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Company Formation

Freezone Company Setup

License Categories

All the Emirates that are part of the United Arab Emirates offers to the foreigner investors the possibility to incorporate a company in a Free Zone. Companies are required to have a shared capital and the legal entities permitted are Free Zone Limited Liability Company (FZ-LLC), Free Zone Companies (FZC), Free Zone Establishment (FZE), Branch of a foreign company, Branch of a local company, and freelance in some Free Zones . All companies can be established by a minimum of one shareholder of any nationality and every company shall appoint a manager and a secretary that have to be physically present as resident in the United Arab Emirates. Dubai is the Emirate that has the biggest number of choices as locations.

Business Categories

Companies as for the Free Zone Regulations need to get a business licence to practice their activity in the Free Zone. A wide range of choices based on the business activity allow the Companies a multiple selection of activities under the 3 primarily categories: Commercial, Industrial, and Professional. The most used Free Zone jurisdictions are:

  • Abu Dhabi Airport Free Zone (ADAFZ)
  • Abu Dhabi Media Zone Twofour54
  • Kizad
  • Ajman Free Zone
  • Dubai International Humanitarian City
  • Dubai Airport Free Zone
  • Dubai Biotechnology & Research Park
  • Dubai Flower Centre
  • Dubai Design District
  • Dubai Gold and Diamond Park
  • Dubai Healthcare City
  • Dubai International Financial Centre
  • Dubai Internet City
  • Dubai Knowledge Village
  • Dubai Media City
  • Dubai Multi Commodity Centre
  • Dubai Silicon Oasis
  • Dubai South
  • Dubai Studio City
  • International Media Production Zone
  • Jebel Ali Free Zone
  • Fujairah Creative City
  • Fujairah Free Zone
  • RAK Free Trade Zone
  • RAK Investment Authority
  • RAK Media City
  • Sharjah Airport International Free Zone (SAIF Zone)
  • Hamriyah Free Zone
  • Ahmed Bin Rashid Free Zone
  • Benefits of Freezone Company

    Establishing a business entity in one of the UAE’s Free Zones can be an extremely attractive option for foreign investors. The Free Zone are the most preferred choice by the western companies due to the special customs, tax, and import rules. Each Free Zone has its own advantages and regulations and sometimes limits the type of activity of the companies. An independent Free Zone Authority is governing each free zone and is responsible for issuing trade licences and assisting companies with establishing their business. The major attributes of a free zone are:

  • 100 percent foreign ownership of the enterprise
  • reduced or different trade barriers, tariffs and quotas
  • 100 per cent repatriation of capital and profits
  • Corporate tax exemptions for up to 50 years
  • No personal income taxes

  • Investors can either register a new company as a Free Zone Company or establish a branch or representative office of their existing or parent company based within the UAE or abroad. A company formed in Free Zone is a limited liability company governed by the rules and regulations of the Free Zone in which it is established. Free zone companies may only operate within the free zone boundaries and are generally limited to perform only the activities listed in their licence. In case a trade company registered in Free Zone need to distribute its products in Mainland United Arab Emirates can appoint a Local Agent or incorporate a company in Mainland. The main advantage of registering a company in Free Zone is to facilitate and promote the sale of the products of a foreign brand establishing a distribution network and developing a logistic infrastructure.

    Basic Documents required
  • Application form duly signed by the authorized signatory;
  • Approval of trade name (Al Bastaki Business Services will handle this issue);
  • Initial Approval for the activities (Al Bastaki Business Services will handle this issue);
  • Passport copies for the shareholders;
  • Proof of Address for the shareholders;
  • Passport copy and CV (Resume) for the Manager;
  • Personal information sheet for each Shareholder and Manager (Al Bastaki Business Services will provide template);
  • Lease agreement (Documents) – A physical address is mandatory by UAE Law for any registered company. Al Bastaki Business Services can assist you while searching for your office providing an office space for your startup;
  • Business Plan (Brief Feasibility Study including Financial Projection) – our firm can assist in writing a Business Plan if requested by the client.
  • Approval issued by other Government Authorities according to the type of activity (Al Bastaki Business Services will handle this issue).
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