The UAE has long been a desirable location for global entrepreneurs. With a noticeable shift away from the oil trade, investors in Dubai have been looking for alternative business activities and potential income opportunities. A major reason why so many people flock to Dubai and the UAE’s shores to do business, is its free zones. With free zones such as Meydan Free Zone, the UAE economy is thriving, with more opportunities for investment and income sources than ever before.
One of the most alluring elements of starting a business in the UAE is discovering the benefits of various business structures, particularly Free Zone Enterprise Limited Liability Companies. Read on to better understand what a free zone LLC is and why you need to start one in Dubai.
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What Is a Limited Liability Company in a Free Zone?
Free zone establishments (FZEs) also known as free zone companies (FZCs) are limited liability companies created in a free zone and regulated by the laws and regulations of that free zone.
In the free zone business environment, there are two types of companies: Free Zone Establishment Limited Liability Companies (FZE LLCs) and Free Zone Corporation Limited Liability Companies (FZCO LLCs). In contrast to FZCO LLC, which has many shareholders, FZE LLC has only one shareholder.
Benefits of Forming a FZE Limited Liability Company
One of the biggest benefits of utilising an LLC company structure is that it safeguards the company’s owners from any liabilities, debt, and other financial obligations that may develop as a result of the business operations of the company.
By setting up a limited liability company in an emirate like Dubai, you would ensure that your financial investment in the company limits your liability to that amount. Creating an LLC in a free zone such as Meydan Free Zone has a number of additional benefits, such as:
FZE LLCs allow for 100% foreign ownership. As a result, foreign entrepreneurs who control their entire business without involving a local partner will benefit from this arrangement. You will still have to enlist the help of a local sponsor, to whom you must pay a mutually agreed upon annual fee.
You are protected from liabilities. This appears to be one of the key advantages of an FZE LLC structure. Shareholders are safeguarded by this sort of business model from potential liabilities and debts related to activities.
You receive full repatriation of capital and profits. Businesses that operate in free zones are allowed to return 100% of their profits to their native country. It is a significant step forward to allow them to transfer 100 percent of their wealth back to their places of origin without any restrictions.
The security of being protected from losses. This means that if worse comes to worse, you will only suffer losses equal to your investment in the company
There aren’t any individual, corporate, or income taxes.
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There are no import or export taxes to be paid.
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Import and export duties are exempt from payment.
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Convenient hiring and cost-effective employee management. This means that you can hire the workers you truly want and will best suit your business.
Various types of commercial operations can be conducted in free zones. As a result, you can pick from a variety of business ventures that facilitate connections with other people.
There are numerous amenities offered. You can choose from a wide variety of facility options depending on your business setting. Everyone can find something at Meydan Free Zone, from flexi-desk areas to traditional offices.
You can apply for 2-year UAE residency visa for you and your family.
The Opportunity for a UAE Residency Visa for Two Years
The most common way to obtain a UAE residence visa in a free zone is to obtain an employment contract with one of the free zone companies, where the employee and employer will enter into an agreement at the employer’s discretion. The UAE Residence Visa issued by a Free Zone is usually valid for two years.
Entrepreneurs who want to start their own businesses in a UAE Freezone can apply for residency in the UAE as an employee (e.g., manager, business development, etc.) or as an investor. An Investor visa is also valid for two years and does not require a deposit at the immigration office. Some people prefer Investor visas because the application process is simpler and the submission of a legalized diploma is not required.
LLC Business Registration and Licensing
When considering an LLC structure in a UAE free zone, you can choose an LLC structure regardless of your license type. You will still have the protection of a limited liability company LLC structure and will not face any liabilities, unlike a sole proprietorship, which could result in a 100% loss. The following licenses are available through the LLC structure:
- Professional License
- Commercial License
- Industrial License
Those seeking to provide services or obtain a professional license should consider forming a free zone LLC. A professional license in a free zone allows you to conduct business in local markets without worrying about debts or liabilities that might follow you.
Is an FZE LLC Right for Your Business?
With a free zone LLC business, an expat has the choice to have complete control over the company. You will be able to decide how your shares are split if you want more partners under an LLC structure in a free zone, and you won’t be obliged to hire any extra employees if it isn’t necessary.
FZE LLCs are beneficial because they provide access to local markets. You can expand your activities in the region by simply being present in the area. Another factor that contributes to the high number of FZ LLC businesses is the local sponsor’s potential value when starting a firm in a foreign country. The national shareholder will give the FZ-LLC access to regional expertise and a better understanding of the procedures and demands made by the authorities.
It’s crucial to understand that there are no protection differences between mainland LLC businesses and free zone LLC businesses. The same degree of security that an LLC structure offers will still apply to you. If you’re looking to register your FZE LLC, Meydan Free Zone allows for you to enjoy all of the benefits that come with setting up a business in Dubai.
Set Up Your Business With Meydan Free Zone Today
Why Meydan Free Zone?
Meydan Free Zone is an excellent location for establishing your LLC and gaining a competitive advantage. Meydan Free Zone, located in the heart of Dubai, is surrounded by towering skyscrapers and excellent transportation systems, and provides facilities that are sure to boost your business. Throughout the registration process, our team of experts is ready to respond to and listen to every question and request in order to ensure that the registration process is error-free.
