The UAE has long been a global centre for business, with its strategic location and favorable tax environment. Recently, the UAE has become an increasingly popular destination for companies looking to start new businesses and shops in a free zone. A free zone is a designated area where businesses can operate without paying profit taxes. The UAE has numerous free zones, each with its advantages. If you’re considering setting up shop in the UAE Free Zones, they’ve been a popular destination for businesses for many years. And with good reason, the country has a stable economy and offers a range of benefits to businesses, including access to free zones. A free zone is an area in the UAE where companies can operate without paying taxes on their profits. The UAE is an appealing destination for businesses from all over the world.
UAE Free Zones Introduction
Types of Licenses Available in the UAE Free Zones
The United Arab Emirates (UAE) is home to many free zones and particular economic areas that offer tax benefits and other incentives to businesses that operate within them. Free zones promote economic development and foreign investment in the UAE. They offer a range of benefits to businesses, including:
100% foreign ownership: Companies operating in free zones are allowed to be 100% foreign-owned, which is impossible in other parts of the UAE.
Tax exemptions: Free zones offer businesses tax exemptions on corporate and personal income, value-added tax (VAT), and import and export duties.
Efficient registration process: Registering a business in a free zone is generally faster and more efficient than in other parts of the UAE.
Access to a skilled workforce: Many free zones are home to a skilled and diverse workforce, making it easier for businesses to find the talent they need.
Infrastructure and facilities: Free zones often have modern infrastructure and facilities, including office spaces, warehouses, and other amenities, which can make it easier for businesses to operate.
There are more than 40 free zones in the UAE, each with its focus and set of benefits. Some are geared towards specific industries, such as the Dubai International Financial Centre (DIFC), which is focused on finance and financial services. In contrast, others are more general, such as the Dubai Airport Free Zone, which is home to many businesses. Some of the common benefits Is Setting up a business in a UAE free zone offers a range of benefits, including the ability to operate as a 100% foreign-owned company, the ability to repatriate capital and profits, freedom from foreign exchange controls, tax exemptions, low freight charges, access to an inexpensive and easy-to-recruit workforce, a liberal government policy and legal framework, exemption from import and export duties, access to abundant and inexpensive energy, efficient communication and single-window administration procedures, easy start-up and licensing procedures, sponsorship and visas for an affordable skilled workforce, the option to purchase or lease freehold office space, a streamlined immigration process, access to ready-made offices, factories, and warehouses, unique industry clustering and purpose-built infrastructure, no restrictions on hiring expatriates, and the flexibility to operate 24/7. In addition, companies operating in uae free zones may be eligible for a 3-year UAE residence visa.
General Trading License
Allows investors to trade in all kinds of products
Trading/Commercial License
Grants a time-limited authorization to perform industrial, commercial, or consulting activities
Service License
Allows law firms, accounting firms, and business consultancy firms to operate
Industrial License
Permits importing raw materials, manufacturing goods, and exporting finished products across global boundaries
Warehousing License
Investors can avail this license to avail warehousing facilities on lease for distribution, packaging, and storage of goods.
Manufacturing License
Permits applicants for manufacturing products
Benefits/advantages of Setting Up a Business in the UAE Free Zones
UAE Freezones setting up a business is relatively easier in Free zones. Duration and Paperwork are easy and minimum requirements in the free zone.
Here are a few steps for start-up
- Decide the type of legal entity.
- Select a trading name
- Apply for a business license
- Choose and find the best office space as per your requirements.
- Get pre-approvals,
- Register your business and get your license
- Determine the type of legal entity
- Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)
- Free Zone Establishment (FZE)
- The differences lie in the number of shareholders and whether the shareholder is a natural person or a legal person. All free zones might not register both types of companies. You need to check with individual free zone authorities about the kind of company they can register. Refer to the list of free zones and their authorities.
- Holding company License
- Consultancy and Service Licenses
- Trading and Industrial Licenses
- Licenses with Visa Eligibility
UAE free zone has many benefits of opening a business and avail some extra advantages once investor start business in one of the free zones, find some benefits below.
- 100% foreign ownership
- 100% repatriation of capital and profits
- 100% free transfer of funds and no foreign exchange controls
- 100% exemption from corporate, personal, and income taxes
- Low freight charges
- Inexpensive workforce and easy recruitment procedures
- Liberal government policies and legal framework
- Exemption from all import and export duties
- Abundant and inexpensive energy
- Efficient communication procedures and single-window administration
- Easy start-up and licensing procedures
- Sponsorship and visas for an affordable skilled workforce
- Freehold offices available for sale or lease
- The timely and streamlined immigration process
- Ready-made offices, factories, and warehouses
- Unique industry clustering and purpose-built infrastructure
- No restrictions on hiring expatriates
- Flexibility to operate 24/7
- 3-year UAE residence visa
UAE FREE ZONES LIST 2022 and Find Cheapest Free Zone in UAE
Dubai Free Zone
- Dubai Studio City
- Dubai Techno Park
- Dubai Industrial City (DIC)
- Dubai International Academic
- Dubai Academic City
- Jebel Ali Free Zone (JAFZA)
- Dubai Airport Free Zone (DAFZA)
- Dubai International Financial Centre (DIFC)
- Dubai Healthcare City (DHCC)
- Dubai World Trade Center (DWTC)
- Dubai South Free Zone
- Dubai Knowledge Village
- Dubai Logistics City
- Dubai Media City (DMC)
- Dubai Silicon Oasis (DSO)
- Dubai Biotechnology & Research Park (DuBiotech)
- Dubai Car and Automotive City Free Zone (DUCAMZ)
- Dubai Design District
- Dubai Gold and Diamond Park City
- Dubai Multi Commodities Centre or Jumeirah Lakes Towers Free Zone
- Dubai Outsource Zone
- Dubai Technology and Media Free Zone
- International Media Production Zone
- Economic Zones World
- Dubai Flower Centre
- International Humanitarian City
- Meydan Free Zone
- Dubai Internet City (DIC)
Abu Dhabi Free Zones
- Twofour54
- Abu Dhabi Airport Free Zone (ADAFZ)
- Abu Dhabi Global Markets (ADGM)
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
- Masdar City Free Zone
- Industrial City of Abu Dhabi
- Higher Corporation for Specialized Economic Zones (ZonesCorp)
- Abu Dhabi Ports Company (ADPC) – Khalifa Port and Industrial Zone (KPIZ)
Sharjah Free Zones
- Hamriyah Free Zone
- Sharjah Publishing City Free Zone
- Sharjah Media City Free Zone (Shams)
- Sharjah Airport International Free (SAIF) Zone
- The U.S.A. Regional Trade Center (USARTC)Free Zone
Ras Al Khaimah Free Zones
- RAK Maritime City
- Ras Al Khaimah Media Free Zone
- Ras Al Khaimah Economic Zone (RAKEZ)
- Ras Al Khaimah Investment Authority (RAKIA)
Ajman Business Setup offers services Covering business registration, visa and residency permits, office setup, document approvals, and banking assistance. UAE Freezones provides a complete experience in strategy consulting and a vast knowledge in setting up SMEs or larger companies helping your business to get off to a flying start in a straightforward, efficient manner, hassle-free.