DUBAI FREE ZONES
Dubai Free Zones provide a large variety of business opportunities to foreign investors. We can help you with all aspects of Free Zone company formation. Our services include company registration, help with getting your trade license, bank account opening and more. Our friendly representatives and staff will effectively handle the entire process of company formation, without the physical presence of our customer required in Dubai.
Free Zone Company Formation facts
Free zone companies are not subjected to tax. They can be formed by foreign entrepreneurs and investors for the purpose of access to consumer markets in the Middle East and Africa. Also, free zone companies do not have to pay corporate tax, an advantage that results in minimal withholding tax on remittance to other countries. Hence, there is no need to pay custom duties on import / export goods from the free zone.
There is also no need for appointing a UAE national shareholder to form a free zone company. Although a low rent office must be rented, staff employment will not be required.
Other advantages offered by a free zone company include the following:
- Less administrative requirements for company formation
- Lesser constraints for staff hiring
- Zero import / export tax reductions
- Superb infrastructure
- Moderate costs for energy and utilities
A free zone company can only conduct business within the Free Zone and only with international customers. Failure to oblige to this law will result in fines ranging up to US$35,000
Paid up share capital varies between US$14 to US$300,000 with the criteria being:
- The particular free zone
- Organizational structure
After company formation, the share capital can be utilized for funding the daily operations of the business.
Annual renewal of licenses are required and can be obtained by submitting annual audited financial statements to the authorities, as well as complying with other free zone laws
A Free Zone company can engage in business activities within the vicinity of Dubai and UAE, provided that:
- An Emirati national be appointed as 51% local partner and that the trading license is allotted by the Department of Economic Development
- A service agent is hired to sell and distribute its products within the city by the company, and in its name
- There should be a branch office in the city and that a UAE agent is used for the purpose of distributing goods
- An amount of 5% will be charged as custom duty on free zone sales within the UAE vicinity
Types of Free Zone Business Entities
Foreign business owners and entrepreneurs have the choice of incorporating the various forms of Dubai Free Zone company types in the UAE free zone:
- Free Zone Company (FZC) – An FZC can be formed with at least two shareholders up to a maximum of five, as well as an appointment of two directors.
- Free Zone Establishment (FZE) – An FZE can be incorporated with a single shareholder and director. Same as a one-person company (OPC)
- Foreign Company Branch – transfers unlimited liability to the parent company
A corporate director will have to be hired for all three company types and applications for immigration visas will be required for all foreign employees.
All three types of Dubai free zone companies are required to:
- Rent office in the registered free zone
- Appoint a company secretary who is a resident of Dubai
- Renew annual of licenses by submitting annual audited financial statements to the authorities
Please note that a branch, in addition to the requirements above, has to maintain a security deposit with the government of Dubai until the time of its discontinuation.