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Free
Trade Zones
Further
to its strategic location between Europe and Asia, the UAE has established
numerous Free Trade Zones to give businesses an additional incentive
to be located here.
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.
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 which are legally incorporated outside the UAE in imports
and exports are permitted a Trade license. Ownership can remain
100% foreign and no license is required from the Economic Department
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 are 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 Trade Zone
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.
For
complete details visit the following websites :
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Umm
Al Quwain Free Zone
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Ras
Al Khaimah Free Zone
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