Tax Free Business Opportunities in Dubai
Introduction to Dubai Free Zones
The UAE's spectacular growth in real estate business has not only completely transformed the sahpe nof the whole Emirates. It also increased the number of individuals and companies wanting to set up base in the Middle East's fastest growing and most advanced city - Dubai.
In the UAE, 100% ownership is only guaranteed if a company sets up in a Free Zone but in this case no local partner is required. The company retains full control over the their businesses and assets. The UAE government has guaranteed that there will be no corporate taxes for companies operating in a Free Zone for up to 50 years. All profits can be transferred out of the country and there are no currency restrictions.
What is a 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 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 establishes laws from the government of any respective country.
The Free Zones are direct government authorities. Dubai prides itself on its achievements towards e-government basically eliminating any form of corruption. Business licenses are usually issued within five to six working days after a 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.
Free 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 and publishing. In addition, the infrastructure required should be considered, e.g. warehousing facilities, airport or seaport access. Dubai has by far the most diverse and state of the art infrastructure for businesses. Dubai groups businesses by clusters or "cities" such as Internet City, Media City or Jebel Ali. The only multi-purpose Free Zone in Dubai is Dubai Airport Free Zone (DAFZA) which is conveniently located next to terminal 2 at Dubai International Airport. A very promising fledgling free zone is Dubai Silicon Oasis (DSO) which is strategically located along Emirates Road, next to Dubailand and Academic City. DSO aims to attract companies in the high-tech field and offers as one of the first free zones residential and commercial use for lease and buy.
Registration Procedures of Dubai Free Zones
Dubai Free Zone require a comprehensive package of documents, many of which need to notarized and attested in the investor's country of origin. Usually the package must include the following documents: application form, passport copies, CV's of the director's/managers, business plan and financial background information. During the set up process it is recommended to appoint a local negotiator because the entire set up process requires frequent interaction with the respective free zone authority.
Typical Benefits of UAE Free Zones include (but are not limited to)
* 100% Foreign Ownership
* 100% Corporate, import/export, personal income, and commercial levies tax exemption
* 100% Repatriation of capital and profits
* State-of-the-art purpose built infrastructure
* No foreign exchange controls
* Companies can operate around the clock, with the benefit of 24 hour security
* Postal services, banking facilities, food courts in close reach to all free zones
* Residence visas granted for 3 years (renewable)
Choosing a Free Zone - many factors must be considered, some are
* Distance from international air and sea ports
* 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 license fees
* Processing time of application
Types of Free Zone Companies
* 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 1 partners/shareholders required
* Offshore: registered agent required
With the exception of branch office, all above mentioned set ups require physical proof of share capital usually ranging from AED 300,000 to 1,000,000 depending on the number of shareholders (individual and non-individual) and free zone chosen. the business license will only be issued on the basis that these funds are shown in the corporate account of the investor.
List of Dubai Free Zones
Introduction to Dubai Free Zones
The UAE's spectacular growth in real estate business has not only completely transformed the sahpe nof the whole Emirates. It also increased the number of individuals and companies wanting to set up base in the Middle East's fastest growing and most advanced city - Dubai.
In the UAE, 100% ownership is only guaranteed if a company sets up in a Free Zone but in this case no local partner is required. The company retains full control over the their businesses and assets. The UAE government has guaranteed that there will be no corporate taxes for companies operating in a Free Zone for up to 50 years. All profits can be transferred out of the country and there are no currency restrictions.
What is a 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 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 establishes laws from the government of any respective country.
The Free Zones are direct government authorities. Dubai prides itself on its achievements towards e-government basically eliminating any form of corruption. Business licenses are usually issued within five to six working days after a 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.
Free 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 and publishing. In addition, the infrastructure required should be considered, e.g. warehousing facilities, airport or seaport access. Dubai has by far the most diverse and state of the art infrastructure for businesses. Dubai groups businesses by clusters or "cities" such as Internet City, Media City or Jebel Ali. The only multi-purpose Free Zone in Dubai is Dubai Airport Free Zone (DAFZA) which is conveniently located next to terminal 2 at Dubai International Airport. A very promising fledgling free zone is Dubai Silicon Oasis (DSO) which is strategically located along Emirates Road, next to Dubailand and Academic City. DSO aims to attract companies in the high-tech field and offers as one of the first free zones residential and commercial use for lease and buy.
Registration Procedures of Dubai Free Zones
Dubai Free Zone require a comprehensive package of documents, many of which need to notarized and attested in the investor's country of origin. Usually the package must include the following documents: application form, passport copies, CV's of the director's/managers, business plan and financial background information. During the set up process it is recommended to appoint a local negotiator because the entire set up process requires frequent interaction with the respective free zone authority.
Typical Benefits of UAE Free Zones include (but are not limited to)
* 100% Foreign Ownership
* 100% Corporate, import/export, personal income, and commercial levies tax exemption
* 100% Repatriation of capital and profits
* State-of-the-art purpose built infrastructure
* No foreign exchange controls
* Companies can operate around the clock, with the benefit of 24 hour security
* Postal services, banking facilities, food courts in close reach to all free zones
* Residence visas granted for 3 years (renewable)
Choosing a Free Zone - many factors must be considered, some are
* Distance from international air and sea ports
* 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 license fees
* Processing time of application
Types of Free Zone Companies
* 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 1 partners/shareholders required
* Offshore: registered agent required
With the exception of branch office, all above mentioned set ups require physical proof of share capital usually ranging from AED 300,000 to 1,000,000 depending on the number of shareholders (individual and non-individual) and free zone chosen. the business license will only be issued on the basis that these funds are shown in the corporate account of the investor.
List of Dubai Free Zones
- Jebel Ali Free Zone (JAFZA)
- Dubai Media City
- Dubai Internet City
- Dubai Knowledge Village
- Dubai Outsource Zone
- Dubai Airport Free Zone (DAFZA)
- 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
- Dubai Biotech & Research Park - DuBiotech
- Dubai Healthcare City (DHC)
- Dubai International Financial Centre (DIFC)
- Dubai Silicon Oasis (DSO)
- Heavy Equipment & Trucks Free Zone
- Dubai Industrial City
- Dubai Flower Centre
- Dubai Logistics City
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