Company Formation in Dubai — UAE Free Zone
There are a lot of Free Economic Zones in the Emirates. Each FEZ has its own advantages and disadvantages. When choosing the optimal location for UAE Free Zone company formation, it is advisable to consider certain factors.
The choice of the free zone is determined by the priority license. Each Free Zone focuses on its own list of business activities.
For example, some free zones are suitable exclusively for IT projects, and some are exclusively for marketing activities. Our experts will help you choose the most suitable economic zone for UAE free zone company formation.
Each individual FEZ has its own registration procedures and has its own requirements for documents.
The costs of incorporation, further renewal of the license and lease directly depend on the location and internal approaches to the pricing of each free zone. Free economic zones, which are distant from Dubai and the capital Abu Dhabi, provide a more loyal pricing policy.
Free zones are located in different regions of the Emirates and have their own infrastructural and logistical advantages and disadvantages. Depending on the type of activity, one free zone may suit you and another may not.
All local banks have their own free zone risk rating. It determines the reliability of companies. This affects the complexity and procedure when opening bank accounts.
Particular attention is paid to the selected FEZ by internal counterparties. If the company aims to work in the local market, then it is advisable to consider premium free zones or open a mainland company.
Anyway we will recommend you the best option for your business for UAE Free Zone company formation in Dubai.
UAE Free Zone and Company Formation in Dubai
This list is relevant for the beginning of 2023.
Ajman Free Zone Authority
Dubai Design District
Dubai Internet City
Dubai South Free Zone
Dubai World Trade Center
Jebel Ali Free Zone Authority
Ras Al Khaimah Economic Zone
Sharajah International Airport Free Zone
Umm Al Quwain Free Trade Zone
Pros and Cons of UAE Free Zone Company Formation
Unlike an offshore company, a Free Zone Company in the UAE can operate both domestically and internationally;
A Free Zone Company in the UAE can work with companies from other free economic zones or mainland companies, provided that services are provided in the borders of their own office. It might be business consulting, online marketing, IT development, branding service and other segments of business activity that are provided online.
A Free Zone Company in the UAE, unlike an offshore company, can rent office space, hire staff and issue resident visas to employees.
A Free Zone Company in the UAE can obtain a certificate that regulates the status of a tax resident.
However, a company in a free zone is limited in a number of opportunities and has certain disadvantages. The company does not have the right:
Rent office space outside of the registered free zone. It is allowed to for the office to operate only inside the registered Free Zone.
Provide services in the area where the client is located outside the FEZ. For example, delivery service, installation of equipment or repair of the premises, if the object is outside of the free zone.
Engage in trading activities and distribute commercial products outside of the registered Free Zone. Trading is allowed only within the FEZ. The option of working in the borders of the entire Emirate is allowed.
However, it must be done through a mainland company with distributor status.
For what Types of Business a UAE Free Zone Company Formation is Suitable?
This list is relevant for the beginning of 2023.
Free Zone Company in the UAE for trading activities. You can trade internationally. Export and re-export is allowed, as well as sales in the UAE market, but through status distributors;
Free Zone Company in the UAE for the service sector.
The possibility of providing services to international counterparties, including the space of the free economic zone in which the company is registered, as well as the local market, provided that services are provided from the office;
Free Zone Company in the UAE for the organization of manufacturing. You can use the advantages of importing raw materials in a duty-free format, storing them in the Free Zone, as well as exporting marketable products outside the Emirates;
Free Zone Company in the UAE to optimize international business. There is an opportunity to minimize taxes. It is achieved due to the absence of tax payments in the framework of international activities;
Free Zone Company can register the property. A company in the Free Zone can register real estate and assets, including foreign ones;
Company formation in Dubai allows you to obtain the status of a tax resident and legally obtain a residence permit. This applies not only to shareholders and management, but also to staff and their families.
We Provide UAE Free Zone Company Formation Since 2008
Preliminary analysis. We will analyze whether your business and project will fit the specifics of the local market and legislation. We will select a free economic zone for doing business and implementing a corporate strategy;
Global tax planning. Personal solutions to improve the efficiency of optimizing tax payments;
Company formation in Dubai. We guarantee efficiency due to the extensive experience of cooperation with relevant authorities in various free economic zones;
Creation of economic presence. Confirmation of the fact of conducting activities in the location of the company’s registered free zone, the presence of a management center and the tax affiliation of operations to the Emirates. If necessary, Private Financial Services will help you find a physical office;
Support with opening current accounts in the UAE and outside the UAE;
Assistance in translation and legalization of documents;
Assistance in obtaining the necessary permits, visas, tax residency;
After we are done with UAE Free Zone company formation we also accompany in all government authorities and provide support on all other matters in the UAE.
The international company Private Financial Services has been engaged in consulting since 1998 and has been providing a full range of services related to the registration and support of legal entities in the United Arab Emirates since 2008.
In addition to UAE Free Zone company formation service, we will also be happy to assist in the registration of mainland companies in the UAE, and offshore companies in the UAE.
Contact our experts for a free consultation on UAE Free Zone company formation.
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FAQ (Frequently Asked Questions)
1. How long does it take to register a company in Dubai?
The timeline for registration depends on the legal form of the company. However, on average, registration of a company in Dubai can be completed within seven working days as long as you have all the necessary documents and a competent business partner.
2. What is the most common type of activity in Dubai?
At the moment, the most common activities in Dubai are IT companies, travel and tourism, trading companies, e-commerce, beauty salons, real estate, and so on.
3. Can a foreigner be the owner and director of a Dubai company?
Foreigners are allowed to own 100% of the shares in the company within Dubai free trade zone and assign a board of directors at their discretion. Therefore, in most cases, it is possible to manage the company by yourself.
4. What are the requirements to establish a Private Limited Liability?
At least two individuals must be involved to register a private limited liability company. If you are the only individual, you will have to find a partner to sign on as one of the company’s founders.
5. What is the minimum share capital of a company in Dubai?
The minimum share capital requirement differs drastically for each free zone and legal form. It can range from AED 1,000 to AED 1,000,000 based on the type of activity and licenses.
6. What are the annual costs for maintaining a company in Dubai?
The exact cost will depend on the chosen free zone and your company’s legal structure. However, on average, the cost to renew the company is somewhere between AED 9,000 and AED 12,000.
7. Are there any restrictions on company activities?
You cannot open casinos, betting shops, sweepstakes, and other related businesses in Dubai. In addition, you are not allowed to execute illegal activities. There are also many restrictions on the production and advertising of alcohol.
8. How can I get more information?
Private Financial Services provides a full range of corporate services in Dubai, including company registrations, bank accounts, license assistance, cryptocurrency and fintech projects, the gambling industry, and much more.
The Private Financial Services team will be happy to discuss matters in more detail.