Uploaded on Jun 22, 2022
Choosing the right free zone in Dubai, UAE is a challenge that necessitates the implementation of an effective strategy to suit the business plan, so it makes sense to seek advice from the right business setup consultants.
The Top Seven Free Zones in the UAE
The Top Seven Free
Zones in the UAE
INSTRUCTIONS
Free Zones (or Free Trade Zones) were originally established to promote
international trade by allowing companies to have 100 percent foreign
ownership and providing preferential rates and taxes. As the number of Free
Zones in the UAE grew, they began to specialise in specific industries and niches,
each with its own set of competitive advantages. Each zone has its own set of
rules and is overseen by its own authority.
In the United Arab Emirates, there are over 45 free zones spread across Dubai,
Abu Dhabi, Sharjah, Fujairah, Ajman, Ras al Khaimah, and Umm-al-Quwain. All
of these offer the best facilities and incentives to businesses.
Choosing the right free zone in Dubai, UAE is a challenge that necessitates the
implementation of an effective strategy to suit the business plan, so it makes
sense to seek advice from the right business setup consultants.
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What are the benefits of a free zone?
● Foreign ownership – 100%
● Free transfer of funds – 100%
● Eexemption from import and export duties – 100%
● Repatriation of capital and profits – 100%
● Exemptions from corporate and personal taxes
Documentation is becoming less and less suitable for foreign investors.
These and other advantages make the establishment of a free trade zone an
appealing option for investors and entrepreneurs. However, there are a few
restrictions to establishing a business in UAE Free Zones:
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Activity Restriction
Activities are restricted in a free zone company setup. This is due to the
jurisdiction's specific specialisation and governance.
Restricted to specific areas
A company set up in a free zone has fewer options for office space. This is due to
the requirement for companies to establish themselves within the jurisdiction of
the Free zone.
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Onshore expansion constraints
The disadvantages of forming a free zone company in Dubai include being
restrict to the business activities of the specific free zone. Expansion into other
markets in the UAE is not permitted.
Trade Restrictions within UAE
Despite numerous advantages, companies may find it more difficult to trade
with companies outside their free zone. To conduct business, most companies
find it necessary to hire an onshore commercial agent or distributor. Technically,
free zone trade with the rest of the country is prohibited by law.
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Free Zone of Dubai Multi Commodities Centre
(DMCC)
Dubai Multi Commodities Centre (DMCC) is not only the current winner of the
world's best Free Zone award 2020 by FDI, but it has also done so for the sixth
year in a row (2015 – 2020). DMCC is a well-known free zone for commodity
trading firms. It provides cutting-edge infrastructure, world-class services, and a
robust ecosystem for business formation.
DMCC is the region's dedicated trading centre and thriving marketplace for
commodities, financial services, and a growing range of specialty industries. It is
also the world's fastest-growing free trade zone. It connect to the most
prominent retail, residential, and tourist districts in the region and is easily
accessible from entry and exit points in Dubai and the Expo2020 site. This is
designed for trade and brings together over 19,000 businesses from all sectors
and industries to form the world's most interconnected Free Zone.
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Ras al Khaimah Economic Zone (RAKEZ)
Ras al Khaimah (RAKEZ) is rank eighth in the list of Global Free Zones for 2020 by
FDI. When it comes to affordability, RAKEZ is the best. Its low business setup fee
and generous incentives for business partners make it particularly appealing to
entrepreneurs and investors.
RAKEZ's strategic location connects investors to the Middle East, North Africa,
Europe, and South and Central Asia's growing markets. The free trade zone
currently houses over 15000 international and multinational companies from
over fifty industries and a hundred countries. RAKEZ is one of the few Free
Zones that always has customizable warehouses and industrial land plots
available for development.
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Umm Al Quwain Free Trade Zone (UAQ FTZ)
Umm Al Quwain Free Trade Zone (UAQ FTZ) is located near the UAE's main
seaports and within an hour's drive of Dubai International Airport and Sharjah
International Airport, allowing for easy access to the rest of the world.
The UAQ FTZ offers an investor-friendly environment, making it easier than ever
to establish a commercial base in the UAE. Company formation in UAQ FTZ is not
only tax-free, but also involves minimal costs for registration, office space, and
other annual expenses. This free zone offers all of the amenities found in other
free zones (100 percent company ownership, zero currency restrictions, and so
on) at a low cost. It is for this reason that forward-thinking SMEs and micro-
businesses, in particular, have enormous growth opportunities in UAQ FTZ.
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Creative City Fujairah (CCF)
Creative City Fujairah is one of the MENA region's fastest-growing Media Free
Zones.
The Fujairah Creative City Free Zone Authority specialises in Media, Events,
Consulting, Education, Communication and Marketing, Music and
Entertainment, Design and Technology, complementing the region's existing
media clusters and facilitating further creativity in these fields.
CCF's business licence packages provide entrepreneurs and investors with
everything they need to start a business in the region. CCF is an excellent option
for those seeking to combine multiple service activities, obtain a large number
of visas, and establish a business without making a personal visit.
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Dubai South
The Dubai South Free Zone (previously known as Dubai World Central) is one of
the Government of Dubai's strategic business hubs. Today, the Dubai South Free
Zone is the world's largest and most important trade, business, and aviation
hub.
Dubai South occupies 140 square kilometers of multipurpose land adjacent to
the Jebel Ali Sea Port. The international airport in Dubai South Free Zone is
strategically located to provide convenient logistics and shipment throughout
the GCC, Middle East, and the entire world. The Dubai South Free Zone is the
UAE's strategic platform for the expansion of logistics, aviation, light industry,
and ancillary service businesses.
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Free Zone of Sharjah Media City (SHAMS)
Sharjah Media City (SHAMS) Free Zone is one of the UAE's newest and most
well-known free zones. Shams is located in Sharjah, only 5 minutes from Sharjah
International Airport and 15 minutes from Dubai International Airport. It
establish in January 2017 with the goal of “making creative entrepreneurship
accessible and inspiring business growth.”
This free zone is frequently compare free zones in the UAE that offer the
cheapest company formation packages. The free zone's service levels are
comparable to the best free zones in the UAE. SHAMS Free Zone Authority is
well-known for its low-cost licence packages, which start at AED 11,500. The
company registration procedure complete remotely in two working days.
Ref: https://writeupcafe.com/the-top-seven-free-zones-in-the-uae/
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Contact Us
Dubai South
Address: Dubai South Headquarters:
P.O. Box 282228,
Dubai South, UAE
Contacts: https://www.dubaisouth.ae/
Within UAE (toll free): 800-SOUTH / 800-76884
International: +971-800-76884
Email: [email protected]
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