To date, the remarkable achievements and the success of Free Zones continue to attract a large number of foreign companies and foreign direct investment.
So, you’re considering to setup a business in the UAE. Did you know that Dubai Free Zones can suit companies with any activity from trading to consultancy? In any trade venture, one must know what to expect in advance to devise an effective business plan, so let’s take a look at the different types of licenses that a company owner might need to secure.
Types of licenses in Dubai Free Zone are:
Trading License: This type of license allows company to carry out trading activities like buying, import & export and selling of limited number of goods and commodities.
General Trading License: This type of license will allow company to deal with trading of all types of goods with some exemption on banned goods and products that need special approvals.
Service License: This type of license is issued to companies which deal with consultancy, accountancy, etc. services.
Industrial License: This type of license allows the company to carryout manufacturing, packaging and processing in Dubai free zone.
Types of companies registered in Dubai Free Zone are:
- Free Zone Establishment (FZE): This type of company can be registered with one individual or corporate shareholder.
- Free Zone Company (FZCO): This type of company can be registered with 2 or more shareholders. Shareholders can be either individuals or corporate companies.
Free Zones arrangements in the UAE are providing top class facilities and infrastructures for doing business and therefore many are the companies taking advantage of this option in the emirates.
Opening a company in Free Zone in Dubai has these advantages:
- Offers strong incentives, ranging from 0% corporation and personal tax, 100% company ownership, 100% repatriation of capital and profits, to no currency restrictions and 100% import and export tax exemption, as well as free customs duty benefits to expatriate investors.
- Are not subject to commercial companies Law, as Free Zones are considered to be outside the jurisdiction of UAE, and therefore they are under the rules and regulations of that precinct.
- It is a relatively simple and speedy to establish a business entity in Free Zones & Special Economic Zones with the right support. Contacting experts to understand which structure best suits your business is paramount and can save time and headaches.
When you set up a company in a Dubai free zone, you need to be aware of each free zone’s benefits and characteristics and you are responsible to maintain the rules and regulation of the Free Zone Authority (FZA).