A Free Zone enterprise is a physical entity established in any one of the many Free Zones spread across the UAE. Envisioned to ease the company formation process within its premises, the Free Zones have laws and facilities separate from the rest of the UAE that ensure that they remain investor-friendly in spite of their varying stipulations and regulations. Free Zones in the UAE offer 100% foreign ownership rights for the investor and permit full repatriation of capital and profits.
FREE ZONE COMPANY TYPES
A majority of the Free Zones across the UAE allow four types of company types or business entities within their premises:
· Free Zone Establishment (FZE)
Formed with one shareholder, either an individual or a company. The minimum capital requirement depends on the activity.
· Free Zone Company (FZCO)
Formed by a minimum of two shareholders, either individuals or companies or a combination of both. The minimum capital requirement depends on the activity.
· Branch Office of a Local Company
The license allows an existing local company (with license to operate in the UAE) to open a representative office or branch within the Free Zone.
· Branch Office of a Foreign Company
The license allows an existing foreign company to open a representative office or branch within the Free Zone.
INCENTIVES & BENEFITS· 100% foreign ownership allowed
· 100% of repatriation of capital & profits
· 100% personal income tax exemption
· 0% import or export duties
· Speedy incorporation
· Easy transfer of capital and profits
· No recruitment restrictions
· No bureaucratic red tape
· Low facility prices
· Low electricity prices
· Low leasing prices
FREE ZONE REGISTRATIONThe process for registering a company within the UAE requires the following documents.
· Free Zone Establishment (FZE)
o Duly filled application form
o Individual business profile and passport copy
o Banker’s reference (depends upon Freezone)
· Free Zone Company (FZC)
o Original filled FZCO application
o Individuals business profile and passport copy
o Banker’s reference (depends upon Free zone)
o Board resolution
o Manager’s passport copy
o Specimen signature of the manager
· Branch of Parent Company
o Certificate of Registration with UAE embassy’s attestation and notarization
o Memorandum and Articles of Association with UAE embassy’s attestation and notarization
o Board Resolution with UAE embassy’s attestation and notarization
o Manager’s passport copy and his attested signature
o The parent company‘s profile