Freezone Business Setup in Dubai, UAE
Freezone Company Formation in UAE
Contact IBR Group to start your business easily in UAE Free Zones, a trustworthy partner for Freezone Business Setup in Dubai, UAE.
In the United Arab Emirates (UAE), Free Zones represent a strategic opportunity for entrepreneurs and investors worldwide. These special economic zones are designed to offer a range of attractive incentives, including tax-free status and exemption from customs duties. If you’re considering expanding your business into the UAE, setting up a Free Zone company in Dubai might be the ideal solution.
UAE Free Zones are designed to encourage international business by providing foreign investors with complete ownership of their ventures. These zones operate under a distinct framework of rules and regulations specific to each Free Zone, separate from federal laws or the Ministry of Labor’s jurisdiction. Managed by Free Zone authorities, these areas offer numerous advantages that other legal entities can’t match.
Advantages of Freezone Business Setup in UAE
- 100% Ownership: Unlike UAE mainland company formation, where expatriates typically require a local sponsor, Free Zone companies in Dubai allow expatriates to establish their businesses without local sponsorship. This unique feature enables investors to enjoy full ownership and control.
- Repatriation of Capital Profits: Investors in Free Zone companies can repatriate 100% of their capital and profits, offering an excellent return on investment.
- Tax Benefits: UAE Free Zones provide 100% corporate and personal income tax exemptions, making it an attractive option for businesses looking to maximize their profits.
Types of Freezone Companies in UAE
Depending on your business needs and requirements, you can choose from various types of Free Zone companies:
Free Zone Establishment (FZE): A single shareholder entity.
Free Zone Company (FZC): Suitable for two or more shareholders.
Branch Company: Can be a branch of a local or foreign company.
Process of Freezone Company Setup UAE
STEP 1
Decide on the Legal Entity
As a first step, you need to determine the legal type of your company. The options include:
- Free Zone Company (FZC)
- Free Zone Establishment (FZE)
- Limited Liability Company (LLC)
It’s worth noting that only a few Free Zones offer the option to form Limited Liability Companies.
STEP 2
Register Your Trade Name
After deciding on the legal entity, you must register your company’s trade name. Ensure that the name you choose is in compliance with UAE Free Zone authority guidelines. Avoid names that relate to countries, religions, government bodies, or anything that might violate public morals.
STEP 3
for a Business License
Once your trade name is approved by the UAE Free Zone authority, you can proceed to apply for a trade license. The required documents may vary depending on the specific Free Zone’s regulations. Generally, you will need the shareholder’s passport copy, valid for at least six months. Some Free Zones might require a detailed business plan and external approvals based on your business activity.
STEP 4
Submission and Approval
Upon submitting your application, the UAE Free Zone authority will provide an application form for shareholders to sign and return. While some Free Zones allow remote company formation, others require the physical presence of shareholders. The approval process usually takes around 10 days. Once approved, the Free Zone authority will issue your business license, along with a share certificate and memorandum of association.
STEP 5
Establishing an Establishment Card
After the company is formed, shareholders can apply for an establishment card, which serves as a link between the immigration department and the company. With the establishment card in hand, you can proceed to apply for e-channel registration, a requirement in some UAE Free Zones. This registration enables you to apply for visas or residence permits for shareholders and staff members.
STEP 6
Corporate Banking
Once you have obtained the business license, you can open a corporate bank account with banks in the UAE or even outside the UAE, facilitating your financial operations.