Company Incorporation is the legal process of formation of a new firm or business operation. The types of Company Incorporation in UAE are
- General partnership ( which is available only to UAE Nationals ),
- Limited partnership or Partnership in Commendams,
- Public shareholding company,
- Private shareholding company,
- Joint venture and
- Limited liability Company.
Company incorporation in SAIF zone is LLC to denote a limited liability company. LLC is a US form of private limited company. Its main aim is to offer liability protection for the members.
What is a free zone?
Free Zone, also known as free port or free economic zone is a particular area where companies are taxed very lightly or not taxed at all. They are also fenced in. This is done to motivate them for any sort of economic activity. The Liability of a Free Zone Establishment is limited to the FZE’s (free zone establishment) share capital.
There are a number of free zone areas and SAIF Zone ranks one amongst the top 20 in UAE.
About SAIF Zone:
SAIF Zone (Sharjah Airport International Free Zone), established in 1995, is the most dynamic free zone in the UAE. Its vision is to be the supreme business axis for the region. It is the largest free zone in Sharjah and also is built adjoining to the Sharjah International Airport. It is accessible to the seaports on the Gulf of Oman and the Arabian Gulf and houses over 7000 establishments from 160 countries.
SAIF zone provides 4 types of license for business activities which are General trading license, Service license, Commercial license and industrial license.
Just like two sides of a coin, company incorporation in SAIF Zone has its own advantages and disadvantages.
Pros of Company incorporation in SAIF Zone:
- A company incorporation in SAIF Zone is more economical than any other emirate of the UAE.
- Due to its strategic location SAIF Zone had competitive leads.
- It is tax free and provides 100% foreign ownership.
- The license is issued within 24 hours.
- There is on site labor accommodation and an absence of red tape.
- The procedures are simplified and back Services are also provided.
Cons of Company incorporation in SAIF Zone:
- Therenewal of company license is done every year.
- The rules and regulations are redefined every year.
- There are only limited and specific activities.
- The business does not expand beyond the free zone limit.
Running a business is almost a herculean task and especially when you plan to step abroad to establish your firm it is even tougher to manage everything single handedly. You can always seek help via availing services from a business consultant in UAE and accordingly establish your firm into free zone to enjoy the amazing pros and facilities offered by it. Considering all the pros and cons of the free trade zone in UAE your firm is undoubtedly going to experience immense amount of profit and prosperity for the longest period of time.