The UAE is divided into three areas: mainland, offshore, and free zone. A free zone is a good option for most entrepreneurs looking to enter the UAE’s economy. These areas are tax-free trade hubs offering cooperation and incentives for young entrepreneurs, elevating their chances of success. This blog aims to guide you on how to register a free zone company in the UAE.
Why Free Zone Might Be a Good Choice For Your Business?
Below are some benefits of free zones that will make you consider the UAE’s free zones as your next business destination:
- Full ownership
Unlike before, where a foreigner was required to give 51% of the business share to an Emirati sponsor in the UAE, free zones now offer 100% ownership to foreigners.
- Zero percent corporate taxes
The UAE is famous for its tax-friendly policies. Free zone businesses are exempt from tax on their qualifying income. This is just another reason why many entrepreneurs consider the UAE for their dream business destination.
- Smooth import/export process
Unlike other areas of the UAE or countries globally where you may pay heavy customs taxes and experience other challenges, free zones offer an effortless import and export process globally.
- Global access
The UAE is a global trade hub, so setting up a business in the free zone means getting access to global trade opportunities at an affordable cost.
- Quick and efficient process
The registration and licensing process in the UAE is quick. Physical presence is not needed for most of the process and can be done remotely.
Documents Required for a Company Formation in a UAE Free Zone
Below are the documents that should be available if you are planning to start a company in the UAE free zones:
- A detailed business plan including the name and logo of the company
- Passport copies of the owner and shareholders
- Copy of the shareholders’ Emirates ID (if applicable)
- 3-month bank statement
- Proof of residence in the UAE
- Ejari certificate
Steps to Follow for a Company Formation in Free Zone UAE
- Choose a business activity
The first step to start the company formation service in the UAE is to choose a business activity. While doing so, it is necessary to keep in mind your expertise domain and do thorough research about the specific market in the UAE.
- Choose an appropriate free zone location
After that is decided, it is essential to choose the appropriate location or the free zone that fits your business needs. With 50+ UAE free zones available, the job is to evaluate and choose the best one for your business operations. It entirely depends on your business type and market demand. Gatestone Group will assist you in finalising the best free zone for your business.
- Select a name and logo for your business
The next step is choosing a unique name and logo for your company. Please note that it should be according to the laws and regulations laid by the government of the UAE.
- Apply for a license
After completing the documentation, the next step is to apply for the business license and obtain the registration certificate. Gatestone Group will assist you in filling out the application form, providing the required documents, paying the application processing fees on your behalf, and then obtaining your license.
- Post-incorporation formalities
After the company is formed, it is vital to initiate the post-incorporation formalities that include but are not limited to:
- Opening a corporate bank account
- Hiring staff
- Leasing office space
- Tax registration
- Applying for employee visas
- WPS (Wage Protection System)
- Complying with all laws and regulations
It is important to note that it is not as straight-forward as it sounds, as there may be challenges along the way. This is where the advice of experts like Gatestone Group comes into play.
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