Free economic zones in the UAE

Key features of doing business in UAE Free Economic Zones include:

1. 100% foreign ownership of the business by founders/shareholders.
2. In some free zones, no initial capital requirement is mandated, or the amount is not fixed by the FEZ authority.
3. No customs duties on the import and export of any group of goods.
4. No restrictions on capital and profit repatriation.
5. High level of confidentiality.
6. Ability to open a bank account in the UAE.

Free economic zones of the UAE and their features

DMCC Dubai It is the largest and fastest-growing free zone, as confirmed by the award in the “Global Free Zone of the Year” nomination, which was received for two years in a row. Umm Al Quwain Free Zone A great platform for startups, and small and medium enterprises in the UAE. DWC FREE ZONE DUBAI Was founded in 2006 and today is one of the strategic business centers of Dubai. Ajman Free Zone Attractive for new companies, it is profitable to open trading, consulting, and manufacturing companies. Availability of inexpensive warehouses and a favorable logistics network, located at the entrance to the Persian Gulf. Ajman media city free zone The newest free zone in the United Arab Emirates. DIFC Freezone This free zone specializes in opening financial licenses such as for finance, banking, asset management, and insurance, and is located in the center of Dubai. There are really prestigious offices here. Internet City Free Zone An information technology park developed by the Government of Dubai. Suitable for registering large IT companies. Sharjah Media Zone A global hub for start-ups and entrepreneurs in the media and technology sectors.

The basics of legislation regulating Free Economic Zones

From a commercial perspective, the emirates offer unique opportunities for both novice entrepreneurs and experienced businesspeople looking to invest in the development of their ventures outside their home country. The legislative framework of the emirates is very flexible in this regard.

The main distinctive features of UAE legislation that ensure a regular influx of foreign investors include:

• minimal corporate taxes compared to systems of taxation in Europe and the United States;
• export-import incentives;
• simplified customs clearance;
• active support for startups.

Economic success and prosperity of the country are top priorities for the government. A significant portion of the UAE’s GDP growth is driven by the FEZ.

How to choose a FEZ?

At first glance, choosing the best free zone in UAE among the numerous options available can be challenging, as each free zone has its own advantages and disadvantages for different types of businesses.

Key rules and steps for selecting a free zone in Dubai and other emirates:

• First, determine all the types of activities permissible under a single license within a specific free zone. Keep in mind that increasing the number of activities proportionally increases the cost of the license.
• To legalize your business in the UAE, having an office is mandatory. Therefore, when selecting premises, consider the cost of rent/purchase, and choose the type of building that meets the needs of your business operations. The business space should also align with the number of resident visas required for your company’s staff in various cities across the UAE.
• Plan your logistics in advance (especially relevant for trading companies). For instance, to reduce transportation costs, placing a warehouse near an airport or seaport is an optimal choice.
• Most free zones require the deposit of share capital in the form of a deposit into the account of the chosen freezone authority Dubai or the company’s account upon its establishment.
• Ensure there are no restrictions on attracting shareholders. In some free zones, there are bans on the activities of citizens from certain countries.
• Confirm the availability of incentives for regular submission of financial reports and whether an annual audit report is required.
• Familiarize yourself with the nuances of opening a bank account, as the reputation of the free zone plays a significant role in registering a bank account.
• Properly handle the No Objection Certificate (NOC) if applicable. This refers to written confirmation from your current employer stating that they do not object to you starting a new business in a specific free zone.
• The main cost components are the license fee, company registration fee, and rental costs.

Map of free zones in the UAE

Below, we will examine the features of popular free zones depending on their type, geography, and zone administration requirements to gain a deeper understanding of what a free economic zone means in terms of individual territorial units.

What are the free zones in Dubai?

Freezone areas in Dubai have created an extremely favorable climate for foreign business ownership. A significant advantage of this best free zone in Dubai is the ability to attract shareholders from countries marked as “high-risk”. However, an audit is required in each of the zones described below.

In the table below, we will structure information of Dubai’s free zone locations and the current requirements for setting up a company in this emirate. The cheapest freezone in Dubai offers an attractive option for businesses looking to establish a presence in this dynamic market.

Dynasty Business Adviser is a reliable partner for opening companies in FEZ, having many years of experience in business registration and support will help you to choose the most suitable FEZ based on the specifics of your business.