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Tag: SHAMS free zone

  • 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

  • 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