UAE Free Zones Business Set up
UAE Free Zones, with the number of zones increasing, their impact on the UAE economy has deepened. By now, UAE Free Zones are home to around 10,000 companies.
The Jebel Ali Free Zone being the first Free Zone in the country has created the benchmark for regulations & incentives. Its rapid growth has also provided a powerful economic inspiration to the other Emirates, which have set up their own Zones to attract investment.
Dubai with its tremendous growth and development has become an excellent business environment for many investors around the world. It has one of the most liberal and attractive operating conditions as far as rules and regulations are concerned.
This present condition is brought by the increasing numbers of various free zones that can be found now in the whole country. Currently, there are about 38 free zones found in the UAE including the upcoming zones.
The main benefits investors enjoy when starting a business in the UAE Free Zones are:
100% foreign ownership
100% repatriation of capital and profits
100% free transfer of funds
100% exemption of import and export duties
Free zone company formation is quicker than incorporation outside of the Free Zones
Inexpensive workforce and easy recruitment procedures
25 years lease options, warehouse facilities, availability of areas for production and assembling etc.
Some of the UAE Free Zones are:
Dubai Airport Free Zone
Dubai Internet City
Dubai Media City
Dubai Metal and Commodities Centre
Dubai Investment Park
Dubai Silicon Oasis
Jebel Ali Free Zone
Hamriya Free Zone in Sharjah
Sharjah Airport International Free Zone
Ajman Free Zone Authority
Ras Al Khaimah Free Trade Zone
Fujairah Free Zone
Free Zone Limitations
A Free Zone Company is not allowed to trade directly with the UAE market. The Free Zone Company can undertake the local business only through locally appointed distributors. Custom Duty 5% is applicable for the local business.
Even though all free zones provide many attractive schemes for the benefit of the investors, not all are the same when we consider the facilities offered by them. Therefore it will be worth while to have a glance over the facilities offered by each, one by one.
The details mentioned below are for the guidance of the investors, and the facilities may be subject to change from time to time when such decisions are being taken by the Free Zone Authorities.
UAE is the only country in the Middle East where a big number of Free Trade Zones and Free Industrial Zones are available for investors who wish to gain more from their investment.
The first Free Zone formed was Jebel Ali, Dubai, in 1985 which witnessed a tremendous growth in the years to come by way of increased number of investors.
Many have established their offices, factories or warehouses and invested millions which in turn had given them huge returns from the UAE Free Zones. That is precisely the reason why even more foreign investors are being attracted nowadays to the UAE Free Zones.
Currently, over 12.000 companies, many of which being major brands, operate under the UAE Free Zones Authority.
There are some similar formalities to be completed with regards to the documents required for registering a business in the UAE Free Zones which are submitted to each free zone depending upon the type of business an investor chooses. In general, the following are the main options:
Free Zone Establishment (FZE) (One individual share holder)
Free Zone Company (FZCO) (More than one member)
Branch Office
All of the above types may not be available to every UAE free zone; therefore an investor should seek the advice of a consultant to finally arrive at whether his choice is possible in the concerned free zone and also to know about the details of documents needed.
Go from UAE Free Zones to Home Page.
