Business Setup in UAE Free Zone | UAE Free Zone Company Formation

If you’re wanting to be a part of the UAE’s growing economy while having complete ownership of your company, then a Free Zone is the perfect location for your business. Many entrepreneurs don’t like the idea of having a UAE national as a partner that will have 51% shares in the company. That’s not the case with a company in the Free Zone. With this company type, 100% ownership is allowed, and you’ll still get all the benefits of doing business in the UAE.

There are 45 Free Zones in the UAE right now. Free Zones are an area where goods can be manufactured, imported, exported, handled, or reconfigured without paying any customs duty. Not only are the benefits great, but so is the location. Free Zones are located in strategic locations that maximize trading near national borders, international airports, and major seaports.

Planning to start a business in Dubai? For business establishment services in the UAE, contact MSZ Consultancy, one of the leading business consultants in Dubai. We have a very simple and easy process to help your business get established in the UAE.

Steps for UAE Free Zone Business Setup

There are dozens of Free Zones throughout the UAE, each designed for specific business activity. These areas vary in their focus, the setup costs, and the paperwork that is needed for business setup. Here are the basic steps for UAE Free Zone Business Setup:

1. Select a license type and business activity

Determine what type of business activity you will be doing so you will know what type of business license to apply for. Each Free Zone has different rules for the number of activities that can be added to one license.

2. Choose a Free Zone

Choose a Free Zone that will be best for your business. Each Free Zone has certain activities that are allowed, visa quotas, and facilities that are available. You will have to choose which Free Zone will work best for the type of business activity you will have.

3. Select a corporate structure

Choose what type of corporate structure your business will need. You should also make sure your corporate structure is allowed with the Free Zone that you want to form your company in. The types of corporate structures available are:

New Company
Subsidiary Company
Joint Venture Company
Branch of a Local or a Foreign Company

4. Select trade name and prepare documents

You will have to narrow your desired trade names down to three and submit the name choices with the required documents. Each Free Zone has its own document requirements.

5. Apply for initial approval

In this step, your company name, business activity, and company structure will get initial approval.

6. Sign legal documents for company incorporation

After you get initial approval, a face-to-face or video call with a Free Zone representative will be setup. You’ll have to sign the required documents like the MOA, Board Resolution, and any other documents required by your Free Zone.

7. Establish business location

Now, you’ll have to find property for your company in the Free Zone that you’ve chosen and sign a Tenancy Contract and get an Ejari Certificate. You may be required to provide other documents depending on the type of facility you choose for your company.

8. Collect business license

After you’ve signed all the required documents, paid all the required fees, and gotten all the approvals you need from authorities, then you’ll be able to get your business license and get your company going.

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Documents Required

1

KYC application

2

Overview of the business plan

3

Bank statement of shareholder

4

Passport size picture with white background

5

Address proof (utility bill)

Making Your Company Legal in UAE Free Zone with a Business License

Free Zone Company in UAE will not be complete without a business license. All companies in the United Arab Emirates must have a business license in order for their business to be legal. There are six types of business licenses available for business setup in a UAE Free Zone:

General Trading License

Trading/Commercial License

Service License

Industrial License

Warehousing License

Manufacturing License

General Trading License

With this license, your company will be able to trade in all kinds of products. A general trading license allows your company to export, re-export, import, or trade different types of goods like food, clothes, furniture, and more.

Trading/Commercial License

This license is required if you plan on having a trading company in one of the UAE Free Zones. You will be able to have 10 similar product lines or three different product lines with this license.

Service License

A service license is for a skilled individual that uses their degree or experience for a profession. This includes consultancy, carpentry, repair services, graphic design, and more.

Industrial License

This license allows businesses to assemble, process, redesign, or repackage goods using local or imported natural, or man-made raw materials.

Warehousing License

You’ll need this license if you plan on leasing warehousing facilities. With this license, you’ll be able to use a warehouse as a hub for major distribution, storing, and packing goods.

Manufacturing License

This allows companies to transfer parts of raw materials into a finished product. This includes textiles, auto parts, paper, aviation, and many more.

Locations for UAE Free Zone Business Setup

There are several different Free Zones across the UAE for business setup. Each Free Zone works under its own regulations and caters to a specific type of business category. Here are the most demanding spots for business setup in a UAE Free Zone:

Jebel Ali Free Zone

One of the largest business communities in the region, JAFZA caters to the requirements of all companies regardless of size, industry, or sector. The area has become a trade catalyst that enables new opportunities for business growth. A big advantage to Jebel Ali Free Zone business setup is that businesses there have a single point of contact that handles all administration, documentation, and applications, allowing companies to focus on their operations and begin their business with ease and speed. Jebel Ali Free Zone offers a wide range of facilities that are perfect for your company now and are flexible enough to grow with you in the future.

SHAMS Free Zone

Shams Free Zone is also known as Sharjah Media City Free Zone. It is the newest Free Zone in the UAE and continues to gain more popularity with the investors. The mission of this Free Zone is to make creative entrepreneurship accessible and inspire business growth. SHAMS Free Zone is located in Sharjah and is the closest Free Zone to Dubai. Even though it’s called the media free zone, it does not necessarily mean that they only offer media activities. SHAMS Free Zone business setup can include a very broad list of activities like trading, professional services, and others.

Dubai DMCC

Dubai Multi Commodity Centre (DMCC) is by far one of the most reputable Free Zones in Dubai. It’s also the largest and fastest-growing Free Zone in the UAE, with over 14,000 companies registered here. Dubai is one of the most attractive destinations for entrepreneurs, especially in free zones like DMCC. DMCC Free Zone is home to the Dubai Gold and Commodities Exchange and also to the Dubai Diamond Exchange. It also accommodates tea and coffee centers, which encourages agro commodities growth. DMCC business setup offers great investment opportunities with respect to taxes and the business environment.

Reasons to Do Business in UAE Free Zone

No corporate taxes
No income taxes
No customs duties
100% ownership of the business
UAE Residence Visa
100% repatriation of capital and profits
Infrastructure and facilities for Industrial and Commercial purposes

15+Years of
Experience

Easy Free Zone Business Setup in UAE with MSZ Consultancy

There are several rules to follow and decisions to be made when forming your company in a UAE Free Zone. That’s why it’s smart to use an expert consultancy firm like MSZ Consultancy. We will make sure you get all the required paperwork to the right authorities and don’t stumble upon any roadblocks while forming your company. Call the MSZ Consultancy experts at +971 54 998 4437 to get help with your business setup in UAE today!