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!
- 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.
- 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.
- 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.
- 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
- 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.
- 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.
-
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.
- 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.
-
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-
- Each shareholder, director, and manager must complete a Know Your Customer (KYC)
form.
- Each Shareholder/Director/Valid Manager must provide a copy of their passport.
- Names for Businesses Suggestions
- Registration and Licensing Application
- The parent company's certificate of registration
- A certificate of incumbency or a current extract from the Commercial Registrar
- A valid company licence is number seven.
- The original certificate of good standing from the parent firm
- The Parent Company's Memorandum and Articles of Association
- Physical verification of the parent company's address is number ten.
- A shareholder vote or a vote by the board of directors
- Proof of residency is required for each shareholder, director, or management.
- The Parent Company's most recent audited balance sheet
- The Parent Company's Beneficial Ownership Declaration (List of Shareholders)
- 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.
