Start Your Business in Free Zone

A Free Zone Company is more expensive than an Offshore Company and usually takes 4 to 6 weeks to form. However, it is an onshore company (with certain offshore features). This sort of organisation is appropriate for market entry since it provides a physical presence in the UAE via office space and visas without the need for a local sponsor. A Free Zone Company has offshore features in the sense that all business must be conducted offshore/internationally or within the Free Zone itself.

Yes, all Free Zone enterprises have a trade licence that reflects their commercial activity. It is possible to get licences for trading, manufacturing, industrial, consulting, and services activities, and, as previously said, most Free Zones concentrate in a specific area.

No, you can only conduct business worldwide (outside the UAE) or within the Free Zone itself. No business may be conducted on the UAE’s mainland. If your intended market is the mainland UAE, you will need to form a UAE Onshore Company with a local sponsor.

Yes. Depending on the nature of the firm, specific external approvals from Ministries or regulatory bodies may be necessary for certain actions. For example, an investor wishing to establish an educational or training practice may be needed to obtain approval from the Knowledge and Human Development Authority (KHDA). If no external approvals are necessary, the Free Zone Authority will conduct an internal examination of proposed company activities during the formation process.

Because each Free Zone is governed by a separate authority, the requirements differ from one another. However, the bulk adhere to a similar foundation. There are two types of companies you can form in the Free Zone: a Sole Establishment (FZE) with one shareholder and a Free Zone Company (FZC) with two or more owners. Both individual and corporate stockholders are permitted.

A manager must be designated for the company, who will be in charge of the day-to-day operations of the business, as well as the operation of the bank account and the signing of any contracts on the firm’s behalf. The management will also be needed to approve any modifications to the firm structure. The manager must either be a UAE resident or intend to become one.

This will mainly rely on the sort of office/premises chosen. A Virtual Office/Flexi-Desk option is often awarded between 2 and 3 visas, however the size of an actual office space determines how many visas are allocated.

It is possible to file for a Tax Residency Certificate for a Free Zone Company, which can be particularly useful if the objective is to use the UAE’s network of double tax treaties.