advantages of free zone companies in uae | business setup | company formation | free zone formation...

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Advantages of Free Zone Companies in UAE | Business setup | Company formation | Free Zone Formation | Offshore formation | Type of Entity: A UAE Free Zone Company can be established in the following ways: A branch of an existing company Foreign Branch - A foreign affiliate that is legally a part of a firm residing outside of the UAE Local Branch - A domestic affiliate that is legally a part of a firm residing in the UAE A new establishment Free Zone Company - A new business entity which is owned by 2 – 5 partners Free Zone Establishment - A new business entity with a sole business owner Such companies can be owned 100% by foreign investor with no involvement of local partner or sponsor. A UAE Free Zone company offers the following incentives to investors: • 100% foreign ownership. • No corporate taxation for 50 years – a concession that's renewable. • Freedom to repatriate capital and income in totality • No personal income tax. • Full exemption from import duties. • No currency restrictions • No bureaucratic red-tape. • No recruitment problems.

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Page 1: Advantages of Free Zone Companies in UAE | Business setup | Company formation | Free Zone Formation | Offshore formation |

Advantages of Free Zone Companies in UAE | Business setup | Company formation | Free Zone Formation | Offshore formation | Type of Entity:

A UAE Free Zone Company can be established in the following ways:

A branch of an existing company

Foreign Branch - A foreign affiliate that is legally a part of a firm residing outside of the UAE

Local Branch - A domestic affiliate that is legally a part of a firm residing in the UAE

A new establishment

Free Zone Company - A new business entity which is owned by 2 – 5 partners

Free Zone Establishment - A new business entity with a sole business owner

Such companies can be owned 100% by foreign investor with no involvement of local

partner or sponsor.

A UAE Free Zone company offers the following incentives to investors:

• 100% foreign ownership.

• No corporate taxation for 50 years – a concession that's renewable.

• Freedom to repatriate capital and income in totality

• No personal income tax.

• Full exemption from import duties.

• No currency restrictions

• No bureaucratic red-tape.

• No recruitment problems.

Page 2: Advantages of Free Zone Companies in UAE | Business setup | Company formation | Free Zone Formation | Offshore formation |

• Modern efficient communication

• State of the art infrastructure.

• Abundant energy.

• Attractive working environment.

• Owned premises on leased land can be mortgaged.

Types of Licenses:

Industrial License

Activities allowed: Import raw materials, manufacturing, processing, assembling, packaging,

and exporting finished products.

Commercial License

Activities allowed: Import, export, distribution, consolidation, storage or warehousing of

items specified on the License. Maximum limit is seven similar product lines.

Consulting and Service License

Activities allowed: Offering consulting services in management, finance, investment, legal

issues, labor relations, economics (including feasibility studies), industrial development,

marketing, and related subjects. Other services include logistical support such as:

restaurants or food outlets, catering services, travel agencies, leisure and social activities,

insurance, cargo & freight forwarding, accounting, and audition services.

Commercial - General Trading License

A General Trading License can be obtained under a Commercial License, which allows for

more than seven product lines.

Vithul V Murali MBA

Asst. Vice President | ADAM Global

Dubai Mobile : +971 50 55 73 538

Email : [email protected]

Skype : Vithul.murali