U.A.E. Free Zone Company Registration

Register a free-zone company in the United Arab Emirates (U.A.E.) with ease from India through IndiaFilings. With offices in India and the U.A.E., our Advisors can help you easily incorporate a business in the United Arab Emirates (U.A.E.) and complete the process in less than a week.

IndiaFilings is the market leader in firm registration services in India, offering a wide range of company registration like private limited company registration, one-person company registration, L.L.P. Registration, and more. IndiaFilings can help you register a free-zone company in the U.A.E. in less than two weeks. Get a free consultation on U.A.E. or Dubai company registration and free-zone company setup by scheduling an appointment with an IndiaFilings Advisor.

Business Setup in the United Arab Emirates

United Arab Emirates (U.A.E.) or called the Emirates, is a country in the Middle East. U.A.E. is a federation of 7 emirates consisting of Abu Dhabi, Dubai, Ajman, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. U.A.E.'s population consists mainly of ex-pats, with nearly 7.8 million ex-pats living in the country with 1.4 million Emirati citizens.

U.A.E. offers a robust and conducive business ecosystem with stable political and macroeconomic conditions. U.A.E. is currently ranked as the 26th best country in the world for doing business by the Doing Business 2017 Report published by the World Bank Group.

U.A.E. Free Trade Zones (F.T.Z.s)

A free trade zone is a restricted geographic area within each emirate. Free zones can also be present due to the collective agreement of several countries on establishing duty-free zones in certain zones. In U.A.E. Free Trade Zones (F.T.Z.s), the federal taxes, employment, and import-export restrictions on business are not applicable, and bureaucratic requirements are lowered, making them an attractive investment location for foreign investors.

More than forty-five Free Zones are located in the U.A.E.. Accordingly, IndiaFilings can recommend a suitable Free Zone depending on business conditions, office requirements, and investment budget.

Starting a Business in a Free Zone

In an UAE free zone, you can set up one of two types of businesses:

• Free Zone Limited Liability Company (FZ LLC) 
• Free Zone Establishment (FZE)

Free Zone Limited Liability Company (FZ-LLC)

Dubai Development Authority enables new businesses to register a Free Zone Limited Liability Company as a separate legal entity. Either individual or corporate shareholders can create FZ-LLC. The UAE imposes certain conditions regarding the ownership of an FZ-LLC. Depending on the company's size and its domain of activity, the Dubai authorities might also require minimum capital. IndiaFilings can provide information regarding the documentation needed to form an FZ-LLC.

Free Zone Establishment (FZE)

Free Zone Establishment (FZE) is a limited liability company (LLP) meaning that the liabilities of the company are limited to its capital paid. The legal personality of an FZE is distinct from that of its shareholder, and it has all the rights, privileges, and capacities of an individual.

Key Difference of FZE and FZ-LLC

Advantages of Business setup in U.A.E. free zones

• Starting a business firm in one of the U.A.E.'s Free
• Trade Zones can attract foreign investors
• Free zone company incorporation is quicker than the incorporation of the company outside of the city
• Inexpensive workforce and easy recruitment procedures
• 100% foreign ownership 
• 100% repatriation of capital and profits
• 100% free transfer of funds
• 100% exemption from import and export duties
• Twenty-five years lease options, availability of areas for production, warehouse facilities, assembling, etc.
• There are no currency restrictions
• Low freight charges
• Efficient single-window service and communication procedures
• Inexpensive workforce and easy recruitment procedures
• Liberal government policies and legal system
• Inexpensive and abundant energy

Some of the Most Progressive and Advanced Free Zones in the U.A.E

For your reference, a short description of some of the Most Progressive and Advanced Free Zones in the U.A.E is provided here.

Abu Dhabi Free Zone

Abu Dhabi is one of the fastest-growing and wealthiest markets in the world. For business people who want to start a business in the Middle East, Abu Dhabi is the right choice. Company norms and business processes in the emirates are simple, and it only takes a few days to set up a company in Abu Dhabi. Some of the Free Zones in Abu Dhabi are:

• Abu Dhabi Global Market Free Zone 
• Khalifa Industrial Zone (KIZAD)
• Masdar City Free Zone
• Abu Dhabi Airport Free Zone (ADAFZ)

Dubai Free Zone

The Dubai Free Zone Authorities are government organizations that handle the registration formalities and issue business licenses to non-resident companies or offshore companies to set up business in the Dubai Free Zone. Starting a business in the Dubai Free Zone presents a sea of networking, collaboration, and enhanced business growth. An attractive tax system and many incentives offered by free zone authorities make Dubai the country of choice for investors to start a business. Some of the Free Zones in Dubai are listed as follows:

• Dubai Airport Free Zone
• Dubai Design District
• Dubai Humanitarian City
• Dubai Metal and Commodities Centre
• Dubai Investment Park ( only through JAFZA )
• Dubai Silicon Oasis
• Jebel Ali Free Zone
• Dubai Internet City
• Dubai Media City
• Dubai Healthcare City
• Dubai World Central
• Dubai Studio City

Ajman Free Zone

Ajman offers low-cost company registration opportunities and a variety of other beneficial incentives for foreign investors. A world-class infrastructure network, flexible legal framework, tax incentives, and excellent logistics facilities make starting a business in Ajman a very profitable investment. Some of the free zones of Ajman are as follows:

• Ajman Media City Free Zone 
• Ajman Free Zone 

Fujairah Free Zone

Fujairah is the only emirate in the eastern part of the U.A.E. (Gulf of Oman) and has a clear advantage over the other six emirates along the Arabian Gulf. Fujairah is well-connected to other major cities in the U.A.E., such as Dubai, Sharjah, and Abu Dhabi making it an ideal business hub.

Fujairah's business environment is perfect for entrepreneurs, small and medium-sized enterprises (S.M.E.s), and multinational corporations. If you wish to start a business in Fujairah, there are numerous reasons to choose this free zone.

• Fujairah Creative City Freezone
• Fujairah Free Zone:

Ras Al Khaimah Free Zone

Ras Al Khaimah Economic Zone (RAKEZ) offers local and foreign investors a platform to spread their investments and help them enter local, regional, and international markets by setting up companies in free trade zones. The RAKEZ company enjoys a strategic location and access to many emerging markets in the Middle East, South Africa, Europe, and South and Central Asia.

Sharjah Free Zone

As the only city with access to ports on the east and west coasts of the Arabian Gulf and the Indian Ocean and direct connections to North Africa, the emirate offers excellent opportunities for foreign investors.

• Hamriya Free Zone Authority
• Sharjah Media City) Free Zone
• Sharjah International Free Zone
• Sharjah Research, Technology, and Innovation Park 

Umm Al Quwain Free Zone

The Umm Al Quwain Free Zone is a perfect business location near the Umm Al Quwain port. Umm Al Quwain Free Zone (UAQ) is the ideal place to do business and establish your business in the U.A.E. Due to its strategic location, the UAQ Free Zone offers many opportunities and benefits for young business enthusiasts and aspiring entrepreneurs.

Procedure to Register a U.A.E. Free Zone Company

To start a business in any U.A.E. Free Zone, you need to complete three main steps: 

• Obtain a U.A.E. business license
• Get your U.A.E. Residence Visa
• Open a corporate bank account

Some U.A.E. Free Zones require minimum paid-up share capital at the Free Zone Company. The amount of the share capital depends on each Free Zone requirement.

Select a License Type and Business Activity

Every company operating within a U.A.E. Free Zone must obtain a business license. Each business license is valid for one year, starting from the issue date, and must be renewed annually.

Each Free Zone has different rules for the number of activities that can be added to one license. However, the general rule for all the Free Zones is that no commercial activity can't be mixed with service activities in one appointment. 

• Anything to do with trading must be in a Trading/Commercial License 
• Providing services or consultations must be in a Service License. 
• If you plan to manufacture anything, you will require an Industrial License.

Select a Corporate Structure

The corporate structure can be one of the following: 

• A New Company with an individual shareholder
• A Subsidiary Company (with a corporate shareholder(s)
• A Joint Venture Company (a mix of personal and corporate shareholders)
• Branch of a Local or a Foreign Company

Select Trade Name and Prepare Documents

List company name options in order of preference and prepare the list of documents required by the chosen Free Zone. 

For new company formation, the standard list of documents includes the following:

• Passport
• Visa
• I.D. (if applicable)
• O.C. for U.A.E. Residents (for specific Free Zones)
• Proof of residential address
• Professional CV. 

The list of documents required for Branch companies' registration is relatively different.

Sign Legal Documents for Company Incorporation

Initial approval usually includes approval for the company name, the chosen business activity, and the proposed company structure.

Once the initial approval is obtained, a face-to-face meeting with a Free Zone representative to be arranged. During the meeting, there will be passport verification of the shareholders/or U.B.O.s and signing of documents such as Articles of Association (A.O.A.), Board Resolution, and Specimen Signature Form.

Establish Business Location

To move to the final licensing stage, you should find a commercial property for your company within the chosen Free Zone. Once you find a suitable option, you must sign a Tenancy Contract (for a minimum of 1 year) and obtain the Ejari Certificate. Both are to be provided to the Free Zone, based on what your license will be issued with the address from your Tenancy Contract.

Additional documents might be required depending on the type of facility (Flexi-desk, business center office, physical office, warehouse, retail space).

Collect Business License

Once the registration documents are signed, all approvals are obtained, and all payments are made. The license will be issued along with other corporate documents.

IndiaFilings is here to assist entrepreneurs at each stage of business setup in any U.A.E Free Zone, such as the development of the business plan assistance in obtaining U.A.E. residence visas, Bank Account Opening, V.A.T. advisory, Accounting & Bookkeeping, and full further administrative support.