Start a Business in UAE Free Zones

Welcome to the Start a Business in UAE Free Zones section ofTAX DXB, your trusted partner for business setup and advisory services in the United Arab Emirates. We specialize in assisting entrepreneurs and companies in establishing their presence in the dynamic Free Zones of the UAE. Explore our comprehensive services and expertise in setting up businesses in these thriving economic hubs.

Starting a Business in UAE Free Zones:

• We provide comprehensive guidance on starting a business in the various Free Zones across the UAE.

• Our experts assist you in understanding the benefits, requirements, and procedures involved in setting up a business in these specialized zones.

Why Set Up a Business in Free Zones over the Mainland?

• We help you explore the advantages of establishing your business in Free Zones, including 100% foreign ownership, tax exemptions, customs benefits, and simplified company setup processes.

• Our team assists in evaluating whether a Free Zone setup is the right choice for your business goals and requirements.

Steps to Setup a Business in a Free Zone:

Setting up a business in a Free Zone in the United Arab Emirates offers numerous benefits and streamlined procedures. Follow these detailed steps to successfully establish your business in a Free Zone with the assistance of TAX DXB:

1) Determine the Free Zone:

Research and identify the most suitable Free Zone for your business activity, considering factors such as location, industry focus, and specific incentives offered.

2) Choose the Business Entity Type:

Decide on the appropriate business entity type for your company, such as a Free Zone Company (FZC), Free Zone Establishment (FZE), or branch of an existing company.

3) Select the License Type

Determine the type of license required for your business activity, such as a trading license, professional license, industrial license, or a combination of licenses.

4) Prepare the Required Documents: Gather the necessary documents, which may include:

  • • Completed application form
  • • Passport copies and photographs of shareholders and managers.
  • • Business plan
  • • Memorandum and Articles of Association (MOA and AOA).
  • • No Objection Certificate (NOC) from a current sponsor (if applicable).
  • • Bank reference letter.
  • • Power of Attorney (if using a representative).
  • • Ensure that all documents meet the specific requirements of the chosen Free Zone.

5) Name Reservation and Initial Approval:

Submit the required documents to the Free Zone authority for name reservation and initial approval. The authority will review the application and provide the necessary approvals.

6) Lease Office Space:

Lease office space within the chosen Free Zone. The size and type of office will depend on the requirements of the Free Zone authority.

7) Obtain Approvals and Sign Documents:

Obtain additional approvals, such as from the regulatory authorities or specific industry-related entities, as per the requirements of the chosen Free Zone. Sign the lease agreement and other relevant documents provided by the Free Zone authority.

8) Pay the Fees:

Pay the necessary registration and licensing fees to the Free Zone authority. Fees may vary depending on the chosen Free Zone, license type, and additional services required.

9) Collect the License and Documents:

Once all fees are paid, the Free Zone authority will issue the license and related documents. Collect the license and other relevant documents from the Free Zone authority's office.

10) Visa and Immigration Process:

If you require visas for shareholders, employees, or dependents, initiate the visa and immigration process through the Free Zone authority. Follow the specific procedures, document requirements, and medical examination processes for obtaining visas.

11) Commence Business Operations:

With the license and visas in hand, you are ready to commence business operations within the Free Zone. Ensure compliance with any additional regulations or reporting requirements stipulated by the Free Zone authority.

To start a business in a Free Zone in the United Arab Emirates, you will typically need the following documents:

1) Application Form:

Completed application form provided by the Free Zone authority.

2) Passport Copies:

Passport copies of all shareholders and managers involved in the company. Passports should be valid for at least six months.

3) Photographs:

Recent passport-sized photographs of shareholders and managers.

4) Business Plan:

A comprehensive business plan outlining your company's objectives, market analysis, financial projections, and operational strategies.

5) Memorandum and Articles of Association (MOA and AOA):

The MOA and AOA outline the company's structure, ownership details, shareholding, and other key provisions. These documents may be provided by the Free Zone authority or drafted by a legal professional.

6) No Objection Certificate (NOC) (if applicable):

If you are currently sponsored by another entity in the UAE, you may need to provide a No Objection Certificate from your current sponsor, allowing you to set up a business in the Free Zone.

7) Bank Reference Letter:

A bank reference letter verifying the financial standing and credibility of the shareholders or the company.

8) Power of Attorney (if using a representative):

If you are appointing a representative or PRO (Public Relations Officer) to complete the setup process on your behalf, a power of attorney document authorizing them to act on your behalf may be required.

9) Additional Documents:

Additional documents may be required based on the specific requirements of the chosen Free Zone. These may include lease agreements for office space, NOCs from relevant authorities, specific industry-related approvals or certifications, and any other documents requested by the Free Zone authority.

10) Company Formation in UAE Free Zones:

We specialize in company formation services in various Free Zones across the UAE. Our experts handle the entire process, including company registration, obtaining necessary permits and licenses, and fulfilling legal requirements.

Frequently Asked Questions (FAQs) - Start a Business in UAE Free Zones:

1. What are Free Zones in the UAE?

Free Zones are designated areas within the UAE that offer numerous incentives and benefits to businesses. They are designed to attract foreign investment, promote economic diversification, and provide a favorable environment for company setup, with streamlined processes and a range of business support services.

2. What are the advantages of setting up a business in a Free Zone?

Setting up a business in a Free Zone offers several advantages, such as:

o 100% foreign ownership of the company.

o Exemption from personal and corporate income taxes.

o Customs benefits and duty-free import/export.

o Easy company setup procedures and quick registration processes.

o Availability of business support services, infrastructure, and networking opportunities.

3. Can I conduct business outside the Free Zone if I set up my company in a Free Zone?

Generally, Free Zone companies are restricted to conducting business activities within the Free Zone or internationally. However, some Free Zones allow companies to operate within the UAE mainland through a local distributor or agent.

4. Are there any restrictions on hiring employees in Free Zones?

Free Zones typically have their labor regulations. Companies registered in Free Zones can hire employees directly, subject to the specific employment laws and regulations of the Free Zone authority.

5. Are there specific share capital requirements for Free Zone companies?

Share capital requirements vary among different Free Zones. Some Free Zones do not have any minimum capital requirements, while others may have specific guidelines. Our team can provide detailed information based on the chosen Free Zone for your business setup.

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