What is a Free Zone Company?

A free zone company is a trade business entity that offers free designated trade space to the newcomers while providing services like tax exemptions, 100% foreign ownership, streamlined setup processes, etc. Free zone are created to enhance economic growth along with attracting foreign investment in various industries like media, finance, manufacturing, etc. Moreover, the companies who come under the free zone enjoy various benefits like no customs duties on export and import, office solutions, quick visa service options, etc. However, the only issue is that the companies are restricted from directly trading within the UAE Mainland without showing any interference from agents or distributors. 

Why choose Abu Dhabi Free Zone Company Formation?

 Abu Dhabi contains various free zones which provide an ideal setup for the establishment in the Emirates and also provide an exceptionally great potential of resources for International investors. Abu Dhabi has created free zones with a motive to encourage international Investments and diversify the economy of the country. In the free zone, various industries like media and light businesses, and logistic businesses due to their great benefits. Various companies opt for company registration in Abu Dhabi because it provides numerous benefits and amenities to the shareholders who open their businesses in the UAE Free Zone.

Advantages of Setting up a Company in the Abu Dhabi Free Zone

The free zones in Abu Dhabi provide numerous benefits to the enterprises based on their expertise. Every Abu Dhabi free zone company formation can enjoy some exclusive benefits creating a better place for the companies to cater to their needs. For instance, the free zones for IT enterprises can immediately get results for IT businesses. All the free zones of Abu Dhabi offer:

• Tourism sector development
• It offers 100% ownership
• Trade anywhere across the UAE
• No requirement for personal or corporate tax
• No minimum requirements for the capital in Mainland company
• Affordable office spaces to set up office
• No annual audits required

List of free zones in Abu Dhabi

The people who are interested in opening their businesses in one of the Free Zones of Abu Dhabi can look after the list of 7 Free Zones:

• Abu Dhabi Airport Free Zone (ADAFZ)
• Abu Dhabi Global Markets(ADGM)
• Industrial city of Abu Dhabi (ICAD)
• Masdar Free City Zone
• Higher Corporation for Specialized Economic Zones (ZonesCorp)
• Twofour54 Abu Dhabi Media Zone
• Khalifa Industrial Zone Abu Dhabi (KIZAD)

Steps to Set Up a Free Zone Company in Abu Dhabi

The main goal of the UAE Government in establishing companies in the free zone is to improve foreign investment. Hence, the whole process of opting for the free zone is created in such a hassle-free, quick, and easy manner that every individual can follow this procedure. Moreover, they are free from administration restrictions creating a better space for flourishing your business.

• Determine the type of Business activity.

Determination of types of business activity is necessary because every business has its own rules and regulations making it highly necessary to look after the type of business before Abu Dhabi free zone company formation. There are 4 types of Business that are likely to flourish greatly in free zones.

• Free Zone set up
• Freelance Business
• Limited Liability Company in a free zone
• Branch of a UAE business or a Foreign Investment

• Register the trade name

After the determination of the Business activity, follows the legal entity type in which one has to choose the legal trade name. However, in certain situations, you might need to verify the Department of Economics Development to see if the proposed trade name can be approved and whether it is available in that region or not. The companies are obligated to follow some trade regulations such as:

• The trade name should not harm the country’s morality or public norms.
• The trade name should include any names or logos of governing departments, foreign organizations, religions, etc.
• It should have a consistency with the legal status.
• The trade name should not be copied or any other organization should own the same name.

• Choose the Business License

Once you have an approved trade name or you are registered under the UAE Government, you need to get the business license approval for the insurance. The company owners can choose the Abu Dhabi free zone based on their business activities.

1. Media License
2. Commercial or trade License
3. Freelancer License
4. Industrial License
5. Offshore License
6. Consultancy or service license
7. Warehousing license
8. Educational license
9. Manufacturing license
10. Commercial or trade license

• Choose an office space in the Abu Dhabi free zone

Office space is essential in turning your company formation ideas into reality as you need a space where one can work, process, and develop for the success of the company. However, the companies can either purchase or get office space on lease in the Abu Dhabi free zone. The requirement for the office space is solely based on the number of employees and the type of business activities performed in that office space. The license in Abu Dhabi free zones will be provided based on the area of office space used by your company. Moreover, if you need a big office space then you can also apply for multiple licenses.

• Approval from Abu Dhabi Free Zone Authority

The Abu Dhabi free zones have to follow certain rules and regulations which are regulated by the authorities. However, in order to set up a company in Free Zone, one might have to take the approval as it plays an important role. Moreover, to get approval, we have to apply along with the necessary documents.

• Registration and insurance of License

The last and most important step for the Business setup in Free Zones in Abu Dhabi is to register the company. Once approval is fulfilled, you have to work on the registration process and the paying off the expense fees. However, the amount of the fee may depend upon the type of license you are requesting for. Some of the things that we should keep in mind before applying for registration for the Abu Dhabi Free Zones are:

• Share capital information
• Director on the whole drop
• The board resolution for the appointment of the new member of the company
• Power of attorney provided to the director of the new company
• Articles of Asocial and Memorandum
• Specimen signature of the manager of the company

Documents required for the Abu Dhabi Free Zone Company Formation

The required documents for the registration of the businesses in Abu Dhabi Free Zone are given below:

• Bank’s reference letter
• 2 passport – sized photos
• Application form of the company
• Title of the new company
• Business activity specification
• Required number of visas
• Curriculum Vitaes for freelance license
• Shareholder’s passport copies
• 2 proofs of address

Common challenges for company setup in Abu Dhabi and how to overcome them?

Some of the common issues faced by Abu Dhabi Free Zone Company Setups are:

Knowledge of business formation in Abu Dhabi

If you are planning Abu Dhabi Free Zone Company Setup, then you need to have knowledge about the rules and regulations of business, markets, licensing regulations, visa regulations, etc. Having deep knowledge will help you from getting drowned in potential problems that could be avoided with the help of advanced research. You have to make a whole plan and put all the points together which are necessary for the business formation and you can also visit various official governmental authorities to get better knowledge.

Maintaining the hierarchy for company setup in Abu Dhabi

Hierarchy is an essential point that one should keep in mind while planning for the Company Setup in Abu Dhabi Free Zone. Keeping a sense of respect towards the positions and titles of the people is necessary for you as you should not hurt the sentiments of the local Emiratis with your actions. One can even participate in Cross-cultural training programs to understand business strategies in a good manner which helps enhance the success of your organization.

Language 

UAE is a Muslim country so here, the national language is Arabic. Though English is a common language that can be used by people during bilingual meetings most of the organization’s work like record keeping, agreements, etc. is done in Arabic only. The new businesses can learn Arabic to avoid inconsistency when meeting with new people.

Discover why consulting BrightVision is the best option for Corporate Pro Services

BrightVision is considered the best option for Corporate Pro Services because it provides a wide range of professionals who are highly familiar with all the rules and regulations of the Dubai Government making it a safe place to get advice. Moreover, our immense dedication towards providing the best and most exquisite services to the clients for getting the issues verified and registration is unbeatable. Benefits of BrightVision are:

• Transparent fee range and pricing
• Best in knowledge and support
• Registration can be done from anywhere

Expertise

BrightVision has expertise in getting your visas done quickly as they have close connections with the high officials and the ministries of the UAE Government. 

Ease 

BrightVision is one place where clients can find all the Pro solutions at one place making it an efficient place while providing easy and reliable solutions consultation.

Clarity 

BrightVision provides Hassle-free services for your businesses. Moreover, the official authorities make sure to take care of your essential documents which should be delivered to you on time.