The Top Seven Free Zones in the UAE


Dubaisouth

Uploaded on Jun 22, 2022

Category Business

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.

Category Business

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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. 2 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: 3 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. 4 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. 5 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. 6 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. 7 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. 8 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. 9 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. 10 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/ 11 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] 12