Dubai, along with the other Emirates of the UAE has made a mark on the map with their iconic infrastructure, luxurious lifestyles and extravagant achievements. Quickly rising to its glory, the UAE has transitioned into one of the most rewarding and attractive business hubs and holds an important position on the global scale. Observing a steep increase in the number of foreign investments and entry of major business enterprises into the market, Dubai is seen as a great place for going business. 

The business layout in the UAE is divided into 2 groups – onshore and offshore. The onshore sector is primarily occupied by the local businesses and is marginally unfavourable for foreign ventures. On the contrary, the offshore sector is mainly composed of foreign organisations and is created to attract outside capital. This sector is also called the free-zone and the regulations are structured to attract international operations. There are various geographical sectors dotted around the UAE territory, labelled as free zones where free-zone companies can setup their offices.

The government offers numerous incentives to promote foreign investments and to do business in the UAE.

  • Minimal or no corporate taxations for 50 years.
  • Exemptions on import duties
  • Access to high-class infrastructure to facilitate business growth
  • Easy registrations and permits for employees and skilled workforce
  • Unified sections for hassle-free recruiting and licenses services.

Limitations on the Free Zone companies

While the policies are formulated such that the offshore companies can benefit from the market, there are certain limitations imposed on the free zone companies, to favour the domestic businesses and prevent competition from the outside business. 

Free zone companies are restricted from trading or entering the local/UAE markets directly. Also, they cannot deal directly with a Mainland company. Instead, they need to collaborate or route their services through a local business or a local distributor. In any scenario, a free zone company needs to use distributors that hold valid permits and licenses as their mediators to deal outside the free zone unless authorised by the Development of Economics Department.

Free zone and its sectors

Not all free zones are the same. Under the ‘free-zone’ umbrella, there are 3 different sections which vary in their geographical locations, benefits and limitations and industry. Therefore, when registering and aligning your business to a free zone, it is essential to understand the intricate details.

  • Free Zone Establishment – For individually owned companies
  • Free Zone Company – For companies owned by a group or board
  • Branch office

Each of these business establishments differs in their registration processes and documentation. Also, they have different infrastructural and socio-cultural benefits, which may or may not be useful for your business. Thence, it is advantageous to appoint a certified consultant that can help you understand the policies and formulate necessary plans for your company formation. 

We, at Zeiqs, hold years of experience in company formation domain, across various industrial domains. We offer an extensive package of legal and business consulting services that can aid you in the process of establishing your business in the UAE. Our team of experienced legal practitioners and business experts can assist with the licensing, company registrations, employee permits and more. Also, working with us advantages your business, as our extensive network of business contacts can help you expand.

There are no taxes to speak of, on or offshore, but 100% foreign ownership and customs privileges make the free zones the most favorable locations in the Middle East for international operations. We offer our professional Dubai freezone company formation services and expertise to clients who wish to set up their business in the following areas:

 Dubai Airport Free Zone  Dubai Flower Centre  Dubai Logistics City
 Jebel Ali Free Zone  Dubai Gold and Diamond Park  Dubai Maritime City
 Dubai Internet City  Dubai Healthcare City  Dubai Multi Commodity Centre
 Dubai Media City  Dubai International Financial Centre  Dubai Outsource Zone
 Dubai Auto Zone  Dubai Knowledge Village  Dubai Silicon Oasis
 Dubai Biotechnology & Research Park  Dubai International Academic City  Dubai Studio City

Free Zones offer the following incentives to investors:

  • 100% foreign ownership
  • No corporate taxation for 50 years; renewable for an additional 50 years
  • Freedom to repatriate capital and income
  • No personal Income tax
  • Full exemption from import duties
  • No currency restrictions
  • No bureaucratic red-tapism
  • No recruitment problems
  • Modern efficient communication state of the art infrastructure
  • Abundant Energy

Key Benefits Investors Enjoy by Setting up a Business in Dubai Freezone:

  • 100% Foreign Ownership
  • 100% Repatriation of Capital and Profits
  • 0% Corporate, Personal Tax
  • Exemption from all Import and Export Duties
  • Free Zone Company Formation is Quicker than Incorporation outside of the Free Zones
  • Inexpensive Workforce and Easy Recruitment Procedures

Typically, no restrictions on recruiting labour

  • ‘One-stop-shop’ for Administration Services
  • On-site Customs Inspection

Free Zone Limitations

A Free Zone Company is not allowed to trade directly with the UAE market. The Free Zone Company can undertake the local business only through locally appointed distributors. Custom Duty of 5% is applicable for the local business. Even though all free zones provide many attractive schemes for the benefit of the investors, not all are the same when we consider the facilities offered by them. Therefore, it will be worthwhile to have a glance over the facilities offered by each, one by one. The details mentioned below are for the guidance of the investors, and the facilities may be subject to change from time to time when such decisions are being taken by the Free Zone Authorities

Documents Required for Registering a Business in the UAE Free Zones

There are some similar formalities to be completed with regards to the documents which are submitted to each free zone depending upon the type of business an investor chooses. In general, the following are the main options:

  • Free Zone Establishment (FZE) (One individual shareholder).
  • Free Zone Company (FZCO) (More than one member).
  • Branch Office

All of the above types may not be available to every free zone, therefore an investor should seek the advice of a consultant to finally arrive at whether his choice is possible in the concerned free zone and also to know about the details of documents needed. However, for the advantage of the investors, descriptions of documents commonly needed are being listed below:

FREE ZONE ESTABLISHMENT (FZE)    FREE ZONE COMPANY (FZC) BRANCH 
 Application form duly filled
Business profile of the owner
Passport copy of the owner
Original bankers’ reference		  Business profile of individuals Passport copy of owners
Original bankers’ reference Board Resolution Manager’s valid passport copy Specimen signature of the manager Original FZCO application		  Certificate of Registration
Memorandum and Articles of Association
Board Resolution
Manager’s passport copy and his attested signature
Parent company’s profile

RAK Free Zone Company Formation

Ras Al Khaimah (RAK), located only 45 minutes away from business hub Dubai, is fast becoming the investment destination of choice by investors from across the globe. RAK free zones offer interested entrepreneurs’ special privileges that help them operate without delays. ZEIQS can assist you with your RAK free zone company setup needs.

Benefits of RAK Freezone Company Formation

  • 100% foreign ownership is allowed.
  • 100% repatriation of capital and profits is allowed.
  • No personal or corporate income taxes, customs duties, import/export taxes.
  • Less number of restrictions on recruiting labor.
  • Shared services and synergies with other companies in the free zone.
  • No bureaucratic red tape.
  • State of the art infrastructure.

Freezones in Ras-Al-Khaimah:

  • RAK Free Trade Zone
  • Ras Al Khaimah Investment Authority (RAKIA)
  • Contact ZEIQ to learn more or get a quick quote on our RAK free zone company formation services.

Business Setup in Sharjah

The Sharjah freezone provides foreign investors with an opportunity to set up their business in the UAE. We can make the process of business setup in Sharjah easier.

See what makes Sharjah a viable place for putting up a business.

Benefits of Sharjah Free-zone

  • 100% foreign ownership is allowed.
  • 100% repatriation of capital and profits is allowed.
  • Zero personal or corporate income taxes, customs duties, import/export taxes.
  • Very little restrictions on recruiting labor.
  • Shared services and synergies with other companies in the free zone.
  • No bureaucratic red tape.
  • State-of-the-art infrastructure

Freezones in Sharjah:

  • Hamriyah Free Zone
  • Sharjah Airport International Free Zone
  • Sharjah Media City Free Zone

Ajman Free Zone Business Setup

Looking into setting up a business in one of the free zones in the UAE? Consider going for an Ajman free zone company setup. The Ajman free zone offers investors several advantages.

Established in 1988, the Ajman Free Zone was granted autonomous status under the Amiri decree no.3 of 1996 issued by H.H. Sheikh Humaid Bin Rashid Al Nuaimi, Ruler of Ajman. The Ajman Free Zone Authority has been named as the sole regulatory agency for this free zone.

Company Formation Ajman

An Ajman free zone business setup provides several benefits for potential investors:

  • 100% foreign ownership
  • 100% repatriation of capital and profits
  • No personal income taxes
  • No corporate tax
  • Low labor cost
  • No Red Tape

Advantages

  • Competitive pricing on premises
  • No hidden fees
  • No hidden charges
  • Cheap energy
  • The most economical wage structure and easy access to vast work force
  • Total exemption from all import and export duties
  • Total elimination of all service charges and hidden fees
  • Exceptionally low handling charges
  • 20 years land contract is renewable for another 20 years guaranteeing 40 years tax free operations
  • Lowest lease prices
  • World class infrastructure
  • Lowest tariffs in the region