Free zone Company Formation

Free zones in the UAE were established in the early 1980s, with the first being the Jebel Ali Free Zone, launched in 1985. These zones were created to encourage foreign investment and stimulate economic growth by providing a business-friendly environment. Free zones have laws and regulations that apply only to them and not to any place on the mainland. Every free zone is supervised by a designated authority or authorities, who manage all the activities, authorizations, and adherence of businesses within its area. 

Forming a company in a free zone permits entrepreneurs to create businesses with full foreign ownership in a controlled setting promoting economic development. Every free zone caters to particular sectors, offering distinctive advantages and amenities that assist business activities. So far, more than 40 free zones are operating in the UAE and serving specific trade, technology, media, and healthcare sectors. The free zones in the UAE represent a diversity of advantages and services offered to companies; this is why it is an ideal country for entrepreneurs and businesses wishing to expand in the Middle East.

 

Advantages of  Company Formation in UAE Freezone

• 100% Foreign Ownership: You can fully own your business without needing a local partner.
• No Taxes: No corporate or income taxes, so you keep all your profits.
• Quick Setup: Starting your business is fast and requires minimal paperwork.
• Great Facilities: Enjoy fully-furnished offices with 24/7 access and strong security.
• No Import Duties: Import goods without paying customs duties, making it ideal for trading companies.
• Global Connections: Access major airports and seaports, connecting you to over 180 countries.
• Ideal for Startups and Small Businesses: Free zones provide a supportive environment for new and small companies.
• 24/7 Operations: Businesses can operate around the clock, offering flexibility for customer needs.
• UAE Residence Visa for 3 Years: Business owners and employees can get a residence valid visa for three years.
• Hire Expatriates Without Restrictions: Companies can employ foreign workers without limitations.
• Cost-Effective: Enjoy competitive fees with no minimum capital required and flexible office options.
• Mix & Match Business Activities: Free zones allow you to combine different business activities on your trade license for added flexibility.

 

How to Establish a Company in a Free Zone

• Identify the Legal Structure
• Select a Business Name
• Submit an Application for  Business License
• Decide on Office Location
• Obtain Pre-approvals, Register Your Company, and Acquire Your License

 

• Identify the Legal Structure

Decide on the legal structure your business will take. In a free zone, you can set up one of two types of companies:

• Free Zone Establishment (FZE)
• Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.)

The two primary differences are the quantity of shareholders and whether they are an individual or an organization. Not all free zones register both types of companies, so it’s essential to confirm which company types they can register with each free zone authority.

• Select a Business Name

Select a trade name for your business, it’s essential to check with either the relevant free zone authority or the Department of Economic Development to confirm that the name is permitted and has not already been registered. As you also determine the legal structure of your company, note that twofour54 guidelines specify that the terms "Abu Dhabi" and "United Arab Emirates" cannot be included in the name of an FZ-LLC or its branch

• Submit an Application for  Business License

Understanding the available business licenses is crucial for setting up a company in the UAE. The license type you need will depend on the primary activity of your business. "Choosing the correct license ensures that your business complies with local regulations and operates smoothly in the free zone. some types of business licenses are:

• Warehousing
• Freelance
• E-commerce
• Industrial
• Manufacturing
• Consulting/Professional Services
• Offshore
• Media
• Commercial/Trading
• Education

• Decide on Office Location

Choose an office location to set up a company in a UAE-free zone. Each free zone offers a variety of workspace options, including fully furnished offices, shared spaces, and virtual offices for remote operations.

• Obtain Pre-approvals, Register Your Company, and Acquire Your License

Businesses set up in UAE free zones are regulated by the specific laws of each free zone. To obtain necessary approvals, you’ll need to gather the required documents, which vary depending on your business activity, company type, and the regulations of the free zone authority. Here is the general approval process:

• Initial Approval
• Company Registration
• Licensing and Visa Issuance

 

Core Services and Facilities Offered by Free Zones

Once your business license is issued and you’re ready to move in, the free zone authority will arrange the setup of utilities and telecommunications for your office. Free zones provide:

• Dedicated IT Support Staff: Free zones provide on-site IT professionals to assist with technical issues, and ensure operations run smoothly.
• Telephone Systems and Connections: Businesses have access to telephone equipment and connections, making communication easy and efficient.
• Wireless Network Access: Reliable wireless internet services are accessible for team flexibility and mobility within the office space.
• Fast Internet Connectivity: With high-speed internet, businesses can perform online tasks quickly and efficiently, which is crucial for smooth operations.
• Secure Data Networking: A secure data network allows for the safe sharing of information and resources among team members.
• IP Telephony: This service provides internet-based phone systems, offering cost-effective communication solutions for businesses.

 

Support Services
Free zone authorities offer various services and facilities, including:

• Legal consultation
• Assistance with recruitment
• Furnished and partially furnished office spaces
• Secretarial support
• Access to utilities
• NOC letters and “To Whom It May Concern” letters
• Meeting rooms with audiovisual capabilities
• Transportation services
• Visa issuance, renewal, and cancellation
• Investment and funding opportunities
• Photocopying and printing facilities
• Telecommunications services
• Labor accommodations
• Warehousing options
• Twofour54 provides studios along with production, post-production, and broadcast services.

 

Services and facilities may differ from one free zone to another.

 

Why Choose Reyson Badger for Your Company Formation in the UAE Freezone?

Choosing Reyson Badger for your company formation in the UAE free zone means partnering with a trusted expert dedicated to your business success. We know the challenges of establishing a business in the UAE, and our expert team will assist you in each stage, guaranteeing compliance with all necessary conditions. We customize our solutions to match your requirements, making it easier with our personalized service. Our extensive assistance covers all aspects of setting up your business in the UAE, from obtaining the necessary license to locating the perfect office space, ensuring a smooth and stress-free entry into the market. Choosing Reyson Badger results in acquiring a valuable partner dedicated to materializing your business vision