Starting a business in one of the numerous free zones available in the United Arab Emirates represents an interesting possibility for entrepreneurs. With over forty free zones each appropriate to different rules and benefits, there lies a decision of making where to place your business. This thorough guide on Free Zone Company Setup will lead you through the important things to think about.

It will assist you in choosing the best free zone to maximise your chances of success and match your company objectives.

A Free Zone Company: What Is It?

A company established in a special free zone established by the UAE is known as a Free Zone Company. For overseas investors, it provides several advantages. You can own your business in these zones without needing a local partner.

They expedite and simplify the setup process and offer tax benefits like no corporate or personal income taxes.

You are free to leave the country with all of your earnings and capital. In order to accommodate business needs and streamline import and export processes, free zones also provide a range of office spaces and amenities.

Benefits of Starting a Free Zone Company in Dubai

Setting up a business in a Dubai-free zone provides numerous benefits. It offers complete foreign ownership, significant tax breaks, and a simple setup process.

• Foreign ownership allows for full ownership of a business without a local partner.
• Enjoy complete exemption from personal income taxes and customs duties.
• Streamlined and efficient setup process with minimal paperwork.
• Profits and capital can be repatriated without restrictions.
• Proximity to major ports, airports, and business hubs leads to increased trade and connectivity.
• Office facilities include virtual offices and fully serviced spaces.
• Supportive Environment: Receive assistance with legal and administrative matters.
• Networking Opportunities: Meet other businesses and professionals in your industry in the free zone.

Principal Aspects of UAE Free Zone Company Formation

• Physical Presence: In many free zones, a physical presence is only necessary for the processing of visas; it is not necessary for the formation of a company.
• Government Interaction: There is little direct communication with government organisations.
• VAT Benefits: All transactions that are incurred outside UAE jurisdiction do not attract VAT.
• Corporate Tax: Even if an entity enjoys an exemption from payment of corporate tax, such an entity must still submit tax returns.
• Business Freedom: Carry out B2B operations across the United Arab Emirates and B2C activities within the free zone and abroad.

Business licence categories in the Free Zones

In the Free zone, there are four different kinds of business permits. Below is a list of them:

• A general trading licence enables investors to deal in a wide variety of goods.
• A commercial licence permits the worldwide export of completed goods and the import of raw materials.
• Service License: Allows companies that provide services, such legal, accountancy, and consulting firms, to function.
• An industrial licence permits the construction and use of facilities for the manufacturing and production of commodities.

How to Set Up a Free Zone Company

The following procedures will assist you in establishing a business in the free zone: 

Step 1: Choose a Free Zone

Selecting a free zone to locate your business is the first step. You need to decide on a free zone, conduct market research, determine your company activity, and take your industry into account. 

Step 2: Decide on a legal framework

Selecting a legal structure comes next after deciding on a free zone. You may get in touch with our TVG company setup specialists if you need assistance choosing a legal structure. In the free zones, LLCs are the predominant legal structure. 

Step 3: Choose a Trade Name

Selecting a trade name is required. To pick a name, you can review the DED naming standards.

Step 4: File a Business License Application

To guarantee compliance and operational effectiveness, you choose the business licence that most closely aligns with the main operations of your firm and submit all necessary paperwork with it.

Step 5: Establishing a Business Bank Account

Creating a corporate bank account for your business is the final stage. It guarantees efficient cash flow management for your company. Keeping tabs on the transactions of your business is also beneficial. The following paperwork is needed in order to create a business bank account:

• Copies of my passport
• Emirates ID
• Visa
• Business licence

You may proceed with the establishment of your business swiftly by following the above-mentioned stages. 

Documents needed to establish a business in a free zone

The following are the necessary paperwork needed to start a Free Zone firm in the United Arab Emirates:

• Application Form
• Copies of passports
• Two images with a white backdrop
• Trade designations
• Plan of Business

Depending on the type of business you want to register, additional documents for registration apart from the normal ones may be required documenting.

The cost of establishing a Free Zone entity in the UAE

In the United Arab Emirates, free zone company registration begins at the cost of AED 6,000*. On the other hand, a number of variables may affect the overall cost. There are fees associated with each type of licence, and some activities may be subject to additional costs. 

The total cost is also influenced by the quantity of sponsor and employee visas needed. Get in touch with our TVG specialists to find out how much setting up your business in the free zone will really cost.

Renewal of RAKEZ Company License

Ras Al Khaimah company licence renewal costs 1,000 AED less than incorporation. Renewal does not need the shareholder’s actual attendance.

RAKEZ demands financial audits for the firms. You must submit it at the conclusion of your fiscal year, which is December by default or another month of your choosing.

RAKEZ corporate policies and guidelines

The business is subject to change at any time. The following modifications are among the most common ones:

• Managers and shareholders
• Name of company
• Operational activity
• Office space

The management or shareholder must be present in person to submit the modification application.

Contact TVG Management Consultancy to begin the development of your firm! 

There are several benefits to establishing a business in a UAE-free zone, including complete ownership, tax advantages, and a simple establishment procedure. Selecting the ideal free zone from a selection of over 40 is essential to reaching your company objectives.

The fundamentals of setting up a free zone company, such as the kinds of licenses required and the procedures, have been addressed in this guide. TVG Management Consultancy may assist with a hassle-free setup.

We streamline and expedite the business setup procedure so you can concentrate on expanding your enterprise. To begin your adventure, get in touch with TVG Management Consultancy right away.

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TVG