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UAE Free Trade Zones (FTZ) are determined geographical areas where UAE mainland taxes, employment and import-export restrictions on business don’t apply, as well as bureaucratic requirements, are lowered what makes them the desired destination for foreign investors.
Starting a business entity in one of the UAE’s Free Trade Zones can be a very attractive option for foreign investors, but choosing the right Free Zone for your business requires deep knowledge of the market.
You can also initiate the process of setting up a free zone business without even visiting the UAE.
More than 50 different Free Zones are located in the UAE. There’s no doubt a lot of information to review and much to consider when making the decision on which free zone is best suited to your specific business requirements, including location, price, business type, flexi-desk or office options, accounting, auditing, bookkeeping and share capital requirements, and much more.
Business Setup Experts at Beehive Consultancy FZE LLC always carefully consider all factors to recommend the best place to register your business in the UAE to enable its economic growth. Contact us today to get an insightful advice on company formation in UAE Free Zones.
The main advantage offered by the UAE free zones is that foreign investors can retain 100% ownership of their businesses without the need for a local partner.
Outside free zones, non-UAE residents are not allowed a majority stake in the business if that business requires a commercial or industrial license, and must therefore set up with a local partner who takes minimum ownership of 51%.
Other financial incentives of the UAE free zones include a 0% corporate and income tax rate, no customs duties levied on imports and exports, and the option to repatriate 100% of the profits from the business.
Free zones are sector-specific Another factor that can present fantastic opportunities to free zone companies is that many of the UAE free zones are sector specific. This gives its entrepreneurs ready access to a hub of knowledge and expertise from others within their field.
Infrastructure and facilities for Industrial and Commercial purposes, World class infrastructure created in specific free zones for ease of doing business in UAE.
Broadcast Management Activities supported include radio broadcasting, TV broadcasting, and web streaming. Authority approval is required and only certain packages support this activity.
Consultancy Consultancy covers a wide range of consulting activities including business consultancy, lifestyle consultancy, investment consultancy, legal consultancy, and human resource consultancy.
Education and Training A wide range of activities fall under the education and training categories, but please note these are only available under packages with visa eligibility.
Event Management Event management covers many activities, from conference organization to theatre production and more.
Film, Production and Post-Production This category covers licences for activities including film, art, and video production, as well as post-production.
Industrial Industrial licences cover manufacturing and the processing of raw goods. These activities often coincide with warehousing requirements.
IT Services IT services covers a range of activities within the information and communications technology sector, including e-commerce.
Media and Marketing Services This category covers an array of activities including advertising, public relations, research, and much more.
Music and Entertainment This specifically relates to music production and recording, music promotion and management, music rights as well as theme parks management.
New Media New media covers activities such as photography, web design, and broader digital media services including the creation and management of mobile phone applications.
Publishing Activities such as publishing of directories and guides, education and consumer books, magazines, online and electronic content, and much more. Special approval from authorities will be required.
Trading Trading activities can be related to any import or export related transactions.
We are completely transparent when providing our customers with the costs associated with setting up their UAE free zone business. A big part of this is simply ensuring we offer the flexibility to provide you with the exact package to suit your needs. Whether you require a single-shareholder trade license, a dual (or more) shareholder trade license, we will help you select the exact option you need so that you pay no more than what is necessary.
Beehive Consultancy FZE LLC has cost-effective, tailored solutions for your company setup. Book a free consultation now to learn more.
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UAE FREE ZONES LOCATIONS
1. Abu Dhabi Global Market Free Zone
2. Ajman Free Zone
3. Dubai Airport Free Zone
4. Dubai Design District Free Zone
5. Dubai Internet City Free Zone
6. Dubai Knowledge Park Free Zone
7. Dubai Media City Free Zone
8. Dubai Multi Commodities Centre Free Zone
9. Dubai Silicon Oasis Free Zone
10. Dubai South Free Zone
11. Dubai World Trade Centre Free Zone
12. Jebel Ali Free Zone
13. Fujairah Creative City Free Zone
14. Hamriyah Free Zone
15. Khalifa Industrial Zone Abu Dhabi
16. Ras Al Khaimah Economic Zone
17. Sharjah Airport International Free Zone
18. Sharjah Media City Free Zone
19. Umm Al Quwain Free Trade Zone
To start a business in any UAE Free Zone you need to complete three main steps: obtain your business license, get your UAE Residence Visa, open a corporate bank account. When properly planned, the whole business setup process should take up to 4 weeks*.
Every company operating within a UAE Free Zone is required to obtain a business license (also known as a trade license). Each business license is valid for one year, starting from the date of issue and must be renewed annually.
Some UAE Free Zones require minimum paid-up share capital to be presented at the time of the Free Zone company formation. The amount of the share capital depends on each Free Zone requirements.
You will be guided through the process step-by-step in a very transparent manner that gives you a full overview of exactly where you are at any given time of the setup journey. We do all the heavy lifting for you so that you don’t have to give anything a second thought, but we make sure you are well-informed along the way.
1. SELECT A LICENSE TYPE AND BUSINESS ACTIVITY Each Free Zone has different rules for the number of activities that can be added in one license. However, no commercial activity can’t be mixed with service activities in one license is the general rule for all the Free Zones. Thus, anything to do with trading must be in a Trading/Commercial License and providing services or consultations must be in a Service License. If you plan to produce or manufacture anything, then you will require an Industrial License.
2. CHOOSE A FREE ZONE Each UAE Free Zone has its list of allowed activities that can be performed within the particular Free Zone; types of available facilities and visa quotas can also vary from one Free Zone to another. That’s why it is highly recommended to get a professional consultation at this stage to choose the best Free Zone for your business.
3. SELECT A CORPORATE STRUCTURE The corporate structure can be one of the following: a New Company with individual shareholder(s), a Subsidiary Company (with a corporate shareholder(s)), a Joint Venture Company (a mix of the individual and corporate shareholders), Branch of a Local or a Foreign Company. Some business activities are allowed only for Branch Companies; therefore, you should check it with a Free Zone of your choice.
4. SELECT TRADE NAME & PREPARE DOCUMENTS List company name options (3 proposed names are required) in order of preference and prepare the list of documents required by the chosen Free Zone. For new company formation, the standard list of documents includes passport, visa, EID (if applicable), NOC for UAE Residents (for specific Free Zones), proof of residential address, professional CV. The list of documents required for Branch companies’ registration is relatively different.
5. APPLY FOR INITIAL APPROVAL Initial approval usually includes approval for the company name, for the chosen business activity(ies), and the proposed company structure.
6. SIGN LEGAL DOCUMENTS FOR COMPANY INCORPORATION Once the initial approval is obtained, a face-to-face meeting (or a video call) with a Free Zone representative to be arranged. Sometimes it can be avoided by providing a Power of Attorney to your representative and notarized documents. During the meeting, there will be passport verification of the shareholders/or UBOs, and signing of documents such as Articles of Association (AOA), Board Resolution, Specimen Signature Form.
7. ESTABLISH BUSINESS LOCATION To move to the final stage of licensing, you should find a commercial property for your company located within the chosen Free Zone. Once you found a suitable option, you must sign a Tenancy Contract (for a minimum of 1 year), and obtain the Ejari Certificate. Both to be provided to the Free Zone, based on what your license will be issued with the address from your Tenancy Contract. Depending on the type of facility (flexi-desk, business center office, physical office, warehouse, retail space), there might be some additional documents required, like for example OPERATIONAL FITNESS CERTIFICATE (AOFC/RAOFC), or Third-Party Liability Insurance.
8. COLLECT BUSINESS LICENSE Once the registration documents are signed, all approvals are obtained, and all payments are made. The license will be issued along with other corporate documents.
At this stage the following steps are done already: obtaining initial approval, signing legal documents for company incorporation, obtaining third party approvals (if applicable), signing Lease/Tenancy Contract. Considering this, at the final stage your license will be issued along with the other standard package of corporate documents (it may be slightly different from one Free Zone to another): License, Certificate of Incorporation, Share Certificate(s), Articles of Association (AOA), Lease/Tenancy Contract.
Beehive Consultancy FZE LLC is here to assist you at each stage of business setup in any UAE Free Zone such as the development of business plans, registration of a tailor-made corporate structure, assistance in obtaining UAE residence visas, UAE corporate and private Bank Account Opening, VAT advisory, Accounting & Bookkeeping and full further administrative support.
A mainland company is a legal entity that can operate inside and outside the country without any restriction.
The main benefits of establishing a mainland company include:
- The freedom to choose premises in any area
- The ability to conduct a wide range of business activities
- The freedom to trade anywhere in the UAE or outside the country
Once your business is up and running, as the owner you may hire staff or apply for UAE residence visas for yourself and dependents such as family members. According to UAE company law, a mainland company requires a local partner or a local service agent.
Licence Types
COMMERCIAL LICENSE
Such type of company is the most common type of registration in the UAE and is recommended where the purpose of the entity is to trade within the whole region. Kindly pay attention that 100% foreign ownership of this company type in the UAE is not permitted.
- Foreign investors are allowed to hold only up to 49% equity ownership in UAE companies
- 51% of shares must belong by one or more UAE nationals
- 2 to 50 shareholders can be included
- The minimum recommended share capital is AED 300,000
- Multiple business-related activities under 1 trade license can be provided
- No corporate taxes, no income taxes
SOLE ESTABLISHMENT
This type of entity is applicable for professional, service activities and consultancy. Setting up such type of a company is the best way a foreign investor can get 100% ownership in UAE Company registered outside Free Zones
- Do not require any form of local ownership
- 100% foreign ownership
- No requirement for minimum capital
- The UAE National will act as an agent with 0% ownership
- Set up through a national service agent
- One shareholder only
- No corporate taxes, no income taxes
CIVIL COMPANY
Civil company is a company owned by 100% foreign ownership with up to 3 shareholders and local service agent. This is applicable for professional and service activities/license
- Local service agent owns 0% of business shares and profit, whereas foreign partner or a company owns 100% shares
- Local service agent main task is to perform a role of a signatory for fulfillment of all government related tasks
- Local service agent has no administrative powers and is only entitled to annual payment for government services
- Local service agent can be a professional, a UAE Government employee or a company owned by a UAE National
- For certain activities professional qualification of local service agent is required
Under the UAE commercial company’s law, companies are categorized for regulatory measures and are segregated for the better growth and consideration. If you are wondering where to setup a company in the UAE, the choices are many and the choice is completely yours! We at Beehive business setup will take you through the pros and cons of the options available to you and help you make the best choice for your business.
1. SELECT BUSINESS ACTIVITY Decide the business activity type Commercial/Trading, Consultancy, Professional or Industrial. You can choose several activities within one group of activities.
2. SELECT LEGAL FORM Based on the activity and owner’s resolution.
3. SELECT TRADE NAME It’s advisable to suggest three name options in order of preference – names should be clear, has meaning, not related to any religion. At this stage it is required to submit documents of all partners and of the appointed manager partners (Passport / Visa / EID / NOC for UAE Residents / Residential address).
4. APPLY FOR INITIAL APPROVAL IN DED This is to confirm that the company can be formed and the company name is approved.
5. PREPARE MOA & LSA AGREEMENT DED will prepare the MOA (Memorandum of Association) and LSA (Local Sponsor Agreement) based on the information provided at stage 3 and stage 4.
6. ESTABLISH BUSINESS LOCATION To complete the registration process in the Mainland a lease contract (Ejari) is required. This refers to an office / business center / warehouse or a showroom. It can be rented or purchased anywhere in the Emirate you have registered the company.
7. GET APPROVALS* Some business activities will require external approvals from other authorities such as MOH (Ministry of Health and Prevention), Civil Defense, Police, etc.
8. COLLECT BUSINESS LICENSE After the MOA, LSA are signed, all approvals are obtained and all payments are made. License will be issued along with the MOA.
Beehive Consultancy FZE LLC is here to assist you at each stage of business setup in any UAE Mainland region with additional support such UAE corporate and private Bank Account Opening, VAT advisory, Accounting & Bookkeeping and full further administrative support.
Hassle-free, affordable, and tax-free offshore company formation in the UAE
Fundamentally used for the minimization of taxation, protection of assets purposes, International Business Company (typically known as an Offshore Company) became the most attractive corporate structure for foreign investors. Offshore company setup is the mechanism of the first choice for the financial privacy, zero bureaucracy, low cost, security and property rights and foreign investments. Offshore company registration in the UAE provides you with the real opportunity legally to raise profitability of your business, simplified reporting system, anonymity and confidentiality.
With Beehive business setup you can be laidback! Call us and save your time, money and effort as we provide you the fastest & safest way to setup an offshore company.
More specifically in the UAE; an offshore company (IBC) has three characteristics:
- They should be registered as an entity within the jurisdiction of incorporation.
- The “incorporators” can be domiciled outside or inside of the jurisdiction of incorporation.
- The company should transact exclusively outside of the jurisdiction of incorporation.
Here are the most popular offshore jurisdictions in the UAE:
1) Jebel Ali Offshore (Dubai)
The Jebel Ali Free Zone Authority is the oldest and most respected of the free zones that have been allowed to operate in the emirate of Dubai. This type of incorporation is allowed to trade internationally and is allowed to own property in the emirate of Dubai. Corporate shareholders are permitted. Should the incorporator lease an office space within JAFZA, they will then be entitled to one director residence visa. As usual with all UAE incorporations, this entity is also allowed to own and operate a Dubai bank account. The JAFZA offshore company allows the incorporator to enjoy 100% repatriation of capital and assets, with no limits on foreign exchange or capital movements inside or outside the country.
2) RAK International Corporate Centre (RAKICC)
RAK International Corporate Centre (RAKICC), based in Ras Al Khaimah Emirate in UAE, is the most popular destination to set up an Offshore Company. RAKICC is an advanced, world-class organization registry operating in full consistency with international norms and best practices in the International Company Formation industry.
RAKICC combines security and confidentiality as entrepreneurs get the opportunity to exploit 0% income, wealth, and sales tax while corporations use on corporate tax exemptions. RAKICC Offshore Company can own freehold real estate properties in Dubai without obtaining a Dubai trade license. For this registered offshore companies can obtain a No Objection Certificate (NOC) from RAKICC and register it with Dubai Land Department to be able to purchase the real estate property under the company name. For new RAKICC Offshore Companies this is a unique chance to invest into the highly developed Dubai real estate market and enjoy absolute confidentiality as well as protection of assets and information.
Beehive Consultancy FZE LLC endeavors to serve its customers with professional consultancy that can bring value to your newly formed offshore business. Connect with us today and learn about all benefits of Offshore Company.