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Tag: business setup in free zones

  • Why Dubai LLC structure in free zone is ideal for company setup

    Why Dubai LLC structure in free zone is ideal for company setup

    UAE has made a name for itself amongst all of the Middle East to be one of the countries with a large number of free zones for conducting businesses. With an abundance of opportunities and benefits, UAE has without a doubt attracted investors and entrepreneurs from all over the globe. 

    One of the most desirable factors of setting up a company in the UAE is the various structures of companies and benefits that come with it, particularly Free Zone Limited Liability Companies (FZ LLC). In this blog, we will explore what an LLC business structure is, its benefits all the way up to the differences between mainland and free zone to set up your company with the LLC structure in a free zone in Dubai and other emirates.

    What is a limited liability company in a free zone?

    A free zone establishment (FZE) or free zone company (FZC) is a limited liability company that is formed and governed by the rules and regulations of the free zone in which it is established. 

    There are two company structures for free zones businesses: Free zone establishment limited liability company (FZE LLC) and free zone company limited liability company (FZCO LLC). The feature of FZ LLC is that it has a single shareholder (single member LLC), unlike FZCO LLC where one can have multiple shareholders.

    Benefits of LLC structure in a free zone:

    One of the main benefits of having an LLC company structure is that it allows the shareholder of the company to be protected from personal liability, debt and more that may occur with the operations of the company.

    An LLC structure in a free zone in Dubai and other Emirates would also mean that you could only suffer losses up to the amount you have invested in your company and not any more than that. Therefore, LLC is a business that offers flexible ways to manage your profits and losses without being personally liable for the entire gains/losses. There are various other benefits of having an LLC business structure in a free zone including:

    • 100% foreign ownership: Foreign entrepreneurs can benefit from having complete ownership of their company with no local partner. However, you will need a local sponsor to whom you will be required to pay a mutually agreed annual fee.
    • Full repatriation of capitals and profits: Free zone companies can repatriate all their profits to their home country. Giving them the freedom to transfer 100% of their capital to their place of origin without any requirements.
    • No personal, corporate or income tax
    • Exemption from all import and export duty
    • Convenient recruitment and cost – effective workforce
    • Range of business activities: Free zones support a range of business activities. This makes it easy for individuals to connect and network.
    • Numerous options of facilities: There are various options for facilities you can choose for your business setup. This includes flexi-desk facilities, standard offices all the way to warehouse facilities.
    • UAE residence visa for 3 years 

    LLC company formation and licenses offered:

    When considering LLC structure in a free zone in the UAE, unlike mainland, it enables you to opt for an LLC structure regardless of the type of license you have. You will still have the protection of having a limited liability company LLC structure and not suffer any setbacks in terms of liabilities, unlike when you have a sole proprietorship where you could suffer 100% loss. The types of licenses you can have with LLC structure include:

    A free zone LLC structure is suitable for clients looking to provide services or obtain a professional license. Professional license in a free zone enables you to conduct business in local markets without the concern of debts or liabilities that could carry forward with your business.

    There are about 45 free zones that offer a structure of LLC in Dubai and other emirates.  The free zone that is most suitable for LLC structure for your company would depend upon the nature of your company such as the business activities, nature of the facility, number of visas and more. 

    LLC formation on mainland and on free zone:

    LLC company formations are usually formed on the mainland. Mainland companies with LLC structure would require 51% ownership to be given to a local sponsor while 49% is owned by the foreign expat.

    This is however not the case with free zones LLC company structure where the expat has the opportunity to have 100% ownership of the company without the need of a local sponsor. If you choose to have more partners in an LLC structure in a free zone, you are given the choice to choose how your shares are divided and do not need any other individuals in your business that you do not require.

    The similarities between a mainland LLC company and a free zone limited liability company is that you will still have the same protection of the LLC structure that would enable you to have. However, not all free zones have LLC structures.

    What’s the Difference between LLC and FZE in the UAE?

    Limited liability companies and free zone establishments have their set of benefits and limitations. Here, we compare them on various grounds to make it easier for you:

    1. Business Scope

    A key difference between LLC and FZE is that each has authorities that have its own set of rules and protocols. One common restriction imposed on businesses is that they’re only permitted to have an operating agreement within their designated free zone. It mainly refers to commercial licensing. Professional licenses can still work in the local market if they want to. 

    LLCs are free to trade independently with the local marketplace, any free zone, or even outside the UAE. The same applies to all commercial and professional business licenses.

    2. Office Space

    A free zone limited liability company license can be applied for with or without a physical address. For a minimum of 5 hours per week, administrations authorize the use of flexi desks or smart office spaces. Business Bay, Media City, and JLT are all good places to look for offices. 

    A minimum of 200 square feet of office space must be leased out yearly to qualify for an LLC license. Upon registration, the certified tenancy contract must be given to the Department of Economic Development (DED). The DED will then grant the LLC license.

    3. Authority Approvals

    A free zone limited liability company is managed by the authority in charge of it. By presenting the required documentation, you must obtain the necessary authorization from relevant departments. External approvals are usually not required unless a specific activity necessitates them. Standard permits from agencies such as the Department of Economic Development, the Ministry of Labor, and the Ministry of Immigration (MOI) are required for an LLC license. 

    Individual and corporate shareholders may have different documentation. It is occasionally necessary to obtain approval from external authorities. Education-related licenses, for example, are to be approved by the Knowledge and Human Development Authority (KHDA).

    4. Visa Eligibility

    Another vital aspect of free zone vs. LLC Dubai is visa eligibility. The number of visas available to free zone enterprises is limited. They are usually limited to one to six visa packages. If a corporation requires more, they must rent a physical area within their designated free zone. 

    The Ministry of Labor (MOL) issues LLCs a digital quota for visa candidacy. The quota is determined by the size of the office. One visa is granted for every 80 square feet of office space, with the number of visas available growing as the size of the office grows. Companies might request a separate quota for employees who don’t work in the office. 

    Get started in the world of business with Shuraa

    Getting your company formed all by yourself can be quite taxing and time-consuming. When starting a business in the UAE, there are various factors and steps that are involved in the process of business setup. For more in-depth information about the business structure of free zone LLC in Dubai, contact Shuraa Business Setup – one of the leading providers of company formation solutions.

    Our free zone specialists at Shuraa will guide you through the entire process and get you started with setting up your company in the UAE. You can get in touch with our specialists by contacting us on +971 44081900 or drop a WhatsApp message on +971 507775554. You can also email your query to info@shuraa.com.


    Author
    Seema Sasidharan
    Corporate Advisor | Free Zone Specialist

  • DMCC Free Zone Company Setup

    DMCC Free Zone Company Setup

    Dubai has definitely made a name for itself as a destination for dreamers. It offers endless opportunities and discoveries around the city. For several decades, individuals from all over the world have migrated to Dubai with hopes and dreams to make it big, and why wouldn’t they? Dubai happens to be the ultimate destination for entrepreneurs with numerous perks to make one’s business life an easy life.

    Free zones in particular are the ideal choices for starting a business. DMCC free zone company set up is one of the most popular options. Dubai Multi Commodities Centre (DMCC) enables you to have 100% ownership of your company. It also enables you to remit all profits to your home country as an expatriate. This isn’t all. There is more when it comes to starting a business in the UAE free zone. If you are willing to channel your inner entrepreneur to become a successful businessperson in the land of opportunities, DMCC companies set up is the ultimate choice.

    Reasons why DMCC free zone company setup is the right move:

    DMCC is known to be the world’s number 1 free zone. Voted Global Free Zone of the year for four years in a row by the Financial Times fDi Magazine.

    The free zone is located at the heart of Jumeirah Lake Towers, one of the most esteemed locations in Dubai. Formed in 2002, DMCC free zone has achieved maximum number of company registrations and listed more than 11,000 companies in no time.

    The business sector in Dubai is world-renowned for various reasons including a brilliant tax regime, numerous incentives and incubator schemes. Dubai is the ultimate tourist destination. Hence, starting a business here all the more impactful in industries such as tourism all the way to trading.

    DMCC free zone has been a major contributor to the development of trade and commerce in Dubai. It makes an ideal industry to penetrate and start a business in UAE. DMCC free zone company setup would allow for advancement and success for your business.

    DMCC free zone provides several benefits to businesses such as:

    • Full ownership of business: Free zones permit foreign investors to get 100% ownership of their business.
    • Full profit repatriation: Free zone companies can repatriate all their profits to their home country. Giving them the freedom to transfer 100% of their capital to their place of origin without any requirements.
    • 0% corporate tax
    • 0% import or export tax
    • Dual licensing
    • Range of business activities: Free zones support a range of business activities, making it easy for individuals to connect and network.
    • Fast and easy setup process for getting a business license.
    • Multiple license requirements: DMCC free zone offers three types of licenses which are – service license, industrial license, and trading license. These are great for any type of business size and requirement.
    • Register from the comfort of your home, as all the required documents can be sent to DMCC free zone without requiring a physical presence for submission. 

    Activities in DMCC free zone

    DMCC also is the only free zone in the UAE that permits issuance, listing and trading of cryptocurrency. As of this year, DMCC authorities signed the initial agreement with the Security and Commodities Authority (SCA). The agreement permits licensing for businesses that want to deal with cryptocurrency. 

    DMCC’s crypto centre offers bespoke licenses and a wide range of incentives to prospective businesses. DMCC Free Zone license cost is cost-effective. Considering the growth and popularity of cryptocurrency, it would easily make any company dealing with this activity highly successful.

    There are two types of licenses DMCC authorities offer for cryptocurrency including:

    • Distributed Ledger Technology Services: This activity includes providing database management solutions and ancillary services based on distributed ledger technologies, such as Blockchain. Companies with this activity are not permitted to trade in, or set up an exchange for currencies or cryptocurrencies or provide any financial activity services, brokerage or payment processing.
    • Propriety Trading in Crypto-communities: This activity includes the buying and selling of crypto-commodities developed on distributed ledger technology applications. This activity does not include acting as an exchange, providing brokerage services, financial services, banking services, payment processing or storage services.

    DMCC is also known for being the free zone that is prominent for businesses that deal with rough gold, diamonds and precious stones. Dubai is also widely known as the ‘City of Gold’. According to reports, 25% of gold trade occurs in Dubai, making any business that acquires DMCC license for trading gold to thrive. 

    Dual License in DMCC Free Zone: 

    DMCC free zone is one of the free zones in the UAE that allows entrepreneurs to obtain dual licensing. Dual licencing enables businesses to extend their business to mainland. In order to be eligible for dual license, entrepreneurs will be required to obtain DMCC license and mainland license.

    Benefits of dual license

    • Allows 100% foreign-owned companies to extend operations into mainland without the need of a shareholder
    • Affordable pricing for set up
    • Time-efficient

    The mainland division of a dual license is structured as a branch of the Freezone company rather than a subsidiary. It means that the owner would require a 51% local shareholder. 

    Embark on your business journey with Shuraa:

    DMCC free zone comes with a number of office space options ranging from smart desks, shared office spaces, all the way to warehouse facilities. With Shuraa Business Setup, we can help you start a business in the UAE and gain the DMCC free zone license at low-costs.

    Business registration in DMCC Free Zone is undeniably one of the best opportunities for budding as well as established entrepreneurs looking to venture into the world of business in Dubai. Shuraa is one of the best business set up companies in the UAE and can help you get your company registered within a week.

    Shuraa also ensures that the entire process of your company set up runs smoothly. Our expert consultants will guide you through the entire process from registering your business, regulatory requirements, understanding DMCC free zone license cost, all the way up to the process of obtaining approvals from the authorities. 

    To get started and find out more, contact our expert consultants at +97144081900 or send a WhatsApp message on +971507775554. You can also drop in an email at info@shuraa.com and get your queries answered in no time.

  • Visa rules for Ras Al Khaimah free zone

    Visa rules for Ras Al Khaimah free zone

    The Ras Al Khaimah free zone (RAKEZ) is one of the biggest free zones in the UAE. It offers a plethora of benefits for company formation, including tax exemptions, hassle-free resource availability, and much more.

    Setting up your company in this jurisdiction requires obtaining the relevant approvals, one of which is the RAK free zone visa. In this article, we provide you with an overview of the visa types and the process in simple terms.

    This information equips you with all the knowledge required to start a company in the RAK FZ.

    RAK free zone visa types 

    Obtaining a visa is the most crucial part of your business journey in free zones in Dubai and the rest of the UAE. There are two kinds of visas, which further have two sub-categories each.

    The first type is the residence visa. This has to be obtained by the main party planning to stay in the UAE or the workers who are going to stay in the country. For instance, a person who wants to set up a business in their name in Dubai, or is joining a company or firm in any capacity would require either one of the residence visas.

    The next category is the non-residence visa. Note that this has to be obtained by the family members or visitors of the working resident. This kind of visa is imperative for the non-working members of the family to stay legally in the country.    

    Residence visas

    Investor visas are applicable if you’re investing in a company or are a shareholder of the same. These visas are valid for up to 3 years. Additionally, an absence from the UAE exceeding 6 consecutive months will automatically forfeit the visa.

    Qualified investors are eligible to apply for a real estate or property visa for themselves and their family’s stay in the UAE temporarily. Real estate visa holders can apply for multi-entrance residence visas.

    However, such visas must be renewed every 6 months and are applicable to property in different Emirates

    Employment visas

    Company managers, employees and staff members are required to apply for employment visas to work in the UAE. Like investor visas, these are also valid for three years. Furthermore, one cannot stay out of the UAE for more than six consecutive months for this visa to remain valid.

    Employment visas issued by the immigration department require prior approval from the UAE Ministry of Labour and Social Affairs. An employee in a free zone firm can bypass approval from the ministry and apply for the permit straightaway. 

    Although this makes the process a lot more streamlined, you cannot work ‘onshore’ (firms not set up in free zones) on a free zone employment visa. Why? It’s because you don’t possess a full UAE labour contract.

    Non-resident visas

    Family visa

    Family visas are for dependents of investors/employees working in the UAE. These are directly linked to the working status of the earning family member. Usually, they have to be renewed every three years.Moreover, one cannot be absent from the UAE for more than six consecutive months. The applicant’s dependents, including parents, spouse and children below 18 years of age will be granted a residence visa. 

    A crucial criterion to secure this visa’s grant is that the applicant must earn from AED 3,000 – 4,000 every month and have accommodation arranged.

    Visit visas

    These are for temporary visits by business partners, clients, family members or anyone related in a professional or familial capacity with the rest of the three types of visa holders.A visit visa permits a one-time visit. Such visits can range from 1 to 3 months. Note that these provisions further depend on the visa type.

    Procedure to obtain RAK free zone visas 

    Ras Al Khaimah free zone (RAKEZ) visa rules and procedures are the same as every other free zone. You need to submit the mandatory documents and secure other critical approvals. If you’re planning to apply for a free zone visa, it’ll be helpful to go through the brief breakdown of the procedure given below:

    1. e-Channel Service

    The first step is to register with the e-channel service. This is an online visa approval platform designed by the authorities for a seamless visa application process.It cuts through unnecessary and repetitive paperwork and makes the entire process transparent and efficient. A mandatory registration fee and a refundable deposit are required.

    2. Entry Permit

    The next step is to obtain an entry permit or an employment visa. Such permits are issued 15 days post-application, but an AED 1,000 payment can fast-track the delivery to 7 days. Additionally, the permit is valid for six months. A visa applicant has to stay in the UAE till all the processes are completed.

    3. Status Adjustment

    Status adjustment on change is a process necessary for activating the entry permit. There are three ways for status adjustment.  The in-country process is for people living in the UAE. It involves submitting your passport to the immigration department, which will be returned in 3-5 days after being stamped.

    If you are not present in the UAE while the visa is issued, you can opt for the out-of-country process. Exit and re-enter UAE and present your printed visa to an immigration officer at the airport, who will stamp it.

    Medical Test & Emirates ID Registration

    The Ras Al Khaimah visa medical test is a mandatory fitness test involving a chest X-ray and blood test for infectious diseases. The results are given in 3 working days. Next, you need to obtain an Emirates ID card. You’ll have to visit the ID authority since biometric details like fingertips and eye scans are required. The ID card is vital for verification when it comes to legal matters like opening bank accounts or signing tenancy agreements.

    How much is the Ras Al Khaimah residence visa fee?

    The RAK residence visa ensures your stay in the UAE is risk-free. Remember, you’re charged AED 25 for each day you spend in Ras Al Khaimah if your visa has expired. This penalty is applicable for the first six months.

    The fine goes up to AED 50 per day beyond six months and AED 1,000 for each day after a year has passed. Therefore, RAKEZ visa renewal is critical and should be finished a month before expiry.

    Coming to the cost, the Ras Al Khaimah residence visa fee is around AED 1,000 for a one-year visa. Note that special provisions apply to students completing their education in the Emirates. 

    Such a visa costs approximately AED 100 for a year and can be renewed once (from the graduation date). The best part is that parents don’t need to make any separate bank deposits for this visa.

    How to cancel the RAKEZ visa?

    The RAKEZ visa cancellation process is straightforward and doesn’t take much time. First, you need to visit the Government Services Portal, fill out the application form, and take a print of the same. 

    Next, you need to make the payment for visa cancellation and submit the application to  the jurisdiction. The concerned authority processes your cancellation request and forwards it to the RAK immigration department.

    You’ll be contacted by the RAKEZ administration once they receive the e-cancellation document from the immigration department. That’s it! You have successfully cancelled your Ras Al Khaimah property residence visa.

    What is a RAKEZ freelance visa?

    Freelancing is a cost-effective solution for new-age entrepreneurs and individuals looking for work flexibility and financial freedom. You can work as a professional freelancer in RAK when you have a freelance visa Ras Al Khaimah.

    The workstreams under a freelance permit include:

    • Information and technology 
    • Media and entertainment 
    • Education and tutoring 
    • Consultancy and advisory 

    What’s more, you can freelance while working if you can get a NOC from your current employer!

    The various benefits of a freelance permit in RAK include:

    • Visa and business license affordability
    • Complete control over business operations and legal ownership
    • No auditing obligations
    • Allowance to carry out invoicing transactions from your personal bank account
    • Optional VAT registration (mandatory if annual income surpasses AED 187,000)
    • Securing a large physical office space is not mandatory (flexi-desk solutions, business centres, etc., are available)

    Call Shuraa for your business setup needs 

    Obtaining a visa is one of the most important tasks when it comes to working in the UAE free zones. Errors or omissions in the visa approval stage can set your business back by a lot of time, and can also attract legal scrutiny.  

    Hiring a professional agency that knows the lay of the land is the best way to go. When you collaborate with us, you can say goodbye to all your business setup worries. Call us today on +971 44081900. We’re also available on WhatsApp at +971 50777 5554. For an email inquiry, write to us at info@shuraa.com. 

  • How to Start an E-Commerce Business in Shams Free Zone?

    How to Start an E-Commerce Business in Shams Free Zone?

    E-commerce is a thriving business worldwide, and there is an especially huge market for it in the UAE. With a diverse population and customers in every segment, one can greatly benefit by an e-commerce business setup in Sharjah or anywhere in the UAE.

    Due to the restrictions and lockdowns that have been enforced since the pandemic, many customers preferred the online medium for their purchases. As the digital age continues to prosper, the opportunity is huge.

    Today, most of the population is tech-savvy and prefers to shop and do business via online platforms, making this the opportune time to shift focus from physical to digital.

    For those looking to start an e-commerce business setup in Sharjah, the Shams free zone is one of the best options available. With huge investments and demands on the digital front, Sharjah Media City or Shams free zone is a popular option among young entrepreneurs and digital businesses.

    The great benefits that the free zone offers to e-commerce businesses and other digital business setups make it the perfect option to cater to the Middle East’s fast-growing market.

    If you are among those who want an e-commerce business setup in Sharjah, here’s all you need to know about the Shams free zone and the process to get an e-commerce license in Sharjah.

    Why choose the Shams free zone?

    Launched in 2017 as an initiative to promote business and digital activities in the region, Shams free zone is a world-class hub for businesses and entrepreneurs to embark on their journey in the UAE. Shams free zone offers an accessible and vibrant ecosystem for e-commerce, digital, and other futuristic activities to thrive in the region.

    The Shams free zone provides several benefits to companies such as:

    • Full ownership of business: Free zones allow foreign investors to get 100% ownership of their business, unlike the mainland, where expats have to partner with a UAE national to be able to obtain a business license.
    • Full profit repatriation: Free zone expats can repatriate all their profits to their home country, meaning the freedom to transfer 100% of their capital to their place of origin without any requirements.
    • 0% import or export tax
    • Range of business activities: The free zone supports a range of business activities, making it easy for individuals to connect and network. Shams free zone is the centre of activities in import & export, marketing consultancies, event management businesses, e-commerce, media and other services.
    • Fast & easy setup process for getting a business license.
    • Multiple license requirements: The Shams free zone offers four types of licenses which are – service license, industrial license, trading license and holding license. These are great for any type of business size and requirement.
    • Register from the comfort of your home, as all the required documents can be sent to Shams free zone without requiring a physical presence for submission.
    • Flexible visa packages, allowing shared desk facility and up to 6 visas for employees. SHAMS free zone additionally also allows holders to sponsor family members and dependents.
    • Access to co-working spaces and cost-effective business setup for entrepreneurs and e-commerce companies. Shams free zone also offers facilities like Wi-Fi, printers, and other basic requirements at its facility.

    Specifically for e-commerce companies, The Shams free zone offers great benefits such as –

    • Easy access to trade, service and industrial licenses 
    • Great opportunity to expand in the region as it offers low-cost business setup and support 
    • Availability of a huge market that can allow a range of products or services 
    • Fast setup process and presence of a supportive community for e-commerce to yield maximum business benefits 

    What do you need for e-commerce business setup in Sharjah? 

    For your e-commerce business setup in Sharjah, you need to get a business license for e-commerce companies. To start this, there are a few things that you need to consider – 

    • Products that you will be selling: In free zones, companies cannot sell products directly to the customers. But companies can have agreements with the suppliers before listing these on their platform. Licensing requirements also differ as per the products being sold. This requires the e-commerce business to have a proper plan of what they will be selling. 
    • Warehouse requirements: Most e-commerce businesses directly sell the products from the dealer to the customer. However, if there are any storage requirements, the company needs to have a mandatory warehouse license. 
    • Customs and product registrations: Since the dealers and manufacturers need to be registered with the local authority, e-commerce companies need not be responsible for the product registrations of customs. However, if you plan to procure the products yourself, you need to have the required supplier registrations and pay the customs duty as applicable. 

    To obtain an e-commerce license in Sharjah, you can follow a few simple steps – 

    1. Ensure that you have all the required documents for the application, including the Memorandum of Association.
    2. Register the trade name of your business; make sure this is unique and follows the required mandate.
    3. Decide on office requirements, warehouse and staffing needs.
    4. Pay the Shams fees – for starters, a media package with an e-commerce business and zero (0) visa allocation starts at AED 5,750. For companies that need to acquire a visa, packages start at AED 9425. Freelancers or a single shareholder with an e-commerce business activity and zero visa allocation starts at AED 5,750. 
    5. You are all done – if you meet all the requirements, you can get your e-commerce license in Sharjah. 

    Get started on your business journey with Shuraa 

    The Shams free zone comes with a business setup featuring extravagant office space, smart desks, and shared offices to fit every budget. With Shuraa Business Setup, we can help you start a business in the UAE and gain the Shams free zone License at low-costs. 

    Therefore, this is a fantastic opportunity for companies, freelancers, and entrepreneurs who want to expand their business in the emirate of Sharjah. 

    If you think that getting a business license in Sharjah is complex and time-consuming, having a knowledgeable advisor by your side is extremely valuable. By providing you with all the know-how on the process and the regulatory requirements, you can get a head start and get all the approvals faster.  

    For an e-commerce license in Sharjah, you need to provide the right documents, and any lapses carry the risk of instant rejection. So, while these steps will help you make the process a lot simpler, you need to consider having an expert by your side to seek proper guidance and help you out through the entire process. 

    To get started and find out more, you can call Shuraa experts at +971 44081900 or send a WhatsApp message on +971 50 777 5554 . You can even drop in an email at info@shuraa.com and get your queries answered. 

  • Decoding the AED 5,750 company formation package

    Decoding the AED 5,750 company formation package

    Even for a young nation, the UAE has placed itself as the economic hub of the Middle East. And for a good reason. There are several contributing factors which attract a huge influx of investors and entrepreneurs annually. One of the primary reasons is low cost free zone business setup in UAE.

    Entrepreneurs can begin their business ventures for just AED 5,750. How? By choosing the Sharjah free zone business setup package. However, it is important to understand what the package entails. Whom is it suitable for? How can one avail it? What are its benefits?

    The following column explains in detail the cheapest free zone license in UAE. 

    What does the AED 5,750 package constitute?  

    Rolled out by Sharjah Media City (SHAMS), the AED 5,750 package is designed for the formation of media companies. The offer, however, is only valid for Sharjah free zone business setup. The media license is a professional / service type of trade license issued by SHAMS. But, the package does not include any visa.  

    Entrepreneurs can engage in any one of the 13 activities allowed under the media license:

    • Advertising
    • Digital marketing  
    • Programming and consultancy  
    • Media production  
    • Photography  
    • Web portal
    • Printing  
    • Market research  
    • Graphic design  
    • Fashion design  
    • Interior design
    • Publishing  
    • Translation services  

     To add more activities under your trade license, you need to pay AED 1,000 per activity.

    Whom is the SHAMS package suitable for?

    As the AED 5,750 package is promoted as the cheapest free zone license in UAE, it is most favourable for startups. However, it is open for all, including non-residents.  

    Below are some of the businesses for which getting a media license in the Sharjah free zone business set up is advisable and an evaluation of why the SHAMS package is recommended:

    Residents of the UAE

    One of the primary reasons for company formation is to avail resident visas for one’s family as well as employee visas. Although the package can be availed by foreign investors, the purpose of setting up a business in the UAE is not served. Why? It does not include any visas, which is one of the perquisites for opening a bank account in Dubai. Therefore, it makes more sense for people with UAE residency visas to apply for the SHAMS media license.  

    Entrepreneurs who are employed and owners of other existing businesses  

    To apply for a media license in SHAMS, you do not need to obtain a No Objection Certificate (NOC) from your current sponsor. Therefore, people who are have a job can also start their own business ventures by availing the Sharjah free zone business setup package. 

    Benefits of availing the SHAMS business setup package in UAE  

    Not only is the SHAMS media package a gateway to low cost free zone business setup in UAE, but it also has other benefits:  

    100% foreign ownership with a Limited Liability corporate structure  

    Usually on the mainland, businesses with professional / service licenses do not prefer an LLC structure as this would require them to partner with a local sponsor who would mandatorily own 51% of the company shares. In SHAMS, however, your media company can have a limited liability corporate structure along with 100% expat ownership. The main advantage of having a limited liability structure is that in case of any untoward future event, your personal assets would remain safe as the company’s liabilities would suffice to deal with the situation.   

    Low cost free zone business setup in UAE  

    For aspiring media entrepreneurs, the package serves as a reasonable means of getting their own legal business with low investments and gaining hands-on experience. Therefore, startups can certainly consider getting the SHAMS media license.  

    Hassle-free company formation

    The documentation for acquiring a SHAMS media license is quite simple. You just have to submit a copy of your passport, visa, Emirates ID and photograph. Also, you can get the license without being physically present in the Emirate. Furthermore, you can upgrade your license according to your convenience to apply for any number of visas.

    To learn more about low cost free zone business setup in UAE or apply for a SHAMS media license, get in touch with Shuraa Business Setup. The free zone specialists at Shuraa will help you explore all possible options so that you can avail the cheapest free zone license in UAE. For enquiry, call on +97144081900 or drop a WhatsApp message to +971507775554 or simply send an email at info@shuraa.com.

    Author
    Neha Tyagi
    Corporate Advisor | Free Zone Specialist

  • Company Registration in Dubai Free Zones

    Company Registration in Dubai Free Zones

    Company registration in Dubai Free Zones is a promising option for any entrepreneur across the world. But there are a lot of things that need to be taken into consideration while registering a company in Dubai Free zone.

    What is a Free Zone?

    This first thing to understand is what exactly is a free zone. Dubai free zones are territoriality different from the Dubai mainland. This is an isolated land, not only distinct based on the jurisdiction but also has specialised rules governing the area.

    Free zone company formation in Dubai is apt to do business outside the country. A free zone company registration in Dubai could be cheaper option, but it deals with several restrictions on where, when and how a business must be regulated or conducted.

    What are the various Free Zones for Company Registration in Dubai?

    Company formation in Dubai free zones is one of the swiftest ways of incorporating a company in the UAE. There are a lot of free zones, but below listed are the most preferred free zones for company registration in Dubai.

    Jebel Ali Free Zone

    Jebel Ali Free Zone is one of the first UAE free zones. It is one of the most expensive free zones for company registration in Dubai. It also offers a wide variety of business opportunities and conveniences.

    DMCC

    DMCC is the fastest-growing free zone encouraging the trading sector and creating networking options for the country.

    Dubai Media City

    Dubai Media City is a hub for global media enterprises, that include news agencies, publishing houses, online media, advertising, broadcasting firms and more.

    Dubai Internet City

    Dubai Internet City comprises of world’s top internet and communications technology companies.

    Dubai Airport Free Zone

    DAZFA is a booming jurisdiction for transport and logistics sector it also promotes the import and export of the country.

    DIFC

    The DIFC (Dubai International Financial Centre)caters several companies providing financial services. Currently it houses over 1327 companies.

    Dubai South Free Zone

    Company formation in Dubai South Free Zone comes with an integrated urban ecosystem enabling business personnel to develop substantial cost-effective business formulations and time management in dealings.

    Difference between FZE and FZCO:

    While registering a company in Dubai free zones it is crucial to understand the difference between a free zone establishment and a free zone company formation in Dubai.

    Free zone Establishments have single shareholder. Whereas a Free zone Company are similar to limited liability company. A free zone company has 2 or more shareholders.

    Even though both provide the same functioning and operational measures, the major difference is in the share capital requirement.

    Advantages of company formation in Dubai Free Zone

    1. Company formation in Dubai free zone offers 100% foreign ownership.
    2. Free zone companies can enjoy limited taxation on personal income and capital gains.
    3. Free zone companies have no corporate taxes and offer 0% duties on import or export.
    4. By registering a company in Dubai free zone you can have 100% repatriation of capital and profits.
    5. Liberal labor laws and easy recruitment process is a major benefit of free zones.

    Disadvantages of company formation in Dubai Free Zone

    1. Free zones companies have restrictions on doing business in Dubai or anywhere inside the country.
    2. Company registration in Dubai free zones sometimes also demand for a fixed investment.
    3. Dubai free zones companies cannot do business in Dubai Mainland.
    4. Registering a company in Dubai free zone limits you to rent an office space only in the designated free zone.
    5. Free zone companies cannot have a branch office. You will have register a new company, different from the parent company.

    Choose precisely while registering a company in Dubai Free zones:

    Having suitable knowledge about company registration in Dubai free zone is a must!

    Dubai free zones offer various options with regards to jurisdiction, legal type, legal structure, the process of establishment, etc. Thus, before registering the company in Dubai freezone make sure that you have all the information suitable for your business a then make the decision.

    You also need to know that there are industry specific free zones in Dubai, and you can opt whichever region suits your commercial requirements.

    Step by step process of company registration in Dubai Free Zone:

    Setting up a business in a free zone is relatively easier. Free zone authorities require minimum paperwork and duration. Here are the key steps to free zone company formation in Dubai.

    • Choose a business activity (or activities)
    • Find a free zone.
    • Choose a company name.
    • Make your license application.
    • Applying for visas
    • Opening your corporate bank account

    Get guidance before registering a company in Dubai Free zones:

    Guidance from company formation advisors or business setup consultants is the best option under this scenario. Business Setup experts help you to understand the right jurisdiction as per your business needs.

    They do not only tell you the perks of free zone, but also analyse whether a free zone or a mainland business set up in Dubai would be best for your company.

    Register your company with the help of experts. Contact Shuraa Business Setup – the leading business setup service providers in the UAE. We help you with Free zone and Offshore company formation, LLC business setups as well as commercial management consultations in Dubai and all over UAE.

    Call us on +971 44081900 or WhatsApp +971 507775554. You can also email us on info@shuraa.com or simply log on to shuraa.com

  • Can a Free Zone Company Do Business in the Mainland?

    Can a Free Zone Company Do Business in the Mainland?

    Dubai has always been a popular place to start a business, with two main areas to choose from. Free Zones and the Mainland. The UAE’s free zones offer numerous benefits, including 100% foreign ownership, tax exemptions, and streamlined business setup processes.

    However, one common question among entrepreneurs is: Can a free zone company do business in mainland UAE?

    The answer is yes, but with certain conditions and requirements. In 2025, Dubai introduced a new rule that allows Free Zone companies to operate in the mainland more easily. This means businesses can now reach more customers, grow faster, and save costs, all while following clear legal steps.

    Let’s explore how this works, what the recent legal changes in Dubai mean, and how a free zone business can expand to the mainland.

    Understanding Free Zone vs. Mainland in the UAE

    To understand why this new change matters, let’s first look at how Free Zone and Mainland businesses in Dubai work differently.

    Free Zone: Companies are set up to operate within a specific economic zone such as International Freezone Authority (IFZA), Ajman Free Zone, Dubai Multi Commodities Centre (DMCC), and Dubai World Trade Centre (DWTC). They benefit from full foreign ownership, tax exemptions, and customs privileges but are restricted from directly doing business in the mainland.

    Mainland: Companies can operate anywhere in the UAE, including doing business directly with government entities and mainland-based customers. These entities are licensed by the Department of Economic Development (DED) or the equivalent authority in each emirate.

    Can a Freezone Company Do Business in the Mainland?

    Generally, a free zone company in the UAE cannot conduct business directly in the mainland unless it obtains a specific mainland license.

    However, in March 2025, Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai’s Executive Council, issued Executive Council Resolution No. 11 of 2025. This important resolution allows companies licensed in Dubai’s Free Zones to legally operate on the mainland, so long as they obtain the right licenses or permits from the Dubai Department of Economic Development (DED).

    This means companies set up in over 40 Free Zones across Dubai can sell their products and services directly in the mainland. This also means they no longer need third-party distributors or local service agents to reach customers in the mainland.

    Under the new rules, Free Zone companies (excluding those licensed in the DIFC) can apply for:

    • A branch license in Dubai’s mainland.
    • A mainland branch license, while keeping their headquarters in the Free Zone.
    • A temporary activity permit to carry out specific operations onshore.

    This policy also supports a broader economic goal known as Dubai’s Economic Agenda D33. The D33 plan aims to double the size of Dubai’s economy by 2033 and ensure the emirate ranks among the world’s top three economic cities. By allowing mainland access for Free Zone businesses, Resolution 11 strengthens the city’s integrated and growth-focused business ecosystem.

    It is important to note a key exception: the resolution does not apply to financial institutions licensed under the Dubai International Financial Centre (DIFC), which operates under its own distinct legal framework.

    How Can a Free Zone Company Trade in the Mainland?

    Under the new 2025 resolution, Free Zone companies in Dubai can now legally operate in the mainland, but it must be done through the right channels. Here’s how:

    1. Establish a Mainland Branch License

    Free Zone companies can set up a branch office in Dubai Mainland. This branch is not a separate legal entity, it operates under the parent Free Zone company’s name and license.

    Key Points:

    • The branch must obtain a Mainland trade license from DED.
    • The parent company remains legally responsible for the branch’s activities.
    • This option allows companies to carry out their full range of business activities in the mainland (depending on the approved license).
    • Physical office space in the mainland may be required, depending on the activity.

     2.  Apply for a Special Activity Permit

    For companies not ready to set up a full branch, DED also offers a special activity permit, allowing Free Zone businesses to conduct limited or temporary operations in the mainland.

    Ideal for:

    • Short-term projects or contracts.
    • Providing services to mainland clients.
    • Testing the mainland market before full expansion.

    Conditions may include: 

    • Clear description of the activity to be performed.
    • Duration of the work or service.
    • Approval from both DED and the Free Zone authority. 

    Keep in mind, whether you choose a branch license or a special permit, the license/permit is valid for one year. It must be renewed annually to remain valid. Companies must also comply with all local regulations, including maintaining proper accounting records and fulfilling tax obligations.

    Which Industries Set to Gain Most?

    The new policy is a game-changer for several industries, especially those that previously faced roadblocks reaching customers or clients in the mainland. Here are some sectors likely to benefit the most:

    • E-Commerce & Online Retail: Free Zone businesses can now deliver products directly to customers in the mainland, without needing third-party agents.
    • IT & Tech Companies: Software firms, app developers, and IT service providers can offer solutions directly to mainland-based businesses.
    • Consulting & Professional Services: Marketing firms, HR consultancies, design studios, and management advisors can serve a wider market without opening a separate mainland company.
    • Trading & Import-Export Businesses: Companies involved in trading, logistics, or distribution can now operate more freely and cut down on intermediaries.
    • Health, Wellness & Education: Specialised training centres, wellness brands, and health tech startups from Free Zones can now legally serve the growing demand in the mainland.

    What are the Operational & Compliance Requirements?

    Free Zone companies expanding into the mainland must follow some important rules to stay compliant:

    1. Separate Financial Records

    Businesses must maintain separate books of accounts for their Free Zone operations and their Mainland activities. This ensures transparency and helps authorities clearly assess tax, audit, and regulatory compliance for each area.

    2. Follow All Federal & Local Laws

    Mainland operations must fully comply with all UAE federal laws and local Dubai regulations, including:

    • Anti-Money Laundering (AML) policies.
    • Corporate governance standards.
    • Consumer protection and VAT laws, where applicable.

    This means businesses need to ensure proper record-keeping, transparent reporting, and internal controls in place, just like any other onshore company.

    3. DIFC Companies are Exempt

    Companies licensed in the Dubai International Financial Centre (DIFC) are not part of this new resolution, as DIFC operates under its own independent legal framework and financial regulations. So, DIFC-licensed firms will continue under their existing rules for now.

    Ready to Expand into the Mainland? Here’s Your Next Step

    The new resolution is a big step forward for businesses in Dubai. Free Zone companies can now easily offer their products and services in the mainland without needing a local agent or distributor. It’s a great chance to grow, reach more customers, and take your business to the next level.

    If you’re not sure how to begin, Shuraa Business Setup is here to make things easy. We’ll help you apply for the right license or permit, handle the paperwork, and make sure you follow all the rules. With over 26 years of experience, we’ve helped thousands of businesses grow, and we can help you too. Reach out to us today!

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