Business Set Up
2. Establishing a Company in a Free Zone
Setting up a business in one of the free zones continues to be an attractive alternative to establishing representation within the UAE.
Dubai, for example, offers a wide range of specialised free zones, which provide the investor with a tailor-made business environment. Some of the most prominent free zones are the Jebel Ali Free Zone, the Dubai Airport Freezone, the Dubai Internet City, the Dubai Media City and the Dubai International Financial Centre.
The main incentive considered by foreign investors is the fact that free zone regulations - in contrast to the laws prevailing outside the free zones - allow complete foreign ownership of a limited liability company. The minimum share capital varies between AED 50,000 and AED 1,000,000 depending on the free zone and the type of legal entity to be established. Should goods, produced or stored within a free zone, be imported into the UAE, an import duty of generally 5% will be imposed because the free zone company is considered a foreign entity.