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FZE versus FZ-LLC

October 3, 2016

FZE versus FZ-LLC

FZ versus FZ LLC

Dubai with its tremendous growth and development has emerged as a great destination for business start-ups from around the world. At present, there are over 22 Free Zones in the UAE, which are home to around 10,000 companies. Dubai has the largest number and has been a forerunner of sorts in this regard.

You can register a new company as a Free Zone Establishment (FZE) or a Free Zone Company (FZC, FZCO or FZ-LLC). Free Zone companies are in general limited liability companies (LLC).

While a Free Zone company is an independent legal entity with individual shareholder(s), corporate shareholders or a mixture of both, a LLC is a business entity that is neither a sole proprietorship/partnership nor a true corporation, but a structure that combines some of the best aspects of both, with the limited liability of a corporation.

VIDEO: Expedited Business Setup in Dubai for a Quick, Cost Effective Venture

Key Difference

FZEFZ-LLC
Has a single-shareholder (either an individual person or a company)Generally requires 2 or more shareholders. Maximum of 5 shareholders.

 

While both offer the same operating benefits, there may also be differences in share capital requirements depending upon the Free Zone and the purpose of incorporation. However, as a general rule, the paid-up capital amount ranges between AED 50,000 to AED 300,000.

Why Register a Company Within a Free Zone?

  • 100% expat ownership
  • No currency restrictions
  • 100% repatriation of capital and profits
  • No corporate, personal or capital gains tax
  • World-class and state-of-the art purpose built infrastructure
  • No foreign exchange controls
  • Companies can operate 24 hours, security around the clock
  • Availability of human labour
  • Availability of residency visas for 3 years (renewable)

A LLC Which is Not a Free Zone LLC

LLCFZ-LLC
Only 49% of company shares can be owned by a non-resident. Additionally, in order to setup an LLC, foreigners must appoint a local sponsor/partner who is entitled the 51% of the company shares.100% ownership by foreigners
Can only conduct business activities inside the free zone area where it is registered as well as within the UAE.Can conduct business across the UAE and internationally.
Supports commercial, professional and industrial licensesSupports commercial, professional and industrial licenses

 

Contact us today for more information or to start your own company in UAE

Author
Henri Hazougi

Henri was born and raised in Lebanon and studied at University of Saint Joseph. He is an avid fan of extreme sports and RC car racing. He is fluent in French and Arabic, he has traveled extensively throughout the region and Europe for both for leisure and business.

Comment (1)

  1. Mumraiz

    23 Dec 2016 - 5:15 am

    How the procedure to open a company in fz llc

    I want all the detail

    Thanks

    Mumraiz khan

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