Business Setup
Are you in search of a respectable and low-tax jurisdiction that would give tangible advantages to your business? Look no further than the UAE, a country with a highly diversified economy, well-developed infrastructure, and stable currency pegged to the US dollar. You can form and run a company here remotely, which is very convenient. Even if you have never been to the Emirates, you can form a company there (however, a company shareholder will have to visit the country once to obtain a migration card and open visas).
The world economy is not having its best times now, so entrepreneurs are looking for ways to save on costs. And a good option here is to register your UAE company in one of the many free zones available in the country. If you have never considered the Emirates, we invite you to our international portal where you will find a lot of information – specifically, read our article to select the cheapest free zone in the UAE that will match your preferences.
We have a team of qualified specialists that will help you with company setup, opening a foreign account, or investing in real estate to obtain a residence permit. Some of our services are free: we will help you choose the best jurisdiction for your company or the most suitable bank to open an account by considering the peculiarities of your case. Do not hesitate to follow the link above and book a one-on-one session or ask questions!
UAE Free Zones: Advantages
A company established in the UAE free zone is considered an onshore entity (in contrast to offshore companies that can also be formed in the Emirates), and there are different incentives that it can take advantage of. Let’s look at them to help you make an informed decision:
- A company formed here can conduct its activities within the free zone or outside the country, so it is a good choice for international business.
- As you see from the previous item, mainland UAE is a restricted area for freezone companies. However, you can use a local agent or a distributor to carry out your activities in the UAE.
- Companies established in free zones will not have to pay a corporate tax for 50 years. This regulation was not abolished after the 9% corporate tax rate was established all over the country, but there is one condition: you are not allowed to involve local companies and customers in your activities.
- A freezone company can be owned by a foreign resident.
- Non-resident investors will face no restrictions whatsoever if they decide to repatriate their profits or capital.
- The company directors and shareholders can be residents of any country.
- Your company is required to have an authorized capital, but the limit is set by each UAE free zone independently.
- You will need to have a physical office on-site, and there are a lot of affordable offers.
- The requirements for company financial reports submission or company auditing differ from emirate to emirate, so you’d better contact our specialists for details if this is an important aspect for you.
- Unlike UAE offshore companies, freezone companies have the right to benefit from DTTs and get a tax residency certificate.
- Finally, founders of entities registered in UAE free zones are entitled to obtain residence permits (visas) if they meet certain requirements.
Does that sound interesting enough? If you need to clarify certain aspects, please get in touch with us by clicking on the above link and make an informed decision to join the bustling UAE free zone community!
IFZA: a Closer Look at the Free Zone
IFZA stands for International Free Zone Authority, and it is a free zone in the Emirate of Fujairah that was established to become an investment hub. It is a very helpful community that is ready to support you on your way to success by offering an individual approach to each entrepreneur, high-quality services, and affordable business solutions.
IFZA: Benefits
All the advantages listed above related to the free zones are applicable! We will only mention those that come in addition:
- Low-priced business incorporation opportunities
- The zone is open to companies that engage in different business activities, and the most widespread ones (consultancy, provision of services, and trading) are sure to be welcome here
- You are fully exempt from corporate or income tax
- There is no need to rent a physical office
- Your company is not required to have a share capital
- If your undertaking requires the setup of a holding company, you can do so in IFZA
- You will not be required to file an annual audit report
Each free zone comes with additional perks, and IFZA is no exception! We consider it here as an example of what a particular FEZ may look like under a microscope, but you will find more examples by clicking on the above link to the portal.
IFZA Licenses
You are required to obtain a license to carry out business activities in the International Free Zone Authority. Let’s look at the kinds of licenses available to companies:
Consultancy License. Obtain it to provide expert consultancy services in different areas – beauty, accounting, engineering, and so on.
Service License. Construction works, organization of catering activities, and industrial equipment installation – all of these are the services provided under one license.
Trading License. Home furniture, perfumes, or raw materials – all of these can be imported, exported, distributed, or stored if you have a trading license.
General Trading License. While the previous license only entitles you to deal with the products mentioned in it, the general trading license will allow you to sell any product permitted in the UAE.
Industrial License. You will need it if your company is going to import raw materials to manufacture products that will later be exported.
License for Holding Activities. You can establish a holding company to own and manage the assets owned by other companies and organizations in different countries, and in this case, you will need a license for holding activities.
Do you need to know more about the UAE free zones or any aspect of them? We are ready to provide updated information and help you using our experience and expertise. Get in touch with portal specialists using the above link – and make your first step into the world of international business!
