Why Choose a Freezone

What are the Benefits of Setting Up in a Freezone?

* Please note that this is a general overview summary and is provided on an information only basis, non of the contents constitute advice. Specific activities, corporate structures and jurisdictions may differ and processes at government departments are subject to change without notice. Sovereign PPG (PPG) accepts no liability for actions undertaken by recipients of this information. Please speak to a member of the PPG team if assistance or any clarification is required and for any specific Company or Individual PRO assistance enquiry

**Other Factors:

- Onshore branch will need to register with Immigration and Labour to set up its own company files (after incorporation)
- Onshore branch will need to register with Ministry of Economy and take on a local audit firm (after incorporation)
- Sovereign PPG (PPG) can assist with all relevant visa and immigration assistance for all types of company formation

*	Limited Liability Company (LLC)	Onshore Branch / Rep Office	Freezone Company or Branch
Ownership	51% (Local Partner) / 49% (Foreign Party)	100% Owned by Foreign Company	100% Owned by Foreign Company
Local Agent / Local Partner	PRO Partner Group (PPG) - Local Partner	PRO Partner Group (PPG) - Local Agent	Free Zone - Local Agent
Client access	Can do business with all companies in Abu Dhabi & the UAE All activity types, products and services	Can do business with all companies in Abu Dhabi All service activities possible. Trading activities restricted	Can only do business with companies within the same Free Zone A dual licence onshore is possible to cover certain activities
Government access	Will prequalify for Government projects and work	Will prequalify for Government projects and work	Limited Government work access
ADNOC access (SPC approval)	Available on application	Available on application	Not generally possible
Other regulatory bodies	Available on application	Available on application	Not generally possible
Import and Trading	Can import and trade fully within in the UAE - within their activity range	Can import to the UAE . Cannot wholesale or retail trade. Can bring in samples, office equipment or spare parts only	Cannot import or trade in the UAE or with UAE counterparties - must use an onshore agent
Office locations	Anywhere in the same Emirate A minimum 14 sq. mtr / 200 sq.ft office is mandatory	Anywhere in the same Emirate A minimum 14 sq. mtr / 200 sq.ft office is mandatory	Office costs in the Freezone are generally much higher than onshore locations. Some Free Zones offer a low cost 'virtual office' for 1 or 2 visas
Visa issuance	Applications direct to Immigration. Any issues can be resolved direct with immigration	Applications direct to Immigration. Any issues can be resolved direct with immigration	Immigration application is through Free Zone. The Free Zone controls the process with Immigration
Labour department	Must be registered with Ministry of Labour, pay staff through WPS and provide health insurance	Must be registered with Ministry of Labour, pay staff through WPS and provide health insurance	There is no Ministry of Labour registration in the Free Zone, so staff with a Free Zone visa cannot strictly work onshore in the UAE without special permission
Timeframe	Around 30 days, assuming all documents are in place from the Foreign Company and authorised person is available to sign	Around 30 days, assuming all documents are in place from the Foreign Company and authorised person is available to sign	Dependent on Free Zone and issuance of GM Visa - estimate around 21 days, assuming all documents are in place
AED		AED
Government licence fees	AED 15,000 - approx. based on activities Full DED Licence with Chamber of Commerce Licence	AED 20,000 - approx. based on activities Full DED Licence with Chamber of Commerce Licence	AED 17,000 - based on 2 activities in an average Free Zone Free Zone Licence Fees - Not DED or Chamber of Commerce
Ministry of Economy	AED 3,000 Set up fee	AED 10,000 fee (plus AED 50,000 refundable deposit)	Not applicable
Office costs	Mandatory. Variable based on location: Abu Dhabi AED 30,000 pa upwards for minimal space Dubai approx. AED 50,000 pa	Mandatory. Variable based on location: Abu Dhabi AED 30,000 pa upwards for minimal space Dubai approx. AED 50,000 pa	Small physical office space can be around AED 80,000 pa Hot desk or virtual offices in some Free Zones for circa AED 15,000 pa
Other costs to consider	Set up fees - PRO Service Fees Legal Drafting Fees Local Partner Fees Annual Renewal Fees	Set up fees - PRO Service Fees Legal Drafting Fees Local Partner Fees Annual Renewal Fees	Set up fees - PRO Service Fees Legal Drafting Fees Free Zone Service Fees Annual Renewal Fees