Free Zone company setup in UAE

What is Free Zone

Free Zone is an area within which goods may be received and stored without payment of duty.

Essentially, free zones or free trade zones in UAE are business zones where companies operating in them are exempt from all types taxation such as Value Added Tax (VAT), Income Tax, Corporate Tax and Customs. Business owners in the free zone areas in Dubai have 100% ownership of the business.

Free Zones in the UAE are certain locations where investors can trade and exchange different products, services, and commodities. But there are certain regulations and rules that they must follow in order to avoid legal issues. However, all regulations are very flexible, which is one of the many benefits that free zones can offer.

Setting up a business in a free zone is relatively easier. Free zone authorities require minimum paperwork and duration. Here are the key steps to set up a business in a free zone :
• Determine the type of legal entity
• Choose a trade name
• Apply for a business licence
• Choose an office space
• Get pre-approvals, register your business and get your licence

In a free zone, you can set up one of the two types of companies:
• 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 type of company they can register. Refer to the list of free zones and their authorities.

• Tax benefits
• Exemption from import and export duties
• Complete foreign ownership of your company
• Repatriation of profits and capital
• Access to a variety of facilities and workspaces
• Access to world-class infrastructure
• Hassle-free immigration process
• Straightforward process to recruit employees
• No currency restrictions
• Easy company formation process