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 Introduction to Free Zones

Definition "Free Zone"
According to the World Federation of Free Zones (FEMOZA) a Free Zone is a portion of a clearly defined and isolated land or setting, with a special tax, customs and imports regime, usually involving a status of extra-territoriality. Free Zones are special investment models allowing the client to do business without obstacles. The Free Zones are governed by established laws from the government of the respective country.

The UAE offer foreign companies a wide choice of business options. A very attractive form of business set up is registering with one of the many Free Zones (investor retains 100% ownership of his company assets, completely tax free, no local partner required). These Free Zones are direct government authorities. Dubai prides itself on its achievements towards an e-Government basically eliminating any form of corruption. Business licences are usually issued within 5-6 working days after approval and submission of the requested legal documents. Along with the application form the investor is required to submit a business plan or detailed project proposal for review by the Free Zone before the registration process can be started.

bulletFree Zone selection
The selection of the right Free Zone depends on the type of activity the company wants to engage in (e.g. trading, e-commerce, internet and software development, automotive, heavy industry, broadcasting, publishing) as well as the infrastructure required (e.g. warehousing facilities, airport or seaport access).

Other important factors are:


- Distance from international air- and seaports  
- Facilities and infrastructure offered at the free zone
- Real estate options
- Types of activities allowed by the respective free zone authority   
- Annual rent for office space and size of office units
- Minimum capital required, registration, trade licence fees
- Processing time of application

bulletBenefits of UAE Free Zones
-
100% Corporate, import/export, personal income, and commercial levies tax exemption

- 100% Foreign ownership (outside free zone a local sponsor has to be taken, he owns by law 51% of the business, his influence will be limited usually through side agreements between investor and sponsor)

- Stable currency (1 USD = 3.674 AED)

- Access to over 1.5 billion consumers with rapidly increasing demand

- Excellent infrastructure

- Competitive leasing/renting rates

- 100% Repatriation of capital & profits

- State-of-the art purpose built infrastructure

- No foreign exchange controls

- Companies can operate 24 hours, security around the clock

- Postal services, banking facilities, food courts in close reach to all free zones

- Residence visas granted for 3 years (renewable)

bulletTypes of freezone business forms
-
Branch Office (associate of an already existing mother company in UAE or abroad)
- Free Zone Establishment = FZE (single partner – can be individual or legal entity)
- Free Zone Company = FZCO (minimum 2 partners/shareholders required)
- Offshore (registered agent required)

bullete-Office: suitable for freelancer and small businesses
Three Free Zones in the Northern Emirates are offering e-offices with a fully-fledged business licence differing from cheaper so-called virtual offices which do not include a business licence! Additionally a "flexi desk" can be hired which can be used a specific amount of hours or day per month depending on the package.

Advantages:
E-Offices are cheaper alternative to form a company in the United Arab Emirates. Company registration and yearly fees in the big free zones usually cost EUR 15,000 upwards whereas e-Offices start from EUR 4,000 licence fee per year.

Furthermore the registered company benefits from:

- complete tax exemption
- no accounting obligations
- free repatriation of capital
- residence visa (founder can apply for residence in every Emirate)
- ISO 9000 certified free zones
- location very close to Dubai

 Free Zone Set up Service

We offer a free zone set up service including the following services
- Prepare and submit all legal and application documents
- Negotiate and clarify all issues between investor and the free zone
- Set up bank account in UAE incl. preparation of legal documentation      
- Obtain business licence, Chamber of Commerce registration and Certificate of Incorporation
- Assist with all issues regarding company formation 
- Assist with visa application formalities (medical test), application for UAE driving licence
- Office set up (incl. furniture and IT infrastructure)

bulletService Type I
Seminar "Establishment of a Company"
In case the client wants to register his company on his own and wants to gather comprehensive information on company registration processes we offer participation at our seminars. The seminar provides the client with all the necessary information regarding costs, registered capital, required documents, visa, type of business licence and recommendations which free zone fits to the specific requirements of the client's business.

bulletService Type II
Preparation of all relevant documents to apply
Comprehensive assistance throughout the process of registering a company in the UAE. The service includes preparation of application forms, business plan, CV, etc. and information to which institutions the client has to submit these documents. Then the client undertakes the follow up with the free zone, visa and bank account opening by himself.

bulletService Type III
Entire company formation (with power of attorney)
The client only needs to be present 2-4 days in the UAE for the required signatures or provide us with power of attorney beforehand. In the latter case the client only needs to enter the UAE once for the required signatures at the bank.
In the Northern Emirates a company registration will take 1-2 weeks, in Dubai the process might take up to two months.

For further information and prices please provide us with your company and project details:
info@dubai-business-portal.com

 Free Zones in Dubai

Jebel Ali Free Zone - JAFZA
Established in 1985, Jebel Ali Free Zone is one of the oldest free zones in the United Arab Emirates. It accommodates more than 3500 companies from more than 100 countries including global playes such as Sony, Casio, Nokia, Shell, DaimlerChrysler, Samsung and Nestle. The free zone offers access to Jebel Ali Sea Port an a huge warehouse and logistics centre.

Jafza customers benefit from having onsite one of the various centers of the Dubai Department of Ports & Customs. Computer generated clearance bills are prepared while the consignments are brought into and taken out of Jafza, all this in a few simple steps that allow cargo to be cleared from sea to air in record times, thanks to Jafza’s proximity to the Dubai International Airport.

bulletDubai Media City (DMC)
DMC is the only global media hub in the region where all media-related businesses thrive together. With its strategically advantageous location in Dubai at the crossroads of the Middle East, Africa and South Asia, the business can profitably operate in the local and international markets.

Dubai Media City provides its clients with a world-class environment for every kind of media business. Licences can be issued for the following business activities: publishing, broadcasting, film, media & marketing services, information agencies, music & entertainment, new media & media support service, service provider and consultancy.

bulletDubai Internet City (DIC)
Dubai Internet City is a strategic base for companies targeting emerging markets featuring a dynamic international community of ICT companies. Among global giants like Microsoft, HP, Dell, Cisco Systems, IBM, Siemens, Computer Associates, PeopleSoft, Sun Microsystems, and Sony Ericsson one can find also many small and medium businesses. The free zone attracts companies from various sectors such as software development, business services, web based & e-commerce, consultancy, sales & marketing and back office.

bulletDubai Knowledge Village
Knowledge Village is located in the Dubai Technology and Media Free zone among Dubai Media City and Dubai Internet City and is operating closely with its affiliate entities. The free zone offers a huge opportunity to collaborate with the business community to create a modern and vibrant learning environment.
The following businesses and institutions can offer their services at Knowledge Village: universities, educational institute or colleges, management development centres, professional training centres, e-learning content & service providers, research & development centres, training & education freelancers.

bulletDubai Outsource Zone
In Dubai Outsource Zone companies find a comprehensive infrastructure and environment for outsourcing and offshoring purposes. Companies providing mid to high-end IT and business processes outsourcing services find an ideal environment at Dubai Outsource Zone to start their business. Key sectors are finance, accounting, engineering, IT, graphic design, payroll processing, biotech, R&D and design.

bulletDubai Airport Free Zone
Esablished in 1996 Dubai Airport Free Zone offers a premium location at one of the busiest airports in the world. It is one of the fastest growing free zones in the UAE provinding all kinds off services required by multinational companies to establish their regional offices in Dubai to serve neighbouring markets of over 1.2 billion customers.

bulletDubai Biotech & Research Park (DuBiotech)
DuBiotech will be the the centre of excellence in biotechnology, bridging research, education, and industry through collaboration of national and international companies and institutions. It will create an excellent etworking and collaboration environment for biotechnology and pharmaceutical industry, incubators, drug manufacturers, medical institutions, universities and governmental entities.
Within the DuBiotech community companies and institutions can benefit from highly developed multifaceted infrastructure and facilities within a supportive legal and regulatory environment.

bulletDubai Healthcare City (DHC)
Dubai Healthcare City will become an integrated centre of exceptional clinical and wellness services, medical education and research. It has invited internationally respected institutions to carry out their business in Dubai to take the advantage of synergies brought about by physical proximity, interconnectivity and professional collaboration of world class companies.
Healthcare city is suitable for healthcare and pharmaceutical industries as well as disease treatment, prevention and wellness facilities.

bulletDubai Silicon Oasis (DSO)
Dubai Silicon Oasis will not only be a free zone but an integrated community comprising office towers, healthcare and lifestyle facilities, luxory apartments, villas and hotels. The area (7.2 square kilometer) will be located on the Emirates Road with easy access to Dubai International Airport, Jebel Ali Free Port and Dubai's central business district. It is the only free zone integrating professional and personal life within one community: a city within a city.
Companies can carry out the follwing business activities: information technology, telecommunications, electronic, computer hardware, software development & solutions, consultancy & business development, electrical appliances & equipment, engineering, logistics, security and pharmaceutical.

bulletDubai International Financial Center (DIFC)
The DIFC is the world's newest international financial centre. It aims to fill the gap between financial centres in New York, London and Hongkong. The DIFC focuses on several sectors of financial activity: Banking Services (Investment Banking, Corporate Banking & Private Banking); Capital Markets (Equity, Debt Instruments, Derivatives and Commodity Trading); Asset Management and Fund Registration; Insurance and Reinsurance; Islamic Finance; Business Processing Operations and Ancillary Services.

bulletDubai Industrial City
On 56 million square meters of prime land strategically located close to the new Jebel Ali Airport, regional highways and Jebel Ali Port the city will attract industrial activities from various sectors.
DSO will the perfect base for companies engaged in the following sectors: food & beverage, base metal, mineral products, transport equipment and parts, machinery and mechanical equipment, chemicals, logistics, academic and R&D.

bulletOther Free Zones in the Dubai are:
- Dubai Cars & Automotive Zone (DUCAMZ)
- Dubai Metals & Commodities Centre (DMCC)
- Dubai Aid City
- Gold & Diamond Park
- International Media Production Zone
- Dubai Maritime City
- Dubai Studio City
- Heavy Equipment & Trucks Free Zone
- Dubai Flower Centre
- Dubai Logistics City

 Free Zones in the Northern Emirates

Ras Al Khaimah Free Trade Zone (RAK)
RAK in Ras Al Khaimah offers a variety of licences covering all kinds of activities: consulting & services licence, commercial licence, general trading licence, real estate licence and industrial licence. Ras Al Khaimah is the closest Emirate to the main shipping lane traversing the Strait of Hormuz and to all of the northern markets. Through the Emirates road the commuting time to Dubai is about 1 hour.

bulletSharjah Airport Free Zone (SAIF)
Types of available licences are similar to the licences of the other free zones. The premium location in Sharjah offers excellent sea, land and air transport links.

bulletHamriyah Free Zone
Also located in Sharjah, Hamriyah free zone provides businesses with competitive incentives and unique opportunities to establish a business. The free zone includes an area of twelve million square meters of industrial and commercial land and a 14 meter deep water port. Issued licences are industrial licences, commercial licences and service licences.

bulletFujairah Free Zone
Fujairah Free Zone is located on the eastern coast of the United Arab Emirates. It is a mere 90 minutes drive time from Sharjah and under two hours from Dubai. The free zone offers a wide range of licences including manufacturing and offshore lincences.

bulletAjman Free Zone
Ajman Free Zone provides investors with a major cost advantage while offering all the benefits found in other free zones.
The free zone is suitable for small to mid-sized businesses. Types of licences issued are trading license, industrial license, professional services license, national industrial license.