www.fidfinvest.com

DIFFERENCE BETWEEN FREE ZONE & NON-FREE ZONE

Key Differentiaters Free Zone Non-Free Zone

Foreign Ownership 100% Foreign Ownership 51% Local partner required

Income & Corporate Tax 100% Tax Free 100% Tax Free

Business Horizon Free to do business in Free Zones, however need local agent in order to sell in local market

Free to do business within UAE

Customs Duties 100% duty exemption on all exports to Non-GCC countries, however normal customs duties will be appli-cable in case of selling in the local & GCC market

Normal Customs duty will be applicable

Capital & Profit Repatriation 100% Allowed 100% Allowed

Hiring of Expatriates No restrictions Local labor laws will apply

TYPES OF LICENSES ISSUED BY RAKIA

License Type Activities Covered

Industrial License Import of raw materials, manufacturing, processing, assembling, packaging, export of finished goods etc.,

Trading License Import, export, distribution, warehousing, trading (maximum of five similar product lines or three differ-ent product lines allowed).

General Trading All kinds of trading, import, export warehousing and distribution of goods

Commercial License Activities covering contracting, repairing, maintenance, renting, shops, restaurants etc.,

Consulting / Services License Any type of management, business, industrial consultancy or professional services including real estate agents.

Media License All kinds of media and communication services.

TYPES OF ENTITIES REGISTERED UNDER RAKIA

Entity Type Explanation

Free Zone Limited Liability Company (FZ-LLC)

This type of company can be formed by a minimum of two and a maximum of fifty founders/partners. The founders/partners can be individuals (people), nonindividuals (companies) or a combination of individuals and companies.

Free Zone Establishment (FZE) This FZE can be formed only by one shareholder, either an individual (a person) or a non-individual (a company).

Free Zone Branch (FZB) Licenses under this category are issued to companies holding a valid license from any licensing authority either in UAE or outside UAE.

Limited Liability Company (LLC) The LLC requires a minimum of two shareholders with 51% mandatory Local Ownership.

Individual Establishment (lE) Individual Establishment can be formed by one shareholder, either an individual (UAE national) or a non-individual (a UAE LLC), In case of foreign individual a local service agent is required

Local Branch (LB) This type of License is issued to local UAE companies applying for a branch in RAKIA.

INITIAL CAPITAL REQUIREMENTS FOR REGISTERATION

Type of Entity Industrial Commercial / Trading General Trading Consulting / Services

Free Zone Limited Liability Company (FZ-LLC)

AED 200000 AED 125000 AED 500000 AED 125000

Free Zone Establishment (FZE) AED 150000 AED 100000 AED 250000 AED 100000

Free Zone Branch Not Required Not Required Not Required Not Required

Limited Liability Company (LLC) AED 150000 AED 150000 AED 10 00000 AED 150000

Individual Establishment (IE) AED 100000 AED 100000 AED 10 00000 AED 100000

Local Branch (LB) Not Required Not Required Not Required Not Required