Thursday, 6 March 2014

Advantages of Free Zone Companies in UAE | Business setup | Company formation | Free Zone Formation | Offshore formation |

Type of Entity:

A UAE Free Zone Company can be established in the following ways:

A branch of an existing company


Foreign Branch - A foreign affiliate that is legally a part of a firm residing outside of the UAE
Local Branch - A domestic affiliate that is legally a part of a firm residing in the UAE

A new establishment


Free Zone Company - A new business entity which is owned by 2 – 5 partners
Free Zone Establishment - A new business entity with a sole business owner

Such companies can be owned 100% by foreign investor with no involvement of local partner or sponsor.

A UAE Free Zone company offers the following incentives to investors:

• 100% foreign ownership.
• No corporate taxation for 50 years – a concession that's renewable.
• Freedom to repatriate capital and income in totality
• No personal income tax.
• Full exemption from import duties.
• No currency restrictions 
• No bureaucratic red-tape.
• No recruitment problems.
• Modern efficient communication
• State of the art infrastructure.
• Abundant energy.
• Attractive working environment.
• Owned premises on leased land can be mortgaged.

Types of Licenses:

Industrial License


Activities allowed: Import raw materials, manufacturing, processing, assembling, packaging, and exporting finished products.

Commercial License


Activities allowed: Import, export, distribution, consolidation, storage or warehousing of items specified on the License. Maximum limit is seven similar product lines.

Consulting and Service License


Activities allowed: Offering consulting services in management, finance, investment, legal issues, labor relations, economics (including feasibility studies), industrial development, marketing, and related subjects. Other services include logistical support such as: restaurants or food outlets, catering services, travel agencies, leisure and social activities, insurance, cargo & freight forwarding, accounting, and audition services. 

Commercial - General Trading License


A General Trading License can be obtained under a Commercial License, which allows for more than seven product lines.



Vithul V Murali
Dubai Mobile : +971 50 55 73 538

Email : Vithul@a2zconsultus.com
Skype : Vithul.murali 


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