Freezone company set-up

Free Zones are well-suited for startups and all companies in the UAE are regulated by the Free Zone Authorities. The process of establishing a business in a Free Zone differs significantly from setting up a Mainland or Offshore business, as each Free Zone is governed by its own regulatory authority within the Emirate.

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Advantages of Free Zone business set-up

One of the primary advantages of establishing a business in a Free Zone is the favourable tax environment, including 0% customs duties and full exemption from taxes on imports and exports. These benefits make Free Zones an attractive option for investors seeking cost-effective business operations. The UAE also provides extensive support and opportunities for entrepreneurs looking to invest. However, navigating the setup process and utilising the available facilities and advantages can be challenging, and that’s where we can step in to help.
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How can I start setting up my business in the UAE Free Zones?

To launch a business in a UAE Free Zone, you need to follow several key steps:

  • Selecting a Free Zone
  • Registering your business entity
  • Obtaining a trade license
  • Obtaining a Visa
  • Opening a business bank account.

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Overview of UAE Free Zones

While each Free Zone has its unique focus, setup costs and documentation requirements, the fundamental steps remain the same for them all.

Key Free Zones and Foster Chapman services:

Foster Chapman can help businesses set up in several prominent Free Zones, including:

  • Dubai Free Zone
  • Sharjah Free Zone
  • Ajman Free Zone
  • Abu Dhabi Free Zone
  • Umm Al Quwain Free Zone
  • Jebel Ali Free Zone (JAFZA)
  • Ras Al Khaimah Free Zone
  • Fujairah Free Zone

Benefits of UAE Free Zones

Free Zones in the UAE provide a favourable environment for business setup, offering:

  • 100% foreign ownership
  • Zero Corporate and Personal Income Tax
  • Ideal for startups and SMEs
  • Great for 24/7 operations
  • Simplified setup process
  • No restrictions on hiring expatriates
  • 3-year UAE residence visa

These benefits make Free Zones an appealing choice for investors and entrepreneurs.

Steps to Set Up a Business in a Free Zone

Setting up a business in a UAE Free Zone involves a streamlined process with minimal documentation and quick turnaround times. Here are the general steps:

1. Select the type of legal entity

First, determine the legal structure of your business. In a Free Zone, you have two primary options:

  • Free Zone Limited Liability Company (FZ LLC) / Free Zone Company (FZ Co.)
  • Free Zone Establishment (FZE)

Your choice depends on the number of shareholders and whether they are individuals or corporate entities. Note that not all Free Zones accommodate both types of entities, so confirm the options available with the specific Free Zone authority before proceeding.

2. Choose a business name

Selecting an appropriate name for your business is crucial. Ensure the name complies with the guidelines of the respective Free Zone authority and check its availability with the Department of Economic Development (DED). The name should be unique and not already registered.

3. Apply for a business license

Your primary business activity will decide what business license you will need to apply for, for you to commence your business operations.

4. Secure office space

Depending on your business activity and the number of employees, you will need to either lease or purchase office space within the Free Zone.

5. Obtain pre-approvals, register your business and acquire a license
Setting up a business in a Free Zone involves complying with the regulations of that specific Free Zone, and you will need to gather the relevant documents for the necessary approvals.

Here’s a general outline of the procedure:

  • Initial Approval
  • Registration
  • Licensing and Visa Process

Required Documents for Starting a Business in a Free Zone

To establish a new company in a UAE Free Zone, you will need to provide specific documents and obtain approvals, which may include:

  • Application form for a license
  • Business plan
  • Passport copies
  • Business card
  • Memorandum of Association (MoA)
  • Articles of Association (AoA)
  • Bank reference and partner licenses for existing businesses (if required)

What is the Company Formation in UAE Free Zones?

At Foster Chapman, our team of expert consultants will assist you in gathering the necessary documents that are required by the Free Zone authorities and obtaining embassy approvals.

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