Free Zones are the most sought-after locations to setup a company as these have special Customs, Tax, and Import rules and regulations, and are not governed by general procedures applicable in the Middle East.
There are more than 30 free zones in UAE that allow foreign investors to own 100% shares in the company without the need of a local sponsor.
Free Zones in UAE
DUBAI
- Dubai World Trade Centre
- Dubai South
- Jebel Ali Free Zone (JAFZA)
- Jumeirah Lake Towers (JLT)
- Dubai Airport Free Zone (DAFZA)
- Dubai Silicon Oasis (DSO)
- Dubai Multi Commodities Centre (DMCC)
- Dubai Internet City (DIC)
- Dubai Media City (DMC)
- Dubai Studio City
- Dubai Academic City
- Dubai Knowledge Village (KV)
- Dubai Outsource Zone
- Enpark
- International Media Production Zone
- Dubai Biotech Research Park (DuBiotech)
- Dubai Automotive Zone
- Gold and Diamond Park
- Dubai Healthcare City
- Dubai International Financial Centre (DIFC)
- Dubai Logistics City
- Dubai Maritime City
- Dubai Flower Centre
- International Humanitarian City
- Dubai World Central (DWC)
ABU DHABI
- Abu Dhabi Airport Free Zone
- Masdar City
- Twofour54
- Khalifa Industrial Zone Abu Dhabi (Kizad)
SHARJAH
- Sharjah Airport International Free Zone (SAIF Zone)
- Hamriyah Free Zone
FUJAIRAH
- Fujairah Free Zone (FFZ)
RAK
- Ras Al Khaimah Free Trade Zone (RAK FTZ)
- RAK Investment Authority (RAKIA)
- RAK Media Free Zone (RMFZ)
UMM AL QUWAIN
AJMAN
Free Zones Company Incorporation In UAE
Why Setup Business in UAE Free Zone?
The companies registered outside UAE free zones can’t be owned solely by a foreign national (a maximum of 49% foreign ownership and at least 51% ownership by a UAE national is mandatory), which is one of the primary reasons why global investors throng to UAE free zones for business investment.
What are Free Zone Companies?
- Only able to trade within the specified free zone and to operate worldwide
- Goods exiting the free zone to enter mainland UAE must pay a 5% customs duty
- No sponsor is needed
- Foreigner can own 100% of the license
- Residence visas are issued
- Office space is required within the free zone and this is strictly enforced
- Able to open UAE bank accounts and accounts worldwide
- Has the option of becoming a member of the Chamber of Commerce through the relevant office in the specific Free Zone
Offshore company
- Only able to trade outside of the UAE
- No residence visa is issued except in the case of a JAFZE offshore license with an office space inside JAFZA
- No local sponsor needed
- Foreigner can own 100%
- Able to have UAE bank accounts
- Able to have accounts worldwide
Onshore company
Onshore companies are a classical form of company in all countries, and are incorporated under the Code of Obligations, which is separately determined for each country and each form of company. On incorporation of a company, we act in accordance with the legislation of each individual country, and provide legal advice to the client, so that it can settle, in accordance with the legislation, in the country in which it will conduct its business.
An onshore company is a business entity which is formed and managed within the jurisdiction of the hosting country. The legal status determines the obligations of the company towards the country's jurisdiction, such as detailed corporate documentation, obligatory management protocols, auditing and reporting, and tax payments. The benefits of the onshore jurisdictions include favorable regulation and taxation policies for companies operating outside of the jurisdiction, broad networks of tax treaties, developed business, banking and supporting sectors, and many more. Most onshore corporations enjoy these benefits only when operating a business outside of the country's jurisdiction.
Advantages of Free Zone
There are many advantages of free zone company incorporation in UAE, these are:
- 100% foreign ownership
- 100% Repatriation of capital and profits
- 100% exemptions from corporate, personal, or income taxes
- 100% free transfer of funds, and no foreign exchange controls
- Exemption from all import and export duties
- Low freight charges
- Abundant and inexpensive energy
- Inexpensive workforce, and easy recruitment procedures
- Efficient communication procedures and single window administration
- Liberal government policies and legal framework
- Timely and streamlined immigration process
- Sponsorship and visas for affordable skilled work-force
- Flexibility to operate 24/7
- Freehold offices available on sale or lease
- Ready-made offices, factories and warehouses
- Easy start-up and licensing procedures
- Unique industry clustering and purpose-built infrastructure
- 3 years UAE residence visa
- No restrictions on hiring expatriates