What Is Free Zone Company In Dubai? (Correct answer)

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 Company mean in Dubai?

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 company?

A free zone is a designated area in which companies are taxed at highly reduced rates or nothing at all in order to encourage investments and increased economic activity within the economy. A free zone company is required to export at least seventy (70) percent of its annual production.

What Are free zone companies in UAE?

An FZE or FZC is a limited liability company governed by the rules and regulations of the Free Zone in which it is established. The provisions of the UAE Commercial Companies Law (CCL) do not apply.

What is the difference between Freezone and mainland company 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.

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.

What is the purpose of free zone?

A free zone optimises the movement of goods between the individual countries in the zone and offers the opportunity to either secure or disallow imports from third party countries. The most important types of free trade zones are free zones, free port zones and export processing zones.

Can a free zone company do business in Dubai?

Free zone jurisdictions do not permit companies registered under free zone authorities to do business in Dubai Mainland. Apart from this, free zone companies can also conduct business in Dubai mainland through a civil company, limited liability company, or by establishing a branch office.

Which is the cheapest free zone 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 free zone visa in UAE?

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.

Can a Freezone company trade in mainland?

A company established in Freezone can carry out business in Mainland subject to the restrictions imposed by the law of the UAE. The Free Zone trading company can export the goods to the Mainland companies by following the UAE Customs procedures.

How much does it cost to open a Freezone company in Dubai?

In Dubai Airport Free Zone, you can form an FZ Co. with a minimum share capital of AED 1000. Each share should be in the denomination of AED 1000. In DMCC, the minimum share capital for forming a free zone company is AED 50,000 per company and AED 10,000 per shareholder.

How many zones are there in Dubai?

Zone Fares Dubai map is divided into 7 zones. Each zone contains Metro stations, Bus stations, Tram stations, and Water bus stations. Your journey can be made using different modes of transport which are located in different zones.

What is the difference between Freezone and LLC?

LLCs can trade directly with the local market, any free zone, or outside UAE without any restrictions. This applies to all commercial and professional licenses. A freezone license can be incorporated with or without a physical office. You can easily find offices in Business Bay, Media City or JLT business centers.

Can a Freezone company own property in Dubai?

All free zone companies in Dubai are permitted to own property in the so-called Designated Areas. The free zones in Dubai include DMCC, Dubai Internet City, Dubai HealthCare City, Dubai South and many more. Free zone companies, which are formed in other Emirates, are not allowed to hold property in Dubai.

Is Dubai a free zone?

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. 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.

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 procedure may vary depending on your business activity and the free zone you choose, but in many situations you will only be asked to provide a few pieces of basic evidence, such as copies of your passport and copies of your business papers. The entire process is usually completed in a week or two.

  1. Taxes and duties: The tax system in a free zone is possibly the most persuasive argument in favor of doing business there.
  2. That’s not all, either.
  3. 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.
  4. 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.
  5. 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.
  6. Alternatively, it is feasible to create your free zone firm and then subsequently expand your free zone company by opening branch offices around the United Arab Emirates.
  7. Support and assistance: The authorities of the free zone are on hand to provide assistance during the setup process and thereafter.
  8. 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?

A free zone is an excellent choice for establishing a business in the United Arab Emirates, for a number of reasons. Uncomplicated configuration: The process of establishing a business in most free zones is quite simple. In many situations, you will just be asked to present some basic proof, such as copies of your passport and copies of your company papers, depending on your business activity and the free zone you choose to apply in. Sometimes it takes only a week or two to complete the entire procedure.

  1. In terms of tax and tariff, the tax regime in a free zone is possibly the most convincing argument for doing business there.
  2. Not only that, but it doesn’t stop there.
  3. As an added benefit of setting up shop in a free zone, your company will be exempt from VAT, which is presently set at 5 percent, as well as from corporation and personal tax.
  4. When establishing a firm in the United Arab Emirates, the majority of foreign entrepreneurs must collaborate with a local partner.
  5. Within the United Arab Emirates, there is a lot of trading.
  6. collaborating with a locally appointed distributor that will help you to advertise your products and services in exchange for a fee is one possibility.
  7. Branch offices in the UAE mainland can be utilized to showcase your products and services as well as conduct business.
  8. In most cases, free zones will assist stockholders and their dependants, such as spouses or domestic employees, in obtaining visas for their respective countries.
  9. For continuous business assistance, it is common for free zones to provide business counseling and networking services, as well as access to startup hubs and growth programs, to assist new enterprises in their initial stages of development.

Protection of personal information: Finally, free zones are particularly popular with privacy-conscious businesses since there is no open directory of firm ownership, and corporate information such as shareholder data is never made public.

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
  • And

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).

  1. Capital expenditures are required.
  2. In KIZAD, you can register a limited liability company (LLC) with a minimum paid-up capital of AED 150,000.
  3. Each share should be worth AED 1000, and there should be 100 shares in total.
  4. 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.
  5. Decide on a business name.
  6. 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.
  7. 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.
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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:

  • Production of content
  • Advertising
  • Animation
  • Production of corporate videos
  • Printing Materials for the Corporation
  • Production of digital content (e.g., computer-generated imagery, 3D, etc.)
  • Content that is educational in nature
  • Production of motion pictures
  • Development of video games
  • Design for print and electronic media
  • Illustration
  • Mobile media (for example, material for interactive media services delivered via mobile phones)
  • Music production and recording
  • Composing and arranging music Videos of music
  • Production of online electronic material (for example, websites, e-books, tourist guides, and so on)
  • The arts of performance and theatre
  • Photography/videography
  • Production of print material (for example, magazines, journals, periodicals, newsletters, manuals, and handbooks, among other things)
  • Production of radio programming material
  • The creation of a script
  • Development of software (for example, apps)
  • Songwriting and song composition are two of my favorite things to do. production for television
  • Internet site design and development (for example, a portal, a search engine, a community site, a website production company, an online library)

Various other commercial operations

  • The following industries are represented: branding agency
  • Events/festivals
  • Exhibitions/conferences
  • 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.

  • Printed matter, radio, and television

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:

  • Commercial/trade
  • sConsultancy/services
  • sIndustrial
  • sEducational
  • sMedia
  • seCommerce
  • sOffshore
  • sFreelancer
  • sWarehousing
  • sManufacturing

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 required to provide 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.

FAQs

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.

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.

Background

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. This freezone was established in the Emirate of Fujairah and has since relocated to Dubai.

List

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.

See also

  • List of Free Trade Zones in the United Arab Emirates
  • List of company registries
  • List of offshore financial centers
  • List of financial districts

References

  • 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.

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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
  • And

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
  • Meydan
  • National Industries Park (TechnoPark)
  • Dubai CommerCity (DCC Free Zone)
  • Dubai

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.

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.

Company Setup, License Cost, Visa Cost in Free Zone Areas

THE MOST RECENT UPDATED DATE: 07/02/2022 Dubai freezone company creation continues to be one of the most in-demand kinds of business establishment in the United Arab Emirates. The establishment of a firm in the Dubai freezone has a variety of advantages, including the following:

  • It is less difficult to create a bank account for a Dubai-based corporation. The firm is becoming more well-known both locally and internationally. For some “high risk” nations, there are greater odds of obtaining residence permits. Rental of office space in well-known commercial districts is a possibility.

DUBAI MULTI COMMODITIES CENTER

Established 2002
Licenses types Service, Trading, Investment
Facilities Flexi-desks, Offices
Visas 3 visas with flexi desk, multiple visas with office
Setup time 3 days registration, 2 weeks pre-approval

DMCC is an abbreviation for Dubai Multi Commodity Center. It is without a doubt one of the most well-known and well regarded Free Zones in the United Arab Emirates. It is the world’s largest Free Zone, and it has been recognized as a “Global Free Zone of the Year” by the Financial Times on five occasions. The Dubai Gold and Commodities Exchange, the Dubai Diamond Exchange, and the Dubai Pearl Exchange are all located here. DMCC also operates tea and coffee shops and encourages the exchange of agricultural goods and metals.

With two metro stations and easy access to Dubai’s major motorways, it is a great place to live.

+ PROS

  • Extremely well-known and respected free zone
  • Wide range of commercial activities on offer
  • Convenient central location

– CONS

  • Company formation takes longer in this Free Zone than in other Free Zones
  • An annual audit is necessary
  • This is one of the most costly Free Zones.

Dubai South (DWC, Dubai World Central)

Established 2006
Licenses types Trading, Consultancy, Industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 2-3 visas with flexi desk, multiple visas with office
Setup time 1 day registration, 1 week pre-approval

We believe that this Free Zone is one of the greatest options available if you are looking to establish a business in Dubai. It is directly across the street from the future Al Maktoum International Airport and the Expo 2020 site. It is around a 30-minute drive from Dubai’s downtown area. A metro line is now being built, and it is expected to be completed in less than a year’s time. One of the most recent developments in Dubai South is a cluster of contemporary buildings where you may choose between flexi-desks – desks in a shared workspace – and executive offices.

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It’s worth mentioning that the business center in Dubai South offers virtual office services such as phone call pickup, mail forwarding, and conference rooms, among other things.

+ PROS

  • The Free Zone in Dubai that is the most cost-effective
  • A portion of the Expo 2020 site
  • The cost of residence visas is reasonable.

– CONS

  • Health insurance is required for resident visas
  • Annual audits are necessary beginning in year 3
  • A bachelor’s degree is required for resident visas for company owners
  • And other requirements.

Dubai Technology Entrepreneur Center (DTEC)

Established 2 2005
Licenses types IT, sofware, online business
Facilities Flexi-desks, Offices
Visas 1-2 visas with flexi desk, multiple visas with office
Setup time 2-3 days registration, 1 week pre-approval

The Dubai Technology Entrepreneur Center, often known as DTEC, is located in Dubai Silicon Oasis and is a one-of-a-kind startup center in the whole United Arab Emirates. It is surprising how contemporary and ergonomic the entire facility is when you visit DTEC: you will find comfy co-working spaces, chill-out hubs, thinking and networking places, cafes and even games rooms all inside the same space. It is unlike any other Free Zone in Dubai in terms of appearance! DTEC is a Free Zone that is only dedicated to IT-related licensing.

+ PROS

  • The most affordable package in Dubai for a visa-eligible firm
  • No limitations on nationalities
  • Modern infrastructure: ready-to-use flexi-desks, offices, conference spaces, and cafés within the building
  • Flexible work arrangements

– CONS

  • Only professional business activity involving information technology
  • After three years, the firm will need to be upgraded to the Dubai Silicon Oasis Free Zone. It is necessary to conduct an annual audit.

Dubai Airport Free Zone (DAFZA)

Established 1996
Licenses types Trading, Consultancy, Industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 3 visas with flexi desk, multiple visas with office
Time-frame 1 day registration, 1 week pre-approval

DAFZA, also known as the Dubai Airport Free Zone, is a free zone next to Dubai International Airport. The Dubai Airport Free Zone is the greatest option for logistics or transportation firms who need to re-ship their goods through the UAE but do not necessarily need to import their goods into the country.

The Free Zone provides a customs clearing facility open 24 hours a day, seven days a week, as well as fitted and equipped offices up to 60 square meters and brand-new warehouses in the DAFZA industrial park.

+ PROS

  • Trading infrastructure that has been well-developed
  • Customs services are available around the clock, and shipment clearance is expedited. The establishment of a dedicated logistics facility

– CONS

  • There will be no small offices or warehouses
  • Audits will be required starting in the second year. Provide a personal bank statement for the purpose of forming a corporation.

Dubai Silicon Oasis

Established 2004
Licenses types Trading, Consultancy, Light industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 1-2 visas with flexi desk, multiple visas with office
Setup time 3 days registration, 1 week pre-approval

Dubai Silicone Oasis is a Free Zone that is entirely controlled by the government of Dubai. Through the assistance of technology-based enterprises, it aspires to become a “technology oasis.” Today, DSO is a technology park that is home to more than 2 000 firms. There are roughly 60 000 tenants in this residential zone. DSO’s amenities include “Plug and Play” offices, light industrial units, and conference rooms, among other things. Offices are well equipped, connected to the Internet and VoIP, and protected 24 hours a day.

+ PROS

  • Offices and residential areas are located in a developed zone. Office space at a reasonable price

– CONS

  • There are no options for flexi-desks or virtual offices
  • Distanced from the heart of Dubai

Jebel Ali Free Zone (JAFZA)

Established 1985
Licenses types Trading, Consultancy, Industrial
Facilities Offices, Warehouses
Visas Multiple visas with office
Time-frame 3 days registration, 2 weeks pre-approval

The Jebel Ali Free Zone, also known as Jafza, is the oldest and largest free zone in the United Arab Emirates. JAFZA is a free zone in the Emirate of Dubai. It has its own seaport, which is the busiest port in the entire country, which serves the entire region. Because of the large number of warehouses and industrial licenses available in JAFZA, a large number of well-known food and consumer products businesses have chosen to establish in the area. In addition to commerce and manufacturing, Jafza also allows for the establishment of service-oriented businesses, however these must be branches of Mainland entities in order to operate legally.

+ PROS

  • A wide range of trade operations are available, with each license allowing for up to 12 product categories. Within the Free Zone, there is the largest UAE sea port, as well as warehouses and parcels of land.

– CONS

  • There are no professional service activities (they are exclusively open to branches of UAE-based enterprises)
  • There are no educational opportunities. It is necessary to be present in person to complete the company registration process. Flexi-desks are frequently unavailable, necessitating the rental of real offices.

Although the cost of establishing a free zone firm in Dubai is more than in neighboring Emirates, there is a good return for your money. Any business advisors in Dubai will be able to corroborate this. If you choose to establish your company in the Dubai free zone, you will not be need to look for other options. It is dependable, reputable, and effective.

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Differences Between a Mainland and Free Zone Company in UAE

“Can you tell me the difference between mainland and freezone companies?” says the author. is a popular question asked by many prospective investors who are considering starting a business in the United Arab Emirates. From the standpoint of an investor, not having a clear and exact grasp of the numerous business jurisdictions in the UAE is almost as bad as getting on a bus without knowing where it is going or where it is going to. As a result, if you are considering investing in the UAE, it is critical that you get familiar with the facts, the fundamental rules and regulations, as well as the distinctions between the two countries.

The investor or the entrepreneur should carefully consider these distinctions and choose the appropriate jurisdiction that best meets his or her company objectives and needs.

UAE Mainland vs. Free zone Company

When it comes to numerous criteria, there are significant disparities across the three jurisdictions: Mainland, Freezone, and Offshore. It is discussed in this article the primary distinctions between Mainland and Free Zone countries in terms of characteristics such as ownership and scope of business, office space, visa eligibility, company audit, and other considerations, among others. UAE Mainland Business– A mainland company in the United Arab Emirates is nothing more than an onshore corporation that is registered with the governing authority of the relevant Emirate.

  1. A UAE mainland corporation is primarily distinguished by the fact that it has no restrictions on its commercial activities.
  2. Free zone company– A free zone company is a corporation that is founded inside a special jurisdiction that falls under the jurisdiction of a certain Emirate or region.
  3. Free zone jurisdictions have their own set of rules and regulations, as well as a government regulatory organization known as the Free Zone Authority, which oversees them.
  4. A free zone in the United Arab Emirates is distinguished by the advantages of 100 percent foreign ownership and tax discounts.

Now, let’s have a look at the main distinctions between a mainland and a free zone corporation in the United Arab Emirates. To make it easier for the reader to understand the distinctions, they are organized in tables. Please take the time to read through the same. Having a stake in a company

Mainland Company Free Zone Company
If a foreign investor forms a business establishment in the UAE mainland, The UAE government has allowed for 100% foreign ownership for the businesses located on the mainland. Earlier, the expat business owners were only allowed to own a maximum of 49% ownership of their business while the remaining 50% share belonged to the Emirati sponsor. The foreign investor enjoys complete ownership of the company. Assigning the shares to a UAE local sponsor is not required. Therefore, the role of a local sponsor is irrelevant here.

The scope of the company’s operations

Mainland Company Free Zone Company
A business concern incorporated in the UAE mainland is free to do business anywhere in the UAE market. This means that the company is allowed to do business both inside and outside the UAE. There are certain restrictions on the company incorporated in any of the UAE free zones. Free zone companies are allowed to do business within the jurisdiction of the particular free zone and outside UAE.

Office space is available.

Mainland Company Free Zone Company
When it comes to physical office space, a minimum office space requirement of 140 sq.ft is obligatory for a UAE mainland company. A physical office space requirement is not obligatory for a Free zone company. Free zone company formation is possible with or without premises.In the case of the UAE free zone, virtual offices are allowed.

There is space for a business office.

Mainland Company Free Zone Company
UAE mainland companies do not have any kind of restrictions connected with visa eligibility. The area of the workspace determines the number of visas issued. This means that, if the owner of the company requires more visas, he/she should have bigger work premises. Free zone companies have certain restrictions connected with visa eligibility. In ordinary cases, the number of visas issued ranges from 1 to 6. TheUAE visapackages vary with the free zone jurisdiction. Issuance of more visas demands leasing out additional work premises.

Audit of the Organization

Mainland Company Free Zone Company
A Financial Audit is mandatory for a UAE mainland company. Preparing a Financial audit for a free zone company varies with the Free zone jurisdiction. Certain Free zone jurisdictions are exempted from Audit preparation. Certain Free zone entities like FZE and FZCO should prepare a year-end audit.

Capital is a must.

Mainland Company Free Zone Company
The minimum capital prerequisite of a UAE mainland company is determined by its legal structure. The minimum capital prerequisite of a free zone company is determined by the Emirate in which the company is formed.

Approvals pertaining to the establishment of a business

Mainland Company Free Zone Company
The mainland companies need to seek approvals from various government bodies like the Department of Economic Development, Dubai Municipality, Ministry of Labour etc. Each free zone has a set of rules and regulations applicable to all the companies that are formed within the jurisdiction of the particular free zone.External approvals from government bodies and agencies that do not belong to the free zone are not needed for the free zone company setup.

I hope you now have a better understanding of the significant distinctions between a Mainland and a Free Zone Company in the United Arab Emirates. The Kiltons Company Setup Services LCC assists investors and entrepreneurs in establishing their business goals in the United Arab Emirates, both on the mainland and in the Free Zones. If you would like to learn more about setting up a mainland or free zone company in the United Arab Emirates, as well as the costs associated with doing so, please do not hesitate to contact our team of business advisers and consultants.

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