On the Arabian Peninsula, the Royal United Arab Emirates is home to 9.3 million people, only 1.5 million of whom are nationals of the UAE, and 7.9 million of whom are foreign expatriates. For individuals seeking business chances in the wealthy nation, registering a company in the United Arab Emirates is a fantastic choice because it provides foreigners with successful commercial opportunities in particular regions of the nation.
However, the UAE has mandated since 2015 that 51% of the shares in commercial firms must be owned by UAE citizens (either residents of the UAE or entities owned by the UAE), while 49% of the shares may be held by international entities or investors. (However, the earnings may be allocated among the total shares in a different way.) However, it is conceivable to register in free zones with only foreign stockholders.
We’ll now go through some of the most significant free zones in the UAE and explain why people choose them for business startup.
UAE has nine free zones, including Sharjah International Airport’s free zone, Dubai Media City, Dubai Medical City, Ajman Free Zone, Dubai Internet City, Dubai Gold and Diamond Park, Dubai Airport Free Zone, Hamriyah-Sharjah Free Zone, Dubai Jebel Ali Free Zone, and Dubai Multi Commodity Center.
“Dubai Medical City, Dubai Media City, Dubai Internet City, and Dubai Airport Free Zone” are highly rated in terms of infrastructure and services.
Please visit our website to learn more about registration rights in free zones and to get more advice:
1) The Ministry of Economy of the region must first be contacted in order to secure a license authorizing the firm’s primary provisions before the company can be registered. A business plan that summarizes the executive plan, budgeting, and the activities of the shareholders and the company manager is also required, but registration in free zones is not as complex or as difficult as registration in other zones. For instance, in many of these zones, a license from the Ministry is required. Some free zones do not require the initial capital deposit paperwork in the bank or the region’s economy.
2) In addition to being immune from company tax and personal tax, businesses in free zones are also exempt from import and export taxes, value added tax (which is now 5%), and currency exchange limitations. The United Arab Emirates, on the other hand, declared in late January 2022 that it will start taxing business earnings in June 2023.
3) Foreign employers who want to establish a company in the main zone of the UAE must collaborate with a local partner to launch their business, but this is not the case in the UAE’s free zones. As previously mentioned, another significant benefit of registration in the free zone is the possibility of 100% ownership of the company by foreigners.
4) Free zone enterprises in the UAE are not permitted to conduct direct commerce with the local market. Working with a regional distributor as an agent who may promote your products and services for a commission is one option, though. As an alternative, you can establish a free zone firm and then form a branch of that company that is registered in the free zone in one of the major hubs of the UAE. You can use these branch offices to advertise your offers and carry out business on the UAE mainland.