Jitendra business consultancy can provide information all about free trade zones in UAE. The Free Trade Zones in the UAE are well equipped with all the amenities, facilities and communication infrastructure required to set up a business. Further, 100% foreign ownership is allowed with no recruitment or sponsorship problems. Corporate tax and customs duty exemption on imported raw materials and equipment and no levy on exports and imports are the other benefits.
United Arab Emirates is a strategic location for international trade. Since its inception as a federal state the government had opened up the economy for the foreign investors and global traders. In furtherance of this each Emirate has established free zone/s in the respective Emirate to promote the international trading.
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 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.
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 is 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 opening a company in the Free TradeZone
To open a company in the Free Zone, the following procedure has to be followed:
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.
