Price starts from €4,000

UAE free zones are special economic areas designed to attract foreign investment by offering incentives such as special tax exemptions, and streamlined business procedures. These zones, located in strategic areas, provide state-of-the-art infrastructure and support services for various industries, making it easier for businesses to establish and operate in the region.

Benefits:

Minimized taxation
UAE Residence Visa
No trade barriers or quotas
100 % repatriation of capital and profits
Simple Import & Export Policies
Extensive infrastructure and facilities
No restrictions on hiring expatriates

9%

is the corporate tax rate in Free Zones on Taxable Income that is not Qualifying Income

5%

VAT tax. Some Free Zones have the status of designated zones. Supplies made inside or outside the designated zone are not subject to VAT (with some exceptions)

0%

tax on dividends paid to shareholders

The most popular company form in UAE Free zones is the Free Zone Company (FZC)

Procedure for registration a company in UAE (Free-Zones)

Step 1. Initial Setup:

Initiating a preliminary project assessment
Preparation and filing of the package of documents
Select a free zone according to a business activities and business model o future company
Select a legal structure

Step 2. Company registration:

Verification and reservation of the company name
Trademark registration (optional)
Applying for initial approval
Obtaining additional government approvals
Facilitating the notarial process for the company's official registration
Incorporating the company's data into the register
Obtaining the Certificate of incorporation issued by the local registrar, Memorandum and Articles of Association

License obtaining:

Each free zone has different types of licenses, for example: Fujairah Creative City can issue a license for Video Games Wholesale Trading, which distinguishes it from most of the zones we know that do issue such licenses.

When a company is approved for the Free Trade Zone, it is given licenses by the specific Free Zone Authority.

A license may include more than one type of activity.

General requirements for a Free Zone company

Requirements for a Free Zone company depends on the specific Free Zone (e. g. DMCC, Meydan, SHAMS etc.). The regulatory authority of each Free Zone can provide it`s own regulations in these zones.

UAE Free Zones offer 100% foreign ownership of the company. Moreover, in most of the Free Zones absent requirements for minimum share capital and fixed number of shareholders. At the same time, some of Free Zones set minimum share capital requirements. For example Dubai silicon Oasis (100,000 AED), International Humanitarian City (50,000 AED), Fujairah Free Zone (150,000 AED).

According to the general rules Free Zone company should have shareholders in a diapason from 1 to 50.

In addition, 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.

As in a Mainland, Free Zone companies should obtain a license (trade, professional, service, industry) for providing their business activities. These licenses are issued by the regulators of specific Free Zones.

Document requirements:

For registration of business in the free zone, the following documents shall be submitted:

Registration application with full details.
Board of directors’ resolution on appointment of the company’s manager/ director (duly notarized and certified).
Power of attorney authorizing the manager/ director (duly notarized and certified).
Memorandum and articles of association of the company (duly notarized and certified).
Specimen signature of the manager/ director (duly notarized and certified).
A passport size photograph of the manager, with white background.
Information on the contributed capital

Taxation in UAE Free Zones:

The taxation system in Free Zones is based on the laws enacted by the UAE federal authorities.

On December 9, 2022, in UAE it was adopted The Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law) 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 01, 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 (approximately USD 815,000) for a tax period, such a company is exempt from corporate tax.

The general VAT rate is 5% and applies to most goods and services, with some goods and services subject to a 0% rate or an exemption from VAT.

The 0% VAT rate applies to goods and services exported outside the VAT-implementing Gulf Cooperation Council (GCC) member states.

If our proposal is intriguing, we kindly request to book a call with us or send your request via Telegram messenger. By doing so, we guarantee access to a comprehensive commercial personalized offer, featuring up-to-date prices and detailed information.

We look forward to the opportunity of collaborating and delivering exceptional solutions that meet and exceed expectations of any Client.

The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.

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If our proposal is intriguing, we kindly request to complete the form provided below to learn more. By doing so, we guarantee access to a comprehensive commercial personalized offer, featuring up-to-date prices and detailed information.

We look forward to the opportunity of collaborating and delivering exceptional solutions that meet and exceed expectations of any Client.

The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.