Business Setup in Dubai Freezone

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Suite No 1801,City Tower 2Sheikh Zayed Road, DubaiPhone : +971 43277775

UAE Freezones An Effective

Destination For Doing Business

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United Arab Emirates(UAE)

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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 2nd December, 1971

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UAE AT A GLANCE

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65%

18%

13%4%

Asians UAE Nationals Arab Expatriates Europeans and Others

Population : 9577000 (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

Contact UsSuite No 1801,City Tower 2Sheikh Zayed Road,DubaiPhone : +971432777753

CORE BUSINESS ACTIVITIES

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Tourism

Constructions

IT

Health Care

Banking & Finance

Oil & Gas

Real Estate

Trading

BUSINESS HOURS

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

Contact UsSuite No 1801,City Tower 2Sheikh Zayed Road, DubaiPhone : +971432777754

TAXATION ENVIRONMENT

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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


BANKING

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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


FREE ZONES – THE MEANING

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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.


UAE FREE ZONES – AN IDEAL DESTINATION

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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.


WHY FREE ZONE

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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


WHAT ARE THE FACTORS THAT NEED TO BE

CONSIDERED FOR CHOOSING A FREEZONE

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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


FREEZONE LIMITATIONS

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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


FREE ZONES IN UAE

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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 Specialized inDIFC Financial Free Zone

Health Care City Health Industry

Dubai Gold and Diamond Park

Gold and Diamond Trading

Humanitarin CityNGOs and Social Services

Dubai Cars and Automotive Zone Automobile Industry

Dubai Logistic City Cargo and Logistic Sector

Dubai Media CityMedia and Telecommunication

Dubi Internet City IT and ITES Industry

Dubai Acadamic City Education Sector

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FREE ZONES IN UAE (Continúe…)

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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-Tecom21.Heavy Equipment & Trucks City22.Dubai Biotechnology 23.Dubai Auto Parts City 24.Research Park –Tecom25.Sharjah Airport Free Zone) 26.Hamriyah Free Zone

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FREE ZONES IN UAE (Continúe…)

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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 54 36.Masdar Free Zone 37. Free Trade and Logistics Zone (Taweelah)

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JEBEL ALI FREEZONE

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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.

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JEBEL ALI FREEZONE

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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 1,000,000.

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JEBEL ALI FREEZONE

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FACILITY COST & TYPE OF LICENSE

Facility Size Cost in AED per Annum

Land Minimum 5,000 sq mt 30 - 80 per sq mt

Pre-bulitup Factory and Warehouse with Office 320 - 1000 sq mt 120,000 onwards

Offices 28 sqmt - 1000 sq mt 1,800 - 2,200 per sq mtFZE 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 - 9,000General Trading 30,000Logistics (Branch of UAE based Company) 30,000

Service (Branch of UAE based Company) 8,000These figures are indicative and subject to change

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DUBAI INTERNET CITY (DIC)

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FEATURES

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.

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DUBAI INTERNET CITY

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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.




As a Free Zone Company Limited Liability Company (FZ- LLC ) - minimum share

capital is AED 50,000.

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DUBAI INTERNET CITY

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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

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DUBAI KNOWLEDGE VILLAGE (DKV)

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21 of 33Contact UsSuite No 1801,City Tower 2Sheikh Zayed Road, DubaiPhone : +97143277775

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,

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DUBAI KNOWLEDGE VILLAGE

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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.




As a Free Zone Company Limited Liability Company (FZ- LLC ) - minimum share

capital is AED 50,000.

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DUBAI KNOWLEG VILLAGE

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Offices 100 – 300 sq mt 280 – 3850 per sq mt

Closed office Varies 32,000 – 35,000( up to 6 months

Commercial Office No space limit 143 – 160 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 – 100,000School Segment 300,000General Segment 15,000

Free Lancer 7,500

Boarding School 100,000These figures are indicative and subject to change

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DUBAI MULTI COMMODITY CENTERE (DMCC)

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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.

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TYPE OF ACTIVITIES

Type of company activities include Gold and Diamond Trading , Commodity Trading

Consultancy , General Trading , Marketing and Back Office Operations, etc.




As a Free Zone Company (DMCCO) - minimum share capital is AED 50,000.

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Service Desk Office Varies 17,600

Service Office Space Varies 40,000 – 60,000

Office (Shell & Core ) Varies 80 – 100 sq/ft /Annum

Freehold properties for sale Varies 600 – 900/sq/ftRegistration One Time - 10,010MOA/AOA Fee – 2,010

Type of Licenses Offering Cost in AED per Annum Service 20,010

Trading 20,010General Trading 50, 010

Manufacturing (Depends of Units) 25,000 – 50,000These figures are indicative and subject to change

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DUBAI AIRPORT FREE ZONE (DAFZA)

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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.

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HLB HAMT AT GLANCE

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•DUBAI

1999

•Sharjah

2003•RAK

2005

•SAIF

2006•Abu

Dhabi

2007

•JAFZA

2008•Fujairah

2009

•Hamariya

2011

•Qatar

2013

Date Founded Established in Dubai in the year 1999

Partners 6 Full time Partners

Number employees 200 +

Offices in Dubai, Abu Dhabi, Sharjah, Jebel Ali, SAIF Zone, RAK , Fujairah , HFZand Qatar

Clients 2000 +


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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


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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

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SERVICES Payroll 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 re-

imbursements Co-ordination for work permits WPS payments and setup assistance

Incorporation and Liquidation services

Limited Liability Companies Free Zone Companies and Establishments

Civil Company , Branches and Sole Establishments

Offshore Companies

Other Services

Drafting of legal documents (MOA,Agreements, etc.)

Secretarial Services Organisational Consultancy HR Consultancy and Recruitment Services Asset Valuation Services

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CONTACT

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Mr. Davis V Kadavan

Email : [email protected]

Mob : 00971509330152

Contact UsSuite No 1801,City Tower 2Sheikh Zayed Road, DubaiPhone : +971 43277775

THANK YOU

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Contact UsSuite No 1801,City Tower 2Sheikh Zayed Road, DubaiPhone : +971 43277775

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Law

Business Setup in Dubai Freezone