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Free Zone License in Dubai: Facts and Benefits

by ideaschedule
Free Zone License in Dubai

The United Arab Emirates centers numerous Free Trade Zones. It helps to strengthen the region’s economy and support local and international trade. Therefore, the Free Zone License in Dubai makes it possible to happen. Political stability, a secure lifestyle, strong law and order, tax shelters, and a variety of economic benefits; are just a few reasons why UAE Free Zones have become one of the ideal destinations for foreign investors.

UAE has often been associated with luxury and riches but never paired with the word cheap. However, catering to every kind and scale of business. A low-cost Free Zone company formation is undoubtfully possible in this part of the world.

With the help of a company formation specialist, you can find the cheapest free zone license UAE and set up your dream company in the Middle East. Let’s take a peek at the complete picture of the UAE Free Zone below:

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What are Free Zones in UAE?

Free Zones or Free Trade Zones are the authorized locations in the UAE. Here the foreigners can exclusively own and manage their business setups. These are typically positioned in critical geographic locations such as country borders, air terminals, and large shipping ports. Therefore, to facilitate trading activities and maximize commercial advantages.

There are around 45 Free zones in the UAE, which tremendously contributes to its economic growth. Also, drawing FDI from about 200,000 international firms. Although all the free zones vary in terms of focus, documentation, and fees of setting up a business. Hence, their core standards and requirements remain the same.

Generally, establishing a Free Zone Business Setup in the UAE is a promising capital investment option. Therefore, for investors anywhere around the world.

Free Zone Trade License in Dubai

A Free Zone license or a Free Zone Trade license is a fundamental document required by the Free Zone Authority before initiating any business activity in any Free Zone in the UAE. Regardless of business size (startup, small to medium-sized business, or international corporation), everyone benefits from this license.

Types of Free Zone Licenses in Dubai

As long as the leasing contract is in effect, business owners can easily renew their licenses. Once a company gets the Free Trade Zone license issued by the Free Zone Authority, it gets eligible for one of the following licensing options:

  • Commercial or Trade License: Allows you to execute the trade, commercial, or consultancy activities for a particular timeframe. Companies issuing this license can easily import, export, store, or distribute items throughout the UAE.
  • General Trading License: Allows investors to exchange a wide range of goods without any limitations. As the UAE’s diversified population has a high local demand for everything ranging from basic necessities to sophisticated heavy equipment, it is one of the most rewardable capital investment alternatives.
  • Industrial or Manufacture License: Allows Free Zone business setup owners to import raw materials, produce or manufacture new products, and export or distribute those products globally. Business owners must have a physical facility or a warehouse within the UAE under this Free Zone license.
  • Professional or Service License: Allows individual entrepreneurs to offer skill-based services. These individuals could be business service providers, law firms, consultancy firms, artisans, designers, or professionals like engineers or teachers, or other experts providing specialized professional services. These are sole proprietorship forms of business entities. However, if more than one owner is involved, it would transform into a civil company. 

Benefits of UAE Free Zone Business Setup

Free Zone company formation, unlike UAE mainland, allows full ownership rights to foreign investors without having to partner with a UAE national. This economic zone further accommodates new investors with numerous other benefits, including: 

  • No prerequisite to finding a local sponsor or partner.
  • Establish a business entity of your choice (a branch, subsidiary, or new company).
  • Tax-free environment; exemption from business and personal income taxes. 
  • Exemption of customs duties in imports/exports. 
  • Infrastructure of the highest caliber.
  • Simple and easy business setup procedures.
  • Affordable annual renewal fees.
  • Low logistic costs.
  • High-quality warehouse amenities.
  • Strategic geographical locations.
  • 3-Year residential visa. 
  • Permits to issue multiple licenses.
  • No limitation on currencies.
  • High Accessibility to the worldwide market.
  • Flexible and cost-effective coworking space solutions.
  • Multiple licensable business activity operations.
  • Complete repatriation of accrued capital and profits.

Last but not Least:

Forming a Free Zone Business Setup in Dubai is quick and easy, given the long list of benefits accompanying Free Zones. The Free Zone Authority supporting entrepreneur-friendly policies also tremendously encourages foreign investments to boost the country’s economic progress. Thus, a wide range of cost-effective company formation and license packages are available to meet the diverse business needs of foreign investors, setting up firms of all kinds and all scales. 

However, to avoid delays and have a hassle-free company set up, ideally, it is best to proceed with a local consultancy service provider like the Trade License Company (TLC). Their affordable and full-service solutions will support you before, during, and after your business setup in Dubai. 

TLC, offering complete end-to-end solutions, will take care of all the regulatory and legal concerns on your behalf, and your Free Zone License in Dubai won’t be your concern anymore! 

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