Many businesses are bit hesitate to invest in UAE, because in UAE, a national must be a partner of 51% share in your business. However, free zone is preferable in business community because 100% shares are allowed to foreigners and you don’t need any UAE national partner. Free trade zone is an area with special tax free status and low berries where goods can be manufactured, import/ export handles and reconfigured with paying any custom duty. Generally free zones are located in geographical locations like national border, international airport and major seaports to maximize trading advantages.
UAE government has design multiple type of packages for free zone where each is designed for specific activity. UAE free zones offer lucrative facilities to non-residence corporate. There are 44 types of free zones which attract foreign direct investment in the form of 200,000 companies contributing to the GDP growth.
Most of the Emirates set up free zones to boost the economy in their region, promote foreign investment and drive growth. The free zone department is working on the behalf of government which is issuing license to non-residence companies to run their businesses.
TYPES OF ENTITIES ALLOWED TO SET UP IN THE UAE FREE ZONE:
Business set up in the free zone is hassle free and easy as the EMIRATES government has eased the Company formation process in the UAE to draw maximum foreign investment with minimal capital investment.
- Branch of foreign / local company.
- Free zone establishment with the single shareholder.
- Free zone company with 2/3 shareholder.
Types of Business License
Following types of license are:
- General trade license which allow investor to trade in all kind of product.
- Trading commercial license which grants a time-limit authorization to perform industrial, commercial or consulting activities.
- Service license which allow law firms, accounting firms, consulting firms to giving services.
- Industrial license which permit importing raw material, manufacturing goods, exporting goods across globe boundaries.
- Warehouse license – Investor can avail this license, to avail warehouse facilities, to lease goods, packages, storage of goods.
- Manufacturing license which permit to manufacture goods.
How to setup Company in UAE Free Zone?
These free zone company offer an excellent business opportunity for the investor from all around the world, provide liberal working environment with hassle free procedure.