Business Opportunities
Further to its strategic location between Europe and Asia, the UAE has established numerous Free Trade Zone Areas to give businesses an additional incentive to be located there.
The Free Trade Zones in the UAE are well equipped with all the amenities, facilities and communication infrastructure required to set up a business. Furthermore, 100% foreign ownership is allowed with no recruitment or sponsorship requirements. Corporate tax and customs duty exemption on imported raw materials and equipment and no levy on exports and imports are some of the other benefits.
Free Trade Zone License
When a company is approved for the Free Trade Zone, it is given one of the following licenses by the Free Zone Authority. These licenses can be renewed annually as long as the lease agreement is in force. Companies with Trade or Industrial licenses can only conduct business within the Free Zone or abroad. To sell their products in the UAE, they should use an UAE official agent. But services and products can be obtained from and within the UAE without one.
| Trade License Companies which are legally incorporated outside the UAE in imports and exports are permitted a Trade license. Ownership can remain 100% foreign and no license is required from the Economic Department |
| Industrial License Companies that are legally incorporated in industrial production outside the UAE and are within the Free Trade Zone can be given an Industrial license. Ownership can be 100% foreign and no Economic Department License is required. |
| Service License Companies holding a valid license from the respective government body in the UAE can offer banking, contracting services etc. but have to abide by any requirements of the governing body. |
| National Industrial License Industrial manufacturers granted this license are accorded the same status as a local or GCC company in the UAE. Share capital must be at least 51% AGCC and 40% of the sale value of the product must be value-added. |
Procedures of starting a company in a Free Trade Zone
The Free Zone Authority has a questionnaire to assess your company's requirements and whether it can be met. After submitting the questionnaire, you will be given a license application, a list of invoice required for planning, consumer request for electricity and Form B for environmental concerns if applicable. Submit the license application. Provisional approval is given along with a specimen lease agreement, personnel documents for the License requirement are submitted. After the company representative and the Authority have met and finalized details of the project, actual documents are processed.
For complete details visit the following websites :
· Hamriyah Free Zone (Sharjah)
· Abu Dhabi Chamber of Commerce and Industry
· Dubai Chamber of Commerce and Industry
· Sharjah Chamber of Commerce and Industry
· Ajman Chamber of Commerce and Industry
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