SETTING UP IN A FREE ZONE

Sovereign PPG is a professional business consultancy firm with a singular goal – to help entrepreneurs, venture capitalists, and companies find their footing in the competitive regional market. As a full-service company, our expertise includes providing a comprehensive range of solutions aimed at speeding up business setup in free zones and economic zones across the GCC. 

We have a team of free zone company formation experts who can offer step-by-step assistance to clients, resulting in an easy, quick, and hassle-free setup. Our specialists are happy to take over the entire company setup process, from start to finish, so you can focus on what matters the most – business strategy and growth. Our team are well positioned to provide information on the hundred's of free zone and economic zone options available across the Middle East. 

In the UAE alone, there are over 50+ free zones with varying specialties which cater it's infrastructure and licenses to specific industry set ups. The UAE has lead the development of these 'free zones' across the GCC. Similarly, free zone entities and economic zones are appearing more across other jurisdictions such as Qatar, Oman, Bahrain and most recently, Saudi Arabia. 

BENEFITS OF SETTING UP IN A FREE ZONE

• Complete company ownership - 100%
• Exemption from taxes including Corporate Tax in some cases
• Exemption from import and export taxes
• Availability of business-ready facilities
• Availability of business support solutions
• High-speed communications and connectivity infrastructure

WHAT ARE THE FREE ZONE OTPIONS IN THE UAE?

A foreign investor can set up a company in the UAE either in one of the many free zones or in the UAE mainland. Free zone authorities are the government bodies that register and issue business licences to non-resident companies in the UAE free zone. Free zones allow corporate structures to have a physical presence in the UAE, allow 100% foreign ownership and offer prebuilt facilities and modernised one stop-shop registration and administrative services.

The UAE is one of the most progressive countries in the world, with happy and contented residents and sustainable growth in many areas, including the economy, trade, investment, communications, information technology, tourism and infrastructure. It is, therefore clear to see why countless foreign investors aim to establish their companies here.

When it comes to setting up a company, free zones are well known for their flexibility, especially with regards to choosing the business activity. A wide selection of activities are available, but are subject to approval. Some free zones have recently confirmed updates to their activity lists to include more functional activities. This should help investors in selecting the right activity for their business.

Freezone Company Set Up Procedures

Unlike the mainland’s heavy constitution and operating requirements, i.e. appointment of a UAE local sponsor – free zone rules are far less strict and the timeframes for setting up companies are much faster, as the paperwork and administration requirements are minimal and there is no need for appointment of a UAE local sponsor to obtain a licence.

STEP 1 – PRE-APPROVAL STAGE

The application for initial company registration is submitted through the free zone’s registrar. Some of the free zones have their own online portals through which clients can process the initial application instead of going to the registrar for submission. This phase includes completion of application forms, registering the shareholder and officers’ details, company name reservation, activity, management and compliance approvals.

STEP 2 – REGISTRATION

This is where company registration, invoice issuance and submission and verification of the original legal documents takes place. At this stage, most of the free zones require the shareholder or the authorised signatory to visit the registrar to sign and verify various documents such as passports and IDs.

STEP 3 – LICENSING

Signing of the Lease Agreement and finalisation of the licence by the registrar take place at this stage. Once the management approval is granted, the licence and corporate documents of the company shall be issued.