1. What is the most economical way to set up company in the free zone?
A- Cost to set up a company depends upon the office space & number of visas required. However, Free zones in Ajman, Ras Al Khaimah, Sharjah (SAIF Zone, Hamariya Free Zone) & Fuzairah free zones are economical compare to free zones in Dubai .
Following are the details:
- Cost $ 5,500 to $ 6500/- (1-2 visas) With office desk - This is annual rent & has to be paid every year at the time of renewal.
- Cost Approx. $11,000 (for up to four visas) With office desk - This is annual rent & has to be paid every year at the time of renewal.
- Capital $ 27,000 to $ 50,000/- has to be deposited (depends upon the free zone).In some free zones capital has to be deposited and in some cases within 90 days the deposit has to be done.
- In case of Local shareholder must be present at the time of incorporation or POA can be presented, duly notarized in the country of origin.
- Time to set up co. depends upon free zone to free zone (from 2-3 days to 5-6 working days).
- Visa Cost - Investor visa will cost $450/- in some free zones & Visa cost for Employees will be $1,500/- approx+Labour Guarantee of One salary + one way return ticket. Visa is valid for three years. Visa stamping requires 7-8 working days.
- General trading license can be obtained in some free zones.
2. What will be the cost of Accommodation for Family or Bachelor?
A- Accommodation cost for family in Dubai.
- Studio flat $ 7000 to $9000/- p.a
- 1 bedroom $ 11,000/- to $ 15,000/- p.a
- 2 bedroom $ 19,000/- to $ 26,000/- p.a
- ¾ bedrooms & Villas $ 28,000/- to $ 55,000/-
For Bachelors, cost of accommodation as a paying guest will be around $ 250 to $4,00/-.
Accommodation cost in Sharjah will be almost 2/3 of Dubai cost & Accommodation cost in Ajman & Ras Al Khaimah will be 50% of the Dubai cost.
3. What will be Average cost of vehicle?
A- For small cars like Nissan/Hyundai & Toyota Corrola,with 1.3 to 1.6 liter capacity cost will around $11,000/- to $ 15,000/-.For medium luxury vehicles,Totota Camry & RAV4/PRADO,Nissan Maxima etc cost will be $ 17,000/- to $ 27,000/-.For Luxury vehicles,Totota Land cruiser/BMW/Mercedes cost will range from $40,000/- to $ 95,000/-.
4. How we can set up educational institute for training & migration of students to Canada & Australia for further studies?
A-Most Ideal place will be Dubai Knowledge Village Free Zone, if you want to educate the students but as you want to migrate the students to different countries, and then they will not encourage such institutes. To set up educational institute outside free zone, requires approval from Ministry of higher education.
5. Can foreigner buy land in UAE & develop the property on it for residential or commercial purpose?
A-Dubai Government has started giving the land to foreigner on lease (35 years to 99 years). Also property can be developed on land in Dubai Silicon City , Dubai Land etc and, marketing company can be set up in the free zone or outside free zone etc.
Most popular free zones are Jebel Ali, Hamariya, Ajman , and Fujairah & Ras Al Khaimah Free Zone & Dubai Investment Park. Land can buy on lease for long term depends upon free zone to free zone.
6. How we can set up the Industry (Glass or Oil Processing etc) in UAE.
A- As setting up industry in the Free Zones or outside free zone requires the permission of the government, we suggest to provide us small project report(with technical aspects) to guide you properly in this regard,
For setting up Industry outside free zones require permission from the Ministry of Finance & Industry.NOC & Permission also requires from Municipality & Civil & Defense depts. Most recommended areas for setting up industries are Al-Quos & Aweer in Dubai & Sharjah Industrial Area in Sharjah & Ajman Industrial Area In Ajman.Care should be taken, that Raw material items to be imported, should be mentioned with customer codes to get the duty exemption.
7. How can we start business of consultancy on Share market, investment in securities ,Finance & Trade online etc.
A-All Financial Companies including Consultants & Banking are subject to approval from UAE Central Bank.
8. Can I set up shipping company in Free zone with 100% ownership?
A-Some business like Shipping, Insurance & Money exchange cannot be started directly in the Free Zones, it requires local license (outside free zone) as well.
9. Can I sell directly to local market in UAE, if I have a company based in Free Zone?
A-Normally you cannot, You can sell through a dealer or agent in order to sell the goods in the local market.
10. Why set up a Company in the Free Zone?
In Free Zone, you will be 100% owner and outside Free Zone Local Partner will hold 51% share & Foreign Partner will hold 49% share in the capital.
- Dubai (H.Q.)
- Jebel Ali Free Zone, UAE
- Sharjah, UAE
11. Which Free Zone is more economical to set up a Company?
Reply to above depend upon, the following factors.
- Nature & Size of the operations.
- Budget ( cost to set up the Company)
- Visa required ( depending upon the rent and size of the office)
- Requirements of the business ( customer / suppliers wants to visit to the office or retail business)
12. Can I operate business from Dubai , if the Company is set up in any other Emirates?
Yes, you can operate business from Dubai and open a bank account also in Dubai , but the Certificate of Origin, if required, has to be obtained from the Chamber of Commerce where the company is set up, for export proposes.
13. Can I apply for driving license in Dubai , if I have visa from another Emirates?
No, Driving License File has to be opened in the same Emirate from where the visa is stamped. However, in special cased, If NOC is issued by the Traffic Dept. of other Emirates then driving license can be applied in Dubai.
14. Which Free Zone is more economical to set up a Company?
- After setting up of Company ( after getting trade license ), Bank Account has to be opened
- Visa of investor / staff has to processed ( Six months validity of the passport required)
- P.O.Box has to be obtained
- Rubber stamp has to be made
- Telephone connection has to be applied
- For Import & Export from Dubai Port , exporter's code (custom code) has to obtained.
15. What will be legal status of the Company out side the Free Zone & in the Free Zone?
Out side Free Zone following are the most popular from of companies:
- Limited Liability Company(L.L.C Partnership) Establishment ( Owned by local) and branch In Free Zone Following are the most popular form of companies:
- FZC (Free Zone Company, this is proprietorship company)
- FZE(Free Zone Establishment. This is proprietorship company)
- Branch (branch of a Local Company or Foreign Company
16. How will the initial capital be generated and deposited in the bank to set up the Company?
Cash being your personal saving can be deposited in any bank in the U.A.E. as a capital on Issue of letter from the Free Zone.
17. Are there any income taxes or corporate tax levied in UAE?
No, there is no income tax or corporate tax as such, however 5% custom duty has to levied on import, if the Company is outside Free Zone also the same can be clamed refund upon the re-export.
18. How can we sponsor the family?
Once residence visa is stamped on the passport family (wife and children) visa can be processed. For an Employee, to sponsor his family a minimum AED 3000/- + Accommodation or AED 4000/- + salary is required.
19. What is the terminal benefit laws concerning Employees?
As per UAE labor laws, Leave salary and Air passage has to be paid to the employee every year, however gratuity is payable only if employee completes one year.
20. Do we have to submit the audt reports to the government?
Audit repot is mainly required by the banks to get the bank facilities also to renew the license, some Free Zone has made it compulsory to submit bathe audit report, in some other case it is statutory requirements.
21. What is the advantage of buying free hold property of EMAAR or Nakheel in the name of Offshore Company in jewel Ali Offshore Free Zone?
Transfer fees and Sharia Laws can be avoided if property is bought in the name of the Offshore Company in Jebel Ali.
22. Is it possible to liquidate or close the Company immediately?
No, liquidation of Company outside Free Zone and in some Free Zone is time consuming and also expensive.
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