Jebel Ali Free Zone<\/a>.<\/p>\n\n\n\nThe warehouses there are vast and very well-equipped. It facilitates trade towards Asia and Africa. Sea-air-land operations are totally integrated there.<\/p>\n\n\n\n
The operational requirements are stricter. It is aimed at large companies. The structure is robust and sustainable.<\/p>\n\n\n\n
DIFC: the international financial centre for regulated services<\/h3>\n\n\n\n The DIFC has its own legal system based on Common Law. It is the financial centre for the entire region. It hosts banks and investment funds.<\/p>\n\n\n\n
The regulation there is strict but very reassuring. It is a guarantee of absolute international credibility. Global institutions are concentrated there.<\/p>\n\n\n\n
Rents there are among the most expensive. It is an exceptional address for finance. The infrastructure there is A-class.<\/p>\n\n\n\n
These areas are home to tech and media giants. Google and Microsoft have their regional headquarters there. The atmosphere is creative and very technological.<\/p>\n\n\n\n
Networking is made easier by the proximity of the players. It\u2019s ideal for digital communication agencies. The sharing of ideas is constant.<\/p>\n\n\n\n
The licences are specific to the image professions. They protect your intellectual property rights well. The production studios are ultra-modern.<\/p>\n\n\n\n
Maintain your compliance and manage economic substance<\/h2>\n\n\n\n Once your company is launched, the hardest part begins: staying compliant with local and international authorities.<\/p>\n\n\n\n
Demonstrate genuine activity to secure tax benefits<\/h3>\n\n\n\n Economic substance is no longer an option today. You must prove that your company has a physical reality in Dubai. This involves real offices and local employees. Important decisions must be made within the Emirati territory.<\/p>\n\n\n\n
Without substance, you risk losing your tax advantages. International authorities are monitoring these criteria closely.<\/p>\n\n\n\n
Keep all your proof of local expenses. They will be useful during an audit.<\/p>\n\n\n\n
Accounting and audit obligations to keep a licence active<\/h3>\n\n\n\n Maintain rigorous accounting in accordance with IFRS standards. Most free zones now require an annual audit report. This document is necessary to renew your business licence each year. Do not overlook this step or face penalties.<\/p>\n\n\n\n
Transfer pricing must also be documented. This concerns your transactions with foreign subsidiaries.<\/p>\n\n\n\n
Anticipate these costs in your annual budget. A good accountant will save you a lot of trouble.<\/p>\n\n\n\nObligation<\/strong><\/td>Frequency<\/strong><\/td>Impact of non-compliance<\/strong><\/td><\/tr>Licence renewal<\/td> Annual<\/td> Suspension<\/td><\/tr> Accounting audit<\/td> Annual<\/td> Fines<\/td><\/tr> VAT return<\/td> Quarterly<\/td> Fines<\/td><\/tr> Substance (ESR)<\/td> Annual<\/td> Penalties<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nCreating a free zone company in Dubai guarantees full ownership of your business and tax exemption, subject to substance. To succeed, choose your zone strategically and validate your residency steps. Act now to propel your business towards limitless international growth.<\/p>\n\n\n\n
FAQ<\/h2>\n\n\n\n
\n
\n
What is a free zone in Dubai and how does it work?<\/strong><\/h3>\n\n\n
A free zone, or free trade zone, is a special economic zone located in the United Arab Emirates that has its own legal and regulatory framework. Unlike the \u00abmainland\u00bb model, it allows a foreign investor to hold 100 % of the shares in their company without the need for a local partner. These zones are designed to stimulate international investment through simplified procedures and attractive tax advantages.<\/p>\n
Each zone is managed by a specific authority which issues the business (commercial, service, or industrial) licence and oversees compliance with the rules. To operate, you must choose a zone suitable for your business sector, establish your registered office there (even via a flexi-desk), and respect the authorised geographical perimeter for your commercial operations.<\/p>\n\n<\/div>\n<\/div>\n
\n
What are the accounting obligations for a company in a free zone?<\/strong><\/h3>\n\n\n
Since the evolution of taxation in the Emirates, maintaining rigorous accounting has become a legal obligation for all freezone entities. This management allows you to justify your income, particularly to check if you are exceeding the Corporate Tax thresholds. You must retain all your supporting documents, invoices, and bank statements for a minimum period of 7 years.<\/p>\n
It is strongly recommended to use reliable accounting software and strictly separate your personal transactions from your business activities. If your locally generated turnover exceeds AED 375,000, you will also need to register for VAT and file periodic declarations with the tax authorities.<\/p>\n\n<\/div>\n<\/div>\n
\n
Is an annual audit compulsory for my company in Dubai?<\/strong><\/h3>\n\n\n
Yes, the majority of free zones now require the submission of an annual audit report to maintain an active business license. This audit must be carried out by an accounting firm approved by the relevant zone authority. It serves to certify the transparency of your financial statements and is often required by banks for the maintenance of your business accounts.<\/p>\n
The process involves the verification of your balance sheet, profit and loss account, and compliance with IFRS standards. Submission deadlines vary by zone: for example, the DMCC generally sets the deadline for the previous financial year to 30 June. Failure to submit may result in significant fines or the suspension of your licence.<\/p>\n\n<\/div>\n<\/div>\n
\n
What are the consequences of Corporate Tax on companies in free zones?<\/strong><\/h3>\n\n\n
The introduction of Corporate Tax at a rate of 9% % is a game-changer, although many companies may still benefit from a 0% % rate under certain conditions. To qualify for this exemption on \u00abQualified Income,\u00bb you must prove real economic substance and have audited financial statements. The audit therefore becomes an indispensable protective tool to justify your tax status.<\/p>\n
All businesses, even those eligible for the 0% rate %, are obliged to register with the tax authorities and file an annual declaration. Without compliant accounting documentation and an audit, your income could be reclassified and subject to the standard 9% tax %.<\/p>\n\n<\/div>\n<\/div>\n
\n
What is referred to as the Economic Substance Regulation (ESR)?<\/strong><\/h3>\n\n\n
The ESR (Economic Substance Regulations) requires companies to carry out real and tangible activities within the Emirate. To be compliant, you must demonstrate that your company is directed from Dubai, that it employs qualified staff there, and that it has suitable physical offices. The aim is to prevent Dubai from being used solely as a tax haven.<\/p>\n
Although rules have been relaxed for periods beginning after 1 January 2023 regarding certain systematic reports, proof of substance remains crucial. Failure to comply can result in heavy penalties, ranging from AED 50,000 to AED 300,000 in case of repeat offences, with a risk of commercial licence suspension.<\/p>\n\n<\/div>\n<\/div>\n
\n
What documents do I need to prepare for my financial audit?<\/strong><\/h3>\n\n\n
To successfully complete your audit, you will need to provide a copy of your up-to-date trade licence, all your UAE bank statements, and your sales and purchase invoices. You will also need to present records of your operational expenses, such as rental agreements (EJARI or flexi-desk), salaries, and utility bills.<\/p>\n
If you are VAT registered, your quarterly returns will also be reviewed by the auditor. Preparing these documents at least two months before your licence renewal date will allow you to avoid administrative delays and late penalties.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"
La freezone permet de d\u00e9tenir 100 % de sa soci\u00e9t\u00e9 tout en b\u00e9n\u00e9ficiant d’une exon\u00e9ration fiscale totale sous condition de substance \u00e9conomique r\u00e9elle. Ce mod\u00e8le offre une agilit\u00e9 op\u00e9rationnelle majeure pour le n\u00e9goce international et les services. Point marquant : le non-respect des obligations d’audit annuel peut entra\u00eener des amendes allant jusqu’\u00e0 300 000 AED. […]<\/p>\n","protected":false},"author":6,"featured_media":6350,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,9],"tags":[],"type-d039article":[],"class_list":["post-6349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-nos-guides"],"_links":{"self":[{"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/posts\/6349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/comments?post=6349"}],"version-history":[{"count":4,"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/posts\/6349\/revisions"}],"predecessor-version":[{"id":7094,"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/posts\/6349\/revisions\/7094"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/media\/6350"}],"wp:attachment":[{"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/media?parent=6349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/categories?post=6349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/tags?post=6349"},{"taxonomy":"type-d039article","embeddable":true,"href":"https:\/\/www.clemenceaugroup.com\/en\/wp-json\/wp\/v2\/type-d039article?post=6349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}