DIFFERENCE BETWEEN FREE ZONE & NON-FREE …

1 BETWEEN FREE ZONE & NON-FREE ZONEKey DifferentiatersFree ZoneNon-Free ZoneForeign Ownership100% Foreign Ownership51% Local partner requiredIncome & Corporate Tax100% Tax Free100% Tax FreeBusiness HorizonFree to do business in Free zones , however need local agent in order to sell in local marketFree to do business within UAEC ustoms Duties100% 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 marketNormal Customs duty will be applicableCapital & Profit Repatriation100% Allowed100% AllowedHiring of ExpatriatesNo restrictionsLocal labor laws will applyTYPES OF LICENSES ISSUED BY RAKIAL icense Type Activities CoveredIndustrial LicenseImport of raw materials, manufacturing, processing, assembling, packaging, export of finished goods etc.,Trading LicenseImport, export, distribution, warehousing, trading (maximum of five similar product lines or three differ-ent product lines allowed).

2 General TradingAll kinds of trading, import, export warehousing and distribution of goodsCommercial LicenseActivities covering contracting, repairing, maintenance, renting, shops, restaurants etc.,Consulting / Services LicenseAny type of management, business, industrial consultancy or professional services including real estate LicenseAll kinds of media and communication OF ENTITIES REGISTERED UNDER RAKIAE ntity TypeExplanationFree 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 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 Liability Company (LLC)The LLC requires a minimum of two shareholders with 51% mandatory Local 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 requiredLocal Branch (LB)This type of License is issued to local UAE companies applying for a branch in CAPITAL REQUIREMENTS FOR REGISTERATIONType of EntityIndustrialCommercial / TradingGeneral TradingConsulting / ServicesFree 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 BranchNot RequiredNot RequiredNot RequiredNot RequiredLimited Liability Company (LLC)

3 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 RequiredNot RequiredNot RequiredNot Requir