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.
Free trade – Wikipedia
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.
How do Dubai free zones work?
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.
What is a free zone 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.
What is the meaning of free zone visa in Dubai?
In free zones, the most common type of residence visa is available through an employment contract with a free zone company. This type of UAE residence visa is valid for up to 3 years. Free zone visas are obtained solely from the Immigration Department (GDRFA) without the necessity of contacting the Ministry of Labour.
What is meant by free zone?
Definition of free zone: an area within which goods may be received and stored without payment of duty.
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)
What are the benefits of free zone visa?
The key advantages of having a free zone visa are:
- Tax exemption. The visa means that you’ll be exempt from paying import, export or personal taxes.
- 100% ownership.
- Financial access.
- Lease premises.
- Fund transfer.
- Driving licence.
- Healthcare access.
- School registration.
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 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.
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.
What is the free zone visa?
This type of visa provides a temporary residence for three years to foreign entrepreneurs either having a business or wanting to start a business in any free zone across the UAE.
How do I resign from Freezone?
Canceling Employment Contract in a Freezone Company The process of cancelling the contract in a freezone company usually requires the employer and the employee to meet at the freezone headquarters so both of them can meet the officers in person.
How do I cancel my free zone visa?
There are two ways to cancel your visa. You can do it either through a registered typing centre or online. The sponsor may visit any typing office registered by GDRFA in the respective emirate. The typing centre will fill the cancellation form on your behalf and process it online through the respective GDRFA.
How many free zones are in Dubai?
There are more than 30 Free Zones operating in Dubai. FTZs in Dubai and the UAE are governed pursuant to a special framework of rules and regulations. A Free Zone Authority offers business licenses to foreign-owned businesses.
How many free zones are there in UAE?
There are around 40 Free Zones operating in the UAE, with more under construction. Each Free Zone is designed around one or more commercial categories and only offers licences to companies within those categories.
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 Dubai Free Zones: D3, Dubai Media City & More –
- What is a Free Zone in Dubai
- Why should you establish a business in a Free Zone in Dubai
- What is the difference between a Free Zone and a Free Zone in Dubai
- List of Free Zones in Dubai
- Frequently Asked Questions
Located in the Middle East, Dubai is one of the most lucrative and investor-friendly places in the world. Its proximity to Asia and other nations, as well as its ease of access to these regions, making it an attractive investment hub. There are a number of free zones in Dubai that provide conditions for businesses to expand and prosper. The consequence has been a flourishing business environment for both start-ups and big multinationals in Dubai. Let’s take a closer look at these Dubai free zones and what they may offer you.
What are free zones?
In essence, free zones or free trade zones in Dubai are business zones in which enterprises operating in them are exempt from all sorts of taxation, including Value Added Tax (VAT), Income Tax, Corporate Tax, and Customs, among other things. In Dubai’s free zone districts, company owners retain 100 percent control of their enterprises. They are intended to attract international investment while also stimulating economic activity in the city. In fact, Dubai was the first emirate in the United Arab Emirates to implement the free zone model.
Why set up a business in any of the free trade zones in Dubai?
In Dubai, there are approximately 24 free zone places to choose from. There are several benefits to establishing a business in a Dubai free zone. Here are some of them: One of the most significant benefits is complete ownership of the corporation as well as complete tax exemption. The tax exemption is an excellent alternative for international enterprises and company owners that wish to use the UAE for regional production or as a distribution base, as it reduces their tax liability. In these specialized economic zones in Dubai, company owners may benefit from 100 percent ownership as well as complete tax exemption, making them a valuable investment prospect.
It is necessary to determine the type of legal entity that will be registered in a Dubai free zone before registering a corporation in that zone.
- Choosing a business name
- Submitting an application for a business license Renting or purchasing an office space
- Obtaining more pre-approvals
List of Dubai Free Zones
There are now 24 free zones in Dubai, each of which caters to a distinct area or industry. In accordance with the official United Arab Emirates Government website, they are split into three primary groups, which are as follows:
1. Dubai Creative Clusters Authority (DCCA)
Dubai Media City is a well-known media business community in the United Arab Emirates. The Dubai Creative and Knowledge-Based Industries Development Authority (DCCA), currently known as the Dubai Development Authority, is responsible for the development of creative and knowledge-based industries in the city. The free zone regions in Dubai that are governed by the DCCA are as follows:
- Dubai Internet City, Dubai Media City, Dubai Production City, Dubai Studio City, Dubai Outsource City, Dubai Knowledge Park, Dubai International Academic City, Dubai Science Park, Dubai Design District (d3), Dubai Design District (d3), Dubai Design District (d3), Dubai Design District (d3), Dubai Design District (d3)
2. Dubai Multi Commodities Centre Authority (DMCC)
The Jumeirah Lakes Towers (JLT) Free Trade Zone is one of the most popular free trade zones in the United Arab Emirates. The DMCC Authority, which was established in 2002, serves as a worldwide commodities trading centre. The free zones in Dubai classified under the DMCC include the following:
3. Other Dubai Free Zones
The Dubai Silicon Oasis has lately gained popularity as a result of its combination of residential and business property.
Various businesses, ranging from gold and jewelry to health care and manufacturing, are represented in these Dubai free trade zones:
- Jebel Ali Free Zone Authority (JAFZA)
- Dubai Airport Free Zone Authority (DAFZA)
- Dubai Silicon Oasis Authority
- Dubai Healthcare City Authority
- International Humanitarian City
- Dubai World Trade Centre
- Dubai Maritime City Authority
- Dubai South
- Dubai Outsource City
- Dubai International Financial Centre
- National Industries Park (TechnoPark)
- Dubai CommerCity (DCC Free Zone)
FREQUENTLY ASKED QUESTIONS
The Dubai CommerCityor DCC free zone is the first e-commerce center in the Middle East, Africa, and South Asia (MEASA) area, according to the World Economic Forum. Spread across 2.1 million square feet, Dubai CommerCity was created specifically to serve the needs of the region’s rapidly expanding electronic commerce industry. It is separated into three clusters in this specific Dubai free zone, which are the Business Cluster, the Logistics Cluster, and the Social Cluster.
DO I NEED A PARTNER TO SET UP A BUSINESS IN DUBAI FREE ZONE?
No, one of the most significant advantages of investing in the Dubai free zone is that you are not needed to form a partnership. In exchange for their investment, investors receive complete ownership of their company.
HOW MUCH DOES IT COST TO INVEST IN A DUBAI FREE ZONE?
The free zones in Dubai provide specific packages to assist company owners. The cost of establishing a business in Dubai is dependent on a number of factors, however free zones are significantly less expensive. Companies such as Creative Zone, Start Any Business, Make My Firm and other business establishment experts in Dubai can provide you with support.
WHAT IS THE DIFFERENCEBETWEEN FREE HOLD AND FREE ZONE IN DUBAI?
Free zones in Dubai should not be confused with freehold properties in the city-state. In Dubai, there are significant variations between free zone and freehold homes. Non-GCC residents can purchase freehold properties in Dubai, granting them complete ownership of the land or property. A buyer who purchases a freehold property has the option to sell, lease, or reside on the property at any time. Dubai free zones, on the other hand, are reserved entirely for commercial purposes and do not often include residential units.
As you can see, Dubai has a plethora of free trade zones that will assist you in starting a business there.
Check visit the Al Hamriya free zone in Sharjah if you’re looking for additional possibilities.
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
Are you looking to grow your company? At DMCC, you may establish a branch office for your current firm and benefit from the opportunity to do business in the world’s most vibrant center for global commerce. Establish a branch office.
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.
As a member of the DMCC, you will have access to everything you need for every stage of your business journey in one convenient location. You will be better prepared for success if you have simple access to additional resources that you can use to invest in building your firm.
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 neighbourhood is also quite accessible, thanks to two metro stations and good 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
Get the most out of our broad network of partners that are eager to assist you in growing your company.
Use our relationships with business partners from a variety of sectors that have been formed to assist you in growing your company. – To make your business operations easier to manage and conduct in DMCC, take advantage of extra incentives and perks provided by our partners.
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
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.
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 kind of legal entity that your company will operate underDetermine the type of legal entity that your company will 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). In general, the primary conditions for DED approval of a proposed trade name are that the trade name meet the following criteria:
- 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:
- Fewer documentation are required of freelancers. Typically, they must provide the following documents:
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.
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.
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 or restriction. Several types of investor visas may be available to businesses. Benefittax exemption is granted to free zone firms, and they are recognized globally with no limitations.
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.
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.
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Free Zone in Dubai, Dubai Airport Freezone, UAE Tax Free Zone
A well-known brand in business parks is TECOM Investment. In TECOM business parks, there are over 4500 enterprises that operate in the ICT, education, and manufacturing sectors, among other industries. 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 sector to this day. A large number of the world’s largest media and advertising businesses have set up shop in Dubai Media City Free Zone andStudio City.
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).
Among the greatest infrastructure and contemporary amenities in the world, Dubai boasts some of the most impressive facilities.
We, at Commitbiz, are Company Setup Consultants in Dubai who can aid you in determining the most profitable firm operational area and forming a business in a Dubai free zone to ensure that your endeavor is as successful as possible.
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It only takes three easy steps to get started. STEP 1: Decide on a driver’s license. Licenses are available in a variety of configurations. STEP 2: Select the sort of organization you want to work with. We provide two different ways of business setup. STEP 3: Select a location for your event.
START YOUR BUSINESS IN DUBAI!
It only takes three easy steps to complete the process. STEP 1: Decide on a driver’s license or permit. Licenses are available in a variety of configurations with us. METHOD 2: Select the sort of organization you want to work for. In terms of business formation, we provide two options: STEP 3: Select a location.
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Free zones in the United Arab Emirates are a key draw for international investors and businesses looking to expand their operations in the country. But what exactly are they and what advantages do they provide are not well understood. Leevyn Isabel, Associate Director, investigates. A government requirement before the adoption of the Foreign Direct Investment Law in late 2018 stated that at least 51 percent of the shares in a firm must be held by a UAE person. Due to the resulting economic development, free zones were developed in order to entice foreign enterprises to the region who desired to maintain complete control over their operations.
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
Access to the laws and courts (including the arbitration system) based on English Common Law is guaranteed. Accessed Wills and Probate Registry of the DIFC. The ability to trade on a reputable and worldwide stock exchange with primary and secondary listings of debt and equity securities Selection from a vast number of regulated and non-regulated licenses, as well as financial activities licenses A platform for gaining access to regional wealth and investment possibilities
A Few Tips and Traps to Avoid When Forming a UAE Free Zone Company in Dubai
Because of its stability, low taxation, and ongoing attempts to modernize its business legal regime, the United Arab Emirates (UAE) is becoming an increasingly attractive location for corporations to conduct business. The Emirate of Dubai (Dubai), in particular, is becoming a popular location for businesses to establish themselves, because to the numerous advantages that free zones provide. Creating a free zone corporation in Dubai, on the other hand, might be a difficult process. This article discusses what a free zone is, the benefits and drawbacks of establishing a free zone company, the free zone incorporation procedure, and a number of pitfalls to avoid while forming a free zone firm.
- Each free zone is governed by an autonomous Free Zone Authority (FZA), which is also responsible for awarding the licenses necessary to operate in the free zone.
- The formation of a Dubai free zone business or an offshore company are the two choices available to foreign enterprises looking to establish a presence in a Dubai free zone.
- The focus of this article will be on the firms operating in Dubai’s free zone.
- Any company that operates a permanent place of business in the DIFC and provides a financial service must be licensed and regulated by the Dubai Financial Services Authority (DFSA).
- As a separate entity from the rest of the UAE, it has its own legal system and courts that have jurisdiction over matters relating to corporate, commercial, civil, employment, trusts, and securities law.
- Governance When a firm is founded in a Dubai free zone, it is subject to the laws and regulations of the particular Dubai free zone in which it is located.
- The benefits of forming a Dubai free zone corporation are numerous.
This is essential since, under the CCL, foreigners are only permitted to own up to 49 percent of limited liability firms in the UAE, which is a significant portion of the total.
Second, enterprises operating in free zones are completely immune from taxation.
Third, they often have well-developed infrastructure and a climate that is conducive to doing business.
For example, the DIFC’s physical infrastructure may be compared to international standards to determine how well it is doing.
It is also possible for the corporation to be liquidated at any point and for it to possess real estate in its own right.
Expansion into other markets in the United Arab Emirates is not authorized.
Second, each free zone is designated for the development of a certain industry.
The number of free zones, on the other hand, is increasing.
Steps to take while forming a free zone corporation The procedure of forming a free zone corporation can be time-consuming and difficult.
An application form must be completed and submitted in order to gain permission (together with various documents such as a passport copy, education certificate, etc.).
When a corporation obtains a license, it indicates that it has the required minimum capital.
In different free zones, capital requirements fluctuate based on the business categories and the intricacy of the firm within each category.
Once the appropriate capital amount has been deposited into the bank account, the account will be placed on hold.
Finally, the trading license must be shown to the bank, which will then release the account from its lock.
In the event of a DFSA application authorization, the process can take up to three months from the time of submission, depending on the type, scope, complexity, and level of risk involved in the application.
Because of the intricacies of incorporation, it is recommended that you contact a business advising firm to assist you with incorporating the company and navigating the procedure in general, as well as dealing with local government and the FZA.
Determine the most acceptable site for your company based on factors such as distance, pricing, and, if applicable, rental terms and conditions.
Visas are necessary for the vast majority of non-UAE employees who wish to work in the UAE.
Tenancy terms and conditions for office space in Traps Although the advertised information in a free zone may indicate a large number of available offices, the reality may be very different.
In free zones, they tend to be more prevalent.
Check the accuracy of the material that has been published. Check the veracity of the information that has been published for company registrations. In free zones and the local Department of Economic Development, rules are subject to modification on a regular basis.
The Effect of Free Zones on Dubai and the UAE’s Economy
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.
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.
With foreigners making up the majority of the population, Dubai is one of the most popular ex-pat destinations in the world due to its high pace of growth, safety, and overall quality of life, with many of them employed by Free Zone firms.
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.
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.