Free Zone Company Formation
Free Zone Company Formation
A Free zone is a geographical region or jurisdiction which can conduct a predefined trading activity or set of activities in the UAE. Business set up in Dubai Free Zone requires a license and the Free Zone licenses in Dubai and UAE are issued based on the business activity of the company.Certain new free zone regions are under construction and therefore the total number of the free zone would rise in the coming years.
Free Zone Authority (FZA) is the governing body in charge of the activities related to a Free Zone company like license issuance and operation. The Commercial laws governing the UAE mainland companies are not applicable to the Free zone companies. One of the greatest benefits of business set up in Dubai Free Zone is that foreign investors can enjoy 100% ownership. Apart from complete ownership benefits, monetary benefits like complete tax exemptions, 100% repatriation benefits, absence of foreign exchange restrictions are the added benefits of Dubai Free Zone company formation.
Business establishments irrespective of their legal structure and size requires a valid trade license to conduct their operations in any of the UAE Free Zones. The Dubai Free Zone Licenses issued include:
Professional License – For service-oriented firms and consultancies.
Industrial license – For manufacturing firms, import and export companies.
General Trading License – the investor can make use of the General Trading license to trade a wide category of goods and commodities.
Warehousing license – the investor may acquire this license to meet the various warehousing requirements like storage and distribution.