Company Formation In UAE | Own 100 Percent Of Your Business
Company formation in UAE: Discover the benefits of setting up a business entity and initial registration procedures
The benefits of owning and operating in a freezone
Company formation in UAE: There are more than 25 free zones in operation in UAE, and each one is designed to focus on specific business categories, such as the Dubai Auto Zone. These special economic areas are set up with the goal of providing options like zero taxation, no customs duty and 100% ownership to expatriate investors.
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They are simpler and easier to register with multiple choices of business activities. Besides being able to own 100 percent of your business by operating in a free zone, you can also own property in Dubai and wind up your business at your own discretion.
Companies operating in a free zone aren’t allowed to trade goods in the local market directly. However, by using a locally registered company as their distributor and by paying a moderate customs duty of 5% it is possible to trade the goods locally.
But a free zone company can buy products and services from and within the UAE market without an agent.
Free zone companies can operate within the boundaries of the free zone duty-free, export or re-export goods duty-free and are usually limited to the activities listed in their license.
Dubai customs have clear guidelines as to the types of goods that can be brought into the country.
Setting up an entity and operating in a freezone
Each free zone has a different registration procedure and fees. Many of them also require that the business owner must have a minimum amount of capital for registration of a company or enterprise, in the free zone, as opposed to the opening of a branch office of an existing company.
Company formation in UAE: Procedure
The procedure of registration varies with each free zone jurisdiction. However the typical requirements are listed below.
- Decide your business activity, visa requirements and the office space you need
- Select the zone, which is more appropriate for you as per the above
- Select the license type
- Submit your passport copy, address proof and No Objection Certificates from your current employer (if applicable)
- Be physically present in the jurisdiction for signing the application documents (required for most of the zones)
- Get the name approval, activity approval and license
The costs for setting up a free zone company in UAE vary depending upon the free zone.
Fees are normally as follows:
- One time registration fee
- Yearly trade license fee
- Yearly lease, rent and various other costs such as rent for a post box
- Visa costs
If you are hiring expatriate employees, you will be responsible for providing them with the necessary visas and paperwork that will allow them to live and work in the UAE.
Your company registration consultant will provide you with an estimate for the total of all these fees. Some free zones offer a standard minimum package for a single investor that includes all of these costs for a lump sum yearly fee.
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