The Free Trade Zones (FTZs) of the UAE are a veritable chance for the nation to showcase its own development and distinctive development strategy. The UAE in the past decade has seen a quantum boost. Among the remarkable and very significant accomplishments is the establishment of Free Zones. A Free Trade Zone is formed under a Decree passed from the Ruler of the Emirate Where the Free Zone is located.

So far the Free Zones are effective in attracting foreign investments and businesses. The incentives provided by different Free Zones of the UAE are quite similar and include the following:

Investors may register a new business in a few legal forms: Free Zone Establishment (FZE) / Free Zone Company (FZCO) or just a branch or a representative office of the overseas parent company or an existing firm established within the UAE or abroad.

FZE is a limited liability institution, registered in a Free Zone and owned by a single natural or corporate person, whereas an FZCO is a limited liability company incorporated in a Free Zone by more than 1 shareholder.

FZE/FZCOs are governed by the regulations and rules of the Free Zone in which they're formed. A minimum capital requirement for a FZE/FZCO is ranging from AED 50,000 to AED 300,000 determined by the chosen Free Zone. Lately, some free zones have waived the capital deposit requirement to attract more investors.

Under the Federal Law No. 15 of 1998, the terms and conditions of the Commercial Companies Law don't apply to FZEs / FZCOs, assuming the Free Zones have their own particular provisions regulating the businesses incorporated there.

During the formation of the Free Zone business, it will be required to lease premises and acquire an operating license from the Free Zone Authority. The usual minimum requirement of a space is called a flexi-desk which is a desk in a shared co-working office. A license is always issued by the UAE Free Zones to all the companies registered there.

Different Free Zones have many similar business activities for licensing, but also have a lot of various activities which are unique for a particular Zone and not available elsewhere. Nonetheless, businesses with industrial and light manufacturing licenses may only operate inside the Free Zone where they are established. To market and sell their goods in the UAE, an official UAE broker/distributor is needed. Free Zone companies providing professional services can do it inside the UAE with no agent.

The procedure of a Free Zone company registration is quite formal and differs in various Zones. An investor needs to explain his business activity and additional requirements such as: resident visas/Emirates ID, office facility and number of the employees he is planning to have in his company. The price of company registration depends on all those factors. Once the appropriate Free Zone is found, the setup takes from 1 day to 2 weeks. At the end of the registration, the investor will receive incorporation documents of his company, including trade license, lease agreement of the premises and Memorandum.

The UAE Free Zones have been one of the pillars of the financial performance of the nation creating thousands of jobs, bringing a great deal of international investments, and easing the conduct of international business. Collectively, Free Zones accounts for over fifty percent of the nation’s exports and underpin the UAE's standing as one of the most important business centers.

The Free Zones help in maintaining the motor of economic diversification by bringing global investments, which will be fundamental for the UAE’s plans of reducing its dependence on petroleum. In addition, the Free Zones are proving to be a great mechanism for changing the face of the region’s economic activity and business development.

The UAE Free Zones has been one of the pillars of the financial performance of the nation creating tens of thousands of jobs bringing a great deal of international investments, and easing the transfer of technologies . Collectively, Free Zones accounts for over fifty percent of the nation exports and underpin the UAE's standing as the most important center.

The Free Zones helps in maintaining the motor of economic diversification rolling by bringing investment from the industry, which will be fundamental to the area plan aimed at reducing its dependence on petroleum . In addition, the Free Zones is quickly proving to be the mechanism for changing the face of economic activity, but also for an impetus to diversification.