Freezone Company Formation UAE

Freezone Company Setup in UAE has never been easier than it is now. Setting up a company in a freezone which is tax-free and 100% owned by you affords you all the benefits unique only to Freezone locations. These UAE Freezones are tax-free zones for companies which could be 100% owned by foreigners, regardless of their nationality and residency. Most importantly, a freezone company set up in UAE can be established without any Emirati partner being required, unlike the limited liability companies established outside free zones in the mainland territory with the Department of Economic Development. In addition to all of the benefits of setting up a company in UAE Freezones, these companies are not required to have a service agent to act as liaison with the government authorities. However, in sharp contrast, some of the mainland companies do require a service agent to act as a liaison with government authorities.

Freezone Company Formation in UAE is mainly industry focused for companies that fall within their type of business category. Each Free zone has its own governing authority and regulations. To save you the time and hassle, our dedicated team at Wincore Advisory Group can tell you how to start a business in UAE free zone and grant you fast and easy access to the cheapest free zone license in UAE.

UAE is one of the most competitive structuring hub worldwide with very attractive features such as: corporate and personal income tax, free repatriation of profits/ dividends and capital, large network of double tax treaties and bilateral investment protection conventions, no foreign exchange control, and various type of entities (Trusts, Foundations, offshore companies, different type of corporate entities amongst which free zone companies granting right to UAE residency status) combining offshore, free zone and local characteristics. Free zones are geographically segregated areas subject to their own laws and administrative regulations, under the supervision of an autonomous free zone authority with the objectives to provide “fiscal substance “in transfer pricing structuring, reduce taxes by exemptingimported goods from customs duties and allow 100% foreign ownership unlike companies registered in the UAE mainland, which are subject to foreign ownership restrictions- granting 51% of their ownership to UAE nationals. The majority of free zones allow a wide variety of activities. The others are limited to specific lines of activities such as financial or internet services for example.

There are over 35 free zones in the seven emirates with different key features, advantages and disadvantages. Our structuring team will assist you to determine which free zone and legal structuring will permit you to most efficiently and successfully develop your business concept and enter the targeted market. You will find below a comparative chart of some of the available free zones for your information.

Advantages of Freezone Company Setup are

  • Depending on the free zone and the chosen activity there could be different share capital requirements
  • Business licenses are issued to companies, allowing them to conduct their activities, depending on the chosen business activity which will also determine the type of legal structures to be used. There are three main classifications: Commercial, Professional and Industrial. Proper planning, Deep knowledge of local culture and legislation norms (federal and free zones ones) are essential at this main and initial stage. Preparing and implementing the Business plan, Business registration, Name reservation, licensing procedure and choosing the right free zone requires a deep and sound knowledge of each free zone requirements and advantages to properly structure your plan, reach your goal and target your segment of customers.
  • Freezone Companies in UAE could be granted tax exemptions, tax residency certificates to the benefit of UAE Tax Conventions avoiding cross borders double taxation
  • Freezone Companies could benefit of virtual offices avoiding to rent their own office unlike mainland companies
  • 100% ownership by foreign investors regardless of their nationality and residency
  • 100% tax exemption on personal income when you open a Freezone company
  • 100 % tax exemption on corporate income, for more than renewable 15 to 50 years period
  • 100% free repatriation of capital and dividends
  • 100% tax exemption on capital gains
  • Large network of double tax conventions
  • No withholding taxes
  • No inheritance tax
  • No exit tax
  • Exemptions for export and import tax duties
  • 100% transactions confidentiality
  • No public register of Directors and Shareholders
  • Corporate Shareholders allowed

Selection of right free zone depends on various parameters such as

  • Availability of the proposed activity through the scope of company’s licenses offered by each free zone.
  • Pricing – the costs of incorporation, renewal of a company / rental of its premises / access to virtual offices will vary from one free zone to another.
  • Reputation of a free zone.
  • Location of the free zone inside or outside Dubai, next to airport / port facilities, factories, laboratories or warehouses areas. Proximity to the targeted clientele…
  • Logistic facilities.
  • Level of support offered.
  • Level of credibility granted by the banks to each free zone when a bank account or financing is required

Dubai & Abu Dhabi free zones

DUBAIABU DHABI
Free zonesDubai Airport Free  Zone Authority (DAFZA)Dubai Creative Clusters (DCCA  -formerly TECOM)Dubai International Financial Centre (DIFC) PremiumDubai Multi Commodities Center (DMCC) PremiumDubai Silicon Oasis (DSO)Dubai World Central (DWC) Dubai SouthJebel Ali Free Zone (JAFZA) PremiumMeydan Free ZoneAbu Dhabi Airport Free Zone (ADAFZ)Abu Dhabi Global Market (ADGM)
Premium
Khalifa Industrial Zone Abu Dhabi (KIZAD)TwoFour 54 Abu Dhabi (2454)
Key featuresMulti
activities(commodity trading and services) with core focus on logistics and aviation. (offices and
warehouses available)
Multi
activities with core focus on IT, Cinema,
Production, Media, Fashion, Healthcare, Science, Education and Technology.
Each industry organized by geographical cluster.
Core focus on
Financial services (regulated or not)
under Common law regulations.
Ancillary
services (Proprietary Investment, Holding, Headquarter HQ…)
Multi
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)
Core focus on technological/ electronical/
engineering industries. (offices and warehouses)
Multi
activities with core focus on logistics
and aviation sectors.
Ancillary
services (Commodity trading, Services…)(Offices and warehouse). Connection to port (JAFZA) and airport
(DWC).
Multi
activities with core focus on trading,
manufacturing and logistics. Second largest free zone. Logistic facilities
operated by DP World. Connection to
airport (DWC)
Multi
activities (Commodity trading, services…)
Multi
activities with core focus on logistics
and aviation sectors.
Ancillary
services (Commodity trading, services…) (offices and warehouses)
Core focus on
Financial services (regulated or not)
under Common law regulations.
Ancillary
services (Proprietary Investment, Holding, Headquarter HQ…)
Multi activities
with core focus on Manufacturing,
industrial, logistics and trading. Connection
to Khalifa Port
Core focus on
IT and Media.
AdvantagesConnected to airport
• Central location
• Banking
credibility
• Warehouse available
• Central location• Common law regulations• Banking credibility • Central location
• sophisticated structuring available
• Retail space available
• Banking Credibility
• Central location
• Banking
credibility
• Sophisticated
structuring available
• Virtual offices options
• Light manufacturing units
•Industrial units and warehouse available
• Virtual offices options
• Connected to port and airport
• Virtual offices options• Warehouses
• Open land
• Custom Built Units
• Own port facilities • Connected to airport

•Warehouses
(including for manufacturing purpose)

• Banking
Credibility

• Central
location
• Virtual offices option
• Connected
to airport
• Warehouses
• Open land
• Common law regulations • Banking
credibility • Central location •
sophisticated structuring available• Retail
Spaces
• Banking
Credibility
• Own port
facilities• Warehouses
• Open land
• Central
location
Disadvantages• Expensive facilities
•General
Trading license no longer available
• Expensive facilities• Expensive facilities
• Expensive licensing
• High compliance
requirements (including for non-regulated entities)
• slow incorporation procedure• Expensive facilities• far from Dubai center• Expensive facilities
• Far from Dubai center
• High
capital requirement• Industrial
Services
licenses no longer issued
•slow administrative procedure
•General Trading license no longer available
• Expensive facilities• Expensive facilities
• Expensive licensing
• High compliance requirements
(including for non-regulated entities)
Minimum Share Capital RequirementStarting AED
100,000 (USD 28,000)
+Capital paid up
at inception
Starting AED
50,000 (USD 14,000)
Capital paid up
at inception
Starting AED35,000
(USD 10,000)+
Regulated
Activities: capital adequacy
Required at
inception;+
Not forSpecial
purpose companies.
Starting AED
50,000 (USD 14,000)
+
General
Trading: AED 1 Mio (USD278,000)
+
Capital Paid
up within 30 days of incorporation
StartingAED
10,000 (USD 2,800)
+
Capital paid
up after licensing
Starting AED
300,000 (USD 83,000)Capital paid
up advised within the first year of incorporation
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
Starting AED
100,000 (USD 28,000)
Capital paid -up:
only advised
Starting 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
StartingAED200,000
(USD 50,000)
+
Not for special purpose vehicle
+
Regulated
Activities: capital adequacy
Required at
inception;
, not
required for non-regulated entities
Starting AED
150,000 (approx. USD 42,000)
+
Capital paid
up advised within the first year of incorporation
Starting
AED 50,000.00(USD14,000)
+
Capital paid
up advised within the first year of incorporation
Incorporation Time FrameMinimum 6 weeksMinimum 6
weeks
Regulated
minimum 4 months
+
Non-Regulatedminimun
6 weeks
+
SPC minimum 2
weeks
Minimum 7
weeks
Minimum 2
weeks
Minimum 4
weeks
Minimum 6
weeks
Minimum 4
weeks
Minimum 6
weeks
Regulated
minimum 4 months
+
Non-Regulatedminimun
6 weeks
+
SPV minimum 2
days
Minimum 6
weeks
Minimum 6
weeks
Resident
Manager,or
Director
Advised within
the first year of incorporation
Required for,regulated activities; not required at inception for unregulated activities; Advised,within the first year of incorporationAdvised within,the first year of incorporationRequired,within the,first year of operationAdvised within,the first year of incorporationRequired,within the first,year of operationAdvised within,the first year of incorporationRequired for,regulated activities; not required at inception for unregulated activities; Advised,within the first year of incorporationAdvised within,the first year of incorporation
Submission of Audited Financial ReportRequired,annually (not,for branch of,a foreign company)Not required,but books of,accounts must be maintainedRequired,annually,(not for,SPCs, foundations but books of accounts must be maintained)Required annually at renewalRequired,annually,(not for,small companies but books of accounts must be maintained)Required annually at renewal
Identification of Ultimate beneficial ownerRequired
Company’s DocumentsLicense+ Certificate,of Incorporation +Memorandum and Articles of association + Share certificate
TaxationTotal Tax and,Duty Exemption, except UAE Value Added Tax of 5%

Other Emirates ‘Free zones’

Free zonesAjman Free Zone (AJZ)Creative City Free Zone (Fujairah)Fujairah Free ZoneHamriyah Free Zone Authority (HFZA)RAKEZ (formerly of RAKFTZ and RAKIA)Sharjah Airport International Free Zone (SAIF)Sharjah Media Free Zone (SHAMS)Umm Al Quwain Free Zone (UAQFZ)
Key featuresMulti activities with core focus on commodity trading,
e commerce, general trading, logistics, services and manufacturing.
Core focus on services:Consulting, IT, Media consulting, Communication, Marketing, Music, Entertainment, Education and Design.Multi activities with core focus oncommodity and general trading, industrial, logistics, services
and manufacturing.
Corefocus onservices: IT and Media.Multi activities with core focus on commodity and general trading, logistics, services & manufacturing.
Advantages• Fast set-up
process • Cost effective • Visa requirements [medical test + Emirates ID
biometrics] can be undertaken in Dubai
• Warehouses
(including for manufacturing )
• Fast set-up
process • Cost effective • Visa requirements can be undertaken in Dubai
• Fast set-up
process
• Direct connection to airport
• Large scope of licenses including aviation
one
• Warehouses
• Open land • Custom Built Units
• 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
• Fast set-up
process
• Large scope
of licenses
•Visa requirements can be undertaken in
Dubai
•Warehouse
•Open land
•Fast set-up
process
• Direct
connection to airport and port
• Large scope of licenses including aviation
one
• Warehouses
(including for manufacturing)
• Fast set-up
process
• Cost
effective
• Corporate director allowed • Visa requirements] can be
undertaken in Dubai
• 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)
Disadvantages• Far from
Dubai City (45 min) • Low(er) credibility • Below average after sale service
• Far from
Dubai (90 min) • Low(er) credibility • Slow after-sale service
• Far from
Dubai (90 min) • Slow after-sale service • Visa requirements must be
completed in Fujairah
• Far from
Dubai City (30 min) • Low(er) credibility • Below average after sale service
• Far from
Dubai City (90 min) • Low(er) credibility
• Far from
Dubai City (30 min) • Slow post-sale service • Visa requirements must be
completed in Sharjah
• Far from
Dubai City (30 min) • Low(er) credibility • Unproven after sale service (zone
is new)
• Far from
Dubai City (90 min) • Low(er) credibility
Minimum Share Capital RequirementStarting AED
185,000 (USD 50,000)
Capital paid
up not required at inception but advised within the first year of incorporation
Starting
AED 50,000.00
(USD15,000) Capital paid up not required at inception but advised within the
first year of incorporation
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
Starting AED
150,000 ( USD 41,000)
AED 50,000.00
is advised to be paid up within the first year of incorporation
Not specified.
AED 50,000.00
is advised to be paid up within the first year of incorporation
Starting AED
150,000.00 (USD 41,100.00)
Capital paid
up not required at inception but advised within the first year of incorporation
None
AED 50,000.00
is advised to be paid up within the first year of incorporation
Starting AED
300,000.00 (. USD 83,000)
Capital paid
up not required at inception but advised within the first year of incorporation
Incorporation Time Frame1 week1 weekMinimum 3
weeks
1 weekMinimum 3
weeks
Minimum 3
weeks
1 week1 week
Submission of, Audited Financial ReportNot required,but books of accounts must be maintainedRequired but,can be waived for a fixed fee of AED 1,000.00 and,books of accounts must be maintainedNot required,but books of accounts must be maintainedRequired,annuallyNot required,but books of accounts must be maintained
Legalization, of documentsNot requiredRequiredNot,requiredRequiredRequired
Identification of Ultimate beneficial ownerRequiredNot Required in practiceRequiredNot Required in practice
Company’s DocumentsLicense +Cert, of Incorporation+ Mem & Arts+ Shares Certificate
TaxationTotal tax and duty exemption except UAE Value Added Tax

Compare Freezone Programs

UAE FreeZone is not the only FreeZone offer by the Us. Visit the pages below for other Freezones.

WhatsApp WhatsApp us