Free Zones and its Functions

Free Zone is a business category where a tax-free environment is provided to businessmen with 100% sole ownership. Free Zones are also VAT free, along with several other TAXES so companies could perform a better business operation. Free Zones are developed all over the world to welcome the new investors, new opportunities, and to provide a safe business environment to world. Free Zone is a place for the free trade.

Free Zone always has its own rules, economic regulations, and financial laws. Free Zones in DUBAI are known for offering flexible laws to international investors. The UAE’s first Free Zone was JAFZA, Jebel Ali Free Zone. Now UAE has around 45 different Free Zones. Free Zone in DUBAI also offers the profit and capital repatriation facility without any issue or hurdles. It also offers the facility of Virtual Free Zones.

We will discuss the few but very important functions of Free Zone Authorities in United Arab Emirates (UAE).

• Free Zone has authority to issue a trade permit also known as a Trade License which is a mandatory agreement required to setup any trade activity inside Free Zone. Free Zone authority will issue the trade license and manage this facility for the applicant. This is also called a Business Process for Registration. The information about one of the Free Zones, JAFZA can be obtained here.
• FZCO is for multiple shareholders. FZCO must need to declare one Boss/Partner or secretary.
• FZE is for the single shareholders.
• Branch office for the Parent Company is also possible.
• Free Zone allows the 100% ownership with multiple shareholders and single shareholders.
• Different Free Zones have their own customized processes, which are different than other Free Zones and Mail Land company processes.
• Free Zones are provided with a Tax-Evasion facility.
• Free Zone authority is held accountable for processes and operations.
• There is a work management mechanism in Free Zone, that allows the business owner to manage operations in a good way.
• It’s a “One Shop Service” under “One Roof”.
• Trade License, VISA processing, and all other businesses works can be managed inside the free zone.
• Compliance facility in Free Zone is stricter than other companies.
• Free Zones always offer a wide range of services and licenses.
• Industrial License is also offered here.
• Professional Licenses and Work Permits are also being offered now.
• It offers most simple business structure and ownership.
• Trade name is decided first then, it is submitted.
• Free Zone has been proved quite cost-effective.
• Licenses for few Free Zones, are still issued by DED.
• Trade Names are checked with DED.
• Trade licenses are available for, Commercial, Consultancy, Off-Shore, Media, Manufacturing, Freelancer and many other trade/service activities. For example, advertisement, film productions, media productions, content management, designing, web marketing, script production etc can be performed too along with other conventional business or service activities.

For more details and latest information, we suggest readers to consult the Advocates and Legal Consultants, and approach the Free Zone or DED through them if they have Zero knowledge of doing such activities. Though DED and Free Zone operations are quite smooth and flexible but legal support has a worth for a layman too.

Best Ways to Find Good Lawyers and Law Firms