FREEZONES
Dubai now boasts over 30 Free Zones, including Jebel Ali Free Zone (which was the first), Ras Al Khaimah Free Trade Zone, Dubai International Airport Free Zone, Dubai Internet City, Dubai Media City, Sharjah Airport International Free Zone, Ajman Free Zone amongst many others. The main attraction of establishing an entity in one of the free zones is that there is no UAE national shareholding or sponsor requirement.
- A Branch of an Offshore Company,
- An “FZE” or Free Zone Establishment (one sole shareholder)
- An “FZC” or Free Zone Company – having two or more shareholders.
- • 100% foreign ownership
- • 100% repatriation of capital and profits
- • 100% corporate and personal income tax exemption
- • No currency restrictions
- • Abundant and inexpensive energy
- • Modern efficient communications
- • Excellent support services from local authorities
Once a company has been accepted into a free zone it will typically operate under one or more of four different licences being a “commercial licence”, “general trading ence”, “industrial licence” and “service licence”. Free zone registrations do not require a local sponsor or any local partner. Companies registered in the free zones have to pay 5% duty and appoint a local service agent if they wish to sell goods or services within the Emirates. Overseas sales are free of any duty.
Free Zone Establishments and Free Zone Companies have differing minimum share capital requirements dependant upon the free zone of incorporation. They will have a requirement to rent office space in the Free Zone, and must also pay annual licence fees.
Please note new free zones are being created and some of the existing free zones are reaching capacity. Please contact the Dubai office for specific Free Zone information.