Business Setup in UAE Free zones - UAE Free Zone Company Formation

Wincore Advisory Group is proud to assist our corporate clients with Business Setup in UAE Free zones. We incorporate free zone companies in other free zones such as Dubai International Financial Center (DIFC) , Abu Dhabi Global Market (ADGM), Dubai Creative Clusters free zone (DCCA), Dubai South, Fujairah, Dubai Airport Free zone, Dubai Knowledge city… The choice of the free zone will depend upon client’s goal and strategy, costs, tax benefits, double tax conventions benefits, tax residency certificate, purpose of the company, activity, licensing requirement, office or factory location, ease to obtain visas and their costs, accessibility to a port or airport, need to have a warehouse and its size, … So many factors and parameters are involved which require a careful overview of the various advantages provided by each free zone to be in the best position to choose the right free zone.

Dubai & Abu Dhabi free zones

Free zonesKey featuresAdvantagesDisadvantagesMinimum Share Capital RequirementIncorporation Time FrameResident Manager,or DirectorSubmission of Audited Financial Report
Dubai Airport Free Zone Authority (DAFZA)Multi
activities(commodity trading and services) with core focus on logistics and aviation. (offices and
warehouses available)
Connected to airport
• Central location
• Banking
credibility
• Warehouse available
• Expensive facilities
•General
Trading license no longer available
Starting AED
100,000 (USD 28,000)
+Capital paid up
at inception
Minimum 6 weeksAdvised within
the first year of incorporation
Required,annually (not,for branch of,a foreign company)
Dubai Creative Clusters (DCCA -formerly TECOM)Multi
activities with core focus on IT, Cinema,
Production, Media, Fashion, Healthcare, Science, Education and Technology.
Each industry organized by geographical cluster
• Central location• Expensive facilitiesStarting AED
50,000 (USD 14,000)
Capital paid up
at inception
Minimum 6
weeks
Advised within
the first year of incorporation
Not required,but books of,accounts must be maintained
Dubai International Financial Centre (DIFC) PremiumCore focus on
Financial services (regulated or not)
under Common law regulations.
Ancillary
services (Proprietary Investment, Holding, Headquarter HQ…)
• Common law regulations• Banking credibility • Central location
• sophisticated structuring available
• Retail space available
• Banking Credibility
• Expensive facilities
• Expensive licensing
• High compliance
requirements (including for non-regulated entities)
Starting AED35,000
(USD 10,000)+
Regulated
Activities: capital adequacy
Required at
inception;+
Not forSpecial
purpose companies.
Regulated
minimum 4 months
+
Non-Regulatedminimun
6 weeks
+
SPC minimum 2
weeks
Required for,regulated activities; not required at inception for unregulated activities; Advised,within the first year of incorporationRequired,annually,(not for,SPCs, foundations but books of accounts must be maintained)
Dubai Multi Commodities Center (DMCC) PremiumMulti
activities with core focus on oil
& gas, precious metals and diamond trading.
Ancillary
services (Services, Holding…)(80+ commercial and residential towers). UAE’s
largest free zone (12,000+ registered entities)
• Central location
• Banking
credibility
• Sophisticated
structuring available
• Virtual offices options
• Light manufacturing units
• slow incorporation procedureStarting AED
50,000 (USD 14,000)
+
General
Trading: AED 1 Mio (USD278,000)
+
Capital Paid
up within 30 days of incorporation
Minimum 7
weeks
Advised within,the first year of incorporationRequired annually at renewal
Dubai Silicon Oasis (DSO)Core focus on technological/ electronical/
engineering industries. (offices and warehouses)
•Industrial units and warehouse available
• Virtual offices options
• Expensive facilitiesStartingAED
10,000 (USD 2,800)
+
Capital paid
up after licensing
Minimum 2
weeks
Required,within the,first year of operationRequired annually at renewal
Dubai World Central (DWC) Dubai SouthMulti
activities with core focus on logistics
and aviation sectors.
Ancillary
services (Commodity trading, Services…)(Offices and warehouse). Connection to port (JAFZA) and airport
(DWC).
• Connected to port and airport
• Virtual offices options• Warehouses
• Open land
• Custom Built Units
• far from Dubai centerStarting AED
300,000 (USD 83,000)Capital paid
up advised within the first year of incorporation
Minimum 4
weeks
Advised within,the first year of incorporationRequired annually at renewal
Jebel Ali Free Zone (JAFZA) PremiumMulti
activities with core focus on trading,
manufacturing and logistics. Second largest free zone. Logistic facilities
operated by DP World. Connection to
airport (DWC)
• Own port facilities • Connected to airport

•Warehouses
(including for manufacturing purpose)

• Banking
Credibility

• Expensive facilities
• Far from Dubai center
• High
capital requirement• Industrial
Services
licenses no longer issued
Starting AED
200,000(approx. USD 58,000)
(if 2
shareholders, AED 1mio, USD275,000)Capital paid
up advised within the first year of incorporation
Minimum 6
weeks
Required,within the first,year of operationRequired annually at renewal
Meydan Free ZoneMulti
activities (Commodity trading, services…)
• Central
location
• Virtual offices option
•slow administrative procedure
•General Trading license no longer available
Starting AED
100,000 (USD 28,000)
Capital paid -up:
only advised
Minimum 4
weeks
Advised within,the first year of incorporationRequired annually at renewal
Abu Dhabi Airport Free Zone (ADAFZ)Multi
activities with core focus on logistics
and aviation sectors.
Ancillary
services (Commodity trading, services…) (offices and warehouses)
• Connected
to airport
• Warehouses
• Open land
• Expensive facilitiesStarting AED
500,000 (USD 138,000 if corporate shareholder and AED 1,000,000 (USD
278,000.00) if individual shareholder for core activities.
+
Starting AED
150,000.00 (USD 42,000.00) for non-core activities;
+
Capital paid-up
advised
Minimum 6
weeks
Advised within,the first year of incorporationRequired annually at renewal
Abu Dhabi Global Market (ADGM) PremiumCore focus on
Financial services (regulated or not)
under Common law regulations.
Ancillary
services (Proprietary Investment, Holding, Headquarter HQ…)
• Common law regulations • Banking
credibility • Central location •
sophisticated structuring available• Retail
Spaces
• Banking
Credibility
• Expensive facilities
• Expensive licensing
• High compliance requirements
(including for non-regulated entities)
StartingAED200,000
(USD 50,000)
+
Not for special purpose vehicle
+
Regulated
Activities: capital adequacy
Required at
inception;
, not
required for non-regulated entities
Regulated
minimum 4 months
+
Non-Regulatedminimun
6 weeks
+
SPV minimum 2
days
Required for,regulated activities; not required at inception for unregulated activities; Advised,within the first year of incorporationRequired annually at renewal
Khalifa Industrial Zone Abu Dhabi (KIZAD)Multi activities
with core focus on Manufacturing,
industrial, logistics and trading. Connection
to Khalifa Port
• Own port
facilities• Warehouses
• Open land
Starting AED
150,000 (approx. USD 42,000)
+
Capital paid
up advised within the first year of incorporation
Minimum 6 weeksAdvised within,the first year of incorporationRequired,annually,(not for,small companies but books of accounts must be maintained)
TwoFour 54 Abu Dhabi (2454)Core focus on
IT and Media.
• Central
location
Starting
AED 50,000.00(USD14,000)
+
Capital paid
up advised within the first year of incorporation
Minimum 6
weeks
Advised within,the first year of incorporationRequired annually at renewal

Other Emirates ‘Free zones’

Free zonesKey featuresAdvantagesDisadvantagesMinimum Share Capital RequirementIncorporation Time FrameSubmission of, Audited Financial ReportLegalization, of documents
Ajman Free Zone (AJZ)Multi activities with core focus on commodity trading,
e commerce, general trading, logistics, services and manufacturing.
• Fast set-up
process • Cost effective • Visa requirements [medical test + Emirates ID
biometrics] can be undertaken in Dubai
• Warehouses
(including for manufacturing )
• Far from
Dubai City (45 min) • Low(er) credibility • Below average after sale service
Starting AED
185,000 (USD 50,000)
Capital paid
up not required at inception but advised within the first year of incorporation
1 weekNot required,but books of accounts must be maintainedNot required
Creative City Free Zone (Fujairah)Core focus on services:Consulting, IT, Media consulting, Communication, Marketing, Music, Entertainment, Education and Design.• Fast set-up
process • Cost effective • Visa requirements can be undertaken in Dubai
• Far from
Dubai (90 min) • Low(er) credibility • Slow after-sale service
Starting
AED 50,000.00
(USD15,000) Capital paid up not required at inception but advised within the
first year of incorporation
1 weekNot required,but books of accounts must be maintainedNot required
Fujairah Free ZoneMulti activities with core focus oncommodity and general trading, industrial, logistics, services
and manufacturing.
• Fast set-up
process
• Direct connection to airport
• Large scope of licenses including aviation
one
• Warehouses
• Open land • Custom Built Units
• Far from
Dubai (90 min) • Slow after-sale service • Visa requirements must be
completed in Fujairah
Starting AED
150,000.00 (USD 41,100.00)
For “Investment Activity”: AED 1mio.
Capital paid
up not required at inception but advised within the first year of incorporation
Minimum 3
weeks
Not required,but books of accounts must be maintainedNot required
Hamriyah Free Zone Authority (HFZA)Multi activities with core focus oncommodity and general trading, industrial, logistics, services
and manufacturing.
• Fast set-up
process
•Direct
connection to port and airport
• Large scope
of licenses including aviation one
• Visa
requirementscan be undertaken in Dubai
• Warehouses
(including for manufacturing)
• Open land
• Far from
Dubai City (30 min) • Low(er) credibility • Below average after sale service
Starting AED
150,000 ( USD 41,000)
AED 50,000.00
is advised to be paid up within the first year of incorporation
1 weekNot required,but books of accounts must be maintainedRequired
RAKEZ (formerly of RAKFTZ and RAKIA)Multi activities with core focus oncommodity and general trading, industrial, logistics, services
and manufacturing.
• Fast set-up
process
• Large scope
of licenses
•Visa requirements can be undertaken in
Dubai
•Warehouse
•Open land
• Far from
Dubai City (90 min) • Low(er) credibility
Not specified.
AED 50,000.00
is advised to be paid up within the first year of incorporation
Minimum 3
weeks
Required but,can be waived for a fixed fee of AED 1,000.00 and,books of accounts must be maintainedNot,required
Sharjah Airport International Free Zone (SAIF)Multi activities with core focus oncommodity and general trading, industrial, logistics, services
and manufacturing.
•Fast set-up
process
• Direct
connection to airport and port
• Large scope of licenses including aviation
one
• Warehouses
(including for manufacturing)
• Far from
Dubai City (30 min) • Slow post-sale service • Visa requirements must be
completed in Sharjah
Starting AED
150,000.00 (USD 41,100.00)
Capital paid
up not required at inception but advised within the first year of incorporation
Minimum 3
weeks
Not required,but books of accounts must be maintainedRequired
Sharjah Media Free Zone (SHAMS)Corefocus onservices: IT and Media.• Fast set-up
process
• Cost
effective
• Corporate director allowed • Visa requirements] can be
undertaken in Dubai
• Far from
Dubai City (30 min) • Low(er) credibility • Unproven after sale service (zone
is new)
None
AED 50,000.00
is advised to be paid up within the first year of incorporation
1 weekRequired,annuallyRequired
Umm Al Quwain Free Zone (UAQFZ)Multi activities with core focus on commodity and general trading, logistics, services & manufacturing.• Fast set-up
process
• Cost
effective
• Visa requirements can be undertaken in
Dubai
• Warehouse
Units • Plots of Land available for lease (to be built on)
• Far from
Dubai City (90 min) • Low(er) credibility
Starting AED
300,000.00 (. USD 83,000)
Capital paid
up not required at inception but advised within the first year of incorporation
1 weekNot required,but books of accounts must be maintainedRequired
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