The geographical boundaries of the United Arab Emirates define the free trade zones that exist within the country. Within these zones, mainland regulations regarding taxes, employment, and import and export restrictions do not apply. Additionally, the bureaucratic requirements in these areas are relaxed, making the UAE an attractive location for international investors. In this part of the United Arab Emirates (UAE), foreign nationals are permitted to fully own and run their businesses. Any expatriate from anywhere in the world can consider it a worthwhile business venture to register their firm in one of these areas.
They play a significant role in the economy of the region in which they are situated, acting as important commerce hubs, and the government and the authorities of the zones provide programs designed to assist business owners.
An FZ company can be established by anyone for a sum that is within their financial means, and the procedure of registering the company is simple and uncomplicated.
Investors from various countries choose the United Arab Emirates as the location for the establishment of their businesses because of the politically stable environment, high level of security, highly effective law and order, taxation structure, and other advantages. The United Arab Emirates is home to more than 45 distinct free trade zones.
Advantages of setting a business in UAE free zones
- No corporate taxes
- Residence visa in UAE
- Ownership of foreign enterprise is 100%
- No barriers or quotas for trade
- Available infrastructure and facilities for industrial and commercial purposes
- Repatriation of capital and profits is 100%
- No personal income taxes
- No restriction on expatriates hiring
- Policies for import-export are simple
Registering A UAE free zone company
It is not difficult to launch a business in a free zone within the United Arab Emirates (UAE); nonetheless, there are three primary procedures that must be taken in order to acquire a business license, a residential visa within the UAE, and a corporate bank account. Because the process of setting up the firm could take anywhere from one to four weeks, it is in everyone’s best interest to plan the business beforehand.
Every business that operates within a UAE Free Zone is required to have a business visa, which is also referred to as a trade license. A business visa is valid for one year beginning on the date it was issued, and it must be renewed on an annual basis.
When forming a corporation in a free zone in the United Arab Emirates (UAE), certain of the FZs require that a minimum amount of paid-up share capital be submitted; the amount of share capital required varies depending on the regulations of each free zone.
Main steps of registering a free zone
- Choose a license type and commercial activity
- Choose a free zone
- Select a corporate structure
- Select a trading name and prepare the necessary documents
- Apply for initial approval
- Sing all legal documents required for company incorporation
- Establish business location
- Collect business license
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