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Free Zone Company Formations

The United Arab Emirates is a global hub for business and innovation, and its free zones offer a unique opportunity for entrepreneurs and investors to establish and grow their businesses in a world-class environment.

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What is a free zone?

Imagine a special place where businesses can operate with many advantages. Free zones are geographical areas which have their own, independent, business regulations that are different from the rest of the UAE. These rules and regulations are designed to make it easier for businesses to operate and succeed. Each free zone has its own free zone authority, which implements and oversees the rules. A free zone may also be called a free trade zone or a free economic zone.

What is the difference between mainland and freezone in UAE?

The main difference between free zone companies and mainland companies is where they can operate.

Free zone companies can only operate within the free zone where they are licensed and with overseas businesses. They cannot do business directly with customers outside of the free zone, unless they appoint a local agent or distributor, which acts as an intermediary between the two parties. 

Mainland companies, in contrast, can operate throughout the emirate where their trade license was issued, including the free zones, and they do not need a local agent.

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What are the benefits of a free zone company in the UAE?

Here are the top 10 benefits of free zone companies in the UAE.

  1. 100% Foreign Ownership

  2. 100% Repatriation of Capital and Profits

  3. Exemption from Corporate and Income Taxes

  4. Exemption from Customs Duty

  5. Independent Regulations

  6. East access to regional and global markets

  7. State-of-the-art, modern infrastructure

  8. No requirements for a physical office

  9. Choice of legal structures

  10. Streamlined company formation processes

Are free zones sector specific in UAE?

The UAE's free zones typically focus on a specific industry and draw companies from that field, as they will be equipped with the appropriate facilities to meet their needs. They also attract ancillary companies which provide support and convenience services to the businesses and the employees in the free zone, such as coffee shops, dry cleaners, accountants, hair dressers and supermarkets.

UAE free zones cover a huge variety of sectors, including: aerospace, creative industries, education, energy, financial services, healthcare, technology, industrial, media, logistics, pharmaceuticals and more.

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What types of companies are attracted to free zones?

A wide range of companies are drawn to doing business in UAE free zones, from startups and small businesses to multinational corporations,

for a variety of reasons:

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