Companies planning to locate in Dubai or other parts of the UAE can benefit from a highly favourable business environment as well as numerous tax and regulatory exemptions. The country UAE has more than 43 free zones to fulfil the needs of all industries. The government has classified free zones into two types; designated free zones enjoy more tax and customs duty benefits when compare to the second one, Non-Designated Free Zones (See our article: Tax advantages in the Emirates). The majority of free zones have simplified rules, procedures and regulations such as a single-window clearance system to ease business in the UAE.

Free zones in the United Arab Emirates

For foreign investors planning to set up a company in Dubai, there are several free zones with unique legal status within the United Arab Emirates. Companies considering registering a company in Dubai and operating in free zones are not subject to many restrictions imposed by the Companies Act and other laws and regulations of the United Arab Emirates.

Entities operating in a free zone may be wholly foreign-owned and benefit from certain safeguards, notwithstanding any subsequent changes in federal or local laws.

Ras Al Khaimah and Sharjah

We can assist you in your project in all Free Zones in any of the Emirates in UAE, but the most popular is that of Ras Al Khaimah (RAK), Dubai and Sharjah International Airport Free Zone(SAIF Zone). The United Arab Emirates is one of the fastest-growing economies globally, and Ras Al Khaimah has one of the fastest-growing Emirates. There are several reasons for the popularity of Sharjah and Ras Al Khaimah: it is one of the most competitive free zones in terms of cost; its proximity to Dubai is also handy for trade and transport; finally, a RAK Free Zone company and a SAIF Zone Company can cost-benefit from lease and license, in compare with Company formation in Dubai.

Ras Al Khaimah ideally located, just 45 minutes from Dubai, and close to three separate ports, including Port Saqr, where more than 1,400 ships dock each year. It is the closest to the Strait of Hormuz of all the Emirates, making it easy to ship goods. Ras Al Khaimah located geographically between Europe, Africa and Asia, a position highly beneficial to international trade.

Sharjah and Ras Al Khaimah have an international airport and many storage facilities at very competitive prices. This emirate, Ras Al Khaimah, also benefits from an “open skies” policy, which means there are no restrictions on the number of flights or arrival and departure times. With a flight of just 3 hours, in any direction, you can reach over 25 countries access to the total population of just under 2 billion.

The other Freezone Company Formation in UAE

• Jebel Ali Free Zone Authority (JAFZA)
• Dubai International Airport Free zone (DAFZA)
• The Dubai Technology & Media Free Zone (TECOM)
• Dubai South Free Zone
• Khalifa Industrial Zone
• The Dubai Cars & Automotive Free Zone
• Sharjah International Airport Free Zone (SAIF Zone)
• Sharjah Research Technology & Innovation Park
• Sharjah Media City Free Zone
• International Free Zone Authority(IFZA)
• The Dubai Health Care City (DHCC)
• The Dubai Multi Commodities Center(DMCC)
• The Gold and Diamond Park

Incorporation of Companies in Dubai

If you wish to incorporate a company and want a business setup in Dubai, In that case, you need an expert advisory to set up a business in UAE without any hassle and delay due to lack of rules and regulations. Alphaequitymc.com is the best business setup consultant in Dubai. Well known brand will support and provide advisory services for business setup services in the free zone in which the company should establish based on investors business model and goals. For example, the DAFZA zone intended for companies that services, import and export goods, and the commercial activities allowed in the TECOM zone include “the design, development, use and maintenance of everything related to technologies of the information, electronic commerce and the media”.

The UAE Free Zones Authority is responsible for issuing companies with operating permits.

What are the Different Types of Companies in the Emirates?

Limited Liability Free Zine Company (FZC) or Limited Liability Free Zone Establishment (FZE)

When it comes to setting up a company in Dubai, this is the most widely used corporate legal status for companies owned by a non-UAE national who wishes to conduct business activities, and we undertake business set up services. An LLC is a private company, and the shares of this company not offered to the public. The minimum share capital starts from AED 10,000.00 onwards. Some establishment license does not require legal share capital.

Public Joint Stock Company

It is very similar to a British public limited company or a German public limited company. It requires a minimum share capital of AED 10,000,000 and a minimum of 10 founders responsible for its incorporation.

Private Joint Stock Company

Similar to a British private company, it requires a minimum share capital of AED 2,000,000 and a minimum of three founding shareholders. The shares of a private company cannot be the subject of a public offering. Still, in all other respects, the regulations applicable to a private limited company also apply to a private company.

Branch

A foreign company or local company branch may carry out activities similar to its parent company, such as importing goods or services to trade activities inside and outside the country.

Representative Office

It can only promote the foreign parent company’s activities, particularly by gathering information and obtaining orders and projects carried out by this same parent company.  Representative offices not authorized to carry out the activities of the parent company. Representative offices are also subject to restrictions on the number of employees they can sponsor. Due to these constraints, representative offices tend to play an administrative and marketing hub role for their parent company business.

You will need to provide the following documents:

• Notarized copy of your passport
• Notarized copies of latest proof of registered address
• A bank reference letter in original and in English
• Other regular know your client documents

What documents do I need to provide to open my bank account?

• Notarized copy of your passport
• Notarized copies of latest proof of registered address
• Your bank statements for the last six months
• Other regular know your client documents

For comments, more details and specific enquiries how to start a business in Dubai Free Zone, please feel free to contact a senior consultant at info@alphaequitymc.com