What Is an FZE LLC?
Free Zone Establishments Limited Liability Companies (FZEs) are limited liability entities created in UAE free zones and regulated by the laws and regulations of that same.
There are two types of companies established in UAE free zones:
- Free Zone Establishment Limited Liability Companies (FZE LLCs)
- Free Zone Corporation Limited Liability Companies (FZCO LLCs).
Free Zone Establishments (FZE) have one shareholder. Whereas a Free Zone Company (FZC) has 2 or more shareholders.
Benefits of Forming a FZE Limited Liability Company in Dubai, UAE
Setting up a Free Zone Establishment (FZE) Limited Liability Company (LLC) in Dubai, UAE, within a designated UAE free zone, offers several benefits:
- 100% Foreign Ownership: One of the most appealing aspects is that foreign investors can retain complete ownership of their company without the need for a local partner or sponsor.
- Tax Incentives: free zones in the UAE offer attractive tax benefits, including zero personal income tax.
- Repatriation of Profits and Capital: Companies operating in free zones are typically allowed to repatriate all profits and capital without restrictions.
- Exemption from Import and Export Duties: Free zones often provide exemptions from import and export duties on goods and services.
- No Currency Restrictions: Free zones typically allow businesses to transact in any currency without restrictions.
- Ease of Doing Business: Streamlined processes for company registration, licensing, and permits, reducing bureaucracy and facilitating a faster setup.
- Infrastructure and Facilities: Access to world-class infrastructure, office spaces, warehouses, and other facilities that are often tailored to specific industries, promoting efficiency and growth.
- Networking Opportunities: Free zones often foster a collaborative environment by bringing together businesses from various industries, offering networking opportunities and potential partnerships.
- Full Range of Business Activities: Depending on the free zone, a wide array of business activities and industries are permitted, allowing flexibility in choosing the type of business to operate.
Steps of setting up an FZC LLC
Obtaining a business License and forming a company in Dubai free zones, and other UAE free zones involves several steps.
Here’s a step-by-step guide to FZC LLC setup in Sharjah Publishing City Free Zone (SPC Free Zone):
Step 1: Initial Research and Planning
Before you begin the process, conduct thorough research and planning for your business. Understand the market, competition, and legal requirements specific to your industry.
Step 2: Choose Your Business Structure
Determine the legal structure of your business. Options in the Sharjah Free Zones typically include Free Zone Company (FZC), Free Zone Establishment (FZE), or Branch of an existing company.
Step 3: Select Business Activities
Identify the specific activities your business will engage in.
Step 4: Name Reservation
Choose a unique name for your business and submit the name reservation application to the free zone authority. Once approved, you’ll receive a name reservation certificate.
Step 5: License Application
Complete the license application form and gather all necessary documentation, that include:
- Application form.
- Passport copies of shareholders and managers.
- Other relevant documents.
Step 6: Lease Office Space
Find suitable office space within the free zone. Sign a lease agreement and obtain a tenancy contract or choose to work out a coworking space.
Step 7: Open a Bank Account
Open a corporate bank account in the UAE with a local bank. Provide the necessary documents, including your business license.
Documents Required for FZE LLC Formation
Here is a general list of essential documents typically required for company formation in SPC Free Zone and other UAE Free Zones:
- Passport copy of Shareholders in the Parent company.
- Emirates ID copy of Shareholders in the Parent company (if applicable).
- Certificate of Formation.
- Board/Shareholder’s Resolution Attested license (if applicable).
- Memorandum and Articles of Association.
- Ultimate Beneficial Owner Declaration.
- KYC (Know Your Customer) video.
Why set up your company in the UAE with SPC Free Zone?
SPC Free Zone offers a hassle-free and convenient business setup in the UAE. With a central location in the emirate of Sharjah, minutes away from major airports in the region, and immigration services on-site, you can receive your business license in UAE in just 45 minutes. Choose from over 1,500 business activities, get up to 20 visas under one trade license, and enjoy special discounts with multi-year licenses. Expand your business with the dual-license option that offers both mainland and free zone on the same license.
Ready to launch your FZE LLC in the UAE? Get in touch with SPC Free Zone today.
