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Freezone Company Formation Services in Dubai, UAE

Branch Of Free Zone Company 

Are you familiar with the fact because of its low tax rates, low import levies, free trade agreements, competitive economy, strategic location, state-of-the-art infrastructure, and many other advantages, the United Arab Emirates (UAE) is one of the best countries in the world to conduct business in. As a result, the UAE offers a diverse range of business prospects. So, if you want to provide the best to the entrepreneur inside you, doing business in the UAE is without a doubt the best alternative. Stop contemplating and start taking action right now!

In the UAE, there are approximately 40 free zones in operation, with more on the way. Each Free Zone is organized around one or more commercial categories, and only those businesses are eligible for license. One of the most appealing aspects of establishing a business in one of the UAE's Free Zones is that there are no restrictions on foreign ownership, and companies are governed by an independent Free Zone Authority (FZA), which is in charge of issuing operating licenses and regulating the activities of companies within the Free Zone.

The UAE has evolved into a significant business hub that is excellent for establishing a company or a Branch office. With over 40 different "Free Trade Zones" in the UAE, determining the right Free Zone through which to conduct business in the region can be difficult. But be assured that our team of Experts will make this process very easy and convenient for you. As a result, Dhanguard is a trailblazer in providing you with exceptional services and support to assist you in establishing your Branch. Please take a few moments to read the information below, which has been meticulously crafted by our experts to provide you with up-to-date services.

What is a Freezone Company?

The Free Zone Company is a distinct legal entity with its own set of rules and regulations. Each free zone is allowed to do business both inside and outside of the UAE. The fundamental difference between mainland and free zones is that a free zone company cannot conduct business in a non-free zone without the help of a local agent, but a mainland company can do business anywhere in the UAE. There are several free zones in Dubai. For a variety of reasons, foreign investors select free zone projects, including 100% ownership privileges, access to world-class infrastructure, asset protection, and tax benefits.

Benefits of a Freezone Company

The benefits of a Freezone Company in United Arab Emirates are listed below-

PROPRIETORSHIP

When a company is established in a free zone, foreign investors have complete ownership of the company. Most foreign investors who want to open a business on the UAE mainland will require the assistance of a local sponsor.

SUPPORT AND ASSISTANCE

The free zone's officials are available to help you both during and after the start-up of your firm. Many free zones will assist you in obtaining visas for shareholders as well as dependents such as spouses or other staff. Most free zones can also help you open a corporate bank account, as well as give you advise on which bank is ideal for your needs and arrange meetings in-branch. In terms of modern business support, it is common for free zones to provide business advise and networking aid, as well as linkages to various startup centers and growth programs, in order to assist new businesses in succeeding.

CONDUCTING BUSINESS IN UNITED ARAB EMIRATES

Free zone businesses are not permitted to trade directly in the UAE's domestic market; however, this is a simple fix. You can work with a locally designated distributor, whose job will be to sell your goods and services for a charge on the market. Begin by establishing a free zone business, and then extend your free zone company throughout the UAE. These branches can be used to market your product and begin doing business on the UAE's mainland.

TAXES

By far the most compelling reason for operating a business in a free zone is the tax structure. The creation of a free zone results in a 0% company and personal tax rate, as well as a 5% VAT exemption. Not only that, but free zone enterprises also provide tax exemptions on imports and exports, as well as the opportunity to conduct business without regard to currency.

CREATING A FREEZONE COMPANY IS SIMPLE

Creating a freezone corporation is a simple and straightforward process. The type of the business and the freezone chosen to determine the application process for forming a freezone company. Investors will be asked to provide a few pieces of documentation, such as passport copies and business registration. The processing will take around a week to finish.

SAFETY OF SENSITIVE & PERSONAL INFORMATION

Finally, because company ownership and other corporate information, such as shareholder data, are never made public, free zones are well-known among privacy-conscious investors.

In the United Arab Emirates, how do you open a Freezone Company Branch? Procedures Described!

  1. The foreign corporation must select whether to locate the Branch Office on the mainland, in a free zone, or offshore. When beginning a business on the UAE's mainland, it's required by law to hire a Local Service Agent to handle administrative responsibilities with government agencies.
  2. For an annual fee, the Local Service Agent is assigned for a year. The contract is renewed every year, with the option of switching agents if there is a disagreement. There is no necessity to name a Local Sponsor in Free Zones or Offshore, and the Branch Office's commercial activities will be overseen by the Manager/Director.
  3. In the Home Country, the Branch Office and the Parent Company must have the same name. A name approval application must be submitted to the Department of Economic Development in the case of Mainland Company (DED). An application must be submitted to the relevant Free Zone/Offshore authorities if the investor intends to establish in one of these jurisdictions.
  4. The UAE embassy in the home country must certify the firm paperwork, which must also be counter-attested by the UAE Ministry of Foreign Affairs. The following documents must be approved in their home country by UAE authorities before being counter-attested in the UAE.
    • Power of Attorney in favour of General Manager allowing him the ability to open/operate/manage bank accounts on behalf of the Parent Company
    • Incorporation certificate/Memorandum of Association (MOA), Articles of Association (AOA)
    • Parent Company Good Standing Certificate
  5. To receive a Branch Office License, submit the certified documents, along with supporting paperwork, to the proper government authorities. In addition to filing the documents, there is a charge that must be paid to the authorities. The investor will be issued the Branch Office License after the paperwork has been approved.
  6. The investor can now apply for a resident visa in the UAE, open a corporate bank account, hire personnel, process immigration cards and labour contracts, increase office space, and do business in the UAE.
  7. By preparing the necessary paperwork, filling out the application form, and submitting it to the Dubai Economy, one can start a branch office in Dubai. It's crucial to keep in mind that every branch office needs a local service representative. Dhanguard will examine your entire business's needs in order to help you choose the finest local service agent for your branch office.
  8. A resolution declaring the creation of a new branch office must be passed by the board of directors in order to launch a branch office. The Board of Directors has the authority to choose one director to establish and oversee the branch company's activities.
  9. After the board resolution is approved, the corporation can begin the process of registering the branch. The Company can obtain a business license and register its branch on Dubai's mainland by following the steps outlined above. Dhanguard will assist you in swiftly registering your company's Dubai branch office by providing end-to-end business support services.

What are he Documents required to start a Freezone Company Branch?

The documents required to start a Freezone Company Branch are listed below-

  1. Each shareholder, director, and manager must complete a Know Your Customer (KYC) form.
  2. Each Shareholder/Director/Valid Manager must provide a copy of their passport.
  3. Names for Businesses Suggestions
  4. Registration and Licensing Application
  5. The parent company's certificate of registration
  6. A certificate of incumbency or a current extract from the Commercial Registrar
    • A valid company licence is number seven.
  7. The original certificate of good standing from the parent firm
  8. The Parent Company's Memorandum and Articles of Association
    • Physical verification of the parent company's address is number ten.
  9. A shareholder vote or a vote by the board of directors
  10. Proof of residency is required for each shareholder, director, or management.
  11. The Parent Company's most recent audited balance sheet
  12. The Parent Company's Beneficial Ownership Declaration (List of Shareholders)
  13. Each Shareholder/Manager must get a letter of no objection (NOC) from the present sponsor.

How can Dhanguard help?

Dhanguard strives to provide you with simple and quick solutions as well as sound guidance so that you may effectively establish your Branches. For instant assistance, please visit our website or give us a call!

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

Branch of Freezone Companies

Frequently Asked Questions

A free zone is a defined area where businesses are taxed at extremely low rates or none at all in order to attract investment and increased economic activity.
The Ministry of Economy requires that a free zone company's branch be registered. Companies in free zones having a local stake of 51 percent are exempt from registering with the Ministry of Economy. Although the facility should have a local agent, free zone enterprises with local shares do not have one.
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