Everything you need to Know about Freezone Company Formation in UAE

Freezone company formation in UAE can be a favourable decision for businessmen because of the advantages it brings, and also because, it is much easier to start a business in this area. But, there are many steps involved in the process, along with various laws and regulations, about which, every entrepreneur must know.

Just like the process of offshore company setup, it is also easy to start a company in the freezones of UAE. However, the rules vary according to the concerned freezone.

What are freezones in UAE?

In UAE, there are several freezones in the various states. These areas come with special benefits like full ownership by the foreign investor, special regulations regarding tax, imports, and customs. Along with this, other incentives are also provided to business owners in these areas, so that, business practices can be carried out efficiently.

How to set-up a company in a freezone of UAE?

Despite the different rules and regulations of each freezone, the common steps involved in the procedure of a freezone company formation in UAE are as follows:

• Deciding the business entity type- In a freezone, one gets the options for starting his/her firm as either a Free Zone Company or, Free Zone Establishment. This kind of business entity has its own set of rules. Hence, one should be aware of those before selecting one. Apart from this, an investor can also open a branch office in the freezone.
• Choosing a name for the company- Before selecting a name, one should ensure that it is not already registered, and abides by the laws concerning company names in the UAE.
• Business licence- Based on the main business activity, the kind of business licence one will get will be decided. Each freezone has its list of business activities that a company can carry out, according to which one can apply for the business licence.
• Getting all the approvals and registration- To start the business, some initial approvals are needed. Following this, the entrepreneur needs to pay all the fees. After all the fees and documents are submitted, the trade licence will be issued and the visa process will begin.

Before one proceeds with the freezone company formation in UAE, he/she must learn about the regulating authorities and all the concerned rules.