UAE Free Zone Companies

There is a free trade zone UAE or free economic zones (FEZ) in different emirates in the UAE, which give the opportunity to create a company for almost any type of activity, allowing the companies to be wholly foreign-owned. Free trade zones promote international business and provide full proprietary rights to international investors.

UAE Free Zones:

• Are regulated under the specific rules and regulations applicable to the free economic zone in question;
• These areas provide a completely tax-free regime (all activities of such companies are exempt from payment of any taxes and customs duties);
• FEZ provide a corporate tax exemption in certain cases.

There are the following types of business entities in the UAE Free Zone:

• Free Zone Establishment (FZE) – an individual shareholder.
• Free Zone Company (FZC) – 2 or more shareholders.
• Subsidiary – an affiliate of a local company or a daughter company of a foreign firm.

It is also possible to establish a representative office, or a branch of a company registered abroad or in one of the UAE in Free Zones. Each FEZ serves specific sectors and industries and has the right to apply its own company registration requirements.

To better assess the main characteristics of the key UAE Free Zones and compare the prices for a company setup in those Free Zones, please refer to this chart below:

• 100% foreign ownership is allowed.
• No corporate taxation under certain conditions.
• No import or export taxes.
• No restrictions on repatriation of income and profits.
• Easy availability of business, housing, immigration, labour and other facilities.
• No currency controls.
• Easy visa process for company employees.

1. Select a name and submit it for approval.
2. Apply for a license. The type of license required depends on the type of business the firm is engaged in. Supporting documentation has to be provided with the application form.
3. Choose required facility (flexi-desk, office, warehouse).
4. Establish a business registration in the UAE Free Zone: all necessary documents should be submitted with the application form.

Final approval will take from 5 days to 2 weeks after the complete set of application documents has been submitted. Subsequently, the Free Zone Authority will issue a certificate of incorporation, business license and memorandum of association.

For individual shareholders:

• Passport copy of the shareholder and manager;
• Latest UAE entry stamp / visit visa copy / residence visa copy and Emirates ID of the shareholder and manager (for UAE residents);
• Proof of address for the shareholder and manager;
• Passport-sized photo of the shareholder and manager.

For corporate shareholders:

• Memorandum of Association (MOA) and Articles of Association (AOA);
• Trade License (for an existing company);
• Certificate of Incorporation;
• Board Resolution.

1. Reserve the company name with the free zone authority.
2. Submit the application form along with the signed documents.
3. Get the trade license for the company.
4. Once the trade license has been issued, the visa application process may be initiated.

• The client has a possibility to register a company without paid-up share capital;
• Upon completion of the company formation there is a possibility of obtaining a visa in the country for you and your family;
• Free tax regime and no restrictions on taking capital and profits abroad;
• A reliable reputable jurisdiction and a stable banking system.

• Such companies are more expensive than offshore ones;
• Annual audit is required;
• The company must file annual VAT return if turnover of a company per year subject to VAT exceeds AED 375,000.

List of Free-Trade Zones in the United Arab Emirates:

• ADGM
• Ajman
• DMCC
• DIC
• DIFC
• DWTC
• IFZA
• Jebel Ali (JAFZA)
• Meydan
• Ras Al Khaimah
• Twofour54
• Umm Al Quwain