Currently, the UAE has a total of thirty six FEZs, all of which have a special regime of taxation. It’s little wonder then that registering a company in Ajman or other FEZs in the U.A.E. is the option quite a few foreing entrepreneurs are looking forward to exploring.
Advantages of FEZs
Some of the main advantages of FEZs include:
- Foreigners are allowed to wholly own companies;
- Capital & profits can be fully repatriated;
- No fees imposed on transferring profits & capital;
- No duties imposed on imports & exports;
- No PIT or CIT;
- Inexpensive labor & simplified employment procedure;
- Inexpensive leasing, infrastructure, excellent storage & production facilities;
- Fast incorporation.
Incorporating a company in the U.A.E. imposes certain restrictions on entrepreneurs. Let’s take a look at some of them:
- An FEZ company can’t trade directly with companies outside the FEZ;
- FEZ companies can only trade within the UAE through authorized representatives. A five percent customs duty is imposed on selling goods in the local market.
- FEZ companies’ personnel aren’t allowed to work outside FEZs.
- An FEZ company can’t operate directly outside FEZs. However, it’s possible for an FEZ company to provide services remotely from an office in a FEZ;
- Limitations are also imposed on permitted activities; therefore, an FEZ company has to apply for a relevant license.
When choosing a FEZ, entrepreneurs need to take into account the type of activity they plan to engage in, potential partners & counterparties. They’re strongly recommended to seek professional advice on choosing an optimal FEZ in the UAE & obtaining licenses & permits required for company registration in the U.A.E.
One of the most popular FEZs with investors is the Ajman FEZ. Founded back in 1988, it has since succeeded in attracting a large number of foreign companies. The key to its success lies in providing potential investors with all kinds of incentives. Ajman’s popularity can also be attributed to the following factors:
- low costs of starting a business in Ajman;
- one license for several types of activities;
- fast & easy online registration;
- obtaining a financial services license in Ajman takes two days;
- launching a business in Anjman doesn’t require obtaining a visa.
Types of Licenses
Doing business in Ajman requires:
- obtaining a commercial license in Ajman (for companies engaged in import and export, trade in goods);
- obtaining a license for the provision of services in Ajman (for consulting activities, IT companies and companies providing various types of services);
- obtaining a combined license (commercial & for the provision of services) in Ajman.
Ajman: Registering a Company
Ajman is the only FEZ that requires entrepreneurs to submit a full set of corporate documents. IQ Decision UK can assist you in putting them all together & submitting them to the relevant regulators. Our experts can also lend you a helping hand with registering a company in the UAE.