Free Zones are special economic zones established in the United Arab Emirates (UAE) with the purpose of providing tax- and duty-free benefits to foreign investors. The Free Zones of the United Arab Emirates provide foreign investors full ownership in order to promote global trade. UAE Free Zones in Dubai and the UAE are governed in accordance with a unique set of laws that are specific to the free zone in question. The free zone authority oversees and runs the free zones in Dubai. These free zones don’t follow federal law or labour ministry regulations.
The most successful legal entity is a free zone corporation, which not only gives investors or business owners 100% ownership but also a variety of additional unique benefits that other legal structures lack. In order to start a corporation on the UAE’s mainland, foreigners typically need a local sponsor, however through free zones In Dubai, United Arab Emirates, an expat can start a business without a local sponsor and receive a 100% capital profit repatriation. 100% of corporate and individual income tax benefits are provided by UAE free zones.
The majority of Dubai’s free zones provide business establishment investors with trading, service, industrial, national industrial, and branch licences. Free zones in the UAE are either connected to ports or are industry-specific.
The incorporation of a Free Zone Company (FZC), a limited liability company, may be done by either a natural person or a legal body. An entity with more than one shareholder is referred to as a Free Zone Company (up to 5 shareholders), while a new limited liability company with a single shareholder is incorporated as a Free Zone Establishment (FZE).
There are specific actions or procedures that must be followed after we decide to incorporate the firm in any free zone in the UAE. The following are those steps
As the initial step to form the company the investor has to decide on the legal entity like;
The procedure to form a free zone company in the UAE is described below
Once the client has chosen the legal structure for the business he wishes to establish, he must register the business’ name, a process known as trade name registration. The UAE free zone authorities must additionally approve the proposed name. When choosing a name, it should not be connected to the name of a nation, a church, or any other governmental entity. The name shouldn’t transgress any public morals.
The customer can apply for a trade licence once the UAE free zone administration has approved the trade name for the company. The paperwork needed to form the corporation varies amongst free zones. The shareholder’s passport copy, which must be valid for at least six months, is one of the basic documents needed. Depending on the type of business, several UAE free zones demand thorough business plans and outside clearance.
The UAE free zone authority will offer an application form when we submit our application; the shareholders must sign it and return it. In some UAE free zones, we are able to form the company remotely, but in other free zones, the shareholders must be present in person.
A business licence, coupled with a share certificate and memorandum of association, will be issued by the relevant body along with the approval of the application by the UAE free zone authority within ten days.
The shareholder may apply for the establishment card for the firm once it has been incorporated. The connection between the company and the immigration department is represented by an establishment card. The customer can apply for e-channel registration after the establishment card is ready. E-channel registration is not required in all UAE-free zones. The shareholder may submit an application for a visa or a residency permit for the shareholders or the staff after completing the e-channel registration.
Additionally, after receiving the company licence, the shareholder can create a corporate bank account with any bank within or outside of the United Arab Emirates.