New Incorporation: Free Zone Establishment (FZE) / Free Zone Company (FZC)
Free Zone Establishment (FZE) is a single share holder limited liability company which can be incorporated in Hamriyah Free Zone. The minimum capital requirement for incorporating a Free zone Establishment (FZE) is Dhs.150, 000 (Applicable for Land / Warehouses) (Approximately US$ 40,000). However Free Zone Company (FZC) will be a similar incorporation with multiple shareholding (maximum 5 shareholders).
Important aspects of an FZE / FZC
Application for Registration of Free Zone Establishment FZE & Free Zone Company FZC
- An FZE / FZC is a limited liability entity.
- Not only natural persons but juristic persons like Companies can also incorporate FZE/FZCs in Hamriyah Free Zone.
- The Registration/Incorporation Charge is Dhs. 9,000.
- FZE / FZC's like branches of local or foreign companies will have to get a Free Zone License after incorporation/Registration.
- An FZE will be sole shareholder company. An FZC will be multi Shareholder Company with 2 to 5 shareholders.
- The minimum share capital for FZE/ FZC is AED.150, 000 (Applicable for Land / Warehouses). This will not be blocked, but can be used for business.
- An FZE Shares shall be in multiples of AED. 150,000/- whereas an FZC Shares shall be in multiples of AED. 1,000/-
- No share may be transferred without prior written approval of HFZA.
- The Financial Years shall be from January to December each year, except the commencement of the first year which shall be the date of Incorporation.
Minimum Legal Requirements
- An FZE / FZC Application (contains format of Memorandum also) needs to be submitted with documents.
- On Approval of the Project for which the FZE/FZC is proposed to be incorporated, HFZA will issue a letter to a UAE bank of the Investor's choice to open an account in the name of the FZE/FZC and to deposit the minimum capital.
- On production of bank's letter for receiving the minimum capital in the new FZE/FZC bank account, HFZA will issue a FZE / FZC Certificate of Incorporation after signing the agreement and making payments.
- The Investor can start withdrawing the amount for his business on submission of original Certificate of Incorporation to the bank.
- Free Zone Establishments (FZE) / Free Zone Company (FZC) should abide by the FZE / FZC Implementing Rules and Regulations. FZE Implementing Rules and Regulations are equivalent to its Memorandum and Articles of Association where as FZC Implementing Rules and Regulations are equivalent to its Articles of Association.
- FZE/FZE should submit its audited financial statements to Hamriyah Free Zone Authority every year within 3 months from the end of the financial year.
- There should be at least 2 Directors and a Secretary for FZE / FZC's.
- If a foreign national is to be appointed as a Director or Secretary, HFZA may require that such persons hold valid residence and work permit from the relevant authorities.
- At least one of the Directors and the Secretary must be residents.
- The offices of Director and Secretary may be held jointly by a single person.
|Personal details of the owner/s (passport copy)
||Certificate of Incorporation/registration & Certificate of Good Standing of the Company. (notarized & attested copy)
|Bank's reference (Original)
||Memorandum & Articles of Association of the company (notarized & attested copy)
|Letter of appointment of the manager defining his powers (notarized & attested) together with his passport copy
||Board resolution for incorporation of FZE/FZC in Hamriyah Free Zone (notarized & attested copy)
| • If appointed:
Letter of appointment for the Consultant defining his powers and his specimen signature (notarized & attested copy) and a copy of his passport
|Bank’s reference letter regarding credit worthiness of the company (original)
|| Letter of appointment of the manager defining his powers (Notarized & attested) together with his passport copy
||• If appointed:
Letter of appointment for the consultant defining his powers & his specimen signature (notarized & attested copy) and a copy of his passport
- Upon signing the agreement for Facility Lease and Personal Secondments the Free Zone prepares the license.
- On payment, the Free Zone issues the license and all other related documents.