UAE - Trademark

UAE Free Zones

Due to the need of having a UAE national as a partner with 51% of the company’s shares owned by them, many businesses are reluctant to invest in the UAE. As a result, free zones have grown to be a well-liked method of company creation in the United Arab Emirates, where 100 percent foreign ownership is permitted. A free zone, also known as a free trade zone, is a region with a special tax-free status and minimal trade obstacles, allowing for the production, import/export, handling, and reconfiguration of commodities without the payment of any customs duties. In order to maximise commercial advantages, free trade zones are typically situated in key geographic areas like international airports, major seaports, and national borders.

UAE - Trademark

Types of Licenses Available in the UAE Free Zones

Without obtaining a business licence, a company cannot be formed in a free zone in the UAE. In the UAE free zones, applicants may receive the following kinds of business licences:

Enables traders to trade in a variety of products

Gives a temporary authorization to carry out commercial, industrial, or consulting activities
enables the operation of law firms, accounting firms, and business consulting firms.
allows for the transnational import of raw materials, production of goods, and export of finished products.
This licence allows investors to rent out warehousing spaces for the purpose of distributing, packing, and storing goods.

applicants for licences to produce goods

UAE - Trademark

Free Zone Company
Formation UAE

The UAE government has simplified the company formation process in the UAE to attract as many international investors as possible with the least amount of capital expenditure, making business setup in the free zones of the UAE easy and hassle-free.

In the UAE's free trade zones, one can primarily establish three different sorts of entities:

  • A branch of a local or foreign enterprise
  • Single shareholder's Free Zone Establishment (FZE)
  • Free Zone Company (FZC), with 2 to 5 shareholders

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How to Set Up a Business in the UAE Free Zones?

Companies established in free zones are exempt from commercial business laws. UAE law does not apply to free zones in the UAE, although relevant free zone authorities have established their own laws and regulations there. These free zones give investors from all over the world a great business opportunity and offer a welcoming workplace with simple company formation procedures. The process is straightforward and easy.

Procedure for UAE Free Zones Company Setup

Choose the type of entity you want to establish in any of the free zones. The capital requirement for such an entity is determined by the free zone in which you wish to form a company; for example, there is no minimum capital requirement for establishing a business in twofour54, whereas in Dubai Airport Free Zone (DAFZ), a minimum share capital requirement of AED 150,000 is required.
Choose a trading name for your company after determining the type of legal entity. It is important to check with the relevant free zone authority about the permitted trade names and whether the desired name has already been registered.
You must apply for a business licence after selecting a trading name and registering it on the free zone authority's portal. The free zone authorities have provided a list of the various business licences available. The type of business licence you need is determined by your company's primary activity. When applying for the license, you must submit the supporting documents.
To assist new businesses, free zone authorities offer flex-desk office space. In free zones, you can either buy or lease office space. The size of your office depends on the number of employees and the nature of your company's business.
Obtain the initial approval and all necessary business approvals from the appropriate authorities, then register your company on the portal and obtain your license. This procedure will only take 2-4 weeks to complete. You can begin your business as soon as you obtain the license.

Why Establish a Company in the UAE Free Zones?

One of the main reasons why foreign investors flock to UAE free zones for business investment is because companies registered outside of the UAE free zones cannot be owned exclusively by a foreign national (a maximum of 49% foreign ownership by the foreign national, and at least 51% ownership by a UAE national is required). In addition, there are numerous benefits for startups setting up shop in free zones. Free zones in the United Arab Emirates are the most sought-after locations for business establishment due to their lucrative incentives and broad range of opportunities offered to investors. Below are a few justifications for establishing a business in the United Arab Emirates.
Various Business Licenses and Activities
Confidentiality
Registered Office and Bank Account

Documents Required for Establishing a Business in the UAE

The Gulf Cooperation Council (GCC) or the Arab Embassy must translate, attest, and notarize a number of documents into English.

GENERAL DOCUMENTS

  • Completed application licence form
  • Contact person's business card
  • A copy of the business plan
  • Memorandum of Association (MOA) and Articles of Association (AOA) notarized and attested
  • Copies of the partners' and business managers' passports
  • Original bank reference letters and, if applicable, the licence of the partner's existing company

Documents Required for a Consultancy License

  • A copy of the degree or diploma certificate mentioning the desired activities, as well as the experience certificate [any of these documents is required]

Documents for an Industrial License

  • Business feasibility analysis.
  • Existing business profile
  • Form for the investor's project profile, duly completed.

Documents for Branch of Companies

  • A copy of the registration certificate, incorporation certificate, and the Memorandum and Articles of Association that has been attested (MAA).
  • Original Board Resolution ensuring the branch's financial commitment.
  • Original Power of Attorney and a copy of the legal representative's passport
  • The parent company's bank statements for the last three months

Frequently asked questions

The primary distinction between Mainland and Freezone employment visas -
• A Freezone visa is valid for three years, whereas Mainland visas are valid for two years.
• With a Mainland visa, you can conduct business throughout the UAE. However, if you have a Freezone visa, you will need to appoint a Local agent to work in non-Freezone regions.
• The minimum and maximum ages for applicants for employment visas are 18 and 60 years, respectively.
• If you're a woman or are applying for managerial positions, you need an education certificate that has been attested.
•The majority of governments set a cap on the number of visas available to companies operating in free zones. You can request a higher quota, but you'll need permission to do so.
Prior to applying for your family's visa, you must first obtain your own residency visa.
• A certificate of income from your freezone business. The base salary should be AED 5500.
• AED 5000 for women and AED 3000 for men as security deposits.
• Copies of your family members' passports.
• The company's personal bank statement.
• The Articles of Association and the Memorandum of Association (MOA) (AOA).
• An image in colour of your trade licence.
• A labour agreement.
• Birth certificates for your family members and an Emirates ID
• A copy of your marriage licence, if you're married (original certifcate)
• Insurance document
It will take roughly 10 to 15 days.
The Department of Immigration.
There are two different types of entry visa application forms: an outside the country application and an inside the country application.
It's good for three years.
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