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.
