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free zone company formation dubai

Free Zone Company

free zone company formation dubaiForming a Free Zone Company (FZC) or Free Zone Entity (FZE) in the United Arab Emirates

Free Trade Zones are independent economic zones with liberal trade regulations with its own tax rules. There are 40 various free trade zone areas in the United Arab Emirates. The Free Entity Zone (FZE) is comparable to the European GmbH, which is categorized into two different types: Free Zone Entity (FZE) and Free Zone Company (FZC). The former requires one participating person (shareholder) while the latter requires two to five participating persons (shareholders).

These companies are allowed to operate in free trade areas and are both required to secure a license for trading, commercial, counseling and industrial purposes.

Forming a Free Zone Company

The required capital for a Free Zone Company is AED 100,000 or about 20,000 Euros, which should be proven to fund the company. The initial company fund should be transferred to the established business account within a duration since the entity is registered in the free trade area. Once the registration has been confirmed and the transfer has been made, the license will be redeemed and the company can begin operating as a legal person.

Benefits of a Free Zone Company

Basically, forming a Free Zone Company is attractive to foreign investors because there are no local players required, so there is 100% ownership by foreign stakeholders. There is no restriction in hiring personnel as well as no restrictions on the repatriation and transfer of funds. FZCs can also apply for tax exemptions as well as duties for importation and exportation of goods.

If you are interested to form your own company in a Free Trade Zone in the UAE, call Dubai Financial Yard today and take advantage of the expertise of our network of business professionals.

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