Free Zone Establishment In Dubai
An FZE or FZC is a limited-liability company that operates under the rules and regulations of the Free Zone in which it is located. A Free Zone Establishment (FZE) is a limited liability business with a single shareholder that can be formed in any United Arab Emirates Free Zone. Whereas the Free Zone Company (FZC), will be a similar entity with multiple shareholdings (maximum 5 shareholders). The fundamental benefit of Free Zone establishment in Dubai is that there are no restrictions on foreign ownership, and companies are governed by an independent Free Zone Authority (FZA). The Free Zone Authority (FZA) is responsible for issuing operating licenses and regulating corporate operations within the Free Zone.
Important Aspects Of A Free Zone Establishment In Dubai
A FZE / FZC is a company with restricted liability. In the United Arab Emirates Free Zone, not only natural persons but also juristic persons such as companies can establish FZE/FZCs. After incorporation/registration, FZE / FZCs, such as branches of local or foreign enterprises, will need to get a Free Zone License in Dubai.
An FZE will be a firm with only one stakeholder. With 2 to 5 shareholders, a FZC will be a multi-shareholder business. No share may be transferred without the free zones’ prior written approval. Each year’s financial years will run from January to December, with the exception of the first year. This will then begin on the date of incorporation.
Requirements For Setting Up A Free Zone Establishment In The Dubai
The FZE / FZC Implementing Rules and Regulations must be followed by Free Zone Establishments (FZE) / Free Zone Companies (FZC). The Memorandum and Articles of Association of FZE are equivalent to the Memorandum and Articles of Association of FZC. On the other hand Articles of Association of FZC are equivalent to the Memorandum and Articles of Association of FZC.
Every year, within three months after the end of the financial year, FZE/FZE must submit audited financial statements to the UAE Free Zone Authority. For FZE / FZCs, at least two directors and a secretary are required. A single person can hold both the Director and Secretary positions.
Documents Required For Setting Up A Free Zone Establishment In Dubai
- Owner’s Personal Information
- Reference from the bank (Original)
- Letter of Appointment for the Manager, accompanied with a sample signature (notarized) and a copy of his passport and Power of Attorney
- Regarding Individuals
- The company’s certificate of incorporation/registration (Notarized)
- A letter from a bank confirming the company’s creditworthiness. (Original)
- Letter of Appointment for the Manager, accompanied with a notarized specimen signature, passport copy, and Power of Attorney.
- The license is prepared by the Free Zone when the agreement for Facility Lease and Personal Secondments is signed.
- The license and all other necessary paperwork are issued by the Free Zone upon payment.