FAQ

Free zones, or free trade areas, came into existence as an instrument to support trade and boost economic development by reducing the tax pressure and promoting specific activities within a designated area.

In the United Arab Emirates (UAE), they are also known as the Free Trade Zone, and there are currently more than 37 Freezones to conduct businesses. Each of them is characterized by promoting and developing a line of business related to trading or consulting.

Free Trade Zones are authorized to enact laws and regulations applicable within their jurisdiction, which from time to time, could even overrule the federal law on specific subjects.

• Geographical advantages
  • UAE is a central location within the world map, connecting Asia to Europe, Africa, and even the Americas.
  • The Time zone allows us to keep the connection and maintain workflow between Asia and the western hemisphere.
• Financial advantages
  • It adheres to global best practices, member of OECD and FATF.
  • Tax residence certificate for access to double tax treaties network
  • 100% Tax-Free on profits. Total exemption on personal and corporate taxes.
  • 100% foreign ownership allowed.
  • 100% import-export duty exemption.
  • 5% general VAT applicable only to territorial trading.
  • Freedom to repatriate capital and profits.
  • No currency restrictions.
  • Companies settled within a freezone are eligible to open a multicurrency bank account in the UAE.
• Other advantages
  • Entitlement to a 3-year resident Visa, with a tax residence certificate.
  • UAE is one of the safest metropolitan areas in the world.
  • Fast and easy start-up, licensing, and incorporation procedures.
  • Well-serviced and presence of local and international financial organizations.
  • A politically stable place with a rapidly-developing economy.
  • No restrictions on hiring expatriates.
  • World-class healthcare.
  • Infrastructure and modern communications systems.

1. General Trading License

Allows investors to trade in all kinds of goods.

• Trading/Commercial License

Grants a time-limited authorization to perform industrial, commercial, or consulting activities.

• 1. Service License

It allows law firms, accounting firms, and business consultancy firms to operate.

• 1. Industrial License

Permits are importing raw materials, manufacturing goods, and exporting finished products worldwide.

• 1. Warehousing License

Investors can avail this license to avail warehousing facilities on lease for distribution, packaging, and storage of goods

• 1. Manufacturing License

Permits applicants for manufacturing goods.

Not necessary. It allows 100% foreign ownership.

There is no tax on profits to individuals or companies operating within Freezones.

Freezones allows unlimited repatriation of capital and income.

In general, up to three business activities are included within a license, however in case further actions shall be required, this could be added at an extra cost, which will depend on the Authority.

To register and incorporate within a Freezone, one has to show an entry stamp to the Freezone Authority, which has to be not older than six months.

A minimum of 1 shareholder is required to incorporate a company.

Following the due diligence and compliance approval, it takes 48 hours to complete the registration process.

Not necessary.

The company trade name cannot be a country name.

Office facilities are compulsory for any Freezone incorporation. You may wish to reduce costs using a Flexi desk facility, within a business center.

The Dubai Economic Department (DED) will accept a lease agreement. This is only if your Freezone issues a No Objection Certificate. It is at the Freezone’s sole discretion to allow occupancy to a DED license.

A residence visa requires applicants who are 18 and above to undergo a medical test to prove that they are medically fit. They must also pass a security check and apply for an Emirates ID card from the Federal Authority for Identity and Citizenship.

In order to apply, the following documents shall be submitted together with the application form:

• • Clear, valid passport copy
  • Most recent UAE entry stamp page
  • Most recent utility bill (in English or with accompanying English translation)
  • Most recent and detailed Curriculum Vitae
  • Passport size photo (in jpeg format) with white background
  • Additional documents may still be required at the discretion of the authorities.

Standard processing time is five working days.

The validity of stay on a residence visa varies according to its type and the sponsor. It can be for 1, 2, or 3 years. According to recent changes, a residence visa can also be issued for 5 and 10 years subject to certain conditions. Learn about long-term residence visas and 5-year retirement visa in the UAE.

However, in the case of Freezones, owners and employees will get a validity of 3 years.

The emission of a Visa is directly related to the workflow capacity. Therefore to get a higher number of Visas, the Freezone company shall demonstrate that holds premises big enough to accommodate all workers.