The opulence that exists here in UAE, the wealth, the money, the fancy cars, the fancy houses, the five, six and seven star hotels. A lot of people around the globe wonder what’s going on here and wonder how this place got so successful.
Well, one of the reasons the UAE got successful and worldwide recognition is because of its immense business opportunities and ease of doing business.
UAE free zones play a huge role in driving UAE’s economy. The business opportunity that exists in UAE free zones is phenomenal.
The first free zone in the UAE emerged in 1985. Today in Dubai alone there are over 20 free zones. And in overall UAE, according to The National, there are 49 free zones. Each of them was established to serve needs of particular industry. Today free zones review their plans, embrace economic changes and digest their strategies. As a result several free zones open their doors to multiple industries although initially the main focus was on a few sectors.
Free economic zone DMCC deserves separate mention. In 2015, DMCC was recognized globally as best free zone by fDi magazine. There are over 10,000 businesses registered in the free zone successfully conducting their operations.
In general each free zone in the UAE has distinctive features and has different requirements in terms of business regulations.
Following are the benefits of free zone company formation in UAE, 100% foreign ownership: If you setup in a UAE free zone you have the right to completely own your company which is different to the rules that apply if you are operating outside a free trade zone.
Tax breaks: You also have the right to tax breaks which extend for in excess of 10 years after you setup within the zone.
100% repatriation of capital and profits: You are allowed to repatriate your foreign capital and profits completely.
100% free transfer of funds: there are no restrictions to the transfer of funds.
100% exemption of import and export duties: there are of course transaction charges and they vary from free zone to free zone.
Quicker Free zone company formation: Formation of free zone company is quicker and you do not need a local sponsor to form your company.
Easy recruitment procedures: The recruitment procedures are pretty simple and you can recruit people from anywhere in the world except from some restricted countries like Yemen, Egypt and so on where a security check is done in advance.
25 year lease options: You can lease warehouse and production facilities on a 25 year old lease. Areas are also available for production and assembling.
Benefit from inexpensive basic services: You will be able to benefit from inexpensive basic services such as water and electricity.
Also Read: Top 10 Benefits of Business in Mainland Dubai
As mentioned before, many free zones in Dubai are specialists’ free zones like Dubai Airport free zone specialized in logistics related companies,
Let’s take a look at the three most popular free zones in the UAE and the benefits they offer.
Home to thousands of successful businesses, DMCC is a leading free zone in Dubai for trading commodities such as gold, diamonds, metals, and tea as well as industrial materials. If you want to do business in commodity trading, company formation in DMCC is the perfect place for you where you can meet, partner or compete with the companies in your sector.
According to Khaleej times, Jafza contributes to over 50% of Dubai’s total exports. Business setup in Jafza is the perfect choice for your trading business as it is close to airport and Jebel Ali sea port. It has state of the art network of warehouses and IT and communication infrastructures.
Also Read: Costs and considerations of forming a free zone company Dubai
Home to the popular global companies such as Microsoft, IBM and Dell, Dubai Internet City is the perfect place to setup tech business. Business setup in DIC will provide you with excellent business startup packages (incubators) as well as a great location which will help you expand in Mena region.
On the whole, setting up a free zone company in UAE is actually a pretty good deal.
To ensure that you choose the proper platform for your business we recommend you consult a professional in the UAE to learn more about every free zone available in the UAE.
For assistance in business setup in Dubai and across UAE, contact our consultants at KWSME. You can call us at 00971-(04) 871 4313 or send your query at info@kwsme.com.
Ras al-Khaimah is one of the seven emirates that constitute United Arab Emirates (UAE). It enjoys a strategic graphical location as being situated on the northern most side of UAE at the entrance of Persian Gulf. It is 45 minutes away from Dubai and also sharing its borders with Oman as well as proximity to Iran with Saqr airport being 100km away from it. Ras al-Khaimah has an international airport and many sea ports located near Persian Gulf.
In terms of global investment, the emirate of Ras al-Khaimah possesses enormous potential and its government has taken serious steps to transform it into regional as well as global business and investment center. Ras al-Khaimah free trade zone is the second largest free zone in UAE and it hosts more than 8500 businesses. Operating process costs in RAK free zone are low thus allowing the establishment of businesses with a 20% reduction in expenditures for companies, and total revenue increases approximately to 30-35% in comparison to other states and the rest of the region.
The most promising sectors in Ras al-Khaimah for investment perspective are industrial and tourism sectors. Also many industries have made their mark on national and international level which includes ceramics, medicine, fertilizer, mining, and information technology. If you want to setup your business in RAK free zone, you will have benefits such as;
If you want to setup your business in RAK free zone, you must select an appropriate business license. These are,
It involves activities such as import of raw materials, manufacturing, processing, assembly, packaging, and distribution.
It includes import, export warehousing and distribution.
It allows consulting services in management, finance, investment, legal issues, labor relations, industrial development; logistical support in restaurants or food outlets, catering services, travel agencies, leisure and social activities, insurance, cargo and freight forwarding.
It is issued as commercial license allowing maximum of seven product lines.
The business license is issued for a limited period of time that is one year. It can be renewed on a yearly basis provided that companies submit audit reports before applying for license renewal. Companies in free zones can also sell their products within UAE but they will have to take assistance from a local distributor or an agent licensed in UAE. But for such sales a duty of 5% is charged.
The company registration process in RAK free zone is very simple provided you have submitted required documents.
In some cases, additional information or documents can be required. After successful completion and submission of required documents, you will be issued a license to operate in Ras al-Khaimah free zone.
If you are looking to setup your business in RAK free zone, feel free to ask us at KWS Middle East. Our professional team of consultants will guide you in selecting the appropriate business structure, help you in filling out the documents so that all requirements are met, facilitating you in getting approvals from relevant authorities and in all matters related to cost, location and human resource. Also having excellent relations with government authorities and potential decision makers, KWSME will help you in your company formation process in less time and cost effective manner.
The purpose of a free-zone is to attract foreign investment because investors around the world will be willing to invest in new regions if they found any benefits in new regions as compare to their home country. That’s why different countries have free-zones to attract foreign investment and these investments around the world help these regions to develop a strong economy.
There are many countries that have free-zones for businesses to invest in but most popular and preferred free-zones are in UAE. United Arab Emirates has 7 emirates and each emirate has number of free-zones for investor to select and start their business such as:
We have complete details about each free zone of emirate which you can read at “Incorporation of a Free Zone Company in UAE”
As every free zone has its certain benefits and paybacks but there are some common benefits which each UAE free zone offers to businesses:
These free zones of UAE provide 100% foreign ownership to businesses and there will be no involvement of others in your company.
UAE free zones allow foreign investors to transfer corporate money back to their home country from UAE. Such kind of facility is a huge benefit for any investor.
Businesses, who want to start their operation in mainland of UAE, need a local sponsor who owns the 51% shares of the company. It is an obligatory requirement of the government imposed on foreign companies if they want to setup a mainland business. But in free zones you do not require any local sponsor, who will take a part of your ownership in your company. You will enjoy the rights of 100% ownership in free zones.
Businesses who are operating in free zones of UAE are 100% exempted from duty on exports but to countries that are not the part of Gulf Cooperation Council (GCC). However, if a business is exporting to GCC country he has to pay some customs duty.
As compare to other zones, it will require less time to start a business in free zone. For most of the businesses, it is only required 3 days to start their operations but it can vary depending on the structure and type of the company. Read in details about the time required starting a business in UAE.
As compare to other countries that have free zones and even the other zones of UAE as well, you can find inexpensive workforce in these regions. The requirement process and labor laws are very much favorable for both the recruiter and the workforce.
In free zones of UAE businesses have the lease option of 25 years which is a very attractive feature as investors do not need to invest a huge amount of money in one go.
In free zones of UAE you will find a world-class and ever-improving infrastructure, supporting business to have a balanced work requirement. The transportation system of these zones is very modern to fulfill your commuting necessities. Free zones of Emirates provide a very business friendly environment with growth opportunities. You can find customized and predesigned warehousing and office facilities equipped with modern technology.
Investors can have the visa for 3 years for them, for their staff and for their families which can be renewed without any hassle.
When investors want to transfer their funds into a new region they need to open a bank account so they can secure their investment and can put their focus towards on other matters rather than the safety of their own money. Opening a bank account in a new region is not a simple thing to do because procedures and requirements vary bank to bank. But free zone of emirates provides you an ease to open a bank account, so that you can perform your daily monetary activity with comfort and peace of mind. You can read our well written article regarding Basic Requirements to Open an Offshore Bank Account in UAE
If you have all these benefit which are described above, so it will be easy for you take a decision about your investments.
We at KWSME can describe you benefits of each free zone and can recommend a best zone suitable for your business setup requirements. Contact one of our experts and get free consultation.
Jebel Ali Free Zone is one of the most popular, oldest and fastest growing free zone located on the western side of Dubai. JAFZA is widely recognized as the most service driven and customer oriented free zone. It is in the process of becoming major business hub of the world having trade value of over $69 billion; currently holding a dynamic base of more than 7000 companies, providing over 135,000 jobs to employees from more than 100 countries. Jafza provides a key strategic location and excellent logistics infrastructure and business environment for the formation of free zone companies.
Free zone company formation in JAFZA consists of the following types,
Free Zone establishment can be formed by a single shareholder in JAFZA. Shareholder can be an individual or a company. It is a limited liability partnership whereby liability of shareholder is limited to his shares in FZE. Personal assets of shareholder are protected in FZE.
Free zone Company can be formed by a minimum of 2 and maximum of 50 shareholders in JAFZA. Shareholders can be individuals, company or combination of both. Again, FZCO is a limited liability partnership where liability of shareholders is limited to company’s assets.
Companies who were established outside JAFZA having valid registration and license can form a branch within JAFZA. Parent company will have 100% ownership of its branch and branch will operate under the name of its parent company and conduct same business.
Under JAFZA Companies Regulations Act 2013, offshore company can be formed by an individual or company. It will be non-resident company having corporate legal existence.
JAFZA free zone company formation process is relatively quick and straightforward. Firstly you have to decide which type of company you intend to establish, then there is application and documentation work which is described below. Once all the steps are done, your company can be up and running around merely in 10 days.
After successful submission of documents, you will be issued an initial approval for your business. After that you will select appropriate ready-made office from JAFZA that caters to your business requirement. You can also opt for JAFZA regulated contractors for appropriate fit out office service or you can do that independently.
After finalization of office, lease agreement is prepared and you can collect office keys.
Legal documents are prepared and submitted to authority after that you will be issued a business license.
KWSME provides complete services for free zone company formation in JAFZA. We are amongst the best business consultancies in UAE. We offer complete business solution for free zone setup like preparation of documents, their submission to authorities on your behalf, assistance in opening of bank account, obtaining visas, finding local service agent if required or drafting of legal documents in Arabic or English. We specialize in our services for business setup in Dubai, and provide best business model for investors interested in Jafza company formation.
United Arab Emirates is home to highly lucrative and impeccable free zones that are constituted for entrepreneurs, SMEs and large industries. A newest addition to the collection is the formation of Umm Al Quwain (UAQ) free zone. UAQ free zone was established in 2014 in the emirate of Umm Al Quwain that is situated on the western coast of UAE.
Umm al Quwain is the least inhabited state of UAE. With new developments going on, it is emerging as a progressive and prosperous emirate having stable economy. Located just 45 minutes away from Dubai, UAQ is well known vacation destination popular for its desert scenery, vegetation and wildlife. Entrepreneurs around the world are looking for business opportunities in UAQ due to open investment climate and low cost of living and labor.
UAQ free zone has secured its reputation amongst foreign investors with its flexible licensing and modern management. Company formation in UAQ free zone is one of the best low cost, hassle-free and profitable business ventures in the world.
UAQ free zone provides the key benefits that you would expect i.e.
These were the general benefits associated with UAE free zones. In UAQ free zone, there are lot more reasons for entrepreneurs to invest. Let us shed light on the facts that make UAQ free zone unique and stand out from the rest.
The strategic location of UAQ free zone makes it a prime destination to carry out business.
Quick and hassle free business setup process
UAQ free zone authority provides ease to entrepreneurs for their business setup. You can establish a company in UAQ free zone in as less as 3 to 5 working days. Documentation requirements such as establishment cards, visas, license and other legal documents are processed at a fast pace.
Minimal setup timeline provides a head start to an investor to take care of other important tasks such as office space, handling corporate accounts etc. You do not get swift incorporation benefits in other parts of the world.
If you want to form company in UAQ free zone but unable to reach or are abroad due to any reason, you can still incorporate it. Personal presence is not required however you have to sign incorporation documents of company and the rest can be dealt by your company formation agent.
Another attractive proposition for entrepreneurs in UAQ free zone is the extent of choice for business license. You can get commercial, industrial, consultancy, service, freelance and micro business license in the free zone.
You can form your company and apply for license in UAQ free zone without need of a visa. This is great option for businesses such as solopreneurs and freelancers as mentioned above, who do not require permanent physical presence and want to start their business with small capital. This feature gives a great kick-start to business setup process in UAQ free zone.
KWSME has successfully incorporated hundreds of businesses in Dubai and across UAE. If you are looking to form company in UAQ free zone, our consultants can assist you from scratch till end. We provide company formation services that include choosing your business activity, trade name, legal procedures and paperwork for registration, search for office premises etc. We also provide business support services such as obtaining visas and trademark registration. KWSME offers facilitated packages to its clients for their company formation solutions.
Contact our representatives for further assistance.
