SETTING UP A FREE ZONE ESTABLISHMENT
Establishing a business entity in one of Sharjah’s Free Zones can be an extremely attractive option for foreign investors. The major attributes of a free zone are:
- 100 per cent foreign ownership of the enterprise
- reduced or different trade barriers, tariffs and quotas
- 100 per cent repatriation of capital and profits
- Corporate tax exemptions for up to 50 years
- No personal income taxes
- Assistance with labourrecruitment and additional support services, such as sponsorship and housing.
- An independent Free Zone Authority governs each free zone, and is the agency responsible for issuing operating licenses and assisting companies with establishing their business in the.
- Investors can either register a new company in the form of a Free Zone Establishment or simply establish a branch or representative office of their existing or parent company based within the UAE or abroad. A free zone entity is a limited liability company governed by the rules and regulations of the Free Zone in which it is established.
- However, free zone companies may only operate within the free zone boundaries and are generally limited to performing solely those activities listed in their license.
Who You Need to Deal With for a business in the free zones
Starting a business in Sharjah Free Zones requires of a lawyer or business consultant, planning and decision making through different phases. This involves choosing a name for the company and reserving with the Free Zone, preparation of business plan, choosing suitable infrastructure, estimating required human work force etc. The business registration or licensing process can be completed only after depositing the minimum capital mandated by the chosen Free Zone, in a bank account in UAE.
A company being formed may have either an individual shareholder or corporate shareholder or both. The incorporation process requires the shareholders to sign the documents in the presence of Free Zone authorities.