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UAE Freezone Company Formation | Dubai Freezone Company Setup

August 4, 2021by Chinwe Azikiwe

UAE Freezone Company Formation | Dubai Freezone Company Setup

UAE Freezone companies are the go-to choice for foreign investors who do not wish to split ownership between them and a local sponsor. Choosing to set up a UAE Freezone company can be done without the necessity for any Emirati partner being required, unlike the limited liability companies established outside free zones in the mainland territory with the Department of Economic Development.

With a UAE Freezone company, foreign investors maintain 100% ownership of their company, accompanied by the total freedom to operate their business, employ from the capable foreign labour force available in the UAE, a 0% Tax structure, low setup cost and renewal costs. In addition to all of the benefits of setting up a company in UAE Freezones, these companies are not required to have a service agent to act as a liaison with the government authorities.

The UAE has 45 free zones with separate jurisdictions. Each major Freezone has more than 10000 companies registered and investors are queuing up to register their business in UAE free zones. Each UAE Free Zone is typically designed around specific business industry categories and only offers licenses to companies within those categories. Company Incorporation in each Freezone has a different set of requirements, cost and legal structure.

These types of companies are incorporated in UAE free zones:

  • Service Companies
  • Commercial Trading Companies
  • General Trading Companies
  • Industrial / Manufacturing Companies

Benefits of Freezone Company Registration in UAE

  • Company registration in as little as one day
  • Low setup cost
  • 100% Foreign ownership
  • 100% tax exemption on personal income
  • 100 % tax exemption on corporate income, for more than renewable 15 to 50 years period
  • 100% free repatriation of capital and dividends
  • 100% tax exemption on capital gains
  • Large network of double tax conventions
  • No withholding taxes
  • No inheritance tax
  • No exit tax
  • No foreign exchange control
  • Exemptions for export and import tax duties
  • 100% transactions confidentiality
  • No public register of Directors and Shareholders
  • Corporate Shareholders allowed
  • UAE Freezone Companies could benefit from virtual offices avoiding rent their own office, unlike mainland companies

What is the Cost of Setting Up a UAE Free Zone Company?

The total cost of setting up a company in any of the UAE Free Trade Zones varies significantly. The nature of business activity also needs to be considered. There are registration costs, licensing costs, office/flexi-desk fees and share capital requirements to consider too. Typically registration and licensing costs start anywhere from 9,000 AED and could range up to 35,000 AED. Finally, share capital requirements vary. While some UAE Free Trade Zones do not require any share capital in order to incorporate the company, others require a deposit in the company bank account dirhams which is considered as the company’s share capital.

UAE Free zones only permit business owners to carry out business internationally (outside the UAE) or within the Free Zone itself. With a Free zone license, a business of any kind is not allowed on the mainland of the UAE. So if you identify your target market as within the UAE mainland, you will be required to establish a UAE Onshore Company with a local sponsor. Wincore can assist with this matter. See our UAE Mainland Company Formation Article here, for further information.

How Can We Help in Setting Up a UAE Free Zone Company?

Starting a business in one of the UAE’s Free Trade Zones can be a very attractive option for foreign investors, but choosing the right Free Zone for your business requires deep knowledge of the market. Choosing Wincore’s advisory services ensures that there is a smooth setup from start to finish. If you wish to discuss how we can assist you in setting up a Freezone Company in the UAE, or any other legal entity, feel free to contact us. Wincore Advisory Group’s structuring team will assist you to determine which UAE free zone and legal structuring will permit you to most efficiently and successfully develop your business concept and enter the targeted market while mitigating sharia law inheritance law and complying with economic substance requirements. We also assist with choosing the right jurisdiction to set up a business, incorporation of the UAE Free Zone Company, banking assistance, and visa assistance.

For Support and assistance on this matter Get in touch with our Corporate Team Today. 

Wincore specializes in TaxEstateCorporate and Fiduciary matters. We provide pragmatic, flexible, and efficient solutions to individual entrepreneurs, startup businesses, foreign and local SMEs, multinationals, wealthy international families, HNWIs, and UHNWIs.

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Chinwe Azikiwe

Senior Business Advisor

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