What a Free Zone is and how they differ?

What a Free Zone is and how they differ - Makebiz

Free Zones are free economic zones with a number of advantages for starting a business. They are created to attract entrepreneurs and investors to the territory of the UAE, for this purpose here are provided the most favorable conditions:

  • simplified registration process for foreigners;
  • tax and customs privileges;
  • the opportunity to become a 100% owner of the company without the involvement of a local agent;
  • control over commercial activity on the territory is exercised by internal bodies.

At the moment there are more than 40 freeshares in the territory of the Emirates. Their main difference is specialization, depending on which there is a certain infrastructure and various tools needed to improve this or that industry. For example, in IFZA there is an active development of technologies, in DMCC there are all conditions for the development of the sphere of commodity relations and raw materials, etc.

Another difference of freeson is the legal and regulatory framework, which determines the list of valid organizational and legal forms and registration terms. For example, DIFC has its own legal, judicial and financial system.

It is important to study the requirements for opening a business depending on the chosen FEZ: 

  • remote opening or personal presence;
  • the need to actually have authorized capital;
  • the presence of a physical office;
  • the amount of documentation and inspections.

Each zone has a clear list of available licenses, including permitted activities. The more there are, the more expensive the license will be. It is extremely important to carefully approach the choice of FEZ depending on the focus and goals of the business. Let’s distinguish four types of license: 

  • professional, including various types of services; 
  • industrial, for enterprises engaged in production, processing and marketing of goods;
  • commercial — wholesale and retail trade;
  • tourist.

Sign up for a free consultation with a company specialist and find out which free economic zone is suitable for your business.

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