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Free Zone is a designated tax-free area where customs duty for import and export and some other restrictions on businesses, as to associate with a local partner or local service agent, do not apply. Moreover, in the Free Zones bureaucratic requirements are minimized in order to create more pleasant business environment. There are number of Free Zone in UAE, which offer business facilities and environment in different sectors of economy. Free trade zone, an area in which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of customs authorities.
Free trade zones in UAE are benefiting from:
100% Foreign Ownership of the Enterprise
100% Import and Export Tax Exemptions
100% Repatriation of Capital
100% Repatriation on Profits
Corporate Tax Exemptions
Zero Personal Income Taxes
Eligible for Sponsorship of Family Members and Housing
Eligible to Recruit Labors and Business Support Services within the Free Trade zones.
To Buy Free hold Properties Under the Company
Mostly in UAE Free zones are designed with certain Industry or Categories and they encourage such licenses within these categories only.
There are nearly 40 Freezones currently operating here in UAE and still some more under development stage.
An Investor has variety of options to choose from all these Free Zones depending upon his Activity Category, area of Operation (like within UAE or Outside UAE) and the geographical location. An Investor also has an option of structuring his Company either forming a Sole Establishment called FZE(Free Zone Establishment) or a Free zone Company(two and more partners) or Branch/ Representative Company with having Foreign or Local companies as Parent Company. A FZE is a Limited Liability company complying with the Rules and Regulations of each and every Free Zones separately.
FZC is a Free Zone Company with having more than one shareholders and this is also a Limited Liability Company having minimum share capital based on each Free zones.
Some Examples:
