difference between free zone & non-free zone · pdf filefree zone limited liability...
TRANSCRIPT
www.fidfinvest.com
DIFFERENCE BETWEEN FREE ZONE & NON-FREE ZONE
Key Differentiaters Free Zone Non-Free Zone
Foreign Ownership 100% Foreign Ownership 51% Local partner required
Income & Corporate Tax 100% Tax Free 100% Tax Free
Business Horizon Free to do business in Free Zones, however need local agent in order to sell in local market
Free to do business within UAE
Customs Duties 100% duty exemption on all exports to Non-GCC countries, however normal customs duties will be appli-cable in case of selling in the local & GCC market
Normal Customs duty will be applicable
Capital & Profit Repatriation 100% Allowed 100% Allowed
Hiring of Expatriates No restrictions Local labor laws will apply
TYPES OF LICENSES ISSUED BY RAKIA
License Type Activities Covered
Industrial License Import of raw materials, manufacturing, processing, assembling, packaging, export of finished goods etc.,
Trading License Import, export, distribution, warehousing, trading (maximum of five similar product lines or three differ-ent product lines allowed).
General Trading All kinds of trading, import, export warehousing and distribution of goods
Commercial License Activities covering contracting, repairing, maintenance, renting, shops, restaurants etc.,
Consulting / Services License Any type of management, business, industrial consultancy or professional services including real estate agents.
Media License All kinds of media and communication services.
TYPES OF ENTITIES REGISTERED UNDER RAKIA
Entity Type Explanation
Free Zone Limited Liability Company (FZ-LLC)
This type of company can be formed by a minimum of two and a maximum of fifty founders/partners. The founders/partners can be individuals (people), nonindividuals (companies) or a combination of individuals and companies.
Free Zone Establishment (FZE) This FZE can be formed only by one shareholder, either an individual (a person) or a non-individual (a company).
Free Zone Branch (FZB) Licenses under this category are issued to companies holding a valid license from any licensing authority either in UAE or outside UAE.
Limited Liability Company (LLC) The LLC requires a minimum of two shareholders with 51% mandatory Local Ownership.
Individual Establishment (lE) Individual Establishment can be formed by one shareholder, either an individual (UAE national) or a non-individual (a UAE LLC), In case of foreign individual a local service agent is required
Local Branch (LB) This type of License is issued to local UAE companies applying for a branch in RAKIA.
INITIAL CAPITAL REQUIREMENTS FOR REGISTERATION
Type of Entity Industrial Commercial / Trading General Trading Consulting / Services
Free Zone Limited Liability Company (FZ-LLC)
AED 200000 AED 125000 AED 500000 AED 125000
Free Zone Establishment (FZE) AED 150000 AED 100000 AED 250000 AED 100000
Free Zone Branch Not Required Not Required Not Required Not Required
Limited Liability Company (LLC) AED 150000 AED 150000 AED 10 00000 AED 150000
Individual Establishment (IE) AED 100000 AED 100000 AED 10 00000 AED 100000
Local Branch (LB) Not Required Not Required Not Required Not Required