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Documents required for establishing Branch office of a Foreign Company in Free Zone

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Free Zones:

 

Dubai with its tremendous growth and development has become an excellent business environment for many investors around the world. It has one of the most liberal and attractive operating conditions as far as rules and regulations are concerned. To date the free zones across the U.A.E have been successful in attracting a large number of companies and foreign direct investment, as well as expanding net non-oil exports.

 

The main benefits investors enjoy when starting a business in the UAE Free Zones are:

 

100% foreign ownership
100% repatriation of capital and profits
100% free transfer of funds
100% exemption of import and export duties
Staple and clear regulation
No Personal Income Tax
No corporate Tax for 50 years, a concession that’s renewable
State of the art infrastructure
No recruitment problems
No Currency restrictions
Attractive working environment
Owned premises on leased land can be mortgaged

 

An independent Free Zone Authority (FZA) governs each free zone, and is the agency responsible for issuing FTZ operating licenses and assisting companies with establishing their business in the FTZ.

 

Investors can establish their company in any Free Zone either as a Free Zone Establishment (FZE), Free Zone Company (FZCO) or as a branch of their parent company based within the UAE or abroad. Such companies can be solely owned by the foreign investors with no involvement of a UAE National or sponsor. Some activities may require prior approvals from the competent authorities depending on the product / activity required by the investor.

 

A company incorporated in a Free Zone is governed by the rules and regulations of the Free Zone in which it is established. Under Federal Law No. 15 of 1998, except for acquiring nationality in the UAE, the provisions of the CCL do not apply to FZEs, provided that the Free Zones have special provisions regulating such companies.

 

Documents Required for Registering a Business in the UAE Free Zones:
There are some similar formalities to be completed with regards to the documents which are submitted to each free zone depending upon the type of business an investor chooses. In general, the following are the main options:

 

 

For Free Zone Establishment (FZE) OR Free Zone Company (FZC)

 

When an Individual is a shareholder:
Proposed Trade Names
Proposed activities with a brief business plan
Passport copy of Shareholder(s) [with UAE entry Stamp/ visa page-if applicable]
Original bankers reference of Shareholder(s)

When a corporate body is a shareholder:
Proposed Trade Names
Proposed activities with a brief business plan
Copy of License or Certificate of incorporation (*)
Copy of Memorandum & Articles of Association (*)
Shareholder Resolution calling for the establishment of a Company in the Free Zone and appointing a Manager. (*)
Passport copy of Shareholder(s) of the Corporate Body [with UAE entry Stamp/ visa page-if applicable]
Passport Copy of the new Manager appointed in the proposed Company
Power of Attorney in favour of the Manager(*)

 

For setting up a Branch in a Free Zone

 

Copy of License or Certificate of incorporation (*)
Original Certificate of Good Standing
Copy of Memorandum & Articles of Association (*)
Shareholder Resolution calling for the establishment of a Branch Company in the Free Zone and appointing a Manager. (*)
Passport Copies of the Shareholder(s), Director(s) and Manager of the proposed Company.
Power of Attorney in favour of the Manager(*)

NOTE:
All the documents originating from outside the UAE should be apostille & attested by the UAE Embassy / Consulate in the respective countries. (*)
The above list of documents is only part of the basic requirements and subject to change depending on the Free Zone. Additional documents may be required.