+971 56 564 2164
P.O Box 51500,Sharjah Media City, Sharjah, UAE.
+971 56 564 2164
P.O Box 51500,Sharjah Media City, Sharjah, UAE.

Freezone Setup

Free Zones Company Formation

Many businesses shy away from investing in the UAE due to the compulsion of having a UAE national as a partner with 51% shares owned by them. Because of this, free zones have become a popular form of business registration in the UAE, where 100% foreign ownership is allowed. A free zone, or free trade zone, is an area with special tax-free status and low trade barriers where goods can be manufactured, imported/exported, handled, or reconfigured without paying any customs duty. Free trade zones are generally located in strategic geographical locations like national borders, international airports and major seaports, to maximise trading advantages.

How to Set Up a Business in the UAE Free Zones?

Business formation in UAE free zones is incomplete without procuring a business license. Following types of business licenses can be obtained by applicants in the UAE free zones:

1. General Trading License

Allows investors to trade in all kinds of products

2. Trading/Commercial License

Grants a time-limited authorisation to perform industrial, commercial, or consulting activities

3. Service License

Allows law firms, accounting firms, and business consultancy firms to operate

4. Industrial License

Permits importing raw materials, manufacturing goods, and exporting finished products, across global boundaries

5. Warehousing License

Investors can avail this license to avail warehousing facilities on lease for distribution, packaging, and storage of goods

6. Manufacturing License

Permits applicants to manufacture products

How to Set Up a Business in the UAE Free Zones?

Company set up in free zones is not subject to the commercial company’s law. Free Zones in the UAE are outside the jurisdiction of the UAE and have rules and regulation set by concerned free zone authorities. These free zones offer an excellent business opportunity for investors from all around the world and provide a liberal working environment and easy company setup procedures. The procedure is plain and simple.

Why Set Up a Business in the UAE Free Zones?

Companies registered outside the UAE free zones cannot be owned solely by a foreign national (a maximum of 49% foreign ownership by the foreign national, and at least 51% ownership by a UAE national is mandatory), which is one of the primary reasons why global investors throng to UAE free zones for business investment. Apart from this, there are many advantages for start-ups setting up their business in free zones. Lucrative incentives and the wide spectrum of opportunities provided to investors is what make free zones in the UAE the most sought-after areas for setting up a business. There are a few reasons listed below as to why one should set up business in the UAE.

1. A Wide Range of Business Licenses and Activities

A company in the UAE free zone is permitted to engage in a variety of business activities with multiplicity in the type of licenses. The only thing is UAE free zone companies are not allowed to engage in is the insurance business.

2. Confidentiality

A free zone company is protected by the highest level of privacy adopted in the UAE about the identity of its owners, directors, and activities within acceptable international standards.

3. Bank Account and Registered Office

A free zone company is allowed to have a registered office at the location of the free zone area it is licensed under. Additionally, one can open a bank account anywhere outside the UAE.

It takes about a week to complete the UAE free zone company formation process, and around 2 to 3 weeks to obtain a UAE residence visa when an applicant contacts Xcellence for support. We are a registered company, well informed of the company formation rules and regulations in the Middle East, and have been helping companies gain a foothold in the United Arab Emirates since 2006.

Free zone company set up in the UAE is rewarding, with tax exemptions, lower establishment overheads, business-friendly government policies, and hassle-free administration. If you are in search of a business partner to ease your company formation process in the UAE and launch your business dreams into action, contact our team for assistance – we’ll be glad to help!

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