UAE RAK and Dubai Free Zone Company Formation, Establishment or Branch Formation / Setup
Formation – Establishment Procedures
Note: This varies From Free Zone To Free Zone partly accommodating features / requirements specific to each Free Zone but the below is a good guide on what type of work is involved)
Overall summary of tasks that typically have to be completed for free zone companies:
- Trade Name Reservation
- Initial Approval
- Business Plan Approval
- Resolution & Certification
- Memorandum of Association
- Approving Tenancy Contract
- Submission & Getting the License
- Residence VISA and Emirates ID issue
The Company Formation Process in Detail
- Consultancy on Company Incorporation Procedures or International Tax and Corporate Structuring, Asset Protection or Wealth Management Guidance. After this stage we will send you a quotation to agree and subject to agreement we will issue an invoice for payment. On receipt of payment we will begin the work, as described below.
- Trade name reservation & approval
- Legalization and Initial Approval
- Renting out Commercial Facility (i.e. Shop, Office, Warehouse)
- Drafting of Legal agreements and applications
- Documentation, Legalization and Submission of Final Approval Application
- Followup and Collection of Trade License from JLT
- Company Stamp
- Introduction to Banker for opening Bank Account
- Documentation, Legalization and Submission of Investor Visa Application, Documentation, Legalization and Submission of Emirates ID Application of Investor
- Processing and Biometrics of Investor (Client) for Emirates ID
- VISA Costs
Licensing documentation, as required:
After registering a Free Zone Company with the relevant Free Zone Authority, you can then proceed to obtain a License by completing the relevant forms detailed below and presenting the following documents:
- Application for License.
- Title Deed (Copy) / Lease contract under the name of New Free Zone Company.
- Original Certificate of Ownership Confirmation from the Developer (The owner of the Building).
- Proof of Deposit of the minimum capital in the bank and a confirmation letter from the bank addressed to The Free Zone Authority.
- Memorandum & Article of Association.
- Office Fit-out approved by The Free Zone Authority
- NOC from EHS & Civil Engineering Department
- License Fees payment
- Payment of charges for Memorandum and Articles of Association
The pre-approval which normally takes 15-25 days – from date we have all documents and information from you – and the whole process may vary between 60-75 working days, depending on the free zone and the current workload. Reminder: to be honest the UAE is extremely advantageous but things move a bit “slowly” at the set up stage and things may not be as efficient as in the EU or the US BUT … it has such significant other advantages (0% tax, FULL 100% beneficial owner confidentiality with banks and authorities PLUS+ no information exchange treaties with any country!).
Popular structure for Free Zone Companies
A very popular structure is to first set up offshore co (e.g. in RAK) and then use THAT to be the holding co of a free zone onshore co in any free zone of choice. Result: anonymity PLUS 3 year investor visa PLUS onshore tax resident status with access to tax treaties and issue of certificate of tax residence.