e-Office with full business license, visa and corporate bank account through Free Zone set up in Northern Emirates. This option comes without actual office space! The Free Zone fees (for set up) are around AED 25,000/USD 6,790 for an entire year (plus proof of share capital). These are the fees if investor handles set up on his own. Detailed information on the set up: For potential clients who wish to know about the procedures to handle the set up themselves we offer individual consulting sessions (in Dubai or over the phone) for a flat fee of AED 450 / USD 125 p. pers. E-Office Set up Guide for AED 200/ USD 55 (through email).
OFFICE SPACE IN A BUSINESS CENTER (DUBAI), or RENTING A DEDICATED OFFICE
The office space in a Business Center option is for business people who wish to rent office space temporarily while on a business trip to Dubai or use it as a marketing address only. This is without business license and corporate bank account. Doing actual business in the UAE, on a permanent basis, is only allowed with a licence. If doing business in the UAE and using the facility of a business centre, or renting a dedicated office space, there are 2 options: Business license through a free zone (see above) or local sponsor. Either of the two options can then be legally used as a business address. Monthly fees of course vary according to services/office space rented.
Free Zones – Tax Havens for International Businesses
According to the World Federation of Free Zones (FEMOZA) a free zone is a portion of clearly defined and isolated land or setting, with a special tax, customs and imports regime, usually involving a status of extra-territoriality. Free Zones are special investment models allowing the client to do business without obstacles. The free zones are governed by established laws from the government of each country. There are more than 20 types of free zones in the world. Major categories are: Free Port, Export Processing Zones, Free Trade Zones, Bonded Warehouses, Fiscal Warehouses, Offshore Centres. In the UAE the government has guaranteed that there will be no corporate taxes for companies established in the free zones for a period of up to 50 years. All profits can be transferred out of the country whenever required. There are no currency restrictions.
DBS provides complete Free Zone Service which includes the following activities:
Prepare and submit all legal and application documents · Negotiate and clarify all issues between investor and the free zone · Set up bank account in UAE incl. preparation of legal documentation · Obtain business licence, Chamber of Commerce registration and Certificate of Incorporation · Assist with all issues regarding company formation · Assist with visa application formalities (medical test), application for UAE driving licence · Office set up
For a detailed quote, costs involved in setting up and information on legal requirements, pls. contact us describing your project and indicating your full contact details. We will revert within 2-3 working days max.
Choosing a Free Zone - many factors must be considered, some are:
Distance from international air- and seaports · Facilities and infrastructure offered at the free zone · Real estate options · Types of activities allowed by the respective free zone authority · Annual rent for office space and size of office units · Minimum capital required, registration, trade licence fees · Processing time of application
What are the Competitive Advantages for Investors?
ü Free-enterprise system
ü Highly developed transport infrastructure
ü State-of-the art telecommunications
ü Sophisticated financial and services sector
ü Top international exhibition and conference venue
ü Competitive real-estate costs
ü No corporate taxes (Double Taxation Agreement with Germany), no income taxes
ü Stable and reliable legal system
ü Competitive labor costs (working hours per week: 46 – 48 h)
ü No trade barriers, no foreign exchange controls
ü Free Zones with 100-per-cent foreign ownership and control
ü Fixed exchanged rate (AED: US$ 1 = Dh 3,6725)
ü Cosmopolitan western lifestyle combining the traditions and treasures of the Arab World
ü First-class hotels, hospitals, schools, shops, etc.
ü Very low criminal rates
Special Investment Initiatives
Dubai offers foreign companies a wide choice of business options, including:
- Direct trade – selling directly to established dealers and distributors
- Commercial agent arrangements – appointee must be a UAE national or company
- Branch or representative office – 100 per cent foreign ownership permitted, local agent (sponsor) must be appointed
- Limited-liability company – foreign ownership restricted to 49 per cent
- Special free zone incentives (see below)
- Participation in local tenders
List of the most important Dubai Free Zones
Emirates Free Zones
· Jebel Ali FZE
· Dubai Internet City FZE
· Dubai Media City FZE
· Knowledge Village FZE
· Dubai Airport FZE
· Gold & Diamond Park FZE
· Cars & Automotive FZE
· Metals & Commodities FZE
· SAIF - Zone
· Hamriyah FZE
· Ajman FZE
· Ahmed Bin Rashid FZE
· Fujairah FZE
· RAK Free Trade Zone
· Dubai Silicon Oasis FZE
· Dubai Maritime City FZE
· Dubai Aid City FZE
Upcoming Free Zones
· Dubai Carpet FZE
· Dubai Auto Parts City FZE
· Heavy Eqpt.& Trucks FZE
· Mohammad Bin Rashid FZE
· Dubai Flower Center FZE
· Dubai Health Care City FZE
· Dubai Textile Village FZE
· Int'l Media Production FZE
· Int'l Arbitration Center
For a more detailed overview of individual Free Zones, please contact us directly. We provide you with a package on a selected Free Zone (prices, set-up information, facilities, location, etc.).
F Advantages of setting up business in one of the Free Zones
- 100-per-cent foreign ownership and control
- Renewable guarantee of no taxation
- No customs duties
- Flexible investment options
- Low labor and wage cost
- Low energy cost
- Efficient transport and distribution facilities, state-of-the-art infrastructure
FREE ZONE INFOS
RAK Free Zone will Grant Licences to Media Establishments
Media establishments, television channels, studios for audio-visual productions, computer graphics houses, and animation studios will be issued licences by the RAK Media Free Zone under the emirate's Investment Authority mandate. New projects will be grouped under the new media free zone being set up in Ras Al Khaimah. Century Media will lease ready-to-offer office space and up-linking facilities to those granted licences by the free zone authority. The complex will have teleport facilities to up-link images from Ras Al Khaimah by satellite. Downloading images in the UAE would be through authorised agents. Immediately upon completion of the first phase, a further 180,000 square metres of land will be made available to media investors as part of the second phase. The Ras Al Khaimah Media Free Zone will lease this land to investors who wish to set up their own media facilities, be it a printing press, a film studio, an advertising agency, a magazine office or a television studio.
Special Zone for Auto Industry
A new industrial area under Jebel Ali Free Zone Authority (Jafza) is being set up in Dubai to house companies dealing in vehicles and related service and spare parts industries. The purpose is to create a specialised marketplace for the automobile business hoping to have manufacturers, traders, suppliers and end-users in one place. The Dubai Auto Zone is being developed for an investment of more than AED 2 bn. Dubai Auto Zone will consist of a free zone to attract foreign direct investment, a specialised economic zone to cater to the GCC market, and a retail zone to serve the local market. The zone will attract investment in showrooms, supply depots and other similar facilities. The project is due to be completed by the end of 2007. "Jebel Ali Freezone (Jafza) is already home to hundreds of companies from the auto industry involved in assembly and trade of heavy machinery, automotive, spare parts, tires, batteries, electrical equipment and other products. However, due to the high demand in the auto industry, Dubai Auto Zone has been created to accommodate the growing market.
Dubai Flower Centre DFC
Strategically located at Dubai Intern ational Airport, the Dubai Flower Centre is a new hub of growth for the floriculture industry in the 21st century. The DFC offers a range of benefits to international companies among which are:100% foreign ownership, 100% repatriation of capital and profits, no corporate tax, no personal income tax, no import or export tax, no restrictions in recruiting locally or globally, efficient utilities, modern, efficient telecommunications, with broadband connectivity, strategically located within the boundaries of Dubai International Airport, 24 hour a day access.
Offshore – Jebel Ali Free Zone – Restrictions (effective as of June 22, 2005)
JAFZA has decided to implement the following changes with respect to offshore licencing. The following activities are no longer approved: Insurance, Banking, Financial, Professional Services, Consulting, Intellectual Property, Media, Security, Publishing, Advertising, Movie Production, Management, Gambling/Casino, Property Development, Advisory, Real Estate, Military, Education
Dubai Logistics City
Dubai is creating the world’s first integrated logistics and multi-modal transport platform with the new Dubai Logistics City (DLC), Jebel Ali Port and Free Zone and the new Jebel Ali International Airport (JXB) at its core. DLC will be featuring logistics, aviation, commercial, residential, educational, recreational, technology and entertainment facilities. DLC will be a free zone and the preferred location for business, which require or offer logistics and multimodal transport services to the AGCC, wider Middle East, India, Africa and the CIS – a market of more than 2 bn consumers. Spread over 25 square kilometres, DLC will become operational in 2007. DLC will provide land plots for dedicated industrial businesses, trading companies, distributors and logistics service providers; shared facilities, such as warehouses and offices as well as modern air-side cargo handling facilities.
Knowledge Village – plan for mega campus for international universities
Dubai Executive Council are planning to develop Dubai into a regional education hub, Dubai Knowledge Village (KV) announced that it will establish Dubai Knowledge Universities, a new mega campus for international universities. It will be located in the heart of Academic City being developed close to Emirates Road. Set amidst an exquisitely landscaped area, the new mega campus will have an ambience that matches the best academic environments in the US, Europe and Australia.
Dubai Biotechnology Research Park
DuBiotech will be located on a 300-hectare stretch at Dubailand. Upon completion the park development will cover over 30 mio square feet of built-up area. Its infrastructure offering will comprise research and development (R&D) facilities, office space and residential facilities.
ACTIVITIES THAT REQUIRE SPECIAL APPROVAL
1) medical, pharmacy - ministry of health
2) air transport, air cargo etc - dept. of civil aviation
3) financial institutions, banks, money exchange - central bank
4) new industrial project, expansion - ministry of finance and industry
5) publishing, printing, newspaper, advertising, video film, photography - ministry of information
6) education, training - ministry of education
7) agriculture, veterinary - ministry of agriculture
8) customs clearance, freight forwarding, sea cargo - seaports & customs authority
9) telecommunication equipment - ministry of communication
10) insurance company, chartered accountant firm - ministry of economy & commerce
TRADE ISSUES
GAFTA – Greater Arab Free Trade Area
The Greater Arab Free Trade Area (GAFTA) was launched in January 1998 to become a free trade zone by Jan. 2007 (within 10 years). The 17 Arab countries that were members of the GAFTA agreed to reduce tariffs on Arab-made products by 10 % annually. However, the Arab Summit of Heads of Countries (Amman 2000) called on Arab governments to speed up tariff reductions in order for them to be completely eliminated by January 2005. Intra-Arab trade flows have been exempted from tariffs since that date.
FTA with US
The GCC states have started negotiations on a bilaterial basis with the US for a Free Trade Agreement (FTA). The first round of talks between US and the UAE and Oman began in March 2005.
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