UAE Free Zone Guide - STA Law Firm

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UAE Free Zone Guide2014-2015Our Offices: Abu Dhabi Bahrain Doha Dubai London Luxembourg Moscow Sharjah

Dubai AirportFree ZoneDubai MediaCityDubaiInternet CityDubai Gold &Diamond ParkDubai Health Dubai Multi Com- Sharjah Airport Hamriya FreeCare Citymodities Centre Intern'l Free Zone Zone -sharjahDubai800-JAFZADubai 971 4 299 5555Dubai 971 4 391 4555Dubai 971 4 391 1111Dubai 971 4 362 7777Dubai 971 4 324 5555Dubai 971 4 424 9600Sharjah 971 6 5178231Sharjah 971 6 5263333Infrastructure andService Rating (1 5)4.54.64.74.54.74.544.3Nature oflicences- investorcan obtain 1 ormore licenceTradingTradingMedia &MarketingSoftware, Internetand MultimediaManufacturingHealth careTrading andrepairingCommercial(limited to elecommunications andNetworkOfficeEducationConstruction, RealEstate and BusinessServicesServiceService Providers(includes freelancepermits)ServiceProvidersRetailService ProvidersHotels andRestaurantsIndustrialHotels &PropertyManagementHotels &PropertyManagementHotels intermediation andseveral othersNot AllowedAllowedAllowedAllowedFZCO-LLCLimitied LiabilityCompanyFZEFZEFZEFZEFZCO - multipleshareholding. Max5 shareholders. Incertain cases mayextend to 7shareholdersFZCO - 2 to 5shareholders.FZCO - multipleshareholdersFZCO - multipleshareholdingBranch of aforeign companyBranch of aforeign companyParticularsJebel Ali FreeZone- DubaiLocationContactIndustrialIndustrialNational IndustrialGeneral trading4.7investors canimport, distribute Dubai Airport FreeZone's InternalAs per regulations As per regulationsand store all itemsrules andof DICof DMCas per Jafza rulesregulations applyand regulationsAllowedBranch of a foreignor UAE basedcompanyFZETypes ofownershipFZEFZCO - multipleshareholdingBranch of aforeigncompany10 Court UncourtFZCO-LLC, FZE,FreelancerFZEFZCO - multipleshareholdingmaximum of 50.Incorporation of aFree Zone LimitedBranch of a foreignLiability Companyor UAE based(FZCO-LLC) withcompanyindividuals asshareholdersFZCOBranch of aforeigncompanyIncorporation of a Incorporation of aFree Zone Limited Free Zone LimitedLiability Company Liability Company(FZCO-LLC) with(FZCO-LLC) withcorporatecorporateentity/entities asentity/entities asshareholdersshareholdersBranch of aforeignCompanywww.uaelawblog.comBranch of aBranch company offoreign Company foreign as well aslocalBranch of aUAE CompanySubsidary companyof foreign as well aslocalAjmanFree ZoneAjman 971 6 70115554Ras Al KhaimahFree ZoneRas Al Khaimah800 onsultancyand ServiceIndustrialIndustrialIndustrialNational Industrial(Application to bemade to Ministry ofEconomy)NationalindustrialAllowedAllowedBranch of aBranch of aforeign company foreign companywww.ama.ae

ParticularsBranch of a localUAE companyJebel Ali FreeZone- DubaiBranch of a localUAE companyDubai AirportFree ZoneDubaiInternet CityDubai Gold &Diamond ParkDubai HealthCare CityBranch entityBranch entityBranch entityBranch entityBranch of a localUAE CompanyBranch entityBranch of a localUAE CompanyFZCO-LLCsincorporated inDubai HealthcareCity are requiredto have minimumpaid up capital ofAED 50,000 forCommercial andAED 300,000 forClinical"Minimum sharecapital of acompany is AED50,000 or USD13,606 pershareholder. "FZE requires AED150,000(min ) orUSD 40,817FZE requires AED150,000 or USD40,817.Incorporation of aFree Zone LimitedLiability Company(FZCO-LLC) withindividuals asshareholders"For LLC minimumCapital required forpaid up capital isFree ZoneAED 50,000 or USDEstablishment /NewIncorporation13,606 exceptCompany AEDof a FZ - LLCBroadcasting TVCapital forAn FZE registration100,000 (US requirestoshowasegment andMinimum capitalincorporating anrequires AEDproof of minimum 27,397) for a solerequired1,000,000 or USD FZE is AED 1,000 or Broadcasting RadioProprietorship andcapital of AEDSegment whereUSD 273272,109.AED 50,000 (US 50,000orUSDminimum paid up13,698) for each13,606.capital is AEDpartner in a2,500,000 orUSDpartnership.680,273"Capital for FZCOlicense is AED500,000 or USD136,055OfficesFZCO requiresAED 1,000 or USD Over 140 different273 pertypes of licensesshareholder.available to(Maximum limit isinvestors and50. Each shareminimum capitalshould be in the requirement variesdenomination ofaccordingly.AED 1,000.Branchestablishmentshave no formalcapitalrequirementsDifferent minimumissued share capitalrequirement can beCapitalchanged for GeneralBranch establishrequirement forTrading, Business FZCO requires AEDments have noeach partner inCentre leases,150,000 ( min ) orminimum capitalcase of partnershipInsurance CompaUSD 40,817requirements.is AED 50,000nies, Hotel Licensesor any other activitywhich authority maydeem fit.Investors have theAnnual rent costoption to leaseUSD 14,629 forInvestors have the Investors have the office units on aMinimum space of26.88 sqm in 1flexible leaseoption to leaseoption to lease25 sqm isstory building. Thecommercial offices, commercial offices, option rangingnecesssary toannual rent costbetween 1 and 5executive office,executive office,from USD 517 - 681 obtain a licenseyears. Spacesexecutive desk,executive desk,per sqm in multi and four employeerange from 310furnished office,furnished office,visas are grantedstorey building.square feet uptoand retail units.and retail units.Insurance for single with every 50 sqm14,000 square feet.Details madeDetails madeof rented officefloor building isUnits are providedavailable uponavailable uponspace.USD 28 while foron shell and coreapplication.application.others it is 1.10 peror fully fittedsqm.offices options.11 Court UncourtDubai Multi Com- Sharjah Airport Hamriya FreeModities Centre Intern'l Free Zone Zone -sharjahDubai MediaCitywww.uaelawblog.comA company cansponsor oneemployee per 80sq. ft. of spaceleased. Land salesCommercialand leasingproperties availableoptions arefor freeholdavailable in orpurchase or lease.next to thecurrent developed Minimum officerequirement forzones. Lease andobtaining a tradesale price varybased on size of license is 540 sq ft.office units/landparcels and thesedetails are madeavailable uponapplication.FZCO requiresAED 150,000 orUSD 40,817."1. from 21 sqm AED 34,500 or USDSize from 15 sqm9,3882. from 24 sqmto 42 sqm- AED 39,600 or USD10,776 "AjmanFree ZoneBranch of a localUAE CompanyRas Al KhaimahFree ZoneBranch of a localUAE CompanyFZE requires mincapital of AED FZE requires AED185,000 or USD 100,000 or USD27,24750,000.FZCO requiresmin capital ofAED 500,000 orUSD 136,055FZCO requiresAED 100,000 orUSD 27,247"Annual Rent ofold building isUSD 6,806 or AEDOffices - USD25,000. Area is 164,087 - 8,719 fromsqm. The rent is17 sqm to 45sqmnew building isAED 1,500 per sqm"www.ama.ae

ParticularsWarehousesJebel Ali FreeZone- DubaiDubai MediaCityDubaiInternet CityLand spaceLand spaceavailable foravailable for hotels,hotels, propertyWarehouse UnitsLight Industrialpropertyavailable inUnits admeasuring management andmanagement andfacilitiesdifferent sizes350 sqm and landfacilitiesmanagementvarying between sites admeasuringmanagementcompanies.313 Sqm to 1,1102500 sq mcompanies. DetailsDetails madesq mavailablemade availableavailable uponupon application.application.-Other PackagesRefundabledepositDubai AirportFree ZoneOffice, warehouseand showroom 10% of annual rentpayable once12 Court UncourtExecutive Suite AED 12,000 permonth includesmanager desk, 4workstations, 1meeting table,furnitures andcabinets, 5 car pass-"Depends on theactivity. Entityoperating in MediaSecurity DepositBusiness centreExecutive office USD 2,722 or AED10,000"www.uaelawblog.com-Depends on theactivityDubai Gold &Diamond ParkDubai Health Dubai Multi Com- Sharjah Airport Hamriya FreeCare CityModities Centre Intern'l Free Zone Zone -sharjahInvestors have theoption to leasemanufacturingunits on a flexible Does not apply.lease optionInvestors haveranging between 1the option toand 5 years. Spaces own and/or leaserange from 310lands forsquare feet upto development of14,000 square feet.healthcareUnits are providedfacilities.on shell and coreor fully fittedoffices options.Retail outlets(approximately300 square feet) USD 70 to USD 80(AED 255 to AED290); Pre-builtmanufacturingunits available(1000 square feetand above) forUSD 360 (AED1300), Showrooms(6500 square feetand above) forUSD 55 (AED 200and above); andoffice units (750square feet andabove) for USD 50(AED 185) andabove15% of yearly unitrent is refundablesecurity deposit.-Subject toapplication.DMCC Tradeflow isa dedicated onlineplatform forregisteringpossession andownership ofcommoditiesstored inUAE-based storagefacilities. Please visithttp://www.dmcc.ae/tradeflow to readmoreVirtual office(e-Package)available for AED13,000 per month.Visa Deposit"Land admeasuring2500 sqm(minimumarea)From AED 35per sqm, USD9.35/sqm (rent)AED5 per sqm, USD1.36/sqm buildingpermit. Warehouseadmeasuring 125sq m for AED63,000; 250 sq m atAED 100,000 and400 sqm at AED120,000"-USD 953 or AED3500AjmanFree ZonePrebuildwarehousesadmeasuring 276sq m, 416 sq mWarehouse rentand 276 sq mfor 100 sqmavailable on awarehouse istwenty five yearAED 350 per sqlease termm and 500 sqmrenewable forwarehouse isfurther term of 25years. Lease rates available at AED300 per sq mcan be fixed forthe first five yearswith a rent reviewat the end of thisperiod.Two Packagesavailable forinvestors. Package1 priced at AED25,000 coversoffice rent for 10sq m office, 1 yearlicense(commercial orservice license) fee,service charges, PO Box, telephoneline charge andallottment of 4resident visas (visacharges notexcluded). Package2 priced at AED35,000 covers all ofPackage 1 butallows investors tocarry out generaltrading activity.USD 953 or AED3500Ras Al KhaimahFree ZoneDifferent sizesbetween 1600 sqft and 4500 sq ft.Standard size of2200 sq ft withstorage space,office, toilet andpantryPakcages rangefrom AED 21,950.Package includesone license.General TradingLicense priced atAED 27,150.E-commercelicense priced atAED 28,050.Capitalrequirement forabove packagesis set at AED185,000USD 1361 orAED 5000Visa Depositwww.ama.ae

ParticularsJebel Ali FreeZone- DubaiDubai AirportFree Zone-Licence fees perannumTrade - USD2,722 or AED10,000Trading license (12Products) -USD2,449 or AED 9,000Services - USD2,722 or AED10,000As per theactivityGeneral TradingLicense - USD8,164 or AED30,00013 Court UncourtAs per theactivityUpto 5 activitiesFreelancer (upto 3within the segmentactivity) - USD- USD 4,082 or AED2,041 or AED 7,50015,000Industrial Licensebetween USD 1497Industrial - USD(7 poducts) and2722 or AED 10000USD 2449 (12products)Service License feeis USD 2,177(Branch of UAEbased company).Logistics license(Branch of UAEbased company)isUSD 8,164 peryear.DubaiInternet CityFreelancer using"Hot Desk" facilityof media businesscentre - USD 1,361or AED 5,000-Trading license (7Products) - USD1,497 or AED5,500Dubai MediaCity-www.uaelawblog.com--Additionalsegments fromother BusinessUnit(s) exceptBroadcasting,Publishing andManufacturing USD 2,722 or AED10,000-Dubai Health Dubai Multi Com- Sharjah Airport Hamriya FreeCare CityModities Centre Intern'l Free Zone Zone -sharjah15% of yearly rentfor fit out depositwhich is alsorefundable.-AED 5,500 orUSD 1,497Clinical - Inpatient- Upto 5specialities - AED15,000 or USD4,090License Fee forFree ZoneEstablishment /Company costsAED 5,500 (US 1,506)Clinical Outpatient - Upto5 Specialities AED 15,000 orUSD 4,090-HealthcareSupport - AED15,000 or USD4,090Additionalsegments withinBusiness Unit USD 2722 or AED10000--Dubai Gold &Diamond ParkHealthcareconsultancy,HealthcareEducation, R&D,Academic/education service,Outsourcing AED 15,000 orUSD 4,090----Trading licensefee is approximately USD 4,090or AED 15,000---General Trading USD 4,082 or AED15,000Commerciallicense (5 items) AED 2,750 or USD749General tradinglicence - AED9,100 or USD2,477Commercial USD 2,041 or AED7,500----AjmanFree ZoneGeneral TradingLicense (morethan 5 items) AED 12,000 orUSD 3,266Ras Al KhaimahFree Zone-General Trading USD 4,082 or AED15,000"trading - 1activity - AED3,900 or USD1,0622 activity - Commercial - USDAED 5,200 or USD 994 or AED 3,6501,4153 activity AED 6,500 or USD1,769"Industrial USD2041 or AED 7500Industrial license - Service License AED 2750 or USD AED 6500 or USD1769749Industrial - USD1361 or AED 5000Service USD2,041 or AED 7,500Service license - Industrial License- AED 9,100 orAED 2,750 or USDUSD 2,477749Consultancy/Service - USD2,041 or AED7,500"Others types oflicenses offeredAviation - USD 4,082or AED 15,000RealEstate - USD 4,082 orAED 15,000FreightForwarding - USD2,313 or AED 8,500"NationalIndustrial License- AED 9,100 orUSD 2,477-www.ama.ae

ParticularsJebel Ali FreeZone- DubaiDubai AirportFree ZoneDubai MediaCityDubai Health Dubai Multi Com- Sharjah Airport Hamriya FreeCare CityModities Centre Intern'l Free Zone Zone -sharjahDubaiInternet CityDubai Gold &Diamond ParkNot ApplicableDepends on theactivityUSD 2,722 or AED10,000Depends on theactivityUSD 2,722 or AED10,000"USD 2,722 or AED10,0001. Alongwith MoA and AoAattestation of 3copies each - USDRegistration of FZE 55 each copy2.Specimensignature - USD 14per person3. BoardResolution - USD55 per person "USD 2,725 orAED 10,000AED 10,000 orUSD 2,725Not ApplicableLicense Feefor Free ZoneEstablishment/ Companycosts AED5,500 (US 1,506)Registration ofFZCO"USD 4,082 or AED15,0001. Along withMoA and AoAattestation of 3copies each - USD55 each copy2.Specimen signature- USD 14 perperson3. BoardResolution - USD 55per person"USD 4,082 orAED 15,000AED 3,500 orUSD 953AED 3,500 orUSD 953FZCO - AED20,500 or USD5,600FZLLC - AED 3,500or USD 953Distance fromDubai airport - bycar40 minutes10 minutes30 minutes30 minutes20 minutes10 minutesType of portSea portWithin DubaiWithin DubaiWithin DubaiWithin DubaiWithin DubaiDubai HealthCare City offerslicenses forhealth careservices,consultancy,regional headquarters, hotelsand leisureservices andpropertymanagementservices.Free ZoneCompany can dobusiness in UAEthrough an LLCincorporated inmainland withimport/exportlicense.Sales in UAESales can becarried outthrough an agentor distributor onlyat 4% customduty. Free sales inUAE not allowed.14 Court UncourtAir portDubai Internet CitySales can beDubai Media Cityoffers licenses forcarried outoffers licenses forSoftware, Internetthrough an agentDubai Gold &entties engagedand Multimedia, Diamond Park is aor distributor onlyin services,Telecommunicaat 4% custompart of JAFZA.broadcasting,tion and Networkduty. Free sales inhotels and leisure.and IT services.UAE not allowed.www.uaelawblog.com25 minutes50 minutesSharjah AirportAjmanFree ZoneRas Al KhaimahFree ZoneAED 9,000 orUSD 2,449AED 100 or USD28USD 1,905 orAED 7,000AED 9,000 or USD2,449AED 100 or USD28USD 1,905 or AED7,00040 minutes45 minutes2 hoursSea PortSea PortAirport andSeaportSales can beSales can beSales can becarried outcarried out through carried out throughthrough an agentan agent oran agent oror distributordistributor only atdistributor only atonly at 4%4% custom duty.4% custom duty.custom duty.Free sales in UAEFree sales in UAEFree sales in UAEnot allowed.not allowed.not allowed.Sales can becarried outthrough an agentor distributor onlyat 4% customduty. Free sales inUAE not allowed.www.ama.ae

General Documentation required forFree zone Incorporation.Individual applicants.1. Application form of Respective Free Zone & Proof of Trade Name & Reservation.2. Passport copy and or Emirates Id copy of proposed shareholders [in some cases,CVs of Shareholders may be requested.3. Passport copy and or E. ID copy of proposed Manager.4. Business Plan – to include brief summary, financial projections, Background of Shareholders & Manager5. No objection Certificate from sponsor [if Manager is already sponsored by Employer or Husband.6. Power of Attorney in favour of Manager or representative who will handle formation process.7. Specimen signature on Free Zone’s Authorization CardBranch of Foreign Companies:1. Application form of Respective Free Zone & Proof of Trade Name & Reservation.2. Passport copy and or Emirates Id copy of proposed shareholders [in some cases,CVs of Shareholders may be requested.3. Passport copy and or E. ID copy of proposed Manager.4. Business Plan – to include brief summary, financial projections, Background of Shareholders & Manager5. No objection Certificate from sponsor [if Manager is already sponsored by Employer or Husband.6. Power of Attorney in favour of Manager or representative who will handle formation process.7. Certificate of Registration for Parent Company. To be notarized/Legalized before UAEEmbassy in the Country where parent entity is duly constituted.8. Memorandum / Articles of Association of Parent company [Notarized/Attested]9. Specimen Signature on form.Free Zone Companies:1. Application form of Respective Free Zone & Proof of Trade Name & Reservation.2. Passport copy and or Emirates Id copy of proposed shareholders [in some cases,CVs of Shareholders may be requested.3. Passport copy and or E. ID copy of proposed Manager.4. Business Plan – to include brief summary, financial projections, Background of Shareholders & Manager5. No objection Certificate from sponsor [if Manager is already sponsored by Employer or Husband.6. Power of Attorney in favour of Manager or representative who will handle formation process.7. Board Resolution of Corporate person calling for Establishment of Free Zone Company or Free Zone LLC8. Proof of Capital from Bank operating within UAE [Does not apply in all Free Zones]9. Specimen SignatureDIFC IncorporationPlease visit the publications page at our website www.ama.ae and access our DIFC information pack whichprovides a detailed overview on operating within the DIFC.15 Court Uncourt

Abu Dhabi OfficeDubai OfficeSharjah OfficeAdvocates and Legal Consultants23 A, Level 23 Tamouh TowersMarina Square, Reem IslandAbu Dhabi, United Arab EmiratesAdvocates and Legal ConsultantsOffice 1904, Level 19, Boulevard Plaza,Opposite Burj KhalifaDubai, United Arab Emirates48-1F, Next to Abu Dhabi Islamic BankNear Hamriyah Free Zone Headquarters,HamriyahSharjah, United Arab EmiratesTel: 971 2 644 4330Fax 971 2 644 4919Email: auh@sunilthacker.comTel: 971 4 368 9727Fax 971 4 368 5194Email: info@sunilthacker.comTel: 971 6 526 4110Fax: 971 6 526 4027Email: hfza@sunilthacker.comBahrainQatarAdvocates and Legal ConsultantsLevel 22, West TowerBahrain Financial HarbourKing Faisal HighwayManamaKingdom of BahrainTel: 973 1750 3045E mail: bahrain@sunilthacker.comLevel 22, Tornado TowerWest Bay, DohaQatarPO Box – 27774Tel: 974 44294827E mail: qatar@sunilthacker.comFor a free subscription request, you can e-mail us at:subscription@sunilthacker.comwith your name and address.Visit our blog: https://uaelawblog.comISBN 978 - 9948 - 22 - 445 - 7Our Offices: Abu Dhabi Bahrain Doha Dubai London Luxembourg Moscow Sharjah

Jebel Ali Free Zone- Dubai Dubai Airport Free Zone Dubai Media City Dubai Internet City Dubai Gold & Diamond Park Dubai Health Care City Dubai Multi Com-Modities Centre Sharjah Airport Intern'l Free Zone Hamriya Free Zone -sharjah Ajman Ras Al Khaimah Free Zone 11 Court Uncourt www.uaela

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149. Books of the company to be evidence. 150. Disposal of books, accounts and documents of the company. 151. Inspection of books. 152. Power of assignee to sue. 153. Debts to be proved. 154. Rules to be observed. 155. Preferential payments. 156. Liquidation scheme may be approved. 157. Acceptance of shares etc., as consideration for sale of .