The United Arab Emirates federal constitution, the federal laws linking to free zones as well as the authorities secured by the single Emirates under the federal framework, enable each Emirate to establish ‘free zones” for general or for those industry-specific enterprises. The objective of free zones is to encourage foreign direct investment into the United Arab Emirates. Free zone entities are not typically required to have any UAE nationals as owners. This opposes with most firms integrated in the UAE outside of the free zones, wherein UAE nationals are generally required to own a minimum of 51% of the firm’s investment.
If you are taking into account physically moving your business to the United Arab Emirates, a Free Zone firm is the best option. Here, you can acquire the local presence and make business in the core of UAE. Indeed, you may consider leasing an office space and obtain visas for you and your staff immediately. Different free zones have been established in the UAE, wherein most of them are located in the Emirate of Dubai. Furthermore, free zones are licensed to execute their very own laws and regulations in particular locations wherein there are events when some cases regulated Emirate and federal law. For instance, the Dubai International Financial Centre or DIFC which is considered as a financial free zone inside Dubai, possess its very own body of law, comprising of contracts law, corporate law, employment law and it also has its very own court system. Each of the free zones possesses their own free zone power. These refer to the money-making entities; their main reference of income is frequently coming from collecting license fees, leasing office space and rendering services to the firms running in the free zone. Everyone shares the features guided below but vary along: