The idea of a “Free Zone” has been established internationally as a model to develop and promote business in many countries. Since UAE Free zones are offering 100% foreign ownership, Zero tax and customs privileges which make the UAE free zones the most favorable locations in the Middle East for international operations and appeals many in Free zone company formation in UAE.
There are two main types of free-zone corporate sectors:
The main difference between an “Establishment” and a “Company” is the number of shareholders required. An “Establishment” is a single-shareholder (either a person or a company) while a “Company” is actually a Limited Liability Company and generally requires 2 or more shareholders.
Both offer the same operational benefits. Although depending on the Free Zone, there may also be differences in the share capital requirements like some free zones don’t even require any share capital.
Normally, Dubai Free Zones offer the following types of business licenses:
Trading License: This type of license allows company to carry out trading activities like buying, import & export and selling of limited number of goods and commodities.
General Trading License: This type of license will allow company to deal with trading of all types of goods with some exemption on banned goods and products that need special approvals.
Service License: This type of license is issued to companies which deal with consultancy, accountancy, etc. services.
Industrial License: This type of license allows the company to carryout manufacturing, packaging and processing in Dubai free zone (Office rent for trade license).