SETTING UP A BUSINESS IN UAE FREE ZONE

Free zones are distinguished areas where business can operate and gain special privileges not available normally to companies working outside the free zones. Many startups are recognizing the immense impact of the UAE in promoting global trade and business. Hence, many companies are starting to look at establishing a presence in the UAE at lucrative avenues like Ajman Media City, Sharjah Airport, Hamriyah, Fujairah, UAQ, and RAKIA. The liberal outlook, supportive government, and proven track record make the other emirates of UAE a great destination to set up the business and grow it beyond aspirations.

Benefits of forming free zone companies in other emirates in the UAE

The free zones of the different emirates of UAE presents amazing business traction opportunities. Not only will your international business get an overseas presence, but you will gain significant leads working with other multinationals operating in these free zones in the UAE. Below are some key advantages of operating in free zones in the other emirates of the UAE.

  • 100% foreign ownership possible.
  • Corporate tax exemptions that can span as much as 50 years.
  • 100% repatriation of profits and capital permitted.
  • Easy access to skilled human capital.
  • Convenient access to transportation systems such as air, rail, and road.
  • Streamlined and hassle-free licensing and business startup process.
  • Highly advanced infrastructure like telecom, data, broadband, IT setup and secure networking systems.
  • You can set up new company as an FZE or operate a branch of your existing business venture.

Types of licenses available

Different types of business setups would require a particular license in order to operate under the free zones in other emirates in the UAE.

  • Business License.
  • eCommerce License for online retail companies.
  • Services License for running consultancies, IT, and other professional entities.
  • Industrial license where minimum 40% of the output is from the free zone.

In most cases, licenses are provided in as short time as 24 hours. This makes the other emirates a great opportunity for company formation in the UAE.

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Types of legal entities

Free zones

Some emirates like RAK offer one of the most competitive costs for setting up new business in the emirate. With free zones, advantages like total company ownership and state of the art fully equipped infrastructure are made available to companies

Offshore

Companies can also set up offshore entities in the other emirates of UAE. With highly regularized processes, cutting edge infrastructure and world-class facilities, this can prove to be a winning move for those who need 100% company ownership and total confidentiality.

Mainland

Company formation in mainland UAE emirates is a good option for those who want to expand their networking to cater to UAE companies. Forming a mainland company is more challenging than other types of entities in the other emirates of the UAE. Hence, you would need an expert to guide you through all the formalities of setting up a mainland company in the other emirates of UAE

Procedure to set up the company

What type of business entity is to be set up

You need to assess which type of company you need to set up at a given free zone. This will determine how much you need to allocate as share capital as per the rules. For instance in DAFZA, you need to have atleast AED 15,000 as the share capital required to operate in this particular free zone.

Select a trade name

Next, you need to pick a trade name that is not already registered before. This also needs the free zone authoritys approval to go ahead and use it

Procure license

You need to obtain one of the three broad categories of licenses - professional, commercial, or industrial before you commence operations.

Get rental office space

Next, you would need to have a physical address for your office. Be it owned space or rented space, you need this to take the procedure to the next level.

Complete the pre-approval formalities

The initial approval would signal the opportunity to go ahead and commence your operation. Once you get the licenses and office space, it is just a matter of 2 to 4 weeks to begin with your own business in UAE.

Why EBS?

EBS has proven expertise in company formation in other emirates in the UAE. With high impact solutions, we make sure that your business set up process in these other emirates are as smooth as possible. Right from passport and Ministry of Economy approval, to getting the tenancy contracts prepared for office space or visa arrangements, we do a holistic job so that you can easily start functioning after setting up business in other emirates in UAE.

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