The United Arab Emirates (UAE) is one of the most attractive destinations for opening offshore companies and doing business due to its favorable tax regime, political stability and a wide range of free economic zones (FEZs). In this article we will look at various types of SEZs and offshore zones, and also give a detailed overview of their features and advantages.
There are two main types of business zones in the UAE: free economic zones (FEZ) and offshore zones.
- Free Economic Zones (FEZ): These zones are designed to support international trade and investment. Companies registered in SEZs enjoy 100% foreign ownership, corporate tax exemption, and simplified licensing and registration procedures.
- Offshore zones: These zones provide companies with the opportunity to conduct international business without tax obligations within the UAE. Offshore companies cannot conduct commercial activities within the country, but can be used to own assets, intellectual property and investments.
There are about 45 SEZs in the UAE located in various emirates such as Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah and others. The most popular areas include:
Dubai Multi Commodities Center (DMCC) – in Dubai
Jebel Ali Free Zone (JAFZA) – in Dubai
Abu Dhabi Global Market (ADGM) – in Abu Dhabi
Sharjah International Airport Free Zone (SAIF Zone) – in Sharjah
Companies registered in SEZs can sponsor visas for their employees and shareholders. Business owners can also purchase property in certain zones and use it for commercial purposes.
To register a company in a FEZ, the following documents are required:
Passport details of the founders
Business plan
Memorandum and Articles of Association of the company
The costs of opening a company in a FEZ vary depending on the zone and type of business. Major costs include:
Registration fee: from 10,000 to 15,000 AED (approximately $2,700 - $4,000)
License fee: from 10,000 to 50,000 AED (approximately $2,700 - $13,500)
Office space rental: from 15,000 to 40,000 AED per year (approximately $4,000 - $11,000) depending on type and location
Visa processing costs: from 3,000 to 5,000 AED per visa (approximately $800 - $1,300)
Opening a company in a FEZ is possible remotely through authorized agents. This allows foreign investors to avoid the need to be physically present in the UAE.
The process of registering a company in a FEZ usually takes from 2 to 4 weeks, depending on the zone and the documents provided.
There are no corporate taxes, personal income taxes or export-import duties in the SEZ of the United Arab Emirates. However, fees may apply for certain types of licenses and services.
Individuals can protect their assets by registering them with a holding company in a free economic zone. This solution will ensure a high level of confidentiality, since information about company owners is not publicly disclosed.
The main offshore zones in the UAE include:
Jebel Ali Offshore (JAO) – offshore in Dubai.
Ras Al Khaimah International Corporate Center (RAK ICC) is an offshore company in Ras Al Khaimah, near Dubai.
To register an offshore company you need:
Passport details of the founders
Confirmation of solvency
Business plan (in some cases)
Costs of opening an offshore company include:
Registration fee: from 5,000 to 10,000 AED (approximately $1,300 - $2,700)
Registration fee: from 5,000 to 10,000 AED (approximately $1,300 - $2,700)...
Opening an offshore company is possible remotely through authorized agents.
The process of registering an offshore company takes from 1 to 2 weeks.
Offshore companies are exempt from corporate taxes, income taxes and dividend taxes. They are also exempt from financial reporting and audit obligations.
Offshore companies provide a high level of asset protection and confidentiality, since information about the owners is not publicly disclosed.
Free economic zones:
100% foreign ownership
Tax exemption
Possibility of obtaining resident visas
Fast and simplified registration
High level of confidentiality
Offshore companies:
Full tax exemption
Asset protection
High level of confidentiality
Easy registration and minimum reporting requirements
Free economic zones:
Restrictions on doing business within the UAE for certain types of activities
Possible additional fees for licenses and services
Offshore companies:
Impossibility of doing business within the UAE
Possible restrictions on certain types of activities
Opening a company in the UAE, whether in a free zone or offshore, provides many benefits for international business. SEZs are suitable for those who want to conduct business within the UAE and obtain visas for employees, while offshore companies are ideal for protecting assets and conducting international business without tax liability.
Opening a company in the UAE, whether in a free zone or offshore, provides many benefits for international business. SEZs are suitable for those who want to conduct business within the UAE and obtain visas for employees, while offshore companies are ideal for protecting assets and conducting international business without tax liability....
