidiary, or a new limited liability corporation. Flexi-desks and serviced offices are among the many flexible office alternatives we provide, ranging from single-floor offices to multi-storey buildings for lease or sale.
DMCC is home to almost every type of commercial activity you can imagine.
Depending on your needs, you can establish a branch office, a subsidiary, or a new limited liability corporation. Flexi-desks and serviced offices are among the many flexible office alternatives we provide, ranging from single-floor offices to multi-storey buildings for lease or purchase.
ONLINE PORTAL FOR ALL SERVICES
You may access a wide range of services on the DMCC member site from any device, at any time, and from any location in the globe, demonstrating our dedication to innovation. This allows us to respond to requests as quickly as possible.
Explore our Free Zone
JLT is organized into alphabetically allocated clusters, each of which is distinct in terms of layout, purpose, and presentation. Our community is also extremely accessible, thanks to two metro stations and excellent public transportation options. To select a cluster letter, simply click on it.
Building strategic partnerships
Take advantage of our broad network of partners that are eager to assist you in growing your business. Take advantage of our relationships with business partners from a variety of sectors that have been formed to assist you in growing your company. Take advantage of extra incentives and perks provided by our partners to make your business operations easier and to manage your firm more efficiently in DMCC.
What our members think
We want our members to express their opinions on the Free Zone. We take pleasure in attracting a wide variety of enterprises from across the world and in offering excellent performance while maintaining a highly linked Free Zone where your business may take root, expand, and continue to prosper. We look forward to working with you. Some of our members share their thoughts on why the Free Zone works so well for them in this video. “We worked side by side, hand in hand.” “DMCC played an important role in preparing the way for us.”
Yousef Albarqawi, Regional Manager, Deliveroo
When you don’t have the correct partners behind you, ideas will always stay just that: ideas.
Ravi Bhusari, Co-founder and Managing Director, Duplays
“Because the whole diamond community is together in one location, everyone can trade more effectively, be more responsive, and have a greater understanding of the market.”
Vishal Mehta, Managing Director, Rosy Blue
The city of Dubai, which formerly stood on the edge of a desolate desert for miles and miles, has transformed into one of the world’s most attractive business locations for startups, investors, entrepreneurs, and multinational organizations. This transformation has been facilitated in large part by the Emirati government’s efforts to establish and expand Free Zones in Dubai and other regions around the UAE. Is it possible for you to learn more about these important economic sectors? We have all of the pertinent information.
What is a UAE free zone?
While we provide a more in-depth description of Free Zones in this article, the most basic definition of a Free Zone in the context of the Dubai and Emirati economies is that Free Zones are independent commercial regions that are frequently located near a port or large business center. Each Free Zone has its own law that is distinct from the rules and regulations that govern onshore or Mainland enterprises in the United Arab Emirates (UAE). Each Free Zone in Dubai and the rest of the United Arab Emirates is overseen by a distinct Free Zone administration.
Because Dubai has the maximum number of Free Zones in the country, investors may take advantage of a wide range of benefits, including tax breaks and incentives for business costs and infrastructure. Dubai’s Free Zones are home to the world’s largest free zone network.
The economic importance of Free Zones in Dubai
So, now that we’ve discussed the overall purpose of having Free Zones in the economy, it’s important to understand why the government established these places in the first instance. The establishment of Free Zones was intended to encourage the expansion of the UAE’s economic growth. They hoped to do this by the establishment of favorable corporate structures in each of these special economic zones. They also provide some wonderful incentives for international enterprises to set up shop and operate in the United Arab Emirates (UAE).
- What is the impact of Dubai’s Free Zones on the general economy, and how do they contribute to it?
- Dubai and the other emirates have been working hard to diversify their economies away from conventional oil and hydrocarbon industries.
- From 2000 to 2019, Dubai’s non-oil foreign commerce increased by a factor of 1.271 trillion dirhams, a factor of 143 billion dirhams.
- According to the data, the city will be able to recover from the COVID epidemic in the near future.
- These investors bring additional employment possibilities, attractive incomes, a strong knowledge base, and a higher overall level of quality to the table via their ventures and investments.
Free Zone Benefits and Costs
In your opinion, what are the four most significant advantages of establishing a business in one of the UAE’s free zones? The ability to easily do business across borders is one of the reasons why businesses find the Free Zone concept appealing. This is especially true if your client base is mostly in the Middle East rather than simply in the UAE. While each location has its own set of incentives to entice visitors, each Free Zone offers the following benefits to prospective customers:
- 100 percent foreign ownership
- 100 percent repatriation of money and earnings
- 100 percent exemption from import and export taxes
- 100 percent exemption from income and corporation taxes
- 100 percent exemption from corporate income taxes
What additional advantages do you stand to gain by locating your business in a Free Zone? If you are interested in registering with the DMCC, you will be eligible for a 50-year tax break on your personal and income taxes if you do. For those that want more space, warehouse space is available, as are coworking spaces in areas such as KIKLABB. What kind of fees should you anticipate to spend in order to create a Free Zone corporation? A detailed cost comparison of some of the Free Zones with which we collaborate is available here, and price varies based on the Free Zone.
The pricing range for Dubai-based Free Zones can range from 11,500 Dirhams (£2,320.49 at the time of writing the article) to 51,053 Dirhams (£10,303.59 at the time of writing the article) depending on the location.
Are you interested in company registration in a UAE Free Zone?
Having extensive knowledge of the subtleties, local regulations, and norms regulating business in the United Arab Emirates, Europe Emirates Group can assist you with your Free Zone company establishment. To guarantee that you achieve the optimal balance between having access to local markets and making your tax burden more effective, we will do a thorough analysis of your company requirements and the best methods to use a Free Zone license. Working with our skilled team will guarantee that you receive a thorough comparison of all of the available alternatives.
Prepare to be pleasantly surprised by how smoothly our team of specialists can meet the needs of your company.
10 benefits of UAE free zones
Europe Emirates Group, as specialists in the subtleties, local regulations, and customs that govern business in the United Arab Emirates, can assist you with the creation of your Free Zone company. To guarantee that you achieve the optimal balance between having access to local markets and making your tax burden more effective, we will do a thorough analysis of your company requirements and the best methods to use a Free Zone licence. You will receive a complete comparison of all available solutions if you work with our professional staff.
Prepare to be pleasantly surprised by how flawlessly our team of specialists can meet the needs of your company.
What is a free zone?
Most free zones in the United Arab Emirates are not guarded or gated, but they are physically delineated regions inside the country that allow 100 percent foreign ownership and are often dedicated to a certain sector (although some are). Their construction was financed mostly by public funds, and many of them are equipped with cutting-edge technology to promote strategic change in major industries (for example, banking). Dubai Media City, a free zone in the emirate of Dubai, contains infrastructure and licenses that are tailored to the demands of the media sector, as an example of what is possible.
Therefore, each free zone has its own set of specific requirements regarding minimum capital requirements, office or warehouse space, and permitted activities; each free zone must also have the appropriate licenses and legislation in place to allow their dedicated industry to flourish, as described above.
Benefits of free zones
With more than 50 different free zones spread around the United Arab Emirates, and many more in the planning stages, free zones have contributed to making the UAE an appealing alternative for international enterprises wishing to move or grow their worldwide presence. The following are some of the most prevalent advantages of conducting business in a UAE free zone:
- Foreign ownership constitutes 100 percent of the firm. Having access to world-class logistical infrastructure
- A huge pool of ethnic, highly competent workers is readily available. Benefits from economies of concentration (as a result of the industrial zones set aside for certain sectors)
- Recruitment of overseas personnel is made easier by the fact that all free zones provide one-stop-shop services for work permits. Tax exemptions – which are normally provided for 15 or 50 years. a complete exemption from all import and export taxes
- Capital and earnings are fully repatriated in their entirety. Tax breaks for corporations for a period of up to 50 years
- Eligibility to apply for a Tax Residency Certificate in the United Arab Emirates
Dubai International Financial Centre (“DIFC”)
The Dubai International Financial Centre (DIFC) is widely regarded as the most important financial center in the Middle East, Africa, and South Asia area, according to the World Bank. The DIFC free zone differs from other free zones in the United Arab Emirates in that it has its own judicial system and separate rules that are governed by English Common Law principles. In addition to the characteristics listed above, the DIFC has the following important characteristics:
- Access to the laws and courts (including the arbitration system) based on English Common Law is guaranteed
- Obtaining access to the DIFC Will and Probate Registry
- Access to a reputable and worldwide stock market that offers both main and secondary listings of debt and equity securities
- A significant variety of regulated, non-regulated, and financial activity licenses are available for selection
- A platform for gaining access to regional riches and investment possibilities
A flexible and welcoming business climate for financial enterprises looking to grow their worldwide presence is provided by the DIFC, which has over 65 big funds based there and well over 2000 entities registered within its regulatory boundaries. To learn more about how Ocorian’s UAE office may assist you, please visit this page.
What Is A Free Zone?
A free zone, also known as a free trade zone, is a geographically defined territory inside each emirate that has been designated as such. As a consequence of a mutual agreement reached between multiple nations to set up a customs-free zone in a specific region, a free zone can also be established. The fact that no customs or taxes are charged in the free zone contributes to the promotion of commerce, particularly the import and export of a wide range of products and services. If a number of nations come to an agreement to establish a common free zone, all trade restrictions are removed from the equation.
- This lack of regulatory restrictions draws businesses from all industries, encouraging them to migrate to the free zone or to establish new businesses there in the first place.
- Free zones, free port zones, and export processing zones are the three most important forms of free trade zones in the world.
- Further information may be found on the left-hand side of the page by selecting the appropriate menu item.
- A free trade zone can be designated or located anywhere within the country.
- Furthermore, a corporation might relocate its manufacturing facilities to another nation and then import the finished items into the free zone without having to pay any customs or sales taxes.
- In this case, the profits of the firm are retained in the free zone country and are not subject to taxation.
- If you have a seaport or an airport nearby, you can set up your own free trade zone there.
- Export and import of commodities are permitted at no cost through free ports.
- From the perspectives of finance, taxation, investment, and regulation, free port zones provide significant incentives for enterprises to locate in them.
- Recently, several free ports have added multimodal cargo handling as a new service option to their menu of available services.
- As a financial incentive for export-oriented manufacturing enterprises, economic zones (EPZ) are often located in developing nations and offer preferential customs laws (for example, on the importation of manufacturing equipment).
The following free trade zones are situated in the United Arab Emirates (UAE) and are the most successful and internationally popular:
- It is around 80 kilometers from Dubai to the Ras Al Khaimah Free Trade Zone RAK
- It is approximately 40 kilometers from Dubai to the Ajman Free Trade Zone
- And it is approximately 80 kilometers from Dubai to the Dubai Free Trade Zone DXB.
Hong Kong is likewise regarded as a “free trade” zone with specific advantages.
Ras al Khaimah
Special benefits: As a shareholder, you may be eligible to apply for a ” investor visa,” which will allow you to live and work in the United Arab Emirates without restriction. Several types of investment visas may be available to companies. Benefittax exemption is granted to free zone firms, and they are recognized globally without limits.
Companies situated in the Dubai South free zone, like those headquartered in Ras al Khamai and Ajman, are eligible for a variety of tax breaks and exemptions. Shareholders of these firms may also be eligible for investor visas, which would allow them to live and work in the United Arab Emirates without restriction. Dubai South is also a free zone that has gained worldwide recognition.
Companies established in the Ajman Free Zone benefit from worldwide recognition as well as tax relief, among other benefits. The Ajman Free Zone provides a comprehensive package for business creation, which includes the renting of firm premises for a period of one year. It is possible to apply for several investor visas.
Other Free Zones
There are a plethora of options! In addition to the three free zones stated above, there are a plethora of other locations where you can establish your business. Depending on the items or services that your firm produces or provides, there may be a free zone that is especially tailored to your needs. No matter if you work in the media sector or the healthcare industry, we can assist you in establishing your firm in the free zone that is most appropriate for you.