Free Zone Company Formation

The UAE’s many Free Trade Zones (Free Zones) provide a welcoming option for foreign investors and attract a wide variety of companies and foreign direct investment. Free Zones in the UAE are ideal for certain activities and allow for 100% foreign ownership.


All Free Zones in the UAE offer the following incentives:

Investors can either register a new company or simply establish a branch or representative office of their existing or parent company. A new Free Zone company is a limited liability company governed by the rules and regulations of the Free Zone in which it is established.

 

Once a company has been accepted into a Free Zone it will typically operate under one or more of the four different licensing categories: commercial license, general trading license, industrial license, or service license. Free Zone companies can only operate within the Free Zone’s boundaries and are generally limited to performing solely those activities listed on their license. If a Free Zone company chooses to operate outside the Free Zone’s boundaries, it must adhere to the requirements of the UAE Commercial Companies Law in the applicable Emirate. Sales or provision of services outside of the Free Zone must be carried out through a local distributor or UAE official agent. Usually the Free Zone Authority imposes a 5% duty, which is typically split between the company and agent.

 

Every company registered in the Free Zone must lease a minimum amount of office space within the Free Zone to receive a license, though some offer flexi-desk leases. The license is usually valid for one year and must be renewed annually, along with the lease agreement. A Free Zone company can obtain UAE residence visas, including shareholder visas and employees visas, through the Free Zone where it is registered. In most Free Zones the number of visas depends directly on the amount of office space leased by the company in the Free Zone.

 

Trinity can advise you on the various options available and assist in selecting the most suitable Free Zone and appropriate license to allow you to set up and grow your business in the UAE.

For advice and further information on Free Zones in the UAE, Free Zones in Dubai, Dubai Free Zone companies, or Dubai company incorporation in general, please contact us through our ONLINE ENQUIRY FORM.

 

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Solidus Asset Management