What is Freezone in UAE?

 A freezone entity is an economic area where the trade of goods and services at typically a preferential tax and customs rate is permitted. The idea to launch free zones in the UAE was to attract and increase foreign companies to establish their presence in UAE leveraging on benefits such as 100 % foreign ownership.

Currently, more than 45 free zones are operating in the UAE with Dubai taking the majority. 

Some for the well-known free zones in UAE are JAFZA , DWC, DMCC, DAFZA, DWTC, Dubai Silicon Oasis Free Zone, KIZAD, Hamriyah Freezone, SAIF, AJMAN Freezone, RAKEZ, Umm Al Quwain Freezone, SHAMS, etc.

 Among the numerous advantages of setting up a company in a free zone is that it primarily allows the foreign investor to hold 100 % shares of the company. The free zones offer Trading, Service, Industrial and Branch licenses. Some of the significant advantages of a Free zone company in UAE are as follows:

• 0% Corporate or Income Tax
• 100 % Ownership
• 100 % Repatriation of capital and profits
• Minimum paperwork required to incorporate a freezone company
• Wide range of choice for business activities
• Exemption from custom duties
• The process of recruiting staff is relatively more straightforward in freezones
• A diverse selection of Business Categories
• Local Partner or Local Sponsor not required
• High-quality infrastructure facilities
• Competitively priced operational cost
• A wide choice of ready-made Offices and Warehousing facilities for leasing

• Jebel Ali Free Zone (JAFZA)
• Dubai Meydan Freezone MFZ
• Dubai Multi Commodities Centre (DMCC)
• Dubai Airport Free Zone (DAFZA)
• Dubai World Trade Centre Free Zone (DWTC)
• Dubai Science Park
• Dubai Car and Automotive City Free Zone (DUCAMZ)
• Dubai Design District
• Dubai Gold and Diamond Park
• Dubai Healthcare City (DHCC)
• Dubai Industrial City (DIC)
• Dubai International Academic City
• Dubai International Financial Centre (DIFC)
• Dubai Internet City (DIC)
• Dubai Knowledge Village
• Dubai Logistics City
• Dubai Media City
• Dubai Outsource Zone
• Dubai Silicon Oasis
• Dubai Studio City
• Dubai Techno Park
• Dubai Technology and Media Free Zone
• International Media Production Zone ( IMPZ)

Free Zones in Abu Dhabi

• Abu Dhabi Global Markets (ADGM)
• KHALIFA INDUSTRIAL ZONE ABU DHABI (KIZAD)
• Twofour54
• Masdar City Free Zone

Free Zones in Sharjah

• Hamriya Free Zone (HAFZA)
• Sharjah Airport International Free Zone
• Sharjah Publishing City Free Zone
• Sharjah Media City Free Zone (SHAMS)

Free Zones in Fujairah

• Fujairah Free Zone
• Fujairah Creative City
• International Free Zone Authority (IFZA)

Free Zones in Ras Al Khaimah

• Ras Al Khaimah Economic Zone (RAKEZ)
• RAK Maritime City Free Zone Authority (RMCFZA)

Free Zones in Ajman

• Ajman Free Zone
• Ajman Media City Free Zone

Free Zones in Umm Al Quwain

• Umm Al Quwain Free Trade Zone (UAQFTZ)

 The type of trade licence you require for your freezone company in UAE depends on what kind of business are you going to conduct. Below is the kind of licences for freezone company formation in the UAE.

This type of licence allows you to do trading activities such as import and export, and deal the in trade and distribution of goods and commodities.

With an industrial licence, you are permitted to manufacture, package and process.

If you are looking to offer professional services such as accountancy or consulting, then this type of licence is the ideal choice.

If the UAE government has acquired at least 51% Ownership of your manufacturing business in the UAE, you need to apply for a National Industry Licence.

This type of licence is provided only by select freezones and is usually only granted to tech startups with a focus to scale regionally and to Tech start-ups aligned with the UAE National Innovation Priority Sectors. This type of licence is not available for technology service providers.

In UAE you must legally register your online store to sell goods. This type of licence enables you to carry out e-commerce activities.

The Freelance permit, in essence, is not a trade licence but rather a permit that enables you to offer services and expertise as a sole practitioner. You cannot employ staff. The permit can be considered as legal permission for you to render your services as an independent, individual contractor. The permit holder can also apply for VISA for him once permit is issued .Once his VISA is stamped to th passport ,he can sponsor his family visa.

All the free Zone companies in Abu Dhabi can apply for Branch of Free Zone company license from DED Abu Dhabi ,without the requirement of an Emirati National as the LSA(local service agent) and Office space in the Mainland . The free Zone will act as the LSA and the companies office space in the freezone will be the office of the branch.