Freezone License

Freezone License in the UAE

A Freezone License in the UAE is an authorization that allows businesses to operate within designated free zones, which are specialized economic areas offering unique benefits for companies. These licenses are ideal for businesses focusing on international trade, as they provide a streamlined setup process and access to world-class infrastructure. Professional services are available to assist with obtaining a freezone license, ensuring compliance with regulations and simplifying the establishment process.

Types of Freezone Licenses

Freezone licenses are categorized based on the nature of the business activity:

• Commercial License: For companies involved in trading, importing, exporting, or distributing goods.

• Professional License: For service-based businesses, such as consultancy, IT services, or marketing agencies.

• Industrial License: For businesses engaged in manufacturing, processing, or production activities.

• Freelance License: For individuals offering professional services, such as designers, writers, or consultants, available in certain free zones.

• E-commerce License: For businesses operating online retail or digital platforms.

Benefits of a Freezone License

• Full Ownership: Allows 100% foreign ownership without the need for a local partner.

• Tax Advantages: Offers exemptions from corporate and personal taxes, as well as customs duties on imports and exports.

• Repatriation of Profits: Permits full repatriation of profits and capital to the business owner’s home country.

• Strategic Location: Free zones are located near ports, airports, and logistics hubs, facilitating global trade.

• Simplified Setup: Streamlined processes for licensing, visa applications, and business operations within the free zone.

Process of Obtaining a Freezone License in the UAE

The process for securing a freezone license typically includes the following steps:

1. Choosing a Free Zone: Select a free zone that aligns with the business activity and goals, such as Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone (JAFZA), or Sharjah Media City.

2. Selecting Business Activity: Identify the specific activities the business will undertake, as this determines the license type.

3. Choosing a Business Name: Select a trade name that complies with the free zone’s naming conventions and reflects the business nature.

4. Preparing Documentation: Common documents include:

   • Valid passport or Emirates ID of the business owner(s)

   • Business plan or activity description

   • Proof of address (e.g., utility bill or tenancy contract)

   • Memorandum of Association (MOA) or shareholder agreement (if applicable)

5. Engaging a Service Provider: Many businesses hire professional firms to manage the application process, ensuring compliance and accuracy.

6. Submission and Review: Applications are submitted through the free zone’s designated platform or office, followed by a review to verify compliance.

7. License Issuance: Once approved, the freezone license is issued, allowing the business to commence operations within the free zone.

Role of Professional Services

Professional firms specializing in free zone business setup provide:

• Guidance on selecting the most suitable free zone and license type.

• Assistance with preparing and submitting documentation.

• Support for visa applications and office leasing within the free zone.

• Ongoing compliance and renewal services to maintain the license.