FAQ - DUFINCO | CORPORATE SERVICES PROVIDER | COMPANY FORMATION IN DUBAI UAE |
What is Freezone?
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.
Why set up a Freezone Company within the UAE?
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.
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.
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.
Infrastructure and modern communications systems.
What are the choices of businesses allowed in the freezone?
General Trading License
Allows investors to trade in all kinds of goods.
Grants a time-limited authorization to perform industrial, commercial, or consulting activities.
It allows law firms, accounting firms, and business consultancy firms to operate.
Permits are importing raw materials, manufacturing goods, and exporting finished products worldwide.
Investors can avail this license to avail warehousing facilities on lease for distribution, packaging, and storage of goods
Permits applicants for manufacturing goods.
Do I need a UAE Partner to establish a Freezone company?
Not necessary. It allows 100% foreign ownership.
Does the Freezone apply any tax to individuals or corporations?
There is no tax on profits to individuals or companies operating within Freezones.
Can I perform international money transfer freely?
Freezones allows unlimited repatriation of capital and income.
How many business activities can I add to my license?
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.
Can I start up my company, or do I have to visit the UAE first?
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.
How many shareholders are essential to forming a company?
A minimum of 1 shareholder is required to incorporate a company.
What's the timeframe to incorporate a company after proceeding with all legal documents and payment?
Following the due diligence and compliance approval, it takes 48 hours to complete the registration process.
Do I need to hire UAE Nationals in my company?
Can I use a country's name as a trading name?
The company trade name cannot be a country name.
Is it mandatory to have an office space or work space for a Freezone company?
Office facilities are compulsory for any Freezone incorporation. You may wish to reduce costs using a Flexi desk facility, within a business center.
Is it possible to rent an office outside a Freezone?
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.
What are the requirements for the visa application?
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.
What is the timeframe of the visa application process?
Standard processing time is five working days.
What is the validity of a residence visa?
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.
Can I get more visas in the future under my Freezone Company?
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.