GNcareers, from Gulf News

Setting up in a UAE free zone

Setting up in a UAE free zoneImage Credit: Supplied

The process of setting up a free zone company in the UAE varies from free zone to free zone. While all UAE free zones adhere to most of the steps below, some steps may be slightly different or skipped altogether.

To start, establish the role of the shareholder. If there is just one, your company will be established as a Free Zone Establishment or an FZE. If there is more than one shareholder, the company will be an FZ-LLC. Determine the share capital to be invested – most start from Dh150,000 onwards. Then your designated manager's name is documented on the trade license. You will also need to submit a few potential company names to the free zone authorities who will decide on the final name.

In the case of a home company playing the role of shareholder, a Certificate of Incorporation and Memorandum of Association must be obtained and attested. Prior to that, your home company's board must have passed a resolution agreeing to the formation of the free zone company. A detailed application is then submitted with the manager and shareholders' passport copies to the free zone authorities. If the shareholder is a company, then its attested documents alongside manager's passport copies should be submitted.

Once initial approval is conferred, an official letter authorizing bank account approval is given where the required capital is to be deposited. The bank will issue an official letter which you will need to provide to the free zone authorities. Once the licensing and registration fees and office rent are paid, a Memorandum of Association is signed. After this process is completed, the license to do business in the free zone is issued.

Handy Hints:

• UAE has the most free zones in the Middle East

• All UAE free zones provide attractive schemes

• Company registration takes about 28 working days

Source: Saadiya Ahmad, Special to Classifieds

The writer is a freelancer