Due to the countless benefit of free zones, the majority of foreign investors are attracted to them. Hence, these trade zones have an exponential growth rate. The growth rate of Jebel Ali Free zone on FDI is 32%. Whereas the Dubai International Financial Centre has a 25% growth rate. Free zones give 100% import and export tax dispensation that’s why foreign investors consider free zones a great investment opportunity.

Free zones are those regions in a country where foreign investors do not have to pay taxes. So, investors are attracted to free zones and it facilitates foreign investment and imports and exports of all products. Therefore, foreign investors should not miss this chance. Because they can also have the complete ownership of companies established in Free zones. In addition to it, this is the best location to establish a company or organization in the UAE. Free zones are not under the control of the Law of the Ministry of Labour so you do not need to follow the rules of Federal Law.

However, there are specific zones that are managed by the Free zone authority. According to your requirements, you can start various types of business in free zones. The different types of businesses are

• Free zone establishment – single stakeholder
• Free zone company – more than one stakeholder
• Branch Company – a branch of the local company or the branch of the foreign company.

• You do not need any sponsors. Foreign investors have 100% ownership of a company or business established in the free zone.
• You do not need to pay corporate and income tax.
• The fast registration of a company
• You do not need any UAE national to set up a company.
• You do not need to pay import and export tax.
• Straight-forward and authentic registration process.
• 100% return of capital and profit is available.
• There are no currency restrictions or barriers.
• You have access to various license activities.
• Enormous and budget-friendly energy.
• Effective communication
• Serviced desks and offices are also available for SMEs and start-ups.
• Amazing support services.
• Logistic efficiencies because of the business cluster effect.

How to establish a company in a Free zone?

You need to follow the following steps to set up a company in the free zone.

• Selection of legal entity

Firstly, you need to decide the type of legal entity for your business. Some investors either choose Free Zone Establishment (FZE) or Free Zone Company (FZC) for the registration of a company. You need one stakeholder for FZE whereas two or more stakeholders for FZC. You can also construct a branch or representative office of the current company, which is established in the UAE or Abroad. An FZC or FZE is a limited liability company that is under the control of Free Zone. The provisions of the UAE Commercial Companies Law (CCL) are not applicable here.

• Deciding the trade name

It is best if you have chosen three trade names in order of preference. The trade name should be clear, meaningful, and not related to any religion. In this stage, you need to submit documents of all stakeholders or directors of a company. These documents include certified passport copy and UAE visa or UAE entry stamp, 2x proofs of home address, professional reference letter, curriculum vitae, and company application form.

• Applying for a business license

In this step, you need to apply for a business license. When the higher authorities will issue your license then you can set up a company in Free Zone.

• Deciding the business location

You need to get a lease contract for the registration of a company in the Free Zone. It will specify the location of an office, warehouse, or business centre. You can either purchase this office or get it on rent.

• Getting approvals from other authorities

In the last step, you will get approvals from higher authorities and then you have registered your company, firm, or business in Dubai.