GUIDELINES FOR ESTABLISHING BUSINESS IN DUBAI AND NORTHERN EMIRATES FREE ZONES

Transcription

1 2018 GUIDELINES FOR ESTABLISHING BUSINESS IN DUBAI AND NORTHERN EMIRATES FREE ZONES Consulate of the Republic of Korea in Dubai March 14, 2018

2 1 CONSUL GENERAL S WORD Dubai, with a population of about 2.4 million, is located in the northern part of the UAE. An excellent strategic location and businessfriendly policies have helped Dubai develop into a gateway to the Middle East and East Africa. It became an international financial services center, a major trading and logistical hub and a world-class tourist destination. Since 1985 the Free Zones have been established in Dubai and Northern Emirates and are designed to complement and contribute to Dubai s growth and development. Their legal status is quite distinct, companies operating there are treated as being offshore or outside the UAE for legal purposes, 100% foreign ownership is allowed with the freedom to repatriate capital and profits without restrictions. These advantages have attracted companies to set up their businesses in the free zones. Currently, there are over 200 Korean firms operating in Dubai and the northern Emirates which have engaged in trading and construction projects. Therefore, we have designed the following guidelines to provide information to Korean investors who are interested in doing business in Dubai and Northern Emirates, and we hope that this information will serve as an introduction facilitating the business set up. We thank you everyone who have participated in this project and we welcome any comments or suggestions that may promote a further improvement of our publications. Thank you for your interest and support. Consul General of the Republic of Korea Dubai and Northern Emirates Heo, Nam Duk 1

3 2 NOTICE All information presented in this publication is from Free Zones authorities websites and official publication, previous reports of business consulting firms and from experience of many Korean Companies doing business in UAE. In Appendix A, we have attached the report of the interviews that have been conducted with the business owners and managers. While efforts have been made to avoid errors or omissions in this publication, detailed advice should be obtained before taking action, as information contained in this publication cannot be guaranteed as complete. Therefore we strongly recommend that potential investor contact local consultants or government authorities to obtain the most recent information and professional advice related to establishing entities in the selected free zone. Consulate General of the Republic of Korea in Dubai CONTACT US Author & Contact Hasnaa Oumimoun Phone: (0) Ext hasnaa@mofa.or.kr Consulate of the Republic of Korea in Dubai Villa #39, Street 24b, Area 342, Jumeirah 2 Dubai Phone: (0) dubai@mofa.go.kr 2

4 3 Table of Contents CONSUL GENERAL S WORD... 1 NOTICE... 2 BACKGROUND... 5 DOING BUSINESS IN UAE... 6 DOING BUSINESS IN FREE ZONES... 7 What Is A Free Zone?... 7 Why Free Zones In UAE?... 7 Advantages of UAE Free Zones:... 7 Limitations of UAE Free Zones... 8 Business Set-Up... 8 DUBAI FREE ZONES Dubai Airport Free Zone Dubai Flower Centre Dubai Auto Zone (Daz) Or Ducamz Dubai Healthcare City (DHCC) The Dubai International Financial Centre (DIFC) Dubai Maritime City Dubai Multi Commodities Centre Dubai Trade Centre: Dubai Silicon Oasis Authority (DSOA) Dubai World Central free zone: Jebel Ali Free Zone Dragon Mart The Dubai Technology and Media Free Zone Authority Dubai Internet City: Dubai Outsource Zone: Dubai Media City: Dubai Studio City: International Media Production Zone: Dubai Knowledge Village Dubai International Academic City:

5 DuBiotech The Energy and Environment Park International Humanitarian City: Dubai Design District Dubai Gold and Diamond Park Dubai Textile City: Dubai Carpet Free Zone FREE ZONES UNDER-DEVELOPMENT IN DUBAI Techno Park Dubai Auto Part City: Heavy Equipment and Trucks Zone FREE ZONES INTHE NORTHERN EMIRATES Sharjah Airport International Free Zone (Saif Zone) Sharjah Media City Ajman Free Zone (AFZ) Fujairah Free Zone [FFZ] Fujairah Media Zone (FM Zone) / Creative City Umm Al Quwain Free Zone Ras Al Khaimah Economic Zone (RAKEZ) Ras Al Khaimah Free Trade Zone (RAK FTZ) Ras Al Khaimah Investment Authority (RAKIA) RAS AL KHAIMAH MEDIA FREE ZONE (RAKMFZ) - RAK MEDIA CITY Ras Al Khaimah Maritime City CONCLUSION APPENDIX A: INTERVIEWS REPORT Respondents profile: Respondents feedback Questionnaire REFERENCES

6 5 BACKGROUND The United Arab Emirates is a federation of seven emirates: Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al-Khaimah, Sharjah, and Umm al-qaiwain. Each emirate has its own government with respective municipalities, departments, rules and regulations. The most economically developed emirates are: Abu Dhabi, Dubai and Sharjah. Ras Al Khaimah, Ajman, Fujairah and Umm Al Quwain are less developed but they are following the same paths of Dubai. Dubai is one of the fastest growing economies in the world and considered the top business gateway for the Middle East and Africa. In more recent years, UAE and Dubai in particular has become very attractive to international business. Many advantages have contributed to that. Dubai enjoys a strategic location; it is a time zone bridge between Asia, Europe and Africa. The government has invested heavily in many sectors infrastructure which enabled her to have one of the best infrastructures facilities in the world, e.g. the development of transport infrastructure lead UAE to become a regional hub for transport and logistics; Multilane highways connect the seven emirates and their main cities, and several international passenger and cargo airports and seaports serve millions of travelers and thousands of ships and cruises every year. Dubai has 2 airports: Al Maktoum Airport and Dubai International Airport (DXB). The latter is used by 120 airlines that fly to and from some 300 destinations across the globe. The airport and its flag carrier have won many awards for excellence in service and design and are widely regarded for their comfort, luxury, and hospitality. In 2017, DXB Airport was reported as the world s busiest airport for international passengers with 88.2 million passengers. The UAE s ports are some of the busiest in the Gulf region and the larger in the Middle East, with millions of tons of cargo and thousands of passengers using them for transit or as business and tourist destinations. Jebel Ali Port in Dubai, is the largest man-made harbour in the world. An expansion planned for 2020 will provide 82 berths and 125 port cranes, and allow the handling of 21 million containers per year. Fujairah Port expanded its fuel-storage facility to 12 million tonnes per year, making it the second in the world in fuel storage. In addition to the UAE s excellent infrastructure, establishing business in the country has multiple benefits as the country presents an excellent long term option with a tax free legal base; Except banks and oil companies, there are no personal income tax, no capital taxes, no withholding tax, no corporate tax, no currency restrictions, 100% repatriation of capital and profits, competitive import duties (5% with many exemptions). UAE is also a safe place for offshore and onshore companies. Moreover, UAE has entered into double tax agreement with other countries; therefore, profits made from shares, dividends, interest and royalties are taxable only where the income has been earned. 5

7 6 DOING BUSINESS IN UAE Economic activity in UAE is regulated separately in each of the seven emirates as well as by the Federal Government. Regardless of the excellent transport and logistics infrastructures in the UAE, the cost of imports and exports and in particular the exports are higher than the average in the GCC countries and other countries (Indonesia, Chile, Malaysia, and Mexico). Also, the cost of starting a business is higher than the other GCC countries. Businesses do not pay corporate income but they pay other taxes representing 15.9% of profit. UAE has a law business environment rating and this is due to the insufficiency of ease of starting a business and in resolving insolvency. In UAE there is an increase of government control and regulation of private sector and activities in addition to a strong bureaucracy. The strengthening of dollar and the lull in oil have affected the buying sentiment in the country, also high supply increased rivalry and reduced profit margin. Political issues with Qatar has also reduced business opportunities in the region. Starting 1 January 2018, the UAE Government introduced Value Added Tax (VAT) of 5% on goods and services as part of a national strategy towards building a diversified and robust economy. Basically, VAT should not affect business environment as its percentage is very low compare to the other countries, however it is slowing the market demand and the business activities. The VAT is a new practice and companies are awaiting for clear procedures especially about the refund process and fines. According to many business owners, setting up business in UAE seems more convenient for companies tending to use the company s office as a regional branch to target MENA markets. An economic expansion is projected by 2020, supported by the implementation of megaprojects and private investment in the runup to Expo

8 7 DOING BUSINESS IN FREE ZONES In UAE, the onshore sector is dominated by local business interests with restrictions on foreign ownership, and the offshore sector consists of a number of Free zones. What Is A Free Zone? Free Zone is an area within a country where imported goods can be stored or processed without being subject to import duty. However, the goods are still subject to customs control. In UAE, each Free zone is an autonomous body and acts as an official labour sponsor. They operate outside the Federal Law or Laws of Ministry of Labour. Why Free Zones In UAE? UAE as like most Gulf countries restricts foreign ownership of companies. The local laws stipulate that nationals must own at least 51% of the company share capital, while the remaining 49% can belong to foreigners. Free Zones were established in the UAE mainly to allow 100% foreign ownership with no requirement of local sponsor and to offer a convenient business environment for foreign investors. Advantages of UAE Free Zones: - Allows 100 per cent foreign ownership of firm with no requirement of local sponsor or local service agent, - Can be formed by only one individual, - No corporate taxes, - Exemption from personal taxes as well as import and export taxes, - No customs duty when importing or exporting between the free zones, per cent repatriation of revenue and profits, - No currency restrictions, - Long-term leasing options (up to 25 years) available at great terms to investors, - Recruitment is operated outside the Ministry of Labour laws and under the free zone law. - Recruitment and workforce processes are simplified. Also, the free zones assist foreign entrepreneurs in labor recruitment and other services like sponsorship and accommodation, - Documentation is less and more suited to foreign investors. - Online procedures, and the availability of express process in some free zones, - Incorporation is faster than when done outside the free zones, - Can be liquidated anytime, - Free zones have a competent infrastructure and provide a constructive business platform for various businesses to grow, - State-of-the-art technology and advanced processes, - Suppliers and providers throughout the value chain located together, - An ecosystem to interact with leading companies in the world, 7

9 8 - Some free zones offer an ecosystem for start-ups to be incubated and nurtured to their next phase of growth and require nil capital share, Limitations of UAE Free Zones - Businesses in a particular free zone are not entitled to expand beyond their free zone limit to other areas of UAE, e.g. companies in the free zones cannot bid on projects launched outside the free zones. To do so, the business owner has to reregister a branch outside the free zone. - The free zone company can trade within UAE only through locally appointed distributors. Custom Duty of 5% is applicable when the free zone company sells in the local market - Employees with visas from free zone companies are expected to work only from the company s office within that free zone. - Only those business segments meant to work in a specific free zone are allowed to work in that zone. - Most Free Zones, but not all of them, require that the General Manager is a resident of the UAE. The General Manager is authorized to sign on behalf of the company and is responsible for day-to-day business. It is required for the visa holder to be in Dubai every 180 days (6 months) otherwise the visa will be cancelled. - The number of employees is limited, or according to the size of the space leased by the company, - Licenses and permits are valid for a period of one year and are renewable on an annual basis, - High registration, leasing and licensing fees and high operating cost compare to mainland, - The regulations and rules keep changing annually and new requirements and additional fees might be imposed, - There is no negotiation or flexibility on the regulations. All the companies in the free zone should adhere to the same rules whatever is their situation. - Hidden laws, you might be suddenly surprised of laws that are not included in the terms and conditions, but you still have to adhere to them. - Less informed and uninstructed administrative staff in some free zones. - Limited and paid parking in some free zones, - Long and complicated administrative procedures, e.g. the annulation of the registration might take many months, also in Dubai health care city companies should comply with 2 different authorities rules and regulations: Dubai Healthcare City Authority Regulator and Dubai Health Authority, which means payment of additional fees, - Once you set up a business in the free zone, everything a company keeps in its warehouse or manufactory inside the free zone is controlled by the free zone authority. Therefore, many companies find themselves obliged to have another warehouse outside the free zone to avoid administrative hassles. In addition to the Free Zones limitations, you might not choose to set up your company in a Free Zone when your company: - Practices a regulated profession, - Requires many visas and/or warehouses or office spaces, - Plans to establish a long term presence in the UAE and would like to reach out to the UAE market, - Has a particular UAE company or individual to partner with, - Certain business simply work better with a Non Free Zone license. Business Set-Up Some Free zones require the registered companies to have a physical presence in the Free Zone; i.e. the registration of a company requires automatically the rent of an office or warehouse. 8

10 9 Legal forms: There are many legal forms to choose from in the free zone. The difference between the forms is the number of the shareholders and the capital requirement. The most common forms are: 1. Free Zone Establishment (FZE) One individual shareholder. 2. Free Zone Company or Free Zone Limited Liability Company (FZCO or FZ-LLC) More than one member; 3. Branch Office: a Branch within the Free Zone can be registered by any entity already established outside the Free Zone. A branch is considered a legal entity of its parent company; it is 100% owned by the parent company, operates under the same name, and conducts the same business. For most of the free zones, no minimum capital is required for branch establishment. All establishment forms require the issuance of a business license. License types: Once the formation type has been determined, the nature of your business and activities will determine the type of licenses you will require. Each free zone has its own sector preferences and their facilities, rules, and regulations. Cost of Set-up a business in the Free Zones: Minimum capital requirement Different free zones have different guidelines on the minimum capital requirement to set up a free zone company. This amount will vary according to the selected free zone and the type of your business. The share capital must be fully paid upon incorporation. Most economical/best free zone Cost is high to very high. Despite the fact that, the set up cost in northern emirates free zones is lower than in Dubai, it remains also high. Each zone has its own set-up cost schedule and procedures that depend on many factors: - Nature and size of the company, - Manpower and visa requirements, - Size and rent cost of the industrial land/warehouse/office space, - Other specific requirements of the business etc. Most centrally located Free Zones in Dubai - Dubai Internet City (DIC) - Dubai Media City (DMC) - Knowledge Village - Dubai Multi Commodities Centre (DMCC). Most suitable free zones in Dubai for service and activities that require an office only: - Dubai Internet City (DIC) - Dubai Media City (DMC) - Dubai Multi Commodities Centre (DMCC). 9

11 10 Most suitable Free Zones for logistical purposes - Jebel Ali Free Zone Authority (JAFZA) - Dubai Airport Free Zone Authority (DAFZA) Commonly used free zones in Dubai - Jebel Ali Free Zone Authority (JAFZA) - Dubai Multi Commodities Centre (DMCC) - Dubai Airport Free Zone Authority (DAFZA) - Dubai Media City. - Dubai World Central (DWC) Registration/licensing process duration This depends on the Free Zone and whether the company will have an individual or corporate shareholder. Even though it is often stated that a company can be formed within 48 hours, experience says that it can take between 3 6 weeks to get your business up and running. Steps of Setting up a small business in a Free Zone 1. Get a UAE mobile phone from Du or Etisalat with sufficient credit. 2. Choose the free zone where you would like to set up your business. 3. Get a quotation from the Free Zone (Packages prices, additional cost and fees, forms and procedures). 4. Prepare the application for the selected package in a typing centre. 5. Visit the Free Zone by yourself and apply for the selected package 6. Pay for the Free Zone Company set up fees for 1 year. 7. Get a bank letter from the Free Zone after it proceed the application 8. Apply for a corporate bank account 9. Open a PO BOX 10. Open the company bank account 11. Transfer the share capital to the corporate bank account 12. Submit the bank certificate at the free zone 13. Within 3 or 4 working days pick up the following documents from the Free zone: business license, the share certificate, the certificate of incorporation. 14. Submit the above documents to the bank to unfreeze the account and share capital 15. Apply for visa bank card. 16. Apply for establishment card. 17. Apply for visa permit. How to choose a free zone to establish your company? There are a lot of factors to consider when determining which free zone would be most appropriate for the establishment of a new business entity. These factors include, but not limited to: - Location of the free zone, this seems very simple, but experience has shown that many companies had to change their business location after a while. When choosing the location, you have to take into consideration, the following elements: 10

12 11 o o o Location of your clients and suppliers as this might impact your business profitability or increase you logistical cost. The access to the free zone from main roads, the easiest is the best. Distance from ports and airports. - Infrastructure and facilities offered by the free zone. It is very important to choose the free zone that will fit your company s activity. In Dubai, most of the free zones are organized in industry clusters (Knowledge Village, Media City etc.) which offers a great opportunity to network with companies in the same business industry, however, this is not always beneficial for the company, e.g. in Dubai healthcare city, there are many medical centers offering the same service, which not only increase business rivalry but generate new problems, e.g. you might be rejected by the insurance companies if you do not follow their pricing system. - Facilities available within the free zones is very important: conference rooms, restaurants for business meetings and staff breaks, residential areas for staff accommodations, administrations for administrative procedures. Having all the facilities in the same place will save money, time and administrative hassles. - Licensing process of the proposed activity: The Free Zones give guidelines and information about the setting up process, however, the investors may find themselves lost and alone with many unanswered questions. There is a high turnover of the staff in some free zones. The staff are sometimes not well trained to answer the relevant questions and they sometimes give incoherent or incorrect information. However, it is still necessary to speak to a sale/ marketing agent of the Free Zone. - Cost of setting up the business (cost of business formation as well as recurring costs): Cost in the northern emirates is lower than Dubai, however, in all free zones the cost is considered high to very high and continuing to increase year by year. It is advisable to get the maximum information about the free zones fees and charges before you choose one because sometimes, there are hidden charges. - Numerous other factors based on your business requirements e.g. health care services are managed by Dubai Health Care Authority for both onshore and offshore companies. 11

13 12 DUBAI FREE ZONES 1. Dubai Airport Free Zone DAFZA was established in 1996 as part of Dubai Government s strategic plan to move the emirate towards an investment driven economy. Covering a vast number of key industry sectors, including aviation, freight & logistics, IT & telecommunications, pharmaceuticals, engineering, food & beverage, jewelry and cosmetics. Some of the world s most recognized brands have situated their Middle Eastern hubs in Dubai Airport Free Zone. Located next to Dubai International Airport, Dubai Airport Free Zone provides unrivalled access to 24-hour logistics services, world-class facilities and infrastructure. The free zone also provides direct access to a number of government services, including Immigration, Customs and the Chamber of Commerce helping to streamline red-tape procedures and provide clear processes and guidelines. a) Business Activities Trading: import, export, distribution and storage of specific products, and services. b) Features: - Strategic location in the heart of Dubai and neighboring Dubai International Airport; 12

14 13 - State of the art infrastructure and facilities; - Dedicated Logistics Centre and extensive cargo handling facilities; - Direct access to government services: Immigration, Customs, Chamber of Commerce; - One stop shop for all administrative services; c) Setting up Cost and fees Rental cost Office Units - 3 Year Lease Agreement - AED 1,850 per sq.m % of annual rent as Service Charge. - 1 Year Lease Agreement - AED 1,950 per sq.m % of annual rent as Service Charge. Warehouses (Light Industrial Units) Area: 350 sq.m approx. Rate: AED 1,000 per sq.m + 10% service charge License Fees: - Trading License : AED 15,000 per year - Service License : AED 15,000 per year - Industrial License : AED 15,000 per year Registration Fees: - FZE : AED 20,000* (USD 5,442/- approx.) - Branch: * One Time Payment Share Capital Requirements: - FZE share capital required is AED 1,000/share - Share capital is declared Visa Fees New employee outside of UAE AED 2,900 including: - Residency stamp - Medical fitness certificates - ID card New employee inside UAE (on visit visa, private sector) AED 4,400 including: - Entry permit - Residency stamp Medical fitness certificates - ID card - Issue visa without leaving UAE Employment Visa Entitlement: - Office less than 40 sq.m 1 employee visa for every 12.5 sq.m of space - Office of 40 sq.m and above - 1 employee for every 8.33 sq.m of space 13

15 14 - LIU (Light Industrial Units) 20 visas Note: Visa entitlement depends on the facility leased. To increase the number of visas, clients need to increase the size of the office. Bank Guarantee - Bank Guarantees are required for each employee equal to 45 days salary plus a one-way airline s ticket to his/her home country. - Information Technology - Charges vary as per the IT service package. Parking Fees 1 Parking space is entitled for every 50 sq.m office space at AED 900/- each per annum. Insurance Insurance to be taken and maintained during the Lease Period Annual cost of renting 50 sq.m office space (3 year lease agreement): Description FZE Branch Area (sq.m) 50 sq.m 50 sq.m Rate (per sq.m) AED 1,850 AED 1,850 Annual Rent AED 92,500 AED 92,500 Service Charge 12.5% AED 11,563 AED 11,563 Total Rent + Service Charge AED 104,063 AED 104,063 License Fees AED 15,000 AED 15,000 Registration Fees AED 20, Postal Services P.O. Box (Renewed as per Calendar Year) AED 1,010 AED 1,010 Knowledge Fees AED 10 AED 10 Parking Fees (1 parking space for every 50 sq.m office) AED 900 AED 900 Total Net Payable AED 140,983 AED 120,983 14

16 15 Annual cost of renting 50 sq.m office space (1 year lease agreement): Description FZE Branch Area (sq.m) 50 sq.m 50 sq.m Rate (per sq.m) AED 1,950 AED 1,950 Annual Rent AED 97,500 AED 97,500 Service Charge 12.5% AED 12,188 AED 12,188 Total Rent + Service Charge AED 109,688 AED 109,688 License Fees AED 15,000 AED 15,000 Registration Fees AED 20, Postal Services P.O. Box (Renewed as per Calendar Year) AED 1,010 AED 1,010 Knowledge Fees AED 10 AED 10 Parking Fees (1 parking space for every 50 sq.m office) AED 900 AED 900 Total Net Payable AED 146,608 AED 126,608 Note: Dubai Airport Free zone reserves the right to amend the above rates without advance notice. Special lease packages for FZE Recently, DAFZA launched new special lease packages for FZE, the new packages offer two types of economic rent: 1st option: Executive Suite, Executive Suite package is a comprehensive and economic package of 50 square meters, fully furnished and ready for business. The payments cover the establishment costs such as licensing, registration, mail, and insurance, parking services and entry visas for six employees. The total rent for this package is AED 12,000 per month. 2nd option: Workstation The Workstation package includes the following: a) work Visa b) One telephone line connected and ready for use c) 1 office, 1 big chair, 1 chair for guests d) 1 Drawer The lease price of the workstation package starts from AED 4,000 per month, or 45,000 per year for those who wish to pay at once. Note: Regarding the strong competition in UAE market, DAFZ advices companies to start with a small business size and reduce labor costs as much as possible in order to improve performance and production and allow the business to grow faster. 15

17 16 d) List of companies in DAFZA Click on the following short link to access DAFZA directory: goo.gl/pbh9lc e) Contact information P.O. Box 491 Dubai, UAE. Phone: Fax: f) Location Click on the following short link to be redirected to the map: goo.gl/9bbjfv 2. Dubai Flower Centre Strategically located at Dubai International Airport, the Dubai Flower Centre is a new hub of growth for the floriculture industry. With the explosive growth in global trade of flowers and perishables, there is an increasing demand for innovative logistics and commercial solutions to enable the industry to reduce transit times improve quality and grow profits. Dubai Flower Centre (DFC) is a transshipment center for cool chain processes that effectively safeguard product quality, maximize shelf life, thereby enhancing profitability. 16

18 17 a) Features: - Consolidation/repackaging for transshipment to worldwide destinations - Pre-assembly of product lines sourced from around the world and tailored to end markets - Fruit and vegetable pack house professional packaging for direct sale - Value added services e.g. bouquet making - One-stop shop for local and international buyers, traders, producers and exporters. b) Forms of registration - As a branch of a foreign company - no minimum capital required - As a branch of a UAE company - no minimum capital required - As a Free Zone Company (FZCO) - minimum share capital is AED 500, As a Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000. c) Contact information Dubai Flowers Centre, Dubai International Airport -221, Deira, Dubai, UAE 72/21, Sheikh Rashid Road Tel: Fax: d) Location: Click on the following short link to be redirected to the map: goo.gl/xnz9zh 3. Dubai Auto Zone (Daz) Or Ducamz DAZ was established in April 2000 with the objective of re-exporting used cars to Asian & African markets. DUCAMZ is considered to be the largest in the world of its kind and is situated at Ras AL Khor occupying an area of 8 million square feet. The vehicles are categorized into two groups, left-hand drive vehicles which are exported into the local markets and are subject to local regulations and right hand drive vehicles which are mainly exported to India, Afghanistan, Pakistan, Yemen and other African Countries. JAFZA is charged with the supervision of DUCAMZ. Its responsibilities include providing companies with all assistance required including: licensing, administration services, customs and clearing. a) Features - Government support services. - Competitive freight charges. - Ease of administration problems. 17

19 18 - No restrictions on import of automobiles. - No import duties. - Hassle free clearance from Police (traffic department), Customs, Port and Banks. - Excellent support systems. - The facilities could be leased for 50 years. - Type of company activities would include trading in cars only. b) Form of registration - As a branch of a UAE company - no minimum capital required. - As a Free Zone Company (FZCO) - minimum share capital is AED 100, As a Free Zone Establishment (FZE) - minimum share capital is AED 1000,000. c) Setting up Cost and fees Facility Registration Fee Facility Registration Fee one-time FZCO FZE Branch 18

20 19 Only showroom with 10 sq.mtr office is available AED 15,000 AED 10,000 AED 5,000 License Fee Type of License Trading and Service AED 5,500 Cost in AED per annum Note: These figures are indicative and subject to change d) Contact information Address: DUCAMZ, Ras Al Khor, Dubai, UAE. Sales Department: Tel: Location: click on the following short link to be redirected to the map: goo.gl/vhzvju 4. Dubai Healthcare City (DHCC) Since its launch in 2002 by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, DHCC has worked towards its vision to become an internationally recognized location of choice for quality healthcare and an integrated center of excellence for clinical and wellness services, medical education and research. Healthcare free zone comprises two phases. Phase 1, dedicated to healthcare and medical education, occupies 4.1 million square feet in OudMetha, and Phase 2, which is dedicated to wellness, occupies 22 million square feet in Al Jadaf, overlooking the historic Dubai Creek. Dubai Healthcare City Authority Regulator (DHCR) is responsible for the establishment and registration of companies in Dubai Healthcare City. 19

21 20 a) Features - Low operating costs. - State-of-the-art medical facilities. - Integrated healthcare community. - Specialized first class medical care. - Holistic centers, healthcare malls and other support services. - The facilities could be leased or on free hold basis. b) Business Activities: The types of activities allowed in DHCC are wellness centers, nutrition centers, rehabilitation centers, health resorts and spa, health farm, research centers, pharmaceutical companies, private hospital and clinics, nursing school, science specialists, university complexes, tele-health and e-enabled services, etc. c) Forms of registration - As a branch of a foreign company - no minimum capital required - As a branch of a UAE company - no minimum capital required - As a Free Zone Company (FZ LLC) -share capital varies, depending on the type of project: - Clinical minimum AED 300,000 - Non Clinical minimum AED 50,000 - Hospitals 1,000,000 or as advised by the authority d) Healthcare city products: Check Healthcare city products on the following short link: goo.gl/uxzrbb e) Contact information Address: P.O. Box 66566, Oud Metha Road, Bur Dubai Tel: bd@dhcc.ae Location: click on the following short link to be redirected to the map goo.gl/c1y6fa 5. The Dubai International Financial Centre (DIFC) DIFC is an on-shore financial hub strategically located between the east and west, which provides a secure and efficient platform for business and financial institutions to reach into and out of the emerging markets of the region. It was established to create an environment for growth, progress and economic development in the United Arab Emirates and the wider region by providing the needed legal and business as well as physical infrastructure benchmarked against international standards. 20

22 21 The DIFC is an independent jurisdiction under the UAE Constitution, and has its own independent civil and commercial laws, which are written in English and which default to English law. It also has its own courts, with judges taken from the common law world including England, Singapore and Hong Kong. The DIFC-LCIA Arbitration Centre is an independent center of international arbitration that uses rules modeled on the London Centre of International Arbitration. The DIFC concept has evolved as a means of: - Providing depth to the regional financial markets by broadening the range of traditional methods of financing currently provided by regional banks. Attracting liquidity back into investment opportunities within the region, thereby contributing to its economic growth. - Facilitating planned privatizations in the region and enabling initial public offerings of privately owned companies, thus providing impetus to the programme of deregulation and market liberalization throughout the region. - Contributing to the development of regional stock markets which, in turn, will contribute towards broadening the capital and ownership base of private sector companies; and, promoting the growth of Islamic finance and the development of the region s reinsurance sector. 21

23 22 DIFC bodies The DIFC has three independent bodies overlooking its operations, which enable it to function as a self-contained financial service center and each body is assigned independent functions. These are DIFC Judicial Authority (DIFC Courts), DIFC Authority [with its subsidiary DIFC Investments and NASDAQ DUBAI and Dubai Financial Services Authority (DFSA)]. Bubai International Financial Centre (DIFC) DIFC Judicial Authority (DIFC Courts) Dubai Financial Services Authority (DFSA) DIFC Authority NASDAQ DUBAI DIFC Investments About NASDAQ Dubai NASDAQ DUBAI is a subsidiary of the DIFC Authority, is the international financial exchange in the Middle East. It allows companies to benefit from a unique investor pool that combines regional and international wealth, making it a globally unique platform for companies to raise money and for investors to find exciting opportunities. The exchange s broad investor base sets it apart from others. As well as investors in the UAE and the region, those in the US, Europe, Asia and elsewhere can easily trade its securities. This gives its listed companies instant recognition and visibility around the world, supported by the international Nasdaq brand name. Company owners have freedom to raise capital in the way that suits them. They can choose the price at which to sell shares in an IPO, and keep control of the company afterwards. Underpinning the exchange is a regulatory framework that is second to none, giving confidence to issuers and investors alike that their interests are being looked after. As a leader in innovation, Nasdaq Dubai offers a wide product range. Companies can raise capital through shares, Sukuk and bonds. Exchange-traded funds, derivatives, exchange-traded commodities as well as Real Estate Investment Trusts (REITs) can be listed and traded too. Nasdaq Dubai is ideal for many types of companies, from family businesses to conglomerates, government entities and high growth businesses. Your company no longer has to look overseas for an international listing. Nasdaq Dubai is here to offer that in the region, closer to your base. 22

24 23 The exchange is located in the Dubai International Financial Centre (DIFC), which has an independent commercial legal system based on English law. The exchange is regulated by the Dubai Financial Services Authority (DFSA), which operates to the highest international standards. The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. a) Features - A world-class, independent, regulatory agency working alongside other financial regulatory agencies located in major global jurisdictions. - A wholly transparent operating environment, complying with global best practices. - A dollar denominated environment. - An international stock exchange with primary and secondary listings of debt and equity instruments. - A variety of legal vehicles that may be established with capital structuring flexibility. The DIFC focuses on several sectors of financial activity like the Banking Services (Investment Banking, Corporate Banking and Private Banking); Capital Markets (Equity, Debt Instruments, Derivatives and Commodity Trading); Asset Management and Fund Registration; Insurance and Re-insurance; Islamic Finance; Business Processing Operations and Ancillary Services. b) Business activities Business Activity Description of activities Financial Services Regulated by DFSA Authorized Firms (ASP) Businesses engaged in financial services Ancillary Service Providers (ASP) Businesses engaged in the provision of legal or accounting services Authorized Market Institutions (AMI) Businesses engaged in operating an exchange and/or a clearing house Non-financial services Non-regulated Business not engaged in financial services, i.e. business infrastructure, corporate offices, and professional services, other than law and accounting firms, and other firms not involved with financial services. Legal Restrictions on Authorized Firms in DIFC - DIFC entities may not offer any products or services to the retail market. - Insurance activities in the UAE are restricted to re-insurance. - UAE federal laws regarding the Criminalization of Money Laundering apply, while federal civil and commercial laws do not apply. - DIFC entities may not take deposits, deal and offer any products or services in UAE dirham - All DIFC licensed entities must be resident in the DIFC. If no space is available in DIFC, the entity may apply to be resident in Dubai until such time space is available. While the DFSA permits a wide range of financial services to be carried out from within the DIFC, some restrictions apply. - Authorized Firms are not permitted to undertake the following activities: Dealing with an individual client with less than US$ 1 million in liquid assets. Dealing with an institutional client with share capital or net assets less than US$5 million. Accepting deposits from the United Arab Emirates market. 23

25 24 Conducting insurance business with individuals. Providing money services unless it is connected with another financial service for which the firm is authorized. Internationally accepted laws and regulatory processes. Entities can be set up in the DIFC either as: Authorized firms Authorized market institutions Ancillary service providers Authorized Firms (AF): Authorized Firms in the DIFC are categorized into five distinct license categories depending on the type of activity that the firm will be undertaking. Each of these categories of license has its own rules and capital requirements. The financial services described under each group are the determinants for the relevant category. Category 1 Accepting Deposits Providing Credit Category 2 Dealing in Investments as Principal Dealing in Investments as Agent Providing Trust Services Managing Assets Providing Custody Category 3 Operating a Collective Acting as the Trustee of Managing a profit Arranging credit or Investment Fund a fund sharing investment deals in investments account Arranging Credit or Deals in Investments Advising on Financial Products or Credit Operating an Alternative Trading Providing Fund Administration Category 4 System Insurance Management Arranging Custody Insurance Intermediation Category 5 An Islamic Financial Institution Apart from offering financial services specified under a particular Category, the AF can also provide services included under lower categories. For instance, an AF in Category 1 can additionally offer financial services as listed under Category 2, 3 and 4; however, the reverse is not permitted. Ancillary Service Providers (ASP): under the DFSA definition, ASPs include law firms and accounting firms that at the time of application provide services to one or more licensed institutions. Authorized Market Institutions (AMI): under the DFSA definition, AMIs include entities which carry on, or intend to carry on, the financial service of operating an exchange and/or a clearing house in, or from, the DIFC. c) Forms of registration The types of legal entities that can be incorporated/ registered in DIFC vary for financial services, and non-financial services. The principal forms of legal entities available within DIFC include: - Company Limited by Shares (LTD) - Limited Liability Company (LLC) - Limited Liability Partnership (LLP) 24

26 25 - Limited Partnership (LP) - General Partnership (GP) - Branch of a Foreign Entity (Recognized Entity) - Representative office d) Setting up cost and fees: Check DIFC handbooks and fees on the following short link: goo.gl/grnnjs e) Contact information Address: The Gate, Level 14 P.O. Box Dubai, UAE Tel: +971 (0) Location: Click on the following short link to be redirected to the map: goo.gl/4c3chh 6. Dubai Maritime City Built on 2.27 million square meters of reclaimed land, Dubai Maritime City (DMC) is the world s first purpose-built maritime center. The sprawling man-made peninsula boasts a new 2,100 m long breakwater and a quay wall that measures 2,980 m. Comprising residential, commercial properties and warehouses, it provides investors free zone amenities, as it is a member of Dubai World Holding that is the holding company for Dubai Dry-docks. The city, unlike other seaports and establishments in the region, enjoys considerable advantages including a pro-business environment. In keeping with Dubai s commitment to eco-friendly building practices, the mega project abides by green construction concepts. These encompass construction of buildings that consume less energy and consequently generate less waste. DMC provide a strategic global location for seven key industry sectors within the entire maritime business - maritime management, maritime services, maritime retail and recreation, maritime education and research, ship repair and maintenance, yacht repair and maintenance. 25

27 26 a) Features Air cargo terminals: Directly at the apron and designed for air cargo terminal handling service providers who want to address their individual market of airlines. Land plots for industry or contract logistics: With most flexible plot layouts to support dedicated industry or contract logistics facilities and larger multi-client warehousing operations. Land plots for forwarders: Exclusively for forwarders with access to the airport s apron and optimal for mid-sized and larger forwarding businesses who want to combine shipment handling and consolidation operations and warehousing/distributions services. Shared forwarders warehouses: Near the air cargo terminals and optimal for small and medium sized cargo handling operations. Integrator facilities: a dedicated section for integrator facilities directly at the apron provides amenities facilities throughout the premises. All logistics services and transport modes are integrated into single customs bonded and a Free Zone environment and allow companies to focus on the optimization of their supply chains. b) Form of registration - As a branch of a foreign company - no minimum capital required. - As a branch of a UAE company - no minimum capital required. - As a Free Zone Company (FZC) - minimum share capital is AED 500, Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000. c) Setting up cost and fees: S.NO PROPERTY DESCRIPTION STANDARD SIZE Rate (AED per Annum/SQ.FT) (SQ.FT) 1 Large workshop 9, Medium workshop 4, Small workshop 2, Front area- Large workshops Variable Warehouse 5, Shop Showroom Canteen Yacht manufacturing workshops 27, Yacht manufacturing development plots Variable Ship repair development plots Variable Offices (floor 4-10) within MBC Variable Commercial Outlet Bank - within MBC 1, Commercial Outlet Coffee Shop Within MBC 1, d) Contact information: Dubai Maritime City L.L.C. PO Box Dubai UAE Head Office: Maritime Business Center, 10th Floor Tel.:

28 27 Location: Click on the following link to be redirected to the map: goo.gl/5r778u 7. Dubai Multi Commodities Centre DMCC is the authority on trade, enterprise and commodities in Dubai - home to over 12,000 of the world s leading businesses of today, and tomorrow. The most successful markets create conditions that enable producers, traders and consumers to thrive. DMCC is a Dubai Government Authority committed to developing these ideal conditions. It has a strong track record in trade facilitation including its Free Zone, commodity exchanges, legal and regulatory frameworks and real estate offering. The DMCC Free Zone, hailed the Global Free Zone of the Year by Financial Times FDI magazine, offers businesses 100 percent ownership and has integrated technology-driven platforms enabling members to register a company and get licensed completely online. Property hectare Free Trade Zone located in the center of Dubai 27

29 28 - Close to Jebel Ali Port with rail, road, air and sea links - 66 Towers of both freehold commercial office space and residential apartments for sale or lease Vibrant community 85,000 people working & living; 400+ retail outlets - Over 12,000 companies from across all sectors Platforms - DMCC Free Zone - DMCC Tea Centre: World s largest re-exporter of tea. - DMCC Trade flow: Launched in 2012 as the online exchange for physical commodities in the UAE. - Dubai Gold & Commodities Exchange: - Dubai Diamond Exchange: One of the world s top three diamond trading centers - Dubai Pearl Exchange: Launched in 2007, regular auctions and tenders reviving the UAE s pearling heritage with the 1st tender of UAE cultured. Commodity Statistics Dubai supplies 80% of India s gold bar requirement, which is about 200 tons annually Dubai gold trade is the highest traded non-oil commodity in the UAE, and one of the largest global trading hub. The UAE is now the world s largest re-exporter of tea with a 60% share of the market The flow of diamonds increased from USD 3-5 million (2003) to USD 39 billion in 2013 The flow of gold increased from USD 6 billion (2003) to USD 70 billion in DMCC is the master developer and licensing authority for the Jumeirah Lakes Towers (JLT) Free Zone, the fastest growing free zone development in Dubai. These include multi-nationals, major regional industry participants as well as small/medium sized businesses and entrepreneurs. Companies operating at the JLT Free Zone enjoy an unparalleled location on Sheikh Zayed Road, streamlined processes, dependable customer support, unique services and industry clustering, modern infrastructure, and freehold commercial and residential property. DMCC has implemented a robust compliance and regulatory regime which is in line with the compliance related laws and regulations of the UAE Federal Government and the competent international bodies. Companies or individuals interested in setting up and licensing a new or existing company in JLT can choose a trade or services license from a wide range of business activities. The JLT free zone offers two types of business license: DMCC License (activities in commodities and related trade/services) and JLT License (other business activities). a) Features - Trading in various commodities including gold and precious metals, diamonds and colored stones and various services that complement the main core business. - Free hold ownership of business premises - Diamond exchange - 50 years tax holiday. b) Business activities DMCCA issues the following licenses to Non - Core companies by the nature of the activity: 28

30 29 - Trading license: To carry out any permitted trading activity. - Service license: To carry out any permitted service activity. - Professional license: To carry out any permitted professional activity as per an existing Dubai license from the concerned authority. c) Form of registration - As a branch of a foreign company - no minimum capital required. - As a Free Zone Company (DMCCO) - minimum share capital is AED 200,000. d) Setting up cost and fees: Check the DMCC schedule of Charges in the following link: goo.gl/v7mw8w e) Contact information Almas Tower, Floor 1, Jumeirah Lakes Towers, PO Box 48800, Dubai, UAE Tel: customercare@dmcc.ae Location: Click on the following link to be redirected to the map: goo.gl/igxwk5. 8. Dubai Trade Centre: Dubai World Trade Centre (DWTC) is the region s largest venue known for hosting many of the world s high-profile events and offering every type of service under one roof. With over a million square feet of multi-purpose space, DWTC has host more than 500 events across international trade fairs, mega consumer shows and prestigious conventions and welcomes over 2.74 million visitors from 160 global markets every year. Dubai World Trade Centre Authority (DWTC Authority) provides an effective and well-regulated business ecosystem to compete more effectively. 29

31 30 The Free Zone is well-connected via the Dubai Metro, road network and Dubai International Airport. With leasing and licensing opportunities available now across the DWTC and DWTC District, the Free Zone provides an incentive for multinationals to enter local and regional markets. The DWTC deploys internationally-benchmarked legislative policies and operational procedures in collaboration with government authorities. The DWTC offers an enhanced incentive for businesses to establish their permanent representation within the Free Zone. a) Features: - An effective and well-regulated business ecosystem - Availability of leasing and licensing options across DWTC and DWTC District - Internationally bench-marked legislative policies and operational procedures in collaboration with government authorities - It is one of the world s largest and most dynamic event venues. - All Free Zone Benefits b) Business activities and forms of registration Company Types Free Zone Establishment (FZE) Free Zone Company (FZCO) Branch of a Local Company Branch of a Foreign Company No. of Shareholders FZE Single Shareholder FZCo Multiple Shareholders Share Capital Required USD 81,520 for all company types Some of the Business Activities permissible in Dubai World Trade Centre Free Zone 1. Agriculture 2. Classification Services 3. Construction & Contracting 4. Financial Intermediation 5. Event Management 6. Manufacturing, Mining & Quarrying 7. Real State & Renting 8. Social & Personal Services 9. Trading & Services 10. Transport, Storage & Communication c) Setting up cost and fees: Check the Schedule of Fees and Penalties of DWT in the following link: goo.gl/mqrh9w (Page 63). d) Contact information: 33rd Floor, Dubai World Trade Centre 30

32 31 Tower P.O. Box 9292, Dubai, Tel.: +971 (4) Location: Click on the following link to be redirected to the map: goo.gl/phcy1p 9. Dubai Silicon Oasis Authority (DSOA) DSOA is a 100% government-owned free zone, was established following Law no 16 of 2005 of the Government of Dubai, with the Mission to facilitate and promote modern technology based industries thus supporting the region s demand for business expansion. A full package of incentives and benefits are provided to companies operating within the free zone. Dubai Silicon Oasis (DSO) is a technology park and provides both a living and working integrated community. DSO s urban masterplanned community spans 7.2 million square meters and has been carefully divided into 5 main pillars based on industrial, commercial, education, living and residences, and public facilities. The technology park enjoys state-of-the-art utility infrastructure featuring advanced telecommunications, electricity, and road networks. Silicon Oasis is designed as a hi-tech ecosystem which offers businesses a plethora of advantages including a state-of-the-art infrastructure, in-house business services and strong business support such as technology investment incentives for large enterprises, entrepreneurial support, an incubation center and venture capital funding. DSO provides: 31

33 32 - Developed land for customized buildings. - Ready-built space (with power, water, telecom, Datacom). a) Features - World-class campus, exquisite layout. - Plug-and-play facilities. - Comprehensive support facilities for IC companies. - All suppliers and service providers under one roof - cost and time savings. - Mutually - supporting community - joint projects, shared facilities. - Type of company activities would include CAD/CAE companies, design companies, packaging companies, testing companies, etc. b) Forms of registration As a branch of foreign company. As a branch of a UAE company. As a Free Zone Company (FZCO) - minimum share capital is AED 100,000 of 10,000 each As a Free Zone Establishment (FZE) - minimum share capital is AED 100,000 of 10,000 each c) License type In addition to Service, Trade and Industrial licenses, companies looking to set up within in DSO can choose from three two other types of special licenses: - Business Operation Permit: This is a special permit for companies operating in the Administrative Zone of DSOA (areas owned by private developers) using a license issued by Dubai Economic Department (DED). This license is issued based on the license issued by Dubai Economic Department. No share capital is required for this type of license. - Entrepreneurial Business License: An EBL license is designed to accelerate the successful development of young entrepreneurs and their businesses through an array of support resources and services. This license is only available for members of DSO s incubator program and involves a low cost license in return for a small stake in the business. d) Setting up cost and fees: Registration Fees (One Time) FZE USD 1,370 FZCO USD 1,370 Branch Nil License Type (Annual) Trade License USD 3,300 Industrial License USD USD 3,300 Services License USD 3,300 Check the Schedule of DSO services fees in the following link: goo.gl/7pshqn e) Contact information: Dubai Silicon Oasis, P.O.BOX: 6009, U.A.E. Tel:

34 33 Location: click on the following link to be redirected to the map: goo.gl/meu8y7 10. Dubai World Central free zone: DWC is the name of the Free Zone located within the Dubai South development area. The strategic underpinning of the masterplanned development is based on three key factors: Dubai s geographic location, the increasing importance of airports and the region s booming aviation sector. Strategic Location: DWC further cements Dubai s leading position as a logistics and trade hub. It takes advantage of Jebel Ali Port (the largest container port between Singapore and Rotterdam) and seamlessly connects it to Al Maktoum International Airport through the dedicated Dubai Logistics Corridor. This forms a single custom-bonded zone, reducing time on the ground and accelerating the flow of sea-to-air/ air-to-sea cargo. With direct access to the major trans-emirate road networks, DWC is a true multimodal logistics platform providing unprecedented levels of connectivity, speed and efficiency. Leading logistics businesses such as Aramex, Kuehne + Nagel and Panalpinaare taking advantage of DWC s dedicated Logistics District to grow their businesses within the region and beyond. The rise of the airport city: Today s businesses demand increasingly faster speeds of delivery and greater levels of connectivity. Today, an airport is an economic catalyst and has expanded beyond traditional boundaries to encompass a larger urban development centered around it, forming an aerotropolis. Embracing the aerotropolis model, DWC is the result of a carefully designed, forwardlooking master plan that sets the framework for Dubai s economic future. Focal point of global aviation: A dedicated aviation district has been designed with both landside and airside access to the Al Maktoum International Airport to capitalize on the opportunities. DWC is committed to creating a viable aviation industry cluster and encouraging 33

35 34 the development of FBO s, MRO s, manufacturers, education institutions, consulting and other aviation-related businesses to service and meet the growing demands of the region. DWC integrates 8 districts: Al Maktoum International Airport, Residential City, Golf city, Commercial City, humanitarian district and 3 free zones areas: Dubai Logistics City, Aviation City and Free Zone Business Park. a) Free Zones areas in DWC: i. Dubai Logistics City is optimally located alongside the apron of Al Maktoum International Airport and is in close proximity to the Jebel Ali Port and Free Zone. DLC is positioned to serve a wide range of transportation, logistics, and value-added operations within a single-bonded free zone environment. Due to its adjacent location and direct connection with the Jebel Ali Port and Free Zone through the Dubai Logistics Corridor (direct infrastructure connection, custom bonded), DLC will facilitate the transportation of goods from air to sea and vice versa. ii. iii. The aviation City has been designed with both landside and airside access to the Al Maktoum International Airport to capitalize on the opportunities. DWC is committed to creating a viable aviation industry cluster and encouraging the development of FBO s, MRO s, manufacturers, education institutions, consulting and other aviation-related businesses to service and meet the growing demands of the region. Free Zone Business Park: strategically situated at the entrance of Dubai World Central, offers companies the space and the flexibility they need to grow and expand with the aerotropolis and city around them. Completed and ready for immediate hand-over, the Business Park has been designed from the ground up around the concept of business facilitation. Offering 11 34

36 35 top-quality commercial buildings that leverage the development s strategic location within Dubai, the Business Park translates to being the ideal venue for long-term business growth. Divided into the East and West Wing, with the DWC HQ building in the middle, the Business Park offers finished offices ready for immediate occupancy. The East and West wing buildings have core and shell commercial spaces that can be configured to client specifications. A distinctive advantage of the Business Park is the opportunity for major companies to consolidate their operations into large contiguous floors either vertically or horizontally. Moreover, companies can benefit from the free zone environment. b) Forms of registration - As a Dubai World Central limited liability company with the designation DWC-LLC - As a Branch of a company/organization registered and existing outside of the DWC Free Zone (i.e. a branch of an overseas company/organization or a branch of a UAE registered company). c) License types: Logistics, Industrial, Trading, Service and Education License d) Setting up cost and fees COMMERCIAL TRADING/SERVICE LICENSE Year 1 Year 2 Basic Premier Basic Premier Trade License Fee AED 22,000 AED 28,000 AED 20,000 AED 26,000 GENERAL TRADING Year 1 Year 2 Basic Premier Basic Premier Trade License Fee AED 32,000 AED 38,000 AED 30,000 AED 36,000 OFFICE OPTIONS AT DWC (MANDATORY) Options Cost Smart Desk (Usage Allowed 5 hours per week) 2 visa allocations AED 18,900 Permanent Smart Desk 2 visa allocations AED 33,900 Smart Office (Usage Allowed 5 hours per week) 3 visa allocations AED 28,900 Permanent Smart Office 3 visa allocations AED 74,000 Permanent Exclusive Office 4 visa allocations AED 114,000 Physical Office for Lease Starting from AED per sq.m 35

37 Jebel Ali Free Zone Established in 1985, JAFZA today is spread over an area of 48 sq. kms and is home to over 6400 companies, including over 120 of the Fortune Global 500 enterprises, from across the world. It is a leading driver of the burgeoning UAE economy. Jebel Ali offers office units, warehouses, light industrial units and land on long term lease, business centers, and hotels for visitors and customized Build-to- Suit options. a) Features - Excellent support service from Dubai Ports Authority s two modern terminals. - On-site chamber of commerce, international banks, insurance companies, consultancies, etc. - Mortgaging of company-owned facilities (excluding leased land). - Lease period up to 50 years. - Types of activities include manufacturing, processing, assembling, packaging, import/export, distribution, storage, services, etc. b) Form of registration - As a branch of a foreign company - no minimum capital required. - As a branch of a UAE company - no minimum capital required. - As a Free Zone Company (FZCO) - minimum share capital is AED 500, As a Free Zone Establishment (FZE) - minimum share capital is AED 1,000,

38 37 License category Trading License Industrial License Service License E-Commerce License National Industrial License Innovation License Offshore Registration Nature of activity To carry out trading activities To carry out manufacturing activities To carry out services activities To carry out buying and selling of goods and services over electronic networks via any electronic means. To carry out manufacturing activities where at least 51% of the ownership is of national(s) of a GCC country. To carry out development of new products and services To establish an offshore company with limited liability a) Setting up cost and fees Registration Fee Type Onetime Fee in AED Free Zone Company (FZCO) AED 15,000 Free Zone Establishment (FZE) AED 10,000 Branch of a Company AED 5,000 * Memorandum and Article of Association: 200 AED ; Specimen Signature: AED 50; Board Resolution: AED 200; Application Fees: AED 500 License Fee License Type Trading License - Type 1 (7 products max from one group) Trading License - Type 2 (12 products max from two group) Annual Fee in AED AED 5,500 AED 9,000 General Trading AED 30,000 Service License AED 8,000 Logistics License AED 30,000 Industrial License 7 products AED 5,500 Industrial License 12 products AED 9,000 Product Rates Product Area (sqm) Annual Rent Sqm/Year (AED) Insurance/Year (AED) Plots of Land Min NA 37

39 38 Warehouses & LIU Warehouses (10 & 74 KVA) Light Industrial Unit(100 KVA) Showrooms 313/ / / / Type A (Showroom + Office + Warehouse) Type B (Showroom + Office + Warehouse) Type C (Showroom + Office only) Type D (Warehouse only) Business Park Desk Space 23,000-32,000 4/sqm Offices G+1 as per request 2, /unit JAFZA 14,15,16,17 as per request 2,000 4/sqm JAFZA 18,19 as per request 1,800-2,000 4/sqm NIP Office Building as per request 1,000-1,400 4/sqm JAFZA One as per request 1,500-2,100 4/sqm Retail Outlets - 1,000-4,000 4/sqm Security deposit, Public Health Liability & Other costs Plot of land 3% of the annual rent as PHL fees Annually maximum 15,000 Warehouse &Showrooms 10% of annual rent as security deposit 2% of the annual rent as PHL fees Onetime payment Annually maximum 10,000 Office 10% of annual rent as security deposit One time payment All facilities AED 490 immigration card fees (CIC) Annually b) Contact information 38

40 39 Address: JAFZA Head Office, Ground Floor, JAFZA Building No. 15, Jebel Ali Free Zone. Call within UAE 800-Jafza ( Call International Location: Click on the following link to be redirected to the map: goo.gl/29yaeu 12. Dragon Mart Dragon Mart is the largest trading hub for Chinese products outside mainland China. Completed in 2004, it provides a gateway for the supply of Chinese products in the Middle Eastern and North African Markets, offering a unique platform for traders to cater to the needs of this sizeable market. The 1.2 kilometre-long, 150,000 sq.m, dragon-shaped retail complex is divided into seven zones offering an assortment of high quality facilities for visitors and traders alike and currently houses over 3,950 outlets offering a wide variety of products including home appliances, stationery, office appliances, communication and acoustic equipment, lamps, household items, building materials, furniture, toys, machinery, garments, textiles, footwear and general merchandise. Strategically located on the Hatta/Al Ain highway, the development has over 2,500 parking spaces, as well as eight fully equipped warehouses and 25 residential buildings only 200 metres away from the main complex. An expansion of Dragon Mart named Dagon Mart 2 opened in 2016 and added 1,100 shops, Novo Cinemas, Geant Supermarket, two hotels and 1,120 apartments. Dubai Dragon Mart is managed by JAFZA. 39

41 The Dubai Technology and Media Free Zone Authority DTMFZA is the sole independent regulator of Dubai Technology and Media Free Zone. Dubai Technology and Media Free Zone was established in 2000 to promote Dubai as a globally competitive hub for knowledge-based industries and thereby drive Dubai s sustainable growth by developing and operating free zone business parks dedicated to these industries. The Free Zone now includes a total of 9 business parks, managed by TECOM Investments. Each operates as a distinct entity, covering four industry clusters - ICT, Media, Education and Sciences. The business parks whitin DTMFZA are: DIC, DOZ, DMC, DSC, IMPZ,DKV, DIAC, DuBiotech, and Enpark Dubai Internet City: DIC has grown to become the Middle East and North Africa s largest Information and Communication Technology (ICT) Business Park, hosting both global and regional companies. DIC offers an environment that attracts all the elements of the ICT value chain and helps IT and Telecoms businesses develop, innovate and grow. DIC also hosts the Majid Bin Mohammed Innovation Center in5.majid Bin Mohammed Innovation Center in5 is a technology start-up incubator that aims to foster entrepreneurships and drive innovation. Microsoft, Google, Yahoo, HP, Dell, Intel, Booking.com and Cisco are just some of the global ICT companies that serve the Middle East and beyond from offices in DIC Dubai Outsource Zone: DOZ Business Park was initiated to cater to the market demand for outsourcing companies. DOZ supports Business Process Outsourcing (BPO), HR Outsourcing, IT Outsourcing, back office and call center operations. Additionally DOZ offers state-of-the-art offices, robust telecom infrastructure, facilities management services and a 24-hour security service. 40

42 Dubai Media City: DMC has grown to become a thriving business community hosting both global and regional media companies. The business park offers an environment for media companies and individuals to operate with collective synergy. Businesses from the following sectors may apply to become part of the DMC business community: Advertising and Communication, Media and Marketing Services, Media Support Services, Event Management, Event Support Services, Media Consultancy Dubai Studio City: DSC offers the right combination of planned infrastructure, talent pool and the dynamic business environment to support the growth of broadcast, movie, television and music production companies in the Middle East region. DSC features pre-built studios, sound stages, warehouses, workshops, office spaces, latest satellite communication facilities, backlots and stage areas International Media Production Zone: IMPZ is a dedicated media production zone designed to meet the unique needs of the global media production industry. The business park serves graphic art, printing, publishing, packaging and media production companies. 41

43 Dubai Knowledge Village DKV is dedicated to Human Resource Management and learning excellence. DKV was established in 2003 as part of TECOM Investments and aims to develop the region's talent pool and establish the UAE as knowledge based economy. DKV is a unique hub that offers the best selection of Human Resource Management, Consultancy, and Training & Personal Development Programs on a picturesque 1 km long campus in the heart of Dubai Dubai International Academic City: DIAC is dedicated to Higher Education. DIAC aims to develop the region s talent pool and establish the UAE as a knowledge-based economy. DIAC has over 30 Academic institutions from 11 countries including world-renowned universities that are listed below: 1. Michigan State University 2. University of Wollongong in Dubai 3. Hult International Business School 4. Heriot-Watt University 5. University Of Phoenix (ONLINE) 6. American University in the Emirates 7. Middlesex University 8. Imam Malik College 9. Manchester Business School 10. The University of Exeter 11. Murdoch University 12. The National Institute of Vocational Education 13. Hamdan Bin Mohamed e-university 14. University of Bradford 15. The British University in Dubai 16. Cambridge College International 17. SAE Institute 18. Canada International College 19. Birla Institute of Science and Technology 20. Manipal University 21. S.P Jain Center for Management 22. Institute of Management Technology 23. JSS Academy 24. Saint Petersburg State University of Engineering and Economics 25. Islamic Azad University 26. St. Joseph University 27. Shaheed Zulfikar Ali Bhutto Institute of Science and Technology 28. French Fashion University ESMOD The DIAC campus is host to over 16,000 students from over 100 nationalities, showcasing the cosmopolitan and multicultural nature of the region. DIAC students have access to over 300 Higher Education programs, including Undergraduate and Post Graduate 42

44 43 programs, from fields such as Engineering, IT, Media, Business, Fashion Design, Healthcare, Mass Communications, Media and many more DuBiotech DuBiotech is the major Life Sciences cluster in the Middle East. It is a Free Zone that provides the ultimate platform for Life Sciences companies to set up their operations and access the fast growing, emerging markets of the region. DuBiotech offers unique services that include regulatory affairs management, partner development, registration & licensing, leasing and government services to facilitate the growth of the local and international companies operating in the Park The Energy and Environment Park Enpark is facilitating the growth of the energy and environment businesses in the Middle East. Enpark specifically caters to the Energy, Energy Efficiency and Green Building, Recycling and Solid Waste sectors, by providing a cost effective business environment to serve their MENA markets. Since October 2015, DuBiotech and Enpark started operating under a joint umbrella known as Dubai Science Park. Guidelines for Establishing Business in Dubai and Northern Emirates 43

45 44 a) Licensing Options within Dubai Technology and Media Free Zone Dubai Technology and Media Free Zone offer a choice of licensing options: Commercial License - New Incorporation of a Free Zone Limited Liability Company (FZ-LLC). Each FZ-LLC is required to have at least one director. The minimum capital requirement for incorporation depends on the business activity. - Branch of an Existing Foreign/UAE Company Freelance Permit The Freelance Permit offers the ability to operate as a freelance professional. The Permit identifies you as a sole practitioner and enables you to conduct your business in your birth name as opposed to a brand name. b) Licensing Regulations Commercial licenses and freelance permits issued by Dubai Technology and Media Free Zone Authority are subject to leasing a facility within the Dubai Technology and Media Free Zone and the license is valid only for operating a business inside the Free Zone territory. Licenses and permits are for a period of one year and are renewable on an annual basis. Commercial licenses and permits are issued to all businesses registered with DTMFZA, to allow specific approved business activities in DTMFZA s business zones in compliance with the Dubai Technology and Media Free Zone Licensing Regulations. c) Forms of registration and Minimum Capital Requirements The minimum paid-up capital requirement to incorporate a Free Zone Limited Liability company (FZ-LLC) in Dubai Technology and Media Free Zone depends on the business activity. There is no capital requirement for branch companies. Below are the minimum capital requirements that apply within each business park: - Dubai Internet City - FZ-LLCs incorporated in Dubai Internet City are required to have minimum paid up capital of AED 50, Branch establishments have no minimum capital requirements. - Dubai Outsource Zone - FZ-LLCs incorporated in Dubai Outsource Zone are required to have minimum paid up capital of AED 300, Branch establishments have no minimum capital requirements. - Dubai Media City - FZ-LLCs incorporated in Dubai Media City are required to have minimum paid up capital of AED 50,000, with the exception of the below activities, which have minimum capital requirement of AED 2,500,000: o All activities within Broadcasting TV Segment o All activities within Broadcasting Radio Segment (except for IP streaming) - Branch establishments within Dubai Media City have no minimum capital requirements. - Dubai Studio City - FZ-LLCs incorporated in Dubai Studio City are required to have minimum paid up capital of AED 50,000, with the exception of the below activities, which have minimum capital requirement of AED 2,500,000: Guidelines for Establishing Business in Dubai and Northern Emirates 44

46 45 o All activities within Broadcasting TV Segment o All activities within Broadcasting Radio Segment (except for IP streaming) - Branch establishments within Dubai Studio City have no minimum capital requirements. - International Media Production Zone - FZ-LLCs incorporated in our IMPZ are required to have minimum paid up capital of AED o 300,000, with the exception of the below activities: o Printing Machinery and Printing Consumables Manufacturing Segment - AED 500,000 o Printing Press Segment - AED 500,000 o Publishing Segment - AED 200,000 o Graphic Arts Support Services Segment -AED 50,000 - Branch establishments within IMPZ have no minimum capital requirements. - Dubai Knowledge Village - FZ-LLCs incorporated in Dubai Knowledge Village are required to have minimum paid up capital of AED 50, Branch establishments (e.g., all universities and schools) have no minimum capital requirements. - Dubai International Academic City - FZ-LLCs incorporated in Dubai Knowledge Village are required to have minimum paid up capital of AED 50, Branch establishments (e.g., all universities and schools) have no minimum capital requirements. - DuBiotech - FZ-LLCs incorporated in DuBiotech are required to have minimum paid up capital of AED 50,000, with the exception of the below activities, which have a minimum capital requirement of AED 300,000: o Manufacturing and Production Activity under the Therapeutics Segment o Manufacturing and Production Activity under the Food Segment o Manufacturing and Production Activity under the Agricultural, Forestry, Horticulture, o Segment o Manufacturing and Production Activity under the Environment Segment o Manufacturing and Production Activity under the Medical/Scientific Devices or o Equipment Segment o Manufacturing and Production Activity under the Specialty Supplies Segment - Branch establishments within DuBiotech have no minimum capital requirements. - Enpark - FZ-LLCs incorporated in Enpark are required to have minimum paid up capital of AED 300,000, with the exception of Associations (Non-Profit Organizations), which have a minimum capital requirement of AED Note: Dubai Creative Clusters Authority (DCCA) is responsible for the establishment and registration of companies in Dubai Technology and Media Free Zone. d) Setting up cost and fees Check DCCA registration and licensing tariffs in the following link: goo.gl/rohq39 Guidelines for Establishing Business in Dubai and Northern Emirates 45

47 46 e) Contact information: Dubai Creative Clusters Authority Tel: DCCA (3222) For international calls: Fax: info@dcca.gov.ae Location: click on the following link to be redirected to the map: goo.gl/o9mc6f. 14. International Humanitarian City: IHC International Humanitarian City (IHC) is an independent free zone authority created by the Government of Dubai that serves as an aid and humanitarian hub, providing local and international humanitarian professionals with facilities and services specifically designed to meet their needs and facilitate their global operations. IHC brings together United Nations agencies, local and international aid and development organizations, commercial companies and other stakeholders in a secure environment that fosters partnerships, social responsibility and global change. IHC is a non-religious, non-political and not-for-profit legal entity. At present IHC s premises are located in central Dubai near Business Bay. IHC will, however, be expanding to meet the rapidly growing requirements of the global humanitarian community by relocating to new facilities that will be developed on a one million square meter land allocated by the Government of Dubai in Dubai World Central in Jebel Ali. Here, IHC will take advantage of the access to port and airport facilities, enhancing the organizations focus on humanitarian logistics and specialized services. One of the key facets of the IHC will be the ability to provide a global emergency response solution to facilitate the delivery of coordinated instant global relief. Guidelines for Establishing Business in Dubai and Northern Emirates 46

48 47 a) Organizations members of IHC: Guidelines for Establishing Business in Dubai and Northern Emirates 47

49 48 b) Contact information: International Humanitarian City, DIC Complex - Sheik Mohammed Bin Zayed Road - Dubai Tel.: Location: Click on the following link to be redirected to the map: goo.gl/zamzxy 15. Dubai Design District In 2013 the UAE s Prime Minister and Ruler of Dubai, Sheikh Mohamed bin Rashid Al Maktoum, unveiled his vision to create a purpose-built design district that could nurture emerging local talent and provide a home for the region s creative thinkers.d3 offers a visually stunning mix of land and leasable space to nurture a creative collective of design talent. The idea is to combine carefully curated developments with technologically smart infrastructure to create a vibrant, sustainable and commercially viable community. Smart city principles enhance connectivity, provide green solutions and raise living and working conditions for everybody using technology to design a better world. Guidelines for Establishing Business in Dubai and Northern Emirates 48

50 49 Dubai Creative Clusters Authority (DCCA) is also responsible for the establishment and registration of companies in Dubai Design District. 16. Dubai Gold and Diamond Park Located on Sheikh Zayed Road, Gold & Diamond Park earned the trusted reputation as Dubai s leading destination for gold and diamond jewelry since its launch in It also offers an outdoor courtyard and a selection of cafés and restaurants. This specialty mall has the unrivalled selection of 90 leading retailers and recently opened another expansion that now offers 118 manufacturing blocks and commercial space for over 350 offices. a) Setting up cost and fees Trade License option / activity Cost in AED Industrial License AED 9,375 Commercial License Specific Trading AED 9,375 Oil & Gas AED 12,500 Real Estate AED 18,750 Aviation AED 18,750 General Trading License AED 18,750 Service License Specific Services AED 9,375 Oil & Gas AED 12,500 Freight Forwarding AED 10,625 Real Estate AED 18,750 Aviation AED 18, Dubai Textile City: DTC is Joint Venture between TEXMAS and Port, Customs & Free Zone Corporation (PCFC). DTC is an entity located in Al Awir Free Zone, facilitating storage of textile fabrics for long periods without attracting customs duty, which is 5% currently. It is meant to help traders who are mainly in re-export business. (It is estimated that 85% of the goods imported to Dubai are re-exported, at one time or other). The Free Zone is exclusively for Texmas members. a) Business activities: Trading in textile related products b) License available: Trading license Guidelines for Establishing Business in Dubai and Northern Emirates 49

51 50 c) Forms of registration: FZE, FZC, Branch, Subsidiary and JV d) Share capital: Minimum of AED 50,000/- per shareholder e) Contact information: TEXMAS Textile Merchants Group P.O.Box:50961, Dubai, United Arab Emirates Phone: Location: Click on the following link to be redirected to the map: goo.gl/prtfjb 18. Dubai Carpet Free Zone DCFZ offers an exclusive trading platform for carpet manufacturers and supporting businesses. Located in Dubai s Deira district, registered companies are just a few kilometers from Dubai International Airport and Dubai s many ports. The free zone hosts every year, during the shopping summer festival The "Carpet Oasis" exhibition. a) Features Retail spaces with the appropriate utilities; Premises for production and storing of goods; Office premises of various layouts and floor space. b) Location: DCFZ is located in Dubai s Deira district, but no map is available. Guidelines for Establishing Business in Dubai and Northern Emirates 50

52 51 FREE ZONES UNDER-DEVELOPMENT IN DUBAI 19. Techno Park The objective of establishing the park is to assist in the growth of Dubai s economy by encouraging scientific activities and boosting the level of technology in the region. Hence, the park shall be a center for transfer, adaptation and localization of technology. Techno Park shall develop technology clusters in specific industries where the target market represents a considerable portion of global demand. 20. Dubai Auto Part City: DAPC is the result of the hard work of the Auto parts Merchants Group, also referred to as the APMG, compiled with the consent from the Dubai Ports and Customs Executives and the Dubai Government as a whole. The sole motto of building the Dubai Auto Parts City (DAPC) has been of generating and increasing the already existent resale of automotive parts from Dubai. Apart from exporting regular spare parts, the Dubai Auto Parts City (DAPC) is also to boost the export of other important automotive parts, such as theauto batteries, tyres and also different automotive accessories that have huge demand in foreign markets. 21. Heavy Equipment and Trucks Zone As part of the efforts to expand the re-export of trucks and heavy equipment from Dubai the Heavy Equipment and Trucks Zone has been announced. Construction works for HETZ are already on at Warsan area in Dubai on the allocated area of 7,311,721 sq. meters facility. The free zone will have all facilities that required increasing the business value in this sector similar to the JAFZ. The zone has been designed to accommodate for a large number of companies according to their desires. The location of the project selected for easy access and escapes to the area from all sides and other northern emirates and for easy reach to Jebel Ali Port. At HETZ, all sorts of incentives shall be provided to the investors to encourage the business and will accommodate several areas for commercial, public auctions, heavy equipment and spare parts in addition to other general services and facilities. Hetz will be active in re-exports as well as supplying the local market. Traders who sell to the local market will pay four percent customs duty, while re-exporters will benefit from tax exemptions. The new zone will feature all the necessary resources needed for the promotion of heavy equipment and truck trading such as administrative offices, licensing offices, banks, customs and a chamber of commerce office. Guidelines for Establishing Business in Dubai and Northern Emirates 51

53 52 FREE ZONES INTHE NORTHERN EMIRATES It is important to note that it is not allowed by the law to have an office in Dubai with a northern emirates license. Offices in Dubai can be only rented under the name of a Dubai licensed company. 1. Sharjah Airport International Free Zone (Saif Zone) Sharjah Airport International Free Zone (SAIF Zone) was established by an Emiri DecreeNo.2 in SAIF Zone is placed on the crossroads of major trading routes between East and West. Easily accessible to seaports on the Indian Ocean (Port Khor Fakkan) and the Arabian Gulf (Port Khalid), SAIF-Zone is built adjacent to the Sharjah International Airport. a) Features SAIF-Zone offers its patrons extremely attractive incentives. Geographically well positioned with excellent land, sea and air links to the rest of the world, SAIF-Zone is a dream come true for the businessman. Modern premises, equipped with the latest facilities and a secure environment ensures maximum returns for the investor. - Abundant and inexpensive energy - Competitive fee structure, property & management leases - 24-hour hotline for equipment and provision of labour - Sponsorship & visas for all staff - Access to ports in the Arabian Gulf & Indian Ocean - International air links across the world via Sharjah International Airport Guidelines for Establishing Business in Dubai and Northern Emirates 52

54 53 - Back-up services include those provided by the Sharjah Chamber of Commerce and Industry, Sharjah Expo Center and over 40 international banks. b) Form of registration - As a branch of a foreign company - no minimum capital required. - As a branch of a UAE company - no minimum capital required. - As a Free Zone Company (FZCO) - minimum share capital is AED 150, Free Zone Establishment (FZE) - minimum share capital is AED 150,000. c) Licenses types - Industrial License - Allows the investor to import raw material, manufacture, process, assemble, package and export the finished product. - Commercial License - Allows the investor to import, export, distribute, consolidate and store items specified in the license. There is a maximum limit of three similar product lines. - General Trading License - As the name suggests, a large number of products fall within its ambit. This type of license can be obtained under the commercial license. - Service License - Allows the investor to carry out only specified services. d) Setting up cost and fees: Check the DMCC schedule of Charges in the following short link: goo.gl/tu8hzy Note: SAIF Free Zone offers the option of Flexi Desk Package for solo entrepreneurs and small businesses. Under this package, the investor will benefit from 3 visas, without the need of leasing a physical office space. He can also have access to the desk space, conference room, reception cover and use of office equipment. e) Contact information: Phone: info@saif-zone.com Location: Click on the following link to be redirected to the map: goo.gl/9ybbmf 2. HAMRIYAH FREE ZONE (HFZ) Hamriyah Free Zone is fast becoming one of the cornerstones of the United Arab Emirates industrial development. As the Next Generation Free Zone, Hamriyah Free Zone is ensuring that its management is flexible and dynamic besides being an investor oriented free zone. The Hamriyah Free Zone (HFZ) was established by an Emiri Decree No. 6 dated 12thNovember, It is becoming one of the cornerstones of industrial development within the Emirates. Hamriyah Free Zone consists of 12 square km of prime industrial and commercial land. The HFZ Authority is currently developing first class services and facilities that will complement its 14 meter deep water port which will offer a strategic business advantage to the investors. Guidelines for Establishing Business in Dubai and Northern Emirates 53

55 54 HFZ has been awarded the Century International Gold Quality Award for the year 2002.This makes HFZ the first Free Zone in the World to receive such a prestigious award. a) Features - Access to 14 meter deep water port and 7 meter deep inner harbor - Land lease for 25 years renewed for similar period - Pre-built warehouses, factories and office units for lease - Executive office suites in the International Business Center for lease - On-site accommodation for investors personnel including recreating center and health club - Transportation via road, 3 sea ports and Sharjah International airport - Highly developed infrastructure and telecommunications links - Abundant and inexpensive energy (Electricity: $0.05 per KWA, Water: $8.17 per 1000Gallons) - Liberty for personnel recruitment and economical workforce - Affordable cost of living. b) Form of registration - As a branch of a foreign company - no minimum capital required. - As a branch of a UAE company - no minimum capital required. - As a Free Zone Company (FZCO) - minimum share capital is AED 150, As a Free Zone Establishment (FZE) - minimum share capital is AED 150,000. Guidelines for Establishing Business in Dubai and Northern Emirates 54

56 55 c) Licenses types Industrial License This license will allow the holder to import raw materials for the purpose of manufacturing, processing and/or assembly of specified products. The finished products may be exported outside the UAE. If the finished products are sold in the UAE market then the License holder will need to do this through a local distributor or a local agent. Commercial License This license will allow the holder to import, export, sell, distribute and store items specified on the license. If the finished products are sold in the UAE market then the License holder will need to do this through a local distributor or a local agent. Service License This license allows the holder to carry out the services which are specified on the license within the Hamriyah Free Zone only. d) Setting up cost and fees: Check HFZA Schedule of charges in the following link: goo.gl/txcn48 (page 12) e) Contact information Hamriyah Free Zone Authority P.O. Box: 1377, Sharjah, United Arab Emirates Tel: sales@hfza.ae Location: Click on the following link to be redirected to the map: goo.gl/r6xgy3 3. Sharjah Media City Guidelines for Establishing Business in Dubai and Northern Emirates 55

57 56 Shams, Sharjah Media City was launched in January 2017, with a vision to be a world-class hub for media and creativity in the region. Shams mission is to make creative entrepreneurship accessible and inspire business growth in the region. Shams Free Zone is still under construction but has an operation office in or near Sharjah University. a) Features - Cost of setting up starts from AED 11, Personal presence in the company is not required to setup the company - Processing time is only 2 days. - Regular benefits of a free zone (100% foreign ownership, 100% repatriation of capital and profits, 0% import and export duties, 0% corporate tax for 50 years). b) License types: - Services / Consultancy starts from AED 11,500 to 24,600 per annum depending on the number of Visas. - General trading license starts from AED 16,500 to 29,600 per annum depending on the number of visas Note: The above amounts don t include additional fees e.g. Immigration card, Investor/ employee s visa, fees, desk facility etc. c) Contact information Address: Sharjah, UAE Tel.: Location 4. Ajman Free Zone (AFZ) Ajman Free Zone was formed under Law No. 3 of 1996 of the Emirates of Ajman and located opposite to Ajman Port Customs and Immigration). Its proximity to Sharjah and Dubai (45 to 60 minutes) provides easy accessibility to the two international airports and four ports. The Free Zone is home to over 1400 companies approximately. Guidelines for Establishing Business in Dubai and Northern Emirates 56

58 57 a) License types - Trading license - Professional Service silence - Industrial license b) Features - Economical wage structure and easy access to vast work force. - Total elimination of all service charges and hidden fees. - Lease period up to 20 years. - Type of company activities includes manufacturing, processing, assembling, packaging, import/export, distribution, storage services. c) Form of registration - As a branch of a foreign / UAE company - no minimum capital required. - As a Free Zone Company (FZCO) - minimum share capital is US $ 50, As a Free Zone Establishment (FZE) - minimum share capital is US $ 50,000. d) Setting up cost and fees Check AFZ packages in the following link: goo.gl/8ypxbi e) Contact information: Ajman Free Zone, Shk. Rashid Bin Saeed Al Maktom Street, Ajman, United Arab Emirate Phone: info@afza.gov.ae Location: Click on the following link to be redirected to the map: goo.gl/4x5ypz Guidelines for Establishing Business in Dubai and Northern Emirates 57

59 58 5. Fujairah Free Zone [FFZ] Fujairah Free Zone was formed under Law No. 6 of 1987 of the Emirate of Fujairah. Fujairah Free Zone is adjacent to the Port of Fujairah. Companies established there have easy access to all Arabian Gulf ports. Fujairah Free Zone is also close to Fujairah International Airport which is the only airport is serving the UAE East Coast as well as Northern Oman. The Port of Fujairah is adjacent to the Free Zone. Investors have easy access to all Arabian Gulf ports. a) Features - Multi-access to neighboring and global markets by land, sea and air. - Efficient and cost-effective investment facilitation. - Served by Fujairah Port and the Fujairah International Airport. - Lease period up to 15 years. - Type of company activities includes manufacturing, processing, assembling, packaging, import/export, distribution, storage services. b) License types Business Licenses Investors can obtain up to 100% ownership operational license under the following categories according to their lease agreement with the authority: Guidelines for Establishing Business in Dubai and Northern Emirates 58

60 59 - Trading & General Trading License: Authorized to import, export and re-export agreed and specified commodities. The license entitles the investor to carry out import, export and re-export freely in the Free Zone and outside the UAE For local distribution; the Authority can arrange special permits with the relevant Government departments for hassle- free operations. - Warehousing License: This license entitles the investor to use the warehouse as a hub for major distribution, benefiting storage and packaging of goods. - Manufacturing License: All projects must be fully insured including manpower and machinery. All manufacturing license approvals are subject to the identification of the following: o Area requirements - built-up and open space o Electricity, water and manpower requirements o Environmental aspects of the project Commercial License - General Trading License - Consultancy/Services License c) Forms of registration - As a branch of a foreign company - no minimum capital required. - As a branch of a UAE company - no minimum capital required. - As a Free Zone Company (FZCO) - minimum share capital is AED 150, Free Zone Establishment (FZE) - minimum share capital is AED 150,000. d) Setting up cost and fees Check the setting up cost in the following link: goo.gl/juxutv e) Contact information: Fujairah Free Zone Authority PO Box 1133, Fujairah, United Arab Emirates Tel: freezonhe@emirates.net.ae Location: Click on the following link to be redirected to the map: goo.gl/smkbbw 6. Fujairah Media Zone (FM Zone) / Creative City Fujairah is the latest Emirate to make its mark on the media map of the country with its Creative City, a fast growing media hub luring in aspiring media professionals and companies. Creative City sets up professional environment for individuals and businesses working in a broad spectrum of business fields including media, events, consulting, education, communication and marketing, music and entertainment, design and technology complementing existing media clusters in the region and further facilitating creativity in all fields. Guidelines for Establishing Business in Dubai and Northern Emirates 59

61 60 a) Features: - Low set-up cost - Allocation of up to seven UAE Residency Visas - Convenient bank account services - No paid up share capital - No annual auditing - No Objection Letter (NOC) not required - Dedicated account managers and efficient PRO services - Flexible payment terms b) Setting up cost and fees Check Fujairah Creative City Free Zone s fees in the following link: goo.gl/544w71 c) Contact information Creative Tower, Hamad Ben Mohammed St P.O. Box 4422 Fujairah, UAE Guidelines for Establishing Business in Dubai and Northern Emirates 60

62 61 Phone: info@ccfz.ae Location: Click on the following link to be redirected to the map: goo.gl/dzt6f7 7. Umm Al Quwain Free Zone Umm Al Quwain Free Zone is located on the West Coast of the United Arab Emirates, in the Emirate of Umm Al Quwain (UAQ). The Free Zone was formed under decree No. 2 of1987 of UAQ. The Free Zone complex consists of845 meters of quay wall with 400 meters capable of handling ocean-going vessels and 118,000 square meters of land reserved for light Industrial Development. a) Features - Hi-tech facilities including office, warehouse and land availability - Strategic location with access to over two billion consumers - Ideal location for SMEs and micro-businesses - Close to two international airports and major sea ports - Special concessions at UAQ s sea port b) License type Commercial license (trading license) There are two types of license which fall under this category: Commercial License and General Trading License. Guidelines for Establishing Business in Dubai and Northern Emirates 61

63 62 Commercial License This authorizes the import, export, distribution and storing of items specified on the license. A Commercial License can have three different product lines or 10 similar product lines. General Trading License This enables the licensee to trade in a wider range of activities and gives the freedom and flexibility to trade in any commodity which is permitted within the UAE. Note: Commodities which require special approval or clearance from various UAE authorities e.g. explosives and armaments cannot be traded with a General Trading license. Industrial License This enables the licensee to import raw materials, then manufacture/ process / assemble / package the specified products, and export the finished product. It allows the holder to import raw materials for the purpose of manufacturing, processing and/or assembly of specified products. Consultancy License This is for entities which offer expert or professional advice and is issued to all manner of professionals including artisans and craftsmen. It allows two similar activities. Service License This license is for service providers. It permits the licensee to carry out the services specified on the license within the Free Zone, such as Logistics; Courier Services; Insurance Service Provider; Travel Agency; Tour Services; Car Rental etc. Freelance Permit This allows an individual to operate as a freelance professional, and conduct business in one s birth name as opposed to a brand name or company. The Freelance Permit is designed for individuals who operate in technology, media and film sectors, and is issued to talent roles, creative roles and selected administrative roles. c) Forms of registration - As a branch of a foreign company - no minimum capital required. - As a branch of a UAE company - no minimum capital required. d) Setting up cost and fees License Costs If you choose a single activity trading license it is US$ 685 Whereas General Trading will cost US$ 2603 A Consultancy license costs- US$ 685 A Premium Consultancy license costs- US$ 3973 A Micro Business License will cost US$ 685 Freelancer permit will cost US$ 685 Guidelines for Establishing Business in Dubai and Northern Emirates 62

64 63 Rents Office rent for minimum office desk space is US$ 4384 per annum Address Services for Micro Business License and Freelancer permit US$ 2466 Registration charges Onetime costs total up to US$ 548 Notes: - For this sum US$ 5617 you will get License for 1 year renewable each year, a desk space in the business center. You will be eligible for 2 visas but visas will cost extra. - All costs are payable each year except registration charges. e) Contact information Umm al Quwain Free Trade Zone Authority PO Box 7072 Umm Al Quwain, UAE Phone: +971(0) info@uaqftz.com Location: Click on the following link to be redirected to the map: goo.gl/mehesf 8. Ras Al Khaimah Economic Zone (RAKEZ) In April 2017, the government of Ras Al Khaimah launched of Ras Al Khaimah Economic Zone (RAKEZ), a world-class authority established to oversee, regulate and consolidate the services, facilities and zones of Ras Al Khaimah Free Trade Zone (RAK FTZ) and RAK Investment Authority (RAKIA). RAKEZ is now one of the largest economic zones in the region, covering about 33 million square meters of land and housing over 13,000 companies, currently served by RAK FTZ and RAKIA. 8.1 Ras Al Khaimah Free Trade Zone (RAK FTZ) Established in 2000, RAKFTZ is one of the fastest-growing and most cost-effective free trade zones in the UAE and home to some 5,000+ active companies. Guidelines for Establishing Business in Dubai and Northern Emirates 63

65 Ras Al Khaimah Investment Authority (RAKIA) Guidelines for Establishing Business in Dubai and Northern Emirates 64

66 65 The RAK Investment Authority (RAKIA) was constituted as per Emiri Decree No. (2)/ 2005 issued by H.H. Sheikh Saqr Bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah. The mandate for the authority is to work towards reinforcing the investment climate in the emirate and to promote its various economic sectors. a) RAKEZ Features Free zone and non-free zone company formation 100 per cent foreign ownership Fast and efficient business set-up processes Wide-ranging business and industrial facilities and value-added services Provision to build on-site staff and labour accommodation One-stop shop facility for services Self-service customer portal Connectivity to major logistical hubs and multilane super highways Accessibility via an international spread of regional offices Easy access to markets across the Middle East, Europe, North Africa and Asia regions b) Registration forms in RAKEZ Free Zone Entity Free Zone Limited Liability Establishment (FZE) Sole owner Free Zone Limited Liability Company (FZ-LLC) 2-5 shareholders Non-Free Zone Entity Individual Establishment 1 Limited Liability Company (LCC) 2-50 shareholders Branches Branch of a UAE-Based Company Including companies incorporated in UAR Free Zones Branch of a foreign company Located in the UAE c) License types: Free Zone Non-Free Zone Commercial Trading in Services and goods * * Educational Opening an education-related institution or consultancy company * E-Commerce Trading in goods and services via electronic means * General trading Trading in multiple goods * Individual/ One owner with one activity in a specific specialty or expertise * Professional Industrial Manufacturing, importing, packaging and exporting products * * Media Operating media-related business activities * Professional For individuals who provide professional services. * Service Conducting services or consultancies across any industry * Tourism Operating tourism-related activities or establishments * d) Setting up cost and fees in RAKEZ Facility Package cost in AED for the Package cost in AED for the 1 st year (FZC) 1 st year (FZE) Flexi Desk - Commercial License 24,350 26,700 Flexi Desk - Consultancy License 28,200 30,550 Guidelines for Establishing Business in Dubai and Northern Emirates 65

67 66 Flexi Desk (BC Services) - Commercial License 22,150 24,500 Flexi Desk (BC Services) - Consultancy License 26,000 28,350 Flexi Office - Commercial License 30,850 33,200 Flexi Office - Consultancy License 37,050 37,850 Special Flexi Office- Commercial License (Special Activity) 37,850 41,700 Special Flexi Office- General Trading License 49,200 34,760 Standard Office- Commercial License 34,760 37,110 Standard Office- Consultancy License 38,610 40,960 Standard Office Plus-Commercial License 43,760 46,110 Standard Office Plus- Consultancy License 47,610 49,960 Special Executive Office- General Trading License 50,110 (For the first 3 years) - Warehouse (TP and IP)- Commercial License 62,075 73,425 Warehouse (TP and IP)- Industrial License 63,425 - e) Contact information PO Box 10055, Al Nakheel, Ras Al Khaimah Tel: info@rakez.com Location: click on the following link to be redirected to the map: goo.gl/ap9wn3 9. RAS AL KHAIMAH MEDIA FREE ZONE (RAKMFZ) - RAK MEDIA CITY RAK authorities have established the Ras Al Khaimah Media Free Zone (RAKMFZ) on the 3rd January 2006 in order to provide the right atmosphere for genuine and responsible media companies and to attract genuine top notch professionals from the media industry. The RAK Government has been playing a major role in encouraging local and foreign investors to come into the Emirate and use it as a base for their business activities across the UAE and the GCC region. Ras Al Khaimah Media Free Zone (RAKMFZ) is also referred to as RAK Media Free Zone, RAK Media City or Film City. RAKMFZ follows the Media Code of Conduct followed by other Emirates in the country. The facility is proposed to play host to media establishments, television channels, studios for audio-visual productions and computer graphics houses besides animation studios. The new facility will provide its clients with various media services including teleport facilities for up-linking images from Ras Al Khaimah to various satellites. The Free Zone will lease land to investors who wish to set up their own media facilities, be it a printing press, a film studio, an advertising agency, a magazine office or a television studio. Also lease ready-to-use office space and up-linking facilities to such license holders. RAK Free Zone has licensed Mirage holding free zone LLC to operate the entire Film and Media City. a) Licenses types: - TV Broadcasting, production, TV management. - Audio management. - Advertising Agency, - Printing, Publishing, Distribution. - Sports Management and Promotion - Studios for film, television, audio-visual productions, computer graphics houses and animation studios, etc. - Graphic Design Guidelines for Establishing Business in Dubai and Northern Emirates 66

68 67 - Consultancy and Research, Concept and Design. - News Agencies, Research and Information Services, etc. b) Features: - Image up-linking via satellites - Teleport services - Competitive rental cost - Following Media Code of Conduct - Providing production facilities. c) Forms of registration: - FZLLC with minimum two shareholders. Share capital of AED 150,000 - FZE with single shareholder. Minimum share capital of AED 100,000 d) Contact information Location: click on the following link to be redirected to the map: goo.gl/3sefne 10. Ras Al Khaimah Maritime City RAK Maritime City Free Zone covers an area of several million square meters, divided into zoned plots which can accommodate businesses of varying size and across multiple industrial sectors. Its strategic position as the nearest Free Zone the Strait of Hormuz has unique advantages in terms of fuel cost savings for tenants, and its port functionality and features in terms of entrance draft depth, deep-water berths, exclusive jetties and available quay wall are second to none. Operating both as a free zone with all the inherent business benefits and as a port complying with international standards, RAK Maritime City offers an excellent cost-efficient and secure option for companies and a high level of customer service. In addition it aims to provide a high quality industrial and maritime complex, superior logistics and industrial infrastructure and high quality facilities. a) Features - Platforms ensure access to deep water in the future. - 5km. of new wall of platform - Special maritime platforms - Deep entrance of the port - Investment lands for companies with various spaces - Various low cost offers - Perfect tax policy, transparency and safety - Appropriate for handling companies, general trade, industrial production, storing, building and fixing ships. - Large and open spaces for storage; there are further plans to build new closed storage areas at the best specifications. b) Types of licenses: Commercial license: It is a license that allows the holder to import, export, sale, distribution and storage activities recorded on the license and not to exceed more than seven types, if sale made in the state, the license holder must contract with an agent or a local distributor. General trade license: License can be obtained with a business license in order to work in excess of seven activities. Guidelines for Establishing Business in Dubai and Northern Emirates 67

69 68 Industrial license: It is a license allows the holder to import raw materials for the purpose of manufacturing, production and assembly of certain products. Finished products can be exported outside the country. And if it has a sale within the state, the license holder must contract with an agent or a local distributor. c) Forms of registration: Companies wishing to work in the Free Zone may register in one of the following forms: New companies - Free Zone Establishment: one founder (individual or company) - Free Zone Company: 2-5 founders (individuals or companies) - Branches Local branch: following a company residing in the state which has been established for more than one year. Foreign branch: following a company residing outside the state which has been established for more than one year. d) Contact information Tel info.rmc@rakports.ae Location: click on the following link to be redirected to the map: goo.gl/dbwbce Guidelines for Establishing Business in Dubai and Northern Emirates 68

70 69 CONCLUSION 100% ownership of the company is the main reason for setting up a business in the free zones in order to avoid risk of losing ownership of the company and to benefit from the high infrastructure available. However certain businesses simply work better with a Non Free Zone license, as mainland presents important advantages e.g. giving access to UAE market and low cost, therefore, if the investor can find a trustful sponsor, a non-free zone might be a better option for his business. Choose the adequate free zone is a hard task; if you have enough experience in the region, or are well aware of the potential factors that affect the business and factors that determine the ideal free zone, you can do a research on various options available and arrive at an informed decision. However you should know that though, it may appear all clear and straight forward initially, experience of many investors prove it otherwise. It is advisable to new investors to spend at least 2 years in the country working in the same industry in order to be acknowledge of all the practices and the regulations and make the best choice for the business. It is also important to network with previous companies in the same industry prior to set up your business in UAE. Also, you might want to seek the service of experienced free zone consultants to be advised on the right choice of a free zone that matches your business activities and to give them full responsibility for preparing incorporation and registration documents for the establishment of your company. However, this does not guarantee a zero free hassle process as the problems that may occur are mostly related to the authority new laws or delays. Moreover, some consultants are not well acknowledge. In these cases, consultancy service will present an additional cost for your business. Guidelines for Establishing Business in Dubai and Northern Emirates 69

71 70 APPENDIX A: INTERVIEWS REPORT In order to gain insight into the different opportunities available for companies in the northern emirates free zones, we have conducted a series of interviews with some business owners. As this document is dedicated to Korean investors, we have chosen different size of Korean companies in different sectors and located in different free zones in order to ensure a diversification of experiences. Respondents profile: Location No Companies Free Zone Location 1 A HAMRIYAH Sharjah 2 B DAFZA Dubai 3 C RAKEZ Ras Al khaimah 4 D Dubai Internet City Dubai 5 E Health Care City Dubai 6 F Dubai Media City Dubai 7 G DMCC Dubai 8 H JAFZA Dubai 9 K RAKEZ Ras Al Khaimah Figure 1: Companies location and free zones covered Guidelines for Establishing Business in Dubai and Northern Emirates 70

72 71 Activity BUSINESS ACTIVITY Service 11% Manufactoring 22% Trading 67% Figure 2: Business activities of Respondents Companies age Less 1 year 22% Plus 10 56% 3 to 8 years 22% Less 1 year 3 to 8 years Plus 10 Figure 3: Age of the business in the free zone Guidelines for Establishing Business in Dubai and Northern Emirates 71

73 72 Companies size 100 to % 1 to 5 34% 10 to 25 33% 1 to 5 10 to to 500 Figure 4: Number of employees NB. Beside the small size of some companies, they are actually branches of leader multinationals. Companies actual Markets Markets pourcentage K 0% 100% H G 60% 60% 40% 40% F 50% 50% E D 0% C 0% B 0% 100% 100% 100% 100% 0% A 90% 10% 0% 20% 40% 60% 80% 100% 120% UAE Other MENA countries Figure 5: percentage of Sales in UAE and others MENA Markets Guidelines for Establishing Business in Dubai and Northern Emirates 72

74 73 Sell in Local Market only Export only Both 22% 33% 45% Respondents feedback Figure 6: Market targeted Companies Satisfaction No Companies Free Zone Rate 1 A HAMRIYAH 1 2 B DAFZA 4 3 C RAKEZ 2 4 D Dubai Internet City 5 5 E Health Care City 3 6 F Dubai Media City 5 7 G DMCC 4 8 H JAFZA 3 9 K RAKEZ 1 Figure 7: Evaluation of overall experience of the companies in the free zone 1= strongly unfavorable; 2= somewhat unfavorable ; 3= undecided; 4= somewhat favorable, 5=strongly favorable Guidelines for Establishing Business in Dubai and Northern Emirates 73