UAE is home to numerous Free Trade Zones that support the growth of trade and the economy of the region. There are various business activities available in the Free Zones for doing business. In UAE there are more than 45 Free Zones delivering various company packages for investors.

Foreign investors choose to establish their business in the Free Zones due to various reasons such as:

• The ease of setting up an office,
• Registering the company easily,
• Avail of the numerous business benefits offered by the Free Zones.

Free Zone in UAE

Free Zone in UAE is an area demarcated within the country. It is a designated area where investors can legally trade and avail various incentives for their business. Furthermore, for a Free Zone Company in UAE there are a host of benefits such as:

• Provision of Complete Ownership of the Company
• Trusted Governance
• Absence of taxation,
• Plug and Play Office Spaces
• Easy Company Registration and more

Also, there are designated Free Zones in UAE that are VAT Exempted under certain circumstances. The VAT is levied depending on the place of supply of the services and goods by the Free Zone company.

Free Zone – Available Privileges for the Investors

The jurisdiction of a particular Freezone is limited to the area where it is established. A company registered in a Freezone is essentially an onshore resident company. So, it can avail all privileges of an onshore company such as:

1. It is eligible for Office premises in Freezone
2. It can have a Visa quota
3. It can trade or do business within the UAE and outside
4. It can be registered with the Chamber of Commerce
5. It can obtain import-export code
6. Tax Residency Certificate can be obtained so that investors get the benefit of DTAA ( Double Taxation Avoidance Agreement)
7. Certificate of Origin can be obtained for manufacturing companies
8. 100% Expatriate Ownership and 100% repatriation of profits

The Free Zones in Dubai will be pricier when considering the total cost of setting up a business in UAE. It is dependent on various factors such as the location, office rent, other infrastructure facilities, and more.

Top Free Zones in Dubai

The Free Zones in Dubai offer various company formation packages for the investors. Depending on the specific business requirement, the Free Zones have custom-made business solutions.

There are popular Free Trade Zones in Dubai that offer variety of company packages. Few of them are:

• Dubai Airport Free Zone
• Dubai Multi-Commodities Center
• Dubai CommerCity
• Dubai Silicon Oasis – IFZA

Also, the investor can choose from a wide range of business activities for setting up their company. The Free Zones of Dubai has many advantages due to the strategic location and improved infrastructure facilities to support business growth.

Free Zones in Abu Dhabi

There are Free Zones in Abu Dhabi that offer various specialized license packages and business activities to the entrepreneurs. For example, the Masdar City Free Zone offers special licenses for startups in the field of renewable energy, energy management, environment management, etc.

Similarly, the Khalifa Free Trade Zone (KIZAD) offers logistics, shipping, packaging, and commercial trading license at budget friendly rates for the investors.

Additionally, for airlines chartering, flight maintenance, and aircraft management companies, the Abu Dhabi Airport Free Zone is an ideal choice. It offers various cost-effective business license packages for the entrepreneurs.

Top Free Zones in the Northern Emirates of UAE

The Northern Emirates especially Sharjah has few cost-effective alternatives for companies to set up at a much affordable rate in the UAE.

Let’s look at the various options available in the Northern Emirates for company setup and successfully set up your dream business venture in UAE most comfortably and cost-effectively.

1. Sharjah Airport International Free Zone (SAIF Zone)

Sharjah Airport International Free Zone is one of the most dynamic Free Trade Zone driving a variety of trade and business activities in the UAE. Hence, it is one of the busiest trading and manufacturing hubs of UAE.

With an in-house Customs Clearance, proximity to the Sharjah International Airport and the Khalid Port, SAIF Zone facilitates global trade with more than 100 countries.

The custom warehouse and light manufacturing units allow entrepreneurs to easily scale up their business operations and profitably run the operations. SAIF Zone offers customized office spaces starting from 9 Sq.m cubicle to fully furnished executive offices.

Also, the company formation process, state-of-the-art infrastructure, staff accommodation, etc., are best in class making the Free Zone a favorable option to consider for setting up a business establishment in the UAE.

2. Hamriyah Free Zone

Similar to Sharjah Airport International Free Zone, the Hamriyah Free Zone is another popular Free Zone for commercial and manufacturing licenses mainly. It hosts some of the top manufacturers of the world.

Hamriyah Free Zone offers warehouses with office space requirements with up to 50 employee visa quotas for large manufacturing setup.

There are top-class warehousing and storage facilities in Hamriyah exclusively for food manufacturers, healthcare providers, etc.

The proximity to one of the busiest ports in the UAE makes it a trader’s hub. There are daily import-export transactions from Hamriyah Port to numerous countries around the world with the majority share to Asia and then Africa and Europe.

3. Sharjah Media City

Sharjah Media City is one of the most competitive Free Zone gaining a strong presence as the popular Free Zones for profitable business investment in the UAE.

SHAMS offers a wide range of business activities at a low-cost business setup package starting from as low as AED 8,050 for a Zero visa quota company setup.

The Free Zone offers investors a multitude of company formation options and a wide list of business activities to choose from.
As the name goes, SHAMS just does not only offer Media related Business License but several business licenses and activity categories ranging from general trading, services, eCommerce, and more.
To know more about Company Formation in Sharjah Media City, talk to our expert Business Consultants, connect with us here!

4. SPC Free Zone

The Sharjah Publishing City Free Zone is a competitive Free Zone in the emirate of Sharjah. It has various company packages that suit the investor business requirements. SPC Free Zone is a popular choice among the freelancers and startup companies.
The Free Zone offers cost-effective company packages that will enable investors to easily start there business venture and scale up. SPC offers flexi-desk spaces and Co-working spaces for startups and freelancers to work.
SPC offers the investors more than 1000+ business activities across services and commercial business categories. The proximity to Sharjah International Airport makes it an ideal location for business travelers to easily visit the office premises for project discussions and meetings.

5. Ajman Free Zone

For entrepreneurs looking at further low-cost options, there is Ajman Free zone that offers attractive business setup packages across various business license categories and trade activities.
Choosing a Free Zone with the only objective of a low-cost business license will have implications in the future during office space expansion, warehouse space addition, bank account opening, address and reputation, and more.
Hence, entrepreneurs must look at a holistic approach while choosing the right Free Zone for their business establishment and not just a low-cost option.

6. Ajman Media City

Ajman Media City Free Zone is another low-cost option for investors who are looking at an entry point to the UAE business landscape.
The Ajman Media City offers a Freelance Permit for media enthusiasts, Photographers, graphic designers, web-developers, etc., to enter the entrepreneur world seamlessly.

Also, Ajman Media City offers a host of other business license packages at competitive packages for investors to choose from for their business setup in UAE.

7. Ras Al Khaimah Economic Zone (RAKEZ)

The RAKEZ is a Special Economic Zone in the Emirates of Ras Al Khaimah offering attractive company setup options for global investors.

The Free Zone consists of dedicated business parks, manufacturing units, warehousing, and logistics complexes to cater to a wide business requirement of entrepreneurs.

Also, to promote the academic and education-related business establishments, RAKEZ has a specialized Academic Zone that houses all the companies that offer services and products in the education sector such as training, Ed-Tech startups, tutoring, etc.

In a nutshell, UAE Free Zones offers global investors all that they require to set up their business seamlessly and easily scale up to achieve business sustainability.

Seasoned Business Setup Consultants like Aurion will assist in the end to end Business Setup Processes, Visa Processing, Bank Account Opening Assistance, and beyond making the journey of Company Formation in UAE hassle-free for the investors.

Read more about Business Setup in Fujairah and Business Setup in Ras Al Khaimah (RAK).

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Driven by the growth in the eCommerce business sector, warehousing is a lucrative business opportunity that large and small distributors, logistic service providers, traders can take advantage of.

Ecommerce Sector growth and Requirement of Warehouse

The increasing popularity of e-commerce and global trading requirements are adding more warehousing space to the UAE market.

The high internet penetration, high purchasing power per capita, and large consumer spending are creating a favorable market for eCommerce companies.

To power the eCommerce business there is a growing requirement for the right logistics support, distribution network, and warehouse for managing the deliveries effectively.

Warehouse License Categories in Dubai

In UAE mainly warehouse license is available from two major business jurisdictions – The Mainland of UAE and the Free Zones. The rates for the warehouse have been highly competitive in the UAE with a wide range of options available.

Cost of Warehouse License in UAE

Warehouses License in UAE are an integral part of the Free Zones and Mainland business ecosystem. Depending on the specifications, location, and type, the price varies. The cost of a warehouse license in Hamriyah Free Zone starts at AED 85,500 for a 307 Sq.m Warehouse.

The warehouses are an essential business requirement for all businesses that require storage space or a light manufacturing and assembling unit. The cost of the Warehouse depends on various factors such as size, power consumption, customization for cold storage, manufacturing unit, assembling, etc.

The Warehouse License cost of a 125 Sq.m warehouse in the Sharjah Airport Free Zone is AED 48,000 / year ( Special Discount rate). SAIF Zone has a wide variety of Warehouse units for lease ranging from 100 sq.m, 125 sq.m, 400 sq,m, and more customized offers available for the investors.

The warehouse rental cost is a recurring yearly payment to continue the operations to the next year. Similarly, the Warehouse License and Trade License of the company must be renewed on a yearly basis.

Choosing the Right Warehouse and Business Jurisdiction

Most of the Free Zones have warehouse facilities for their investors at the Free Zone premises. It provides the right storage infrastructure for trading companies and light manufacturing units.

Also, there are warehouses available in the Mainland of UAE operated by private businesses that can be rented as per requirement.

UAE as a whole provides top-class warehouse, storage, transport, and logistics support services to the businesses operating in the region to easily conduct daily trade operations locally and internationally.

Warehouse Choices in Free Zones and Mainland of UAE

An investor can apply for a general trading license from any of the Free Zones in UAE or the mainland of UAE by opening a Limited Liability Company.

The Free Zones offer Customized Warehouses for investors at affordable rates and enormous business benefits. Similarly, for an LLC Company, there are private warehouses around the UAE where the goods can be stored and managed accordingly.

All the goods imported to the UAE must follow the Customs guidelines and clear the required checks to be legally sold or distributed in the UAE.

Also, for the goods stored in the Free Zones, there are in-house Customs checkpoints in most of the Gated Free Zones in UAE. Any exchange of goods to and from the Free Zone must pass through the Customs.

Free Zones with Warehousing Facility

Free Zones in UAE with warehousing facilities offer the perfect infrastructure for trading companies to store the goods, facilitate imports/export, and distribute in the UAE and GCC region.

Top Free Zones with Custom Build Warehouse Facilities

1. Dubai Airport Free Zone

2. Sharjah Airport International Free Zone

3. Hamriyah Free Zone

4. Dubai South

5. Jebel Ali Free Zone

Benefits of Setting Up an Export House in UAE

Investors can get into long term lease contracts and use the space for storage, distribution, packaging, and assembling. Free Zones in UAE offer customized warehouse facilities that can be used as light manufacturing units for the manufacturing of certain permissible items.

To get more details about warehouses license in UAE and light manufacturing units offered by various Free Zones in the UAE, connect with our team right away!

The key benefits of setting up an export house or a logistics business in UAE are the following:

1. Enjoy the Tax-Free Environment in UAE

UAE has a Zero Taxation policy for business, the only tax in UAE is a 5% Value-Added-Tax. In the Free Zones, there is a benefit of Zero percent import duty on imports to Free Zones.

However, the goods going out of the Free Zone to the mainland will be subjected to the normal VAT.

Also, the foreign investors who are setting up an export or trading company in the UAE can benefit from the Double Taxation Avoidance Agreement (DTAA) and save tax in the home country.

A Tax Residence Certificate can be applied in the UAE that will act as proof of residence for tax savings in the investor’s home country.

2. Ease of Doing Business

UAE has a robust e-Governance and simplified Company Setup options across the various Free Zones and the mainland of UAE.

Compared to the European region and other countries in Asia, UAE has one of the most streamlined and quick companies formation and ease of doing business.

To support business growth UAE has all the necessary infrastructure and Government support.

Business Consultants will assist investors in preparing the required documents and guide through the company formation process ensuring a hassle-free company setup in UAE.

3. Enormous Market Opportunities

Setting up a company in UAE opens up a large market opportunity for the investors. The strategic location of the UAE makes it a perfect trade hub and business center.

The logistics and transport infrastructure (road transport, shipping network, air transport) connects UAE with more than 190 countries including the whole of GCC Countries and the rest of the Middle East and Africa region.

Hence, for local traders and business investors in the UAE, there is immense scope for easy expansion to global markets and target more customers for their business by setting up a company in the UAE.

4. Low Cost- High Revenue Generating Business

The Business Setup Cost in UAE is comparatively lower than other European Countries and provides world-class infrastructure facilities to support the business.

Also, businesses in the UAE have a huge potential to grow and scale-up generating higher revenue due to an expanding market and trade ecosystem.

5. Flexible Warehouse Options

The vast availability of customized Warehouses in the UAE makes it a perfect location for general trading companies and export houses.

Trading Companies can set up their distribution unit and branches / new companies in UAE and facilitate global trade operations by making UAE the central warehouse location.

The well-established logistics connectivity and storage spaces for specific purposes (Food Storage, Cold Storage, Medical Products, etc.) as well as storage facilities for general goods make the general traders easily import and export goods to and from UAE.

To know more about Warehouse Facility Requirements in UAE for your company, connect with our team right away!

Contact: Aurion Business Consultants

The post What are the Factors Driving Demand for Warehouse Licenses in UAE? appeared first on AURION.

The SAIF Zone is a designated zone (VAT Free Zone) and has an in-house customs checkpoint for easy clearance of shipments. The proximity to Sharjah airport makes it a preferred choice for trading and import-export companies.

The Free Zone is the perfect choice for a wide range of companies such as air freight forwarding companies, international distribution companies, and trading firms to easily transport goods to global markets.

Why Choose SAIF Zone for Setting up a Trading Company?

The SAIF Zone has a well-established infrastructure offering a wide range of facilities starting from shared office space to large manufacturing units. It caters to a large business community with varying business requirements.

It is also close to the busy seaport, the Khalid Port, and two other deepwater ports the Khorfakkan Port and Hamriyah Port, facilitating faster and more streamlined import-export operations.

SAIF Zone offers investors a host of business benefits along the lines of operational efficiency, lowering costs, and expansion to international markets. The company setup process in the Free Zone is easy and hassle-free.

The Free Zone offers a cost-effective Trade License package, office space, and warehouse facilities to the investors. It is a perfect choice for setting up an import-export company in the UAE.

How Do the Import Export Companies Operate in a Free Trade Zone based in UAE?

For starting an Import Export Company anywhere in the world and successfully operating it to achieve business growth, it is a pre-requisite to know more about the Import, export tax, customs duty, and other taxation norms of the area where the business is operating.

In UAE, there are two major business jurisdictions for company formation – The Mainland and the Free Zone. They have distinct characteristics and business benefits. For Trading Companies especially to facilitate import, export, and trading in international markets, the Free Zones are the right choice.

There is Zero Customs duty on imports to the Free Zone, as well as most of the Free Zones have a customs checkpoint and are in proximity to the busiest Airports and seaports of UAE.

Also, the Free Zones in UAE have good connectivity by roads to major business centers and consumer markets across the UAE and Oman.

Hence, with the well-established logistics, storage facilities, and transportation network, the Free Zones are ideal destinations for an international trading company to easily facilitate faster trade operations.

What are the benefits of Starting an Import – Export Company in a Designated Free Zone?

A designated Zone as specified in the UAE Cabinet decision is a VAT Free Zone. For VAT, the designated Free Zones are considered to be out of the purview of VAT.

The Designated Free Trade Zones in UAE is where the VAT is charged at ‘Zero Percent’ or there is no VAT payment required for companies trading in the Designated Free Zone. There are few conditions to be met for classifying the transaction as VAT free.

For an Import-Export Company being in a designated Zone has many advantages. The absence of import-export duty, VAT exemptions, in-house customs clearance, etc., will help them to attain long-term profitability.

Designated Zone’s movements of Goods for VAT treatment:

The import export operations through Designated Free Zone has many advantages such as VAT Exemptions, Import Duty Exemptions, in-house Customs Clearance, etc. The following table highlights the movement of Goods and related VAT applicability on the transfer of goods to and from the Free Zone.

Required Documents for Free Zone Importing and Exporting Goods

To initiate the import and export of goods there are various documents required for the smooth transfer. The movement of Goods to and from the Free Trade Zones are regulated by the respective Free Zone’s Customs Department.

There are several ways the Goods can be transferred to and from the Free Zones in UAE. Following are the most common ways of goods transfer to and from the Free Trade Zones in UAE. There are few documents required by the authorities depending on the mode of goods transfer.

1. Importing Goods to Free Zone from Foreign Country/Outside UAE:

• Bill of Lading/Custom Bill (Air Way Bill or Bill from Terminal of Arrival)
• Suppliers Invoice
• Packing Lists/Delivery Note
• Bill of Entry (Free Zone Customs Form) to be filled upon entering of goods

2. Importing Goods to Free Zone from Mainland:

• Suppliers Invoice
• Packing Lists/Delivery Note
• Bill of Entry (Free Zone Customs Form) to be filled upon entering of goods

3. Exporting Goods to Foreign Country/Outside the UAE from Free Zone:

• Bill of Entry
• Suppliers Invoice
• Invoice to Customer
• Packing Lists//Delivery Note
• Bill of Exit (Free Zone Customs Form) to be filled upon exiting of goods

4. Exporting Goods to Mainland from Free Zone:

• Bill of Entry
• Suppliers Invoice
• Invoice to Customer
• Packing Lists//Delivery Note
• Bill of Exit (Free Zone Customs Form) to be filled upon exiting of goods

Note:

• In exporting goods to Mainland distributor is not required or Mandatory, that depends on the agreement between the Supplier and Customer.
• 5% duty is imposed on goods imported from abroad excluding goods in transit to GCC countries. However, the duty varies on some goods according to the tariff.
• Goods originating from GCC countries are treated as UAE local goods, provided that 40% of the raw materials used for manufacturing such goods is originated in the GCC

Import Operations through Sharjah Port – Things to know

The Sharjah Port handles huge volume of trade in UAE. It is one of the busiest Ports in the UAE. The companies operating in the Free Zones of UAE can opt for shipping their goods or importing goods to UAE via the Sharjah Port.

Hence, If the Import Operations is through Sharjah Port, then the documents will be as follows:

• Delivery Note
• Packing Lists
• Original Invoice from Supplier
• Attested Certificate of Origin
• Bill of Lading
• Receipt of Custom Duties/settled payment
• Inspection Report from Sharjah Port
• Bill of Entry/Import Declaration

If the above documents are not completed, then the amount of AED 1000 to be deposited and can only be refunded after completion of the required documents.

Export Operation through Sharjah Port

Below are the documents required for conducting Export Operations through Sharjah Port:

• Original Invoice
• Bill of Exit/Export Declaration

To know more about Designated Free Zone for VAT or Starting a Trading Company in the UAE Free Zones, talk to our expert team right away!

Read more about “Tips for Setting up a Trading, Logistics, or Supply Chain Company in Dubai“.

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