In the heart of the Middle East lies the United Arab Emirates (UAE). Renowned for its luxurious lifestyle, cutting-edge technology, and thriving economy, this land also beckons entrepreneurs from around the globe with opportunities to establish and grow businesses.
Among the many attractive aspects of doing business in the UAE, a particular focus should be placed on Free Zones. These special enclaves, scattered across the country, offer a range of unique advantages, making them an ideal choice for foreign investors seeking to set up a company in the UAE.
The Free Zones are not just geographical territories; they are rather oases of opportunity. Here, an atmosphere of progress and innovation prevails, where bureaucratic hurdles give way to flexible regulations and a thriving business community.
Manimama ensures a seamless company registration process in the UAE (Free Zones). Trust us to provide expert guidance and support, so your business can thrive from day one in the UAE (Free Zones). Start your journey with confidence, knowing you have the best team by your side.
Legal Opinion about the UAE (Free Zones) as a Jurisdiction for Company Formation
Ganna Voievodina
Manimama, CEO
“Free Zones within the UAE serve as specially designated areas that provide a range of incentives and advantages to businesses operating within their boundaries. These incentives, coupled with a streamlined regulatory framework, make Free Zones an ideal jurisdiction for company formation. At Manimama, our team of experienced legal professionals is dedicated to guiding you through the intricacies of company formation in the UAE (Free Zones). We offer comprehensive services tailored to your specific needs, ensuring seamless compliance with all applicable regulations. Work with Manimama and unlock the potential of the UAE (Free Zones)”.
Our Packages
Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.
Incorporation
- Obtaining a license
- Company formation
- Memorandum of Association
- Establishment card
- Banking account
Taxation and Accounting
- Corporate tax registration
- VAT registration
- Tax reporting
- Accounting
Key Numbers about the UAE (Free Zones) as a Jurisdiction for Company Formation
minimum 1director for a company |
up to 2 weekstimeline for a company formation |
nominimum share capital |
0/9%corporate income tax (CIT) rate |
0%personal income tax (PIT) rate |
5%value-added tax (VAT) rate |
Set up Your Company in the UAE (Free Zones) in Several Steps
Step 1. Initial setup
- Initiating a preliminary project assessment
- Preparation and filing of the package of documents
Step 2. Company registration
- Select a Free Zone according to a business activities and business model o future company
- Verification and reservation of the company name
- Preparing and submitting required documentation
- Trademark registration (optional)
- Applying for initial approval
- Obtaining additional government approvals
- Incorporating the company's data into the register
Requirements for Company Formation in the UAE (Free Zones)
Requirements for a Free Zone Company depends on the specific Free Zone. The regulatory authority of each Free Zone can provide its own regulations in these Zones.
Before deciding to set up a new company in the UAE (Free Zones), read the information below to understand the characteristics of a Free Zone Company (FZC):
Shareholders: a minimum of 1 shareholder and a maximum of 50 shareholders. Free Zones offer 100% foreign ownership of the company.
Director: a minimum of 1 director.
Minimum share capital: in most of the Free Zones absent requirements for minimum share capital. At the same time, some of Free Zones set minimum share capital requirements. For example Dubai silicon Oasis - AED 100,000 (~ € 25,000), International Humanitarian City - AED 50,000 (~ € 12,500).
Legal address: Free Zone Companies are not required to have a physical office in the Free Zone, and they can take advantage of solutions such as virtual office, Flexi-desk.
The most popular and customer-orientated Free Zones are:
- Abu Dhabi Airport Free Zone
- Abu Dhabi Global Market
- Dubai International Financial Centre
- Dubai Multi Commodities Centre
- Meydan Free zone
- Sharjah Publishing City Free Zone
- Sharjah Media City Free Zone
- Ras Al Khaimah Economic Zone
- Fujairah Free Zone
- Fujairah Creative City
Taxes in the UAE (Free Zones)
UAE adopted the Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses which effectively changed the rules of the game and established a new range of taxable entities and a new tax rate.
In the Free Zone, the corporate tax is 0% in case of qualifying activities (in particular, ownership of shares and other securities; ownership, management and operation of ships; fund management services subject to regulatory supervision by the competent authority in the state; capital and investment management services subject to regulatory supervision by the competent authority in the state, etc.), and 9% - for other activities.
In addition, from June 1, 2023 to December 31, 2026, the UAE has a small business exemption, according to which if a company receives income of less than AED 3,000,000 (~ € 750,000) for a tax period, such a company is exempt from corporate tax.
Personal income tax (PIT)There is no PIT in the UAE.
Value-added tax (VAT)The standard VAT rate is 5% and applies to most goods and services.
The 0% rate applies to goods and services exported outside the VAT-implementing Gulf Cooperation Council member states.
Double taxation avoidance agreements in the UAE (Free Zones): Albania, Algeria, Andorra, Armenia, Austria, Azerbaijan, Bangladesh, Barbados, Belarus, Belgium, Benin, Bosnia and Herzegovina, Brunei, Bulgaria, Canada, China, Cyprus, Czech Republic, Egypt, Estonia, Fiji, Finland, France, Georgia, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Italy, Japan, Jordan, Kazakhstan, Kenya, Korea, Republic of, Latvia, Lebanon, Lithuania, Luxembourg, Malaysia, Malta, Mauritius, Mexico, Moldova, Montenegro, Morocco, Netherlands, New Zealand, Norway, Pakistan, Panama, Philippines, Poland, Portugal, Romania, Russian Federation, Senegal, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sudan, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, United Kingdom, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe.
Start Your Company Formation Process with Manimama
There are numerous reasons why Manimama is the leading company formation agent in the UAE (Free Zones):
Expertise in Regulations of the UAE (Free Zones)
- 1. Manimama has an in-depth understanding of the legal and regulatory framework of the UAE (Free Zones).
- 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.
Local and International Experience
- 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
- 2. Our expertise spans various industries, providing customized solutions for each client.
Efficient and Timely Service
- 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
- 2. Our efficient processes minimize delays and get your business up and running quickly.
Client-Centric Approach
- 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
- 2. Our dedicated team is always available to address any concerns and provide expert advice.
Robust Network of Local Partners
- 1. We have established strong relationships with local authorities, banks, and service providers.
- 2. This network ensures that your business receives the best possible support and resources.
Ongoing Compliance Support
- 1. We provide continuous support to ensure your business remains compliant with laws of the UAE (Free Zones).
- 2. Our team keeps you updated on any regulatory changes that may impact your company.
Frequently Asked Questions
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What are UAE Free Zones and why should I consider them for company formation?UAE Free Zones are designated areas within the UAE that offer a range of incentives and advantages to businesses operating within their boundaries. These incentives include tax exemptions, business flexibility, global connectivity, world-class infrastructure, and a streamlined regulatory environment.
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What types of businesses can be formed in the UAE (Free Zones)?A wide variety of businesses can be formed in the UAE (Free Zones), including but not limited to: trading and import/export, consulting and professional services, technology and IT, media and entertainment, manufacturing and light industry, logistics and transportation, education and training, healthcare and hospitality.
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What are the key benefits of forming a company in the UAE (Free Zones)?The key benefits of forming a company in the UAE (Free Zones) include: 0% corporate tax, personal income tax, 100% foreign ownership permitted, no minimum capital requirement, ability to hire foreign employees, easy access to global markets, world-class infrastructure and support services, streamlined regulatory environment.
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What are the different types of Free Zones?There are over 40 free zones in the UAE, each with its own unique focus and regulations. Some of the most popular free zones include Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), Sharjah Airport International Free Zone (SAIF), Abu Dhabi Global Market (ADGM), Ajman Free Zone (AFZ).
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How do I choose the right Free Zone for my business?The best way to choose the right Free Zone for your business is to consider your specific needs and requirements. Factors to consider include the type of business you are operating, your target market, your budget, and your desired level of flexibility.
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Can foreign nationals fully own a company in the UAE (Free Zones)?Yes, recent changes allow for 100% foreign ownership in many sectors.
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How long does it take to incorporate a company in the UAE (Free Zones)?The formation process typically takes 1-2 weeks, provided all required documents are in order.
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Can I open a bank account in the UAE for a Free Zone company?Yes, Free Zone Companies can open bank accounts in the UAE. However, the specific requirements and procedures will vary depending on the bank.
Client Feedbacks
“The Manimama team demonstrated exceptional expertise in handling our complex corporate matters and provided clear, actionable advice every step of the way”.
“Highly recommend this law firm for anyone needing reliable legal support”.
"We engaged Manimama OU for our company’s legal requirements and were thoroughly satisfied with their performance”.
Manimama as the Best Solution for Your Company Formation in the UAE (Free Zones)
By choosing our company formation service in the UAE (Free Zones), you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in the UAE (Free Zones) and pave the way for your business success.
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