UAE free zones

LAST UPDATED: 01/02/2024

Business setup in the UAE free zones is one of the most demanded types of services. No wonder—UAE has proven its commitment to global corporate and compliance standards. Unlike purely "offshore" jurisdictions, the UAE stands out as a prime destination for international entrepreneurs engaged in cross-country businesses.

Here are the key facts you need to know about setting up a business in UAE free zones:

  1. Full ownership: You can own 100% of your company without the need for a local partner or agent.
  2. Compliance with economic substance requirements: Your free zone company will be compliant with economic substance regulations, ensuring adherence to legal obligations.
  3. Ease of fund transfer: There are no limitations on transferring funds out of the UAE, providing flexibility for international transactions.
  4. Reduced audit requirements: In most free zones, there is no requirement for financial audits, streamlining the setup process and reducing associated costs.
  5. Corporate account in government banks: You can open a corporate bank account in one of the UAE government banks, offering stability and reliable financial services.
  6. UAE residency opportunities: Business owners and employees can obtain UAE residency, enabling them to live and work in the country.
  7. Convenient setup and renewal: Personal presence is not required for the initial setup or subsequent renewals, allowing for a streamlined and efficient process.
  8. Wide range of options: UAE free zones offer packages suitable for businesses of all types and sizes, from cost-effective company formations to prestigious and globally recognized free zones for business setup in Dubai.

 

List of free zones in UAE

The United Arab Emirates (UAE) is renowned for its numerous Free Zones, offering attractive incentives and a business-friendly environment for entrepreneurs and investors. In this article, we will delve into a selection of prominent Free Zones located in the country, showcasing their unique features, advantages, and suitability for various industries. Whether you are looking to establish a trading enterprise, technology startup, or media-related business, these Free Zones present compelling opportunities for your company's growth and success.

The UAE Free Zones we will discuss include:

  1. UAQ FTZ — UMM AL QUWAIN FREE ZONE
  2. RAKEZ — RAS AL KHAIMAH ECONOMIC ZONE (EX. RAK FREE ZONE)
  3. FUJAIRAH CREATIVE CITY
  4. AJMAN FREE ZONE
  5. AJMAN MEDIA CITY
  6. KIZAD — KHALIFA INDUSTRIAL ZONE
  7. IFZA — INTERNATIONAL FREE ZONE AUTHORITY
  8. SAIF — SHARJAH AIRPORT INTERNATIONAL FREE ZONE
  9. SHAMS — SHARJAH MEDIA CITY FREE ZONE
  10. HAMRIYAH FREE ZONE

Each Free Zone has its own distinct advantages and offerings, catering to specific industries and business needs. By exploring the features of these Free Zones, you can make an informed decision about the most suitable location for your company's establishment and leverage the benefits of operating within a UAE Free Zone. Let's dive into the details and discover the opportunities that await in these Dubai Free Zones.

UAQ FTZ - Umm Al Quwain Free Zone

Key features:

Established 2014
Licenses types Trading, Consultancy, Industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 1-2 visas with flexi desk, multiple visas with office
Setup time 1 day

Umm Al Quwain Free Zone is an ideal choice for start-ups or businesses venturing into the UAE market for the first time. Despite being a lesser-known emirate, Umm Al Quwain, nestled between Ajman and Ras Al Khaimah, offers a rapidly developing and peaceful environment.

Just keep in mind that you can run the business regardless of the place of your company incorporation, since you don’t need to visit the Free Zone. It just remains the legal place of your company registration. The bank account will be opened in a Dubai branch of any bank of your choice.

Setting up a company in Umm Al Quwain is easy. You will only need to provide a few personal documents, including a copy of your passport, a photograph, and a utility bill.

+ Pros

  • Quick setup process - as fast as 1 day
  • Company registration without the need for personal presence

- Cons

  • Flexi desk packages limited to a maximum of 3 visas
  • Security approval may be required for nationals from high-risk countries

RAKEZ - Ras Al Khaimah Economic Zone (ex. RAK Free Zone)

Key features:

Established 2000
Licenses types Trading, Consultancy, Industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 1-4 visas with flexi desk, multiple visas with office
Setup time Pre-approval in 1 week, 2 days company formation

RAKEZ, short for Ras Al Khaimah Economic Zone, is a prominent Free Zone formed through the merger of Rak Free Trade Zone and RAK Investment Authority. This consolidation has created a vast and well-known Zone, making it one of the most popular Free Zones in the UAE.

One of the standout features of RAKEZ is its availability of customizable warehouses and plots of industrial land for development. Additionally, there are options to build or rent existing staff and labor accommodations. Conveniently located in proximity to RAK airport and with a nearby sea port, RAKEZ offers excellent connectivity.

RAKEZ offers an extensive range of business activities, ensuring that you will find what you need for your venture. The company incorporation process begins with a mandatory security approval for all nationalities, which may take several days to a few weeks. Once the approval is obtained, the company can be registered in approximately a week.

+ Pros

  • High likelihood of obtaining a resident visa package for "high-risk nationalities" such as Bangladesh, Lebanon, Egypt, and others
  • Reasonable prices for executive offices in RAK and flexi-desks in Abu Dhabi
  • No E-channel Deposit requirement for packages with flexi facility

- Cons

  • In-person visit is required for company setup
  • Slightly longer setup process compared to similar Free Zones
  • Annual audit is mandatory

Fujairah Creative City

Key features:

Established 2005
Licenses types Consultancy
Facilities Flexi-desks, Offices
Visas 1-15 visas with flexi desk
Setup time Company setup in 2-3 days

Creative City Free Zone, located in the tranquil Emirate of Fujairah, offers several enticing benefits that make it a viable option for business setup, despite its remote location.

As its name suggests, Creative City is a hub for professional services companies. While it does not facilitate trading activities, it provides an impressive array of professional and consultancy business options. From media and consultancy to personal training and intellectual rights protection, the range of available activities is diverse and comprehensive.

One notable advantage of Creative City is the ability to register a company remotely. There is no need for a personal visit to the Free Zone, and in fact, we have not encountered any company owners who have made the journey themselves. The setup process can be completed within a week, streamlining the entire procedure.

+ Pros

  • Wide selection of professional and service business activities
  • Up to 15 resident visas without the requirement of office rent
  • Remote business setup and visa processing

- Cons

  • No trading activities
  • Shareholders must visit Fujairah to obtain a driver's license or visas for dependents
  • Relatively higher visa costs compared to similar Free Zones

Ajman Free Zone

Key features:

Established 1988
Licenses types Freelance, Trading, Consultancy, Industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 1-2 visas with flexi desk, 5 visas with office
Setup time 1 day

Ajman Free Zone (AFZA) is a well-known free zone that offers unique features not found elsewhere. One of its most attractive offerings is the multiple installment payment plan for company registration. This means that you can register your company by paying only a portion of the government fees, with the option to choose from 2, 3, or 6 installments.

This flexibility is particularly beneficial for those seeking a low-budget startup, and AFZA is the only free zone that provides such a payment plan.

+ Pros

  • Fast registration process, with licenses issued in just one day
  • Chamber of Commerce membership upon company setup
  • Convenient multiple installment payment plan: choose between 2, 3, or 6 installments for AFZA license fees

- Cons

  • Professional service licenses in AFZA are limited to a single business activity
  • High deposits in immigration when a woman sponsors dependents
  • Maximum of 2 visas per license with a flexi desk option

Ajman Media City

KEY FEATURES:

Established 2015
Licenses types Trading, Consultancy
Facilities Flexi-desks, Offices
Visas 1-5 visas with flexi desk
Setup time 2-3 days

Ajman Media City, the newest UAE Free Zone, entered the market in 2018 with an offering that surpasses many other similar free zones. It boasts the cheapest zero visa package and provides up to 5 resident visas with a small dedicated office space of 12 square meters. Additionally, it allows for multiple business activities to be included in the license.

Upon company registration, Ajman Media City provides a comprehensive set of corporate documents, streamlining the process of opening a Dubai bank account. In addition to the traditional license, Certificate of Incorporation (COI), Memorandum of Association (MoA), and lease agreement, they also issue an incumbency certificate, salary certificate, and shares certificate.

This Free Zone is not limited to media activities alone but also offers opportunities for trading, legal services, marketing, as well as head office and holding company categories. Each license can accommodate up to 5 business activities, with the requirement that at least one of them be related to media or advertising.

+ PROS

  • One of the most cost-efficient Free Zones
  • One of the best prices for 1-visa company packages

- CONS

  • Smaller activity list compared to similar Free Zones
  • Mandatory inclusion of at least one media-related activity in the license

KIZAD - Khalifa Industrial Zone

Key features:

Established 2010
Licenses types Trading, Consultancy, Industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 1-3 visas with flexi desk, multiple visas with office
Setup time 1 day registration, 1 week pre-approval

KIZAD, which stands for Khalifa Industrial Zone Abu Dhabi, is a state-of-the-art Free Zone located in Abu Dhabi, adjacent to the highly developed Khalifa Port. It is currently the most affordable Free Zone option in Abu Dhabi. With a strong focus on trading, industrial, and logistic businesses, KIZAD offers an extensive list of activities. It provides attractive tax conditions for manufacturers producing goods within the Free Zone and re-shipping them to other countries.

Additionally, tax exemption on raw materials is available. KIZAD also caters to service activities such as management, marketing, freight forwarding support, and even travel agencies. It is an excellent choice for businesses seeking registration in Abu Dhabi or planning to establish manufacturing activities adjacent to a port.

+ Pros

  • The most cost-efficient Free Zone in Abu Dhabi
  • Easy process for opening a bank account

- Cons

  • A minimum actual capital of AED 26,000 is required to be in the bank account
  • Personal visit for registration is mandatory

IFZA - International Free Zone Authority

Key features:

Established 2017
Licenses types Trading, Consultancy
Facilities Flexi-desks, Offices
Visas 1-6 visas with flexi desk
Setup time Registration in 2 days

IFZA, which stands for International Free Zone Authority, is a new Free Zone located in the Emirate of Fujairah. It offers a modern facility that combines shared desks, offices, conference rooms, hotels, warehouses, and residential apartments. IFZA boasts one of the most extensive activity lists, encompassing professional, industrial, and commercial activities. All licenses are registered as Limited Liability Companies (LLCs).

As the only environmentally friendly Free Zone in the UAE, IFZA prioritizes sustainability, utilizing solar and wind energy, reducing paper usage for document turnaround, and implementing building insulation measures.

+ Pros

  • Wide variety of business activities
  • Allows up to 6 activities in a single license

- Cons

  • Owners need to visit Fujairah for driver's license or dependent visa processing
  • Longer setup process compared to similar Free Zones

SAIF - Sharjah Airport International Free Zone

Key features:

Established 1996
Licenses types Trading, Consultancy, Industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 1-2 visas with flexi desk, multiple visas with office
Setup time Registration in one day

SAIF, or Sharjah Airport International Free Zone, is located adjacent to Sharjah International Airport. Established in 1996, it currently hosts nearly 7,000 companies.

SAIF offers a wide range of facilities, including flexi-desks, offices, warehouses, and plots of land. Its extensive business activity list includes hard-to-find service activities like "Investment of own funds." The activities also permit storage and consolidation of products specified in your license, as well as manufacturing and assembly of your products.

+ Pros

  • Conveniently located next to Sharjah Airport for easy logistics
  • Wide range of industrial activities

- Cons

  • Annual audit is required
  • Passports of employees may need to be kept within the Free Zone

SHAMS - Sharjah Media City free zone

Key features:

Established 2017
Licenses types Trading, Consultancy, Industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 1-2 visas with flexi desk, 5 visas with office
Setup time Registration in 3 days

SHAMS, or Sharjah Media City Free Zone, is situated in Sharjah, the closest Emirate to Dubai. While it is known as the Media Free Zone, it offers a broad range of business activities beyond the media sector, including trading, professional services, holding companies, and more. SHAMS allows individuals as young as 19 years old to own a business, a unique benefit not available in other Free Zones. Company employees can also be as young as 18 years old, which is relatively uncommon.

+ Pros

  • Flexible visa packages, ranging from 0 to 6 visas
  • Offers rare business activities not available in other Free Zones
  • Low cost of business registration and maintenance

- Cons

  • Downgrading the package is not permitted
  • Women may encounter difficulties sponsoring dependents in Sharjah
  • Zero visa packages do not include flexi desk facilities

Hamriyah Free Zone

Key features:

Established 1995
Licenses types Trading, Consultancy, Industrial
Facilities Flexi-desks, Offices, Warehouses
Visas 1-2 visas with flexi desk, multiple visas with office
Setup time 1 day registration

Hamriyah Free Zone, governed by the Emirate of Sharjah, is the second largest Free Zone in the UAE after JAFZA. It is home to numerous oil and gas and manufacturing companies and features its own sea port. Hamriyah offers flexibility in terms of visas, allowing companies to open a business with 0 up to 7 visas without the need for office rent. Its zero visa package is the most affordable option across the UAE. Company setup in Hamriyah Free Zone is completed within a single day, although the presence of the shareholder is mandatory.

+ Pros

  • Availability of spacious warehouses and plots of land
  • Presence of an in-house sea port within the Free Zone

- Cons

  • Personal visit for company registration is required
  • Remote location from Dubai

Conclusion

Choosing a UAE Free Zone for your business setup can help address various challenges associated with international business registration. These advantages include:

  • Safety of your funds
  • Unrestricted movement of money
  • Quick international transfers
  • Operating within a white-listed and sanctions-free country
  • Stable local currency rates
  • Favorable geographical positioning
  • Access to a skilled workforce. 

Each Free Zone discussed offers unique features and benefits tailored to specific business requirements. By considering the pros and cons of each Free Zone, you can make an informed decision that aligns with your business goals and objectives.

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