Free-trade zones in the United Arab Emirates are areas that have a special tax, customs and import regime, and are governed by their own framework of regulations (with the exception of UAE criminal law).
Assistance with labor recruitment, and additional support services, such as sponsorship and housing.
Each Free Zone is designed around one or more strict industry categories. An independent Free Zone Authority (FZA) governs each free zone, and is the agency responsible for issuing FTZ operating licenses and assisting companies with establishing their business in the FTZ. Each free zone has its own specific requirements regarding minimum capital requirements, office or warehouse space and permitted activities; with each possessing the relevant licenses and adequate legislation to enable their dedicated industry to flourish.
Investors can either register a new company in the form of a Free Zone Establishment (FZE) or simply establish a branch or representative office of their existing or parent company based within the UAE or abroad. An FZE is a limited liability company governed by the rules and regulations of the Free Zone in which it is established. Except for acquiring nationality in the UAE, the provisions of the Commercial Companies Law (CCL) do not apply to FZEs, provided that the Free Zones have special provisions regulating such companies.
Free zone companies can run business within the relevant zone or outside the UAE. Some free zones (including ADGM, JAFZA, DMCC, RAK FTZ) allow for inward redomiciliation of foreign companies, which means a transfer of a corporate seat of an existing company from abroad to the UAE free zone.[3]
There are a few Free Zones in UAE that offer Dual Business License[4] for investors.[5] It is expected to allow them to do business in the Free Zone[6] as well as in the mainland of UAE using the same business license. For Example, Sharjah Publishing City (SPC) Free Zone[7] offers a Dual License for the investors enabling them to easily offer services in the mainland[8] and Free Zone together.[9]
