A free zone / free trade zone is specified areas within the United Arab Emirates which offer special tax-free status and nominal trade restrictions where goods and services can be delivered with minimal trade restrictions. A foreign investor can set-up a company anywhere in the UAE with many choices in various geographic locations like national borders,
international airports and major seaports, so that the business owners can reap maximum trading advantages for their business growth and global connection.
Free zone authorities are the government bodies that issue business licenses to non-resident entrepreneur and corporate to establish in the UAE free zone.
Free zones allow 100% foreign ownership and offer modern infrastructure and high-tech facilities without complicated administrative services.
Many businesses drop their plan of investing in the UAE due to the mandate law of having a UAE national as a 51% share holders but free zones provide the preferred option to the foreign investor compared to mainland.
The UAE currently has 45 free zones in operation with many more coming up. Each free zone focuses on one or more commercial categories and only offers licenses to entities within those areas of expertise. An example is Dubai Media City, which exclusively focuses on creative and media companies.
ADVANTAGE OF FREE ZONE COMPANIES :
UAE Free zones are developed strategically at geographic locations like national borders, international airports and major seaports, so that the business owners can reap maximum trading advantages for their business.
The UAE Government has developed multiple free zones in the country, each designed with the theme to support businesses of specific sector.
UAE free trade zones offer lucrative facilities to foreign companies, like the convenience of single-window administration, no bureaucratic red tape, and 100% ownership. There are about 44 free zones spread all over the United Arab Emirates, with many more coming up. They have attracted foreign direct investment in the form contributing to the non-oil GDP growth of the national economy. The free trade zones vary in their location, types of business it supports, setup costs and paperwork needed.
UAE is the only country in GCC which is having many free zones offering investors to conduct many different types of businesses.
The first free zone in UAE was established in 1985 namely Jebel Ali free zone in Dubai which witnessed huge growth.
A free zone company registered with one share holder is known as FZE (Free zone establishment)A free zone company registered with more than one share holder is known as FZCO (Free zone Company)Any company from mainland or other country can open Branch Company in free zone.
Each free zone in UAE has been established with a specific purpose to support some specified business activities. An investor must take an advice from an experienced consultant to choose the correct free zone which is most suited for his business plan.An investor should also understand the process of liquidating the license from beginning so if the need comes up then he knows the complete process upfront.