More than 20 free trade zones (FTZ) are located in the United Arab Emirates, which have the following distinctive features of doing business in FTZs:
- 100% share held by a foreign investor in the authorized capital, i.e. no need to involve the UAE citizen as a co-founder;
- tax immunity within 50 years;
- full repatriation of capital and income;
- absence of fiscal charges.
Each FTZ is created for carrying out a certain activity, such as trade in jewelry (Gold and Diamond Park) or high technology related activity (Dubai Internet City). Any company engaged in import or export or consulting may be registered in majority of FTZs, except for those companies operating in travel, public transport and some other industries that can only be registered in the UAE.
Any company intending to be registered in the UAE is required to pay the definite amount of the authorized capital that is to be returned after registration. Obtaining the license is the next step in registration.
There are 4 types of licenses issued to the companies entitled to be registered in FTZs:
- industrial license
- restrictive trade license
- license to consulting and service activity
- open trade license
In order to register the company in any of FTZs you should have the own or leased office and entry visa issued in the name of each co-founder, if more than one.
The most famous free trade zones in the UAE are presented below: