The UAE is a modern and dynamic country located in the southeastern corner of the Arabian Peninsula.
The UAE federation has seven emirates including Abu Dhabi ( The Capital ), Dubai, Ras Al Khaimah , Sharjah, Fujairah, Umm Al-Quwain and Ajman.
UAE FREE ZONE
There are over 45 Free Zones spread across the country.
A Free Zone in the UAE is a special economic area where businesses can benefit from tax exemptions, customs duty benefits, and 100% foreign ownership.
It is called Free Zone because the Company is free from many of
the usual regulations but, free zone is restricted to Limited Market
Access, Restricted Activities, Office Space, No Government
contracts, and Visa limits.
These zones are designed to attract foreign investment and simplify the process of starting and operating a business.
In a Free Zone, companies typically enjoy:
– Easy company setup with fewer regulations
– No import/export duties
– Tax breaks (such as no corporate tax for a set period)
– No need for a local sponsor (which is usually required for mainland businesses)
Free Zones are cheaper and easier but with limits on market access.
Mainland offers more flexibility but comes with higher costs and requirements
Ownership:
– Free Zone: 100% foreign ownership.
– Mainland: Needs a local sponsor (unless full ownership is allowed in some sectors).
Market Access:
– Free Zone: Limited to the zone or international markets.
– Mainland: Can do business anywhere in the UAE.
Cost:
– Free Zone: Cheaper and quicker setup.
– Mainland: More expensive due to office space and sponsor fees.
Flexibility:
– Free Zone: Restricted business activities.
– Mainland: More freedom to operate in any sector.
Visa Sponsorship:
– Free Zone: Company sponsors visas based on office size; usually
limited to the zone.
– Mainland: Company sponsors visas, with more flexibility for working anywhere in the UAE.
Work Location:
– Free Zone: Employees can only work in the free zone or outside the UAE.
– Mainland: Employees can work anywhere in the UAE.
Business Type:
– Free Zone: Visa tied to specific business types allowed in the zone.
– Mainland: Visa is more flexible across various industries.
Process:
– Free Zone: Easier and quicker visa process, ideal for small businesses.
– Mainland: More paperwork and stricter requirements.