UAE Freezones An Effective Destination For Doing Business. Contact Us Suite No 1801,City Tower 2 Sheikh Zayed Road, Dubai Phone :

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1 UAE Freezones An Effective Destination For Doing Business Phone :

2 United Arab Emirates(UAE) UAE is a constitutional federation of seven emirates: Abu Dhabi (capital and the largest city of the federation) Dubai Sharjah Ajman Umm al-qaiwain Ras al-khaimah Fujairah The federation was formally established on 2 nd December, of 33 Sheikh Zayed Road,Dubai Phone :

3 UAE AT A GLANCE Population : (2015) UAE national : 18 % Religion : Islam Languages : Arabic, Urdu, English, Hindi Per Capita : $ 49,000 in 2014 GDP : 570 billion US dollars in 2014 Currency Exchange Rate: 1 USD = 3.67 AED 18% 13% 4% 65% Asians UAE Nationals Arab Expatriates Europeans and Others 3 of 33 Sheikh Zayed Road,Dubai Phone :

4 CORE BUSINESS ACTIVITIES BUSINESS HOURS Tourism Constructions IT Health Care Banking & Finance Oil & Gas Real Estate Trading The official weekend is on Friday and Saturday. Government offices open at 7.30 a.m. and close at 3.00 p.m. Private offices 8 a.m. to 6 p.m. During Ramadan 8a.m. to 2p.m 4 of 33 Phone :

5 TAXATION ENVIRONMENT No personal income taxes No corporate taxes No VAT levied in the UAE No withholding taxes No transfer pricing rules No requirement to file corporate tax returns in the UAE 5% import tariff on most goods levied ONLY ONCE at the first port of entry to the GCC The UAE has signed double taxation treaties with over 40 countries 5 of 33 Phone :

6 BANKING Many international banks as well as local banks are available in UAE International financial transactions are relatively simple Foreign currency can be easily converted to local currency and vice versa through money exchange houses Companies can open multi currency bank account Personal bank account can be opened without residency and the requirements of documents varies bank to bank Easy repatriation of funds Minimum balance is applicable and it varies bank to bank Corporate bank facilities are extended depends on the tenure of the company and business turn over 6 33 Phone :

7 FREE ZONES THE MEANING A specific class of special economic zone. They are a geographic area where goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities. 7 of 33 Phone :

8 UAE FREE ZONES AN IDEAL DESTINATION Free Zones are separate entity : To promote FDI in UAE To create UAE as a Import, Export and re-export business hub To Promote UAE as a hub for distribution channels to GCC and middle east regions Free Zone Entity can be established as Free Zone Establishment (FZE)with single share holder Free Zone Company (FZC) with minimum 2 and maximum 5 shareholders Branch / Subsidiary of foreign company. 8 of 33 Phone :

9 WHY FREE ZONE The major advantages of free zones are: 100% foreign ownership 100% exemption from taxes and duties levied 100% repatriation of profit and capital 100% import and export tax exemptions No corporate, withholding and inheritance taxes No personal income taxes No currency restrictions Availability of skilled and experienced workforce Abundant and inexpensive source of energy Highly developed infrastructure High level of administrative support Modern and efficient communication system 9 of 33 Phone :

10 WHAT ARE THE FACTORS THAT NEED TO BE CONSIDERED FOR CHOOSING A FREEZONE Distance from international air- and seaports Facilities and infrastructure offered at the free zone Real estate options Types of activities allowed by the respective free zone authority Annual rent for office space and size of office units Minimum capital required Processing time of application 10 of 33 Phone :

11 FREEZONE LIMITATIONS Restricted to do direct business with the UAE Local Market UAE local market business can be made through only a Distributer For local business transactions 5 % custom duty is applicable Office premises must be within the free zone area 11 of 33 Phone :

12 FREE ZONES IN UAE Given hereunder are various Free Zones established in UAE 1. Jebel Ali Free Zone 2. Dubai Industrial City 3. Dubai Cars & Automotive Zone 4. Dubai Multi Commodities Center 5. Gold & Diamond Park 6. Techno Park 7. Dubai Internet City-Tecom 8. Dubai Airport Free Zone 9. Dubai Media City - Tecom 10. Dubai Healthcare City Specialized Zone DIFC Health Care City Dubai Gold and Diamond Park Humanitarin City Dubai Cars and Automotive Zone Dubai Logistic City Dubai Media City Dubi Internet City Dubai Acadamic City Specialized in Financial Free Zone Health Industry Gold and Diamond Trading NGOs and Social Services Automobile Industry Cargo and Logistic Sector Media and Telecommunication IT and ITES Industry Education Sector 12 of 33 Phone :

13 FREE ZONES IN UAE (Continúe ) 11. Dubai Studio City - Tecom Dubai Silicon Oasis 12. Intíl Media Production Zone-Tecom 13. Dubai International Financial Center 14. Knowledge Village-Tecom 15. International Humanitarian City 16.Dubai International Academic City -Tecom 17.Dubai Logistics City 18.Dubai Outsource Zone- Tecom 20. Dubai Textile CityEnergy & Environment Park-Tecom 21.Heavy Equipment & Trucks City 22.Dubai Biotechnology 23.Dubai Auto Parts City 24.Research Park Tecom 25.Sharjah Airport Free Zone) 26.Hamriyah Free Zone 13 of 33 Phone :

14 FREE ZONES IN UAE (Continúe ) 27. Ras Al Khaimah Free Trade Zone (RAKFTZ) 28.Ajman Free Zone 29.Ras Al Khaimah Investment Authority (RAKIA) 30.Ahmed Bin Rashid Free Zone (Umm Al Quwain Free Zone ) 31. Fujairah Free Zone 32. Ras Al Khaimah Media Free Zone (RAKMFZ) 33.Fujairah Media Zone/Creative City 34. Abu Dhabi Airport Free Zone 35.Two Four Masdar Free Zone 37. Free Trade and Logistics Zone (Taweelah) Phone :

15 JEBEL ALI FREEZONE FEATURES Jebel Ali Free Zone was established on 1985 in Dubai World largest manmade port Home of more than 8000 companies including fortune companies Excellent support from Dubai Ports Authority s two modern terminals. On-site chamber of commerce, international banks, insurance firms etc. Mortgaging of company-owned facilities (excluding leased land). Lease period up to 50 years. 15 of 33 Phone :

16 JEBEL ALI FREEZONE TYPE OF ACTIVITIES Types of activities include manufacturing, processing, assembling, packaging, trading, logistics, import/export, distribution, storage, services, etc. TYPE OF REGISTERATION 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 500,000. As a Free Zone Establishment (FZE) - minimum share capital is AED 1,000, of 33 Phone :

17 FACILITY COST & TYPE OF LICENSE JEBEL ALI FREEZONE Facility Size Cost in AED per Annum Land Minimum 5,000 sq mt per sq mt Pre-bulitup Factory and Warehouse with Office sq mt 120,000 onwards Offices 28 sqmt sq mt 1,800-2,200 per sq mt FZE Registration One Time - 10,000 FZC Registeration One Time - 15,000 Branch Registration One Time -5,000 Type of Licenses Offering Cost in AED per Annum Trading (Specific Trading ) 5,500-12,500 Industrial 5,500-9,000 General Trading 30,000 Logistics (Branch of UAE based Company) 30,000 Service (Branch of UAE based Company) 8,000 These figures are indicative and subject to change 17 of 33 Phone :

18 FEATURES DUBAI INTERNET CITY (DIC) Dubai Internet City was established on 2000 in Dubai Part of Dubai Technology and Media Free Zone Designed to support information and communication Technology Companies World class technical infrastructure (high bandwidth, low telecom cost, high speed support infrastructure etc.) built by CISCO, SUN MICROSYSTEMS, Largest commercial internet protocol telephony system in the world. Stringent cyber regulations. Lease up to 20 years. 18 of 33 Phone :

19 DUBAI INTERNET CITY TYPE OF ACTIVITIES Type of company activities include Software Development, Business Services, Web Based and e-commerce, Consultancy, Education and Training, Sales and Marketing and Back Office Operations, etc. TYPE OF REGISTERATION 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 Limited Liability Company (FZ- LLC ) - minimum share capital is AED 50, of 33 Phone :

20 FACILITY COST & TYPE OF LICENSE DUBAI INTERNET CITY Facility Size Cost in AED per Annum Offices 1000 sq mt 1,800 per sq mt FZ LLC Registration One Time -3,500 Branch Registration One Time 3,500 Type of Licenses Offering Cost in AED per Annum Service (Five Activities) 15,000 These figures are indicative and subject to change 20 of 33 Phone :

21 DUBAI KNOWLEDGE VILLAGE (DKV) FEATURES DKV was established on 2000 in Dubai It is established education and training hub Designed to provide the infrastructure for developing, sharing and applying knowledge. Multimedia library and other common facilities. The facilities could be leased for 50 years. Type of company activities include IT and Media Corporate Schools, Executive, Education Centre, HR Development Centre, Professional Training Centers, Vocational Training Centers, Assessment Centre, Testing Centre, Linguistic Institute, 21 of Phone :

22 DUBAI KNOWLEDGE VILLAGE TYPE OF ACTIVITIES Type of company activities include Software Development, Business Services, Web Based and e-commerce, Consultancy, Education and Training, Sales and Marketing and Back Office Operations, etc. TYPE OF REGISTERATION 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 Limited Liability Company (FZ- LLC ) - minimum share capital is AED 50, of 33 Phone :

23 FACILITY COST & TYPE OF LICENSE DUBAI KNOWLEG VILLAGE Facility Size Cost in AED per Annum Offices sq mt per sq mt Closed office Varies 32,000 35,000( up to 6 months Commercial Office No space limit per sq mt FZ LLC Registration One Time -3,500 Branch Registration One Time 3,500 Type of Licenses Offering Cost in AED per Annum University Segment 50, ,000 School Segment 300,000 General Segment 15,000 Free Lancer 7,500 Boarding School 100,000 These figures are indicative and subject to change 23 of 33 Phone :

24 DUBAI MULTI COMMODITY CENTERE (DMCC) FEATURES DMCC was established on 2002 in Dubai Offers platform for multi commodity trading including Gold and Diamond 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. 24 of 33 Phone :

25 DUBAI MULTI COMMODITY CENTERE (DMCC) TYPE OF ACTIVITIES Type of company activities include Gold and Diamond Trading, Commodity Trading Consultancy, General Trading, Marketing and Back Office Operations, etc. TYPE OF REGISTERATION 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 (DMCCO) - minimum share capital is AED 50, of 33 Phone :

26 DUBAI MULTI COMMODITY CENTERE (DMCC) FACILITY COST & TYPE OF LICENSE Facility Size Cost in AED per Annum Service Desk Office Varies 17,600 Service Office Space Varies 40,000 60,000 Office (Shell & Core ) Varies sq/ft /Annum Freehold properties for sale Varies /sq/ft Registration One Time - 10,010 MOA/AOA Fee 2,010 Type of Licenses Offering Cost in AED per Annum Service 20,010 Trading 20,010 General Trading 50, 010 Manufacturing (Depends of Units) 25,000 50,000 These figures are indicative and subject to change 26 of 33 Phone :

27 DUBAI AIRPORT FREE ZONE (DAFZA) FEATURES DAFZA was established on 1996 in Dubai DAFZA is an ideal location for high-tech/it products, luxury items, - jewellery, light industry and activities related to the aviation industry Located in the boundary of Dubai International Airport. Fast and efficient cargo clearance services (8-24 hours). International Freight Forwarders and Logistics companies at DAFZ. Online customer service (e-services). Land with easy access to airport apron. 27 of 33 Phone :

28 HLB HAMT AT GLANCE Date Founded Established in Dubai in the year 1999 Partners Number employees Offices in Clients Full time Partners Dubai, Abu Dhabi, Sharjah, Jebel Ali, SAIF Zone, RAK, Fujairah, HFZ and Qatar DUBAI 2003 Sharjah RAK SAIF 2006 Abu Dhabi JAFZA 2008 Fujairah 2011 Hamariya Qatar of 33 Phone :

29 CERTIFICATIONS & AFFLIATIONS Affiliated with HLB International UK We are a Quality Management certified firm{iso 9001:2008} We are an ISMS {Information Security Management Systems} certified firm {ISO/IEC 27001:2005} Platinum Approved Employer of The Association of Chartered Certified Accountants, UK ISAE 3402 Certified Organization The CFO Best Audit Firm Of The Year 2015 Winner 29 of 33 Phone :

30 SERVICES Audit services External audit Information systems audit and risk management Internal audit & review engagements Internal control system study and evaluation Assurance services Mergers & acquisitions Due diligence Pre-audit Business restructuring Business valuations Forensic and other investigations Accounting & business advisory Accounting/Book keeping Month end financials Accounts payable outsourcing Expenses processing Consolidation of accounts Forecasting & projections Verification, compilation and maintenance of property & equipment Inventory verification and valuation 30 of 33 Phone :

31 SERVICES Payroll services Other Services Payroll processing and management Checking integrity and validation of payroll data Employee leave management Multi-currency salary payments Employee benefits administration Employee travel expenses management Managing and payment of employee reimbursements Co-ordination for work permits WPS payments and setup assistance Drafting of legal documents (MOA, Agreements, etc.) Secretarial Services Organisational Consultancy HR Consultancy and Recruitment Services Asset Valuation Services Incorporation and Liquidation services Limited Liability Companies Free Zone Companies and Establishments Civil Company, Branches and Sole Establishments Offshore Companies 31 of 33 Phone :

32 CONTACT Mr. John Varghese john@hlbhamt.com Mob : of 33 Phone :

33 THANK YOU Phone :