Creating a company in the UAE freezone or Dubai freezone comes with numerous benefits. It’s one of the few ways an organisation can be set up in the area and still be 100 percent owned by a foreign interest. The person or entity that sets up the freezone company maintains complete control and ownership; you won’t need a liaison in the form of an agent or sponsor. Other benefits include confidentiality, reduced tax burdens, easier liquidation as needed, shared services, and reduced restrictions on labour recruitment.
Steps for Creating a Freezone Company
Business setup in Dubai’s freezone requires you to choose between setting up a freezone company or setting up an offshore company. Once you conduct research to understand the goals and needs of your intended business, you will have to apply for the right license. Freezones offer licenses including trading, general trading, consultancy and service, industrial, and commercial licenses. You’ll also have to create a legal structure for your company, complete applications, and pay fees including the first year formation cost and annual renewals. The process for obtaining a freezone license and setting up business in the freezone is roughly the same in the UAE, although some application requirements and processes might vary slightly. Freezones are also available in cities such as Abu Dhabi, Ajman, and Ras Al Khaimah.
JAFZA Freezone
Many freezone companies in Dubai are located in the JAFZA freezone, which has been a trade ecosystem in the city for over 25 years. Jafza began in 1985 with 19 companies involved. Today, the freezone boasts over 7,000 companies! A number of highly successful companies conduct business in the Jafza freezone – the area includes space for 20 percent of the Global Fortune 500 companies.
Other successful freezone areas include Dubai South, TECOM, and DMCC. Dubai South is more than a freezone for companies — it is an urban experience project entered into by the city of Dubai. Since 2006, the city has worked to bring progressive planning to the area to allow business and individual growth at a rapid rate. The area holds the Al Maktoum International Airport and is designed with an infrastructure meant to maximize convenience for residents, workers, and businesses.
The DMCC freezone is one of the fastest growing business sectors in the city. The community boasts over 85,000 people; businesses and people are housed in 66 towers and the area is growing by approximately 200 new businesses every month. With so many businesses flocking to all of these areas, success in the freezones is exponential.