The advantages of licensing in departments of economic development and in free zones

Title

Within the UAE (Department of Economic Development)

Free Zones

Capital

• The capital requirements vary according to the legal form of the company as follows:
• A public shareholding company: the capital must not be less than (30 million dirhams).
• A private joint stock company: with a capital of not less than (5 million dirhams).
• Other types of companies, the companies' law did not specify a minimum capital.

• The determination of capital depends on the type of business.
• Some free zones do not require a minimum share capital.
• Other zones require a minimum share capital.

Legal Forms

Foundation steps

• Determine the nature of the activity.
• Determine the legal form.
• Trade name reservation and registration.
• Request for initial approval.
• Signing the memorandum of association.
• Choose a location or business address.
• Obtaining additional government approvals.
• Pay the fees and receive the license.
• Registration in the Chamber of Commerce.

• Determine the nature of the activity.
• Determine the legal form.
• Trade name reservation and registration.
• Selection of offices and work facilities.
• Obtaining the "initial approval" to issue the license in the free zone.
• Register the establishment, pay the fees and receive the license.

Features

• Flexibility to do business anywhere in the country.
• There is no limit to the number of visas.
• There is no personal income tax.
• There is no corporate tax (except for oil companies and foreign banks).
• Not requiring a citizen partner in all economic activities, 100% ownership, with the exception of activities with a strategic impact.
• Not requiring a citizen services agent to establish branches of foreign companies.
• Establishing a business requires a series of procedures and approvals required by the Department of Economic Development and other concerned parties to officially register the establishment.
• With modern infrastructure and flexible government policies.

• Multiple and specialized options for free zones.
• 100% ownership of the project.
• 100% import and export tax exemptions.
• Subject to the laws and regulations that govern each specific free zone authority.
• 100% repatriation of capital and profits.
• No corporate tax.
• There is no personal income tax.
• Easy start-up and licensing procedures.
• Office space is mandatory and residency visas can be issued depending on the size of the office / workplace.
• Often located in strategically located areas to gain advantages for trade, around the sea / airport.
• No need for a service agent.
• The exercise of activities within the region and at the international level as well.
• With modern infrastructure and flexible government policies.
• Facilities of the highest level of sophistication and quality.