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free zoneThe areas regulated by special status in the United Arab Emirates - UAE Free Zone (i.e. Free Zone- FZ), have been designed, planned and established to contribute and improve the growth and development of the UAE.

Currently, the United Arab Emirates has more than forty FZ. The Dubai Free Zone proposes operating conditions for the most congenial business of the UAE, so Dubai has become a place of great international appeal. This does not mean that the FZ in the rest of the UAE does not have as many congenial working conditions, but it means that the analysis of the business before you establish a company in a UAE Free Zone is essential, so you can focus the best ZF for you.

At the moment the main FZ in the Government of Dubai (more are expected soon) are:

  • Dubai Airport Free Zone - DAFZ-set-up a DAFZ company
  • Dubai Cars and Automotive Zone (o Dubai Auto Zone) - DUCAMZ-set-up a DUCAMZ company
  • Dubai Design District - D3-set-up D3 company
  • Dubai Healthcare City - DHC-set-up DHC company
  • Dubai International Academic City - DIAC-set-up DIAC company
  • Dubai Internet City - DIC-set-up DIC company
  • Dubai International Financial Centre - DIFC-set-up DIFC company
  • Dubai Knowledge Village – DKV-set-up DKV company
  • Dubai Media City - DMC-set-up DMC company
  • Dubai Gold and Diamond Park - DGDP-set-up DGDP company
  • Dubai Multi Commodities Centre - DMCC-set-up DMCC company
  • Dubai Silicon Oasis - DSO-set-up DSO company
  • International Media Production Zone - IMPZ-set-up IMPZ company
  • Jebel Ali Free Zone – JAFZ-set-up JAFZ company
  • JLT Free Zone-JLTFZ-set-up JLTFZ company

A Free Zone Company in UAE, to conduct its business, shall be provided with a license allows (working license in the UAE), which is issued for a particular FZ. The license authorized the company to operate within the Free Zone itself and outside of the UAE, but not within the same United Arab Emirates.

Business done within the UAE can be conducted only if the Free Zone Company in UAE is supported by a representative ( local agent in the UAE and/or sponsor in the UAE), named.

As for legal and commercial sides, in most cases, companies operating in the UAE Free Zone shall be treated as foreign companies, therefore not belonging to the UAE.

The settlement of companies within the FZ in UAE is suitable for companies who want to produce, distribute and/or provide services in the UAE, or simply devoted their business to adjoining areas (Medium- East, India, China and Africa).

A great benefit of companies in the UAE Free Zone is the fact that the United Arab Emirates is a Country with zero taxation because of its many business activities. The UAE has signed several agreements and bilateral treaties with other Countries in order to face the phenomenon of double taxation.

Agreements/conventions and bilateral treaties have been signed with several Countries, including the United Kingdom, France, Spain, Italy and many other EU Countries, as well as others.

These established societies, operating in one of the UAE ZF, can own the following licenses:

  • COMMERCIAL LICENSE: which includes all kinds of business.
  • INDUSTRIAL LICENSE: it helps to establish industrial and/or manufacturing business.

It can do its business with Companies which are themselves established in Free Zones in the UAE, as well as individuals and/or legal residents abroad, and, therefore, it is unable to conduct business in the United Arab Emirates themselves.

To do its business, i.e. doing the activity in the UAE, the Free Zone Company in the UAE must make use of a representative (local agent in the EAU and/or sponsor in the EAU), which is appointed.

These societies, operating in one of the ZF of the UAE and owning a license, are:

- PROFESSIONAL: which include professions, services and craftsmen.

It can do its business with Companies which are themselves established in Free Zones in the UAE, as well as individuals and / or legal residents abroad, and, therefore, it is unable to conduct business in the United Arab Emirates themselves.

However, making sure and proving the origin and development of intellectual activity is difficult, therefore a Free Zone Company in UAE, which provides its services in the UAE territory does not often make use of representative (local agent in the UAE and/or sponsor in the UAE), appointed.

In addition, the company set up, operating in one of the ZF of the UAE:

  • May hold shares in other companies in the UAE, the Free Zones and/or offshore companies in general.

Given that a Free Zone Company in UAE makes use of a local agent or sponsor to get its business with individuals and/or legal residents in the UAE distributing goods or products, and/or providing services in the UAE, it must pay a 5% duty as an "export tax - UAE". However for these companies you can buy products and/or services, from and within the UAE, without being burdened with duties as an "import tax - UAE".

For Free Zone Companies in UAE who wants to distribute goods or products, and/or provide services in the UAE, there is a second chance, i.e. introduce itself as a partner into a social structure of an LLC Company established in UAE, which must be held by a local entity (local agent in the UAE and/or sponsor in the UAE), for a percentage share that is not less than 51%.

If a Free Zone Companies in UAE wants to exercise more than one of the activities for which it was dismissed, it must apply for a license for each category of activity.

The most important benefits of the Free Zone company in the UAE are given by the opportunity to:

  • Allow members, shareholders and directors of the company to enjoy services related to protection of privacy, because, with some exceptions, the law of this Country allows this types of Service
  • Benefit from a high level of privacy, confidentiality, privacy and the opportunity to set up an efficient planning strategy and tax optimazing are all elements that combine to define the Free Zone company in UAE as a very interesting tool. To detect the strong stability of the Country and the high level of dedication of the treatment for the exchange of 'information - the Country and the banks operating in this jurisdiction do not release any information. In this regard, the United Arab Emirates have not signed any bilateral agreement.
  • Opening one or more bank accounts for the company in the Country of residence, in this case the United Arab Emirates, which is usually not allowed in other jurisdictions (i.e. to enjoy tax benefits, the company that is not operating in its Country of residence can not have any kind of relationship within it, including relations of a financial nature - OPENING BANK ACCOUNTS IN UAE.
  • Apply for a Visa - RESIDENCE VISA IN UAE, both for individuals who are part of the team and for foreign staff employed - RESIDENCE PERMIT IN UAE.

Although ZF have been designed, planned and established to contribute and improve the growth and development of the UAE, they ease activities to foreigners. ZF in the UAE are regulated by autonomous laws, which, although they may have common elements, may be different from the laws of the UAE and may also distinguish between one and the other Free Zone firm.

For example, in the DIFC (Dubai International Financial Centre), the ZF which is known for providing financial services, has also been recognized that the English Law is adopted as prevalent, so activities related to this type of business are easier.

Like any other company, even the Free Zone Company in the UAE, has to bear the cost of annual management.

The United Arab Emirates have enjoyed a solid reputation and a tax-free jurisdiction for a long time. As a result of compliance with all international regulations on anti-money laundering. The United Arab Emirates are not part of the Countries in the so-called black-list.

The United Arab Emirates have signed neither the legislation nor the agreement with OECD (Organization for Economic Cooperation and Development). Thanks to these choice, any off-shore company in UAE, which is therefore registered in the United Arab Emiartes, can take advantage of total pricavy to protect its investors; moreover, the United Arab Emirates enjoy an excellent and stable banking system.

Free Counselling: BBC-LLP is aimed at companies, professionals and individuals, its small, medium and large scale offering them a Service of "FIRST MEETING-COMPLETELY FOR FREE".