# Struggling with freezone rules



## sidney0406 (Aug 8, 2011)

Hi All

Long time listener, first time caller here

I have been looking for info on starting a business from a freezone, as I understand it, if I am in a freezone I can only trade in that fz. 

I was wondering about a service based business.

Long story short is: Can I provide a service at peoples home and other businesses if I am based in a Freezone?


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## ipguy (Jul 31, 2011)

You have to do business out of UAE or in a Free Zone and within the business license of your company
If you want to provide products or services in Duba. or Fujairah, you have to do it via an agent
It will be as if you were outside UAE


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## Mr Rossi (May 16, 2009)

It depends. When you apply for the license you there are categories that the nature of your business has to slot into. Once you establish these, you will find out what you can and can't do. For consultancy work (not sure about services tbh) you are allowed to have customers outside the freezone. Though the rules for each freezone differs so worth checking out.


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## ipguy (Jul 31, 2011)

True. We need to know more to answer the question


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## R_Smithy (Jun 13, 2010)

Hi Sidney, I have been looking into starting a freezone company. You really need to do your homework as there are so many different points to take into account and like someone else said, there are different rules in different freezones. I spent a while reading through the forum and also contacted Virtuzone and Creative Zone :: Home to get further advice.






sidney0406 said:


> Hi All
> 
> Long time listener, first time caller here
> 
> ...


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## Mr Rossi (May 16, 2009)

Rather than trying to form a business plan around the rules the best thing to do is to get a business plan together (doesn't have to include financials) and take that around various free zone reps to see if it's possible.


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## md000 (Dec 16, 2008)

I've been involved in the setup of multiple businesses in different freezones here - the rules are generally the same for this type of activity:

Technically, a service company (consulting/whatever) registered in a freezone is treated as a foreign entity if they try to do business within the proper bounds of the UAE. 

Now, operationally, there are very few government mechanisms to manage this. I mean - the government has a hard enough time just getting people their National IDs - trying to police human capital movement into virtual geophysical spaces is nearly impossible. This is especially true since, as a freezone entity, you must have a UAE bank as your banker. 

-md000/Mike


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## Kawasutra (May 2, 2011)

Advisory and consultancy can be done in the local market if you have the appropriate license.
For goods and items of any kind you need an importer (local company). 
That means all values from your mind are not related to customs )


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## sidney0406 (Aug 8, 2011)

Hi All

I am aware that a consultantcy business can operate out of a FZ, But there are no clear explantions on service businesses. 

I don't want to say what my business is at the moment, but for arguments sake if I was FZ based and someone wanted me to go to there house and cut there grass for a fee, is it possible? This is by no means what my idea is but its fundementally the same.

I have emailled 2 FZ 's and awaiting a reply from them

Hopefully this clears any confusion.


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## ipguy (Jul 31, 2011)

md000 said:


> as a freezone entity, you must have a UAE bank as your banker.
> 
> -md000/Mike


Are you saying a free zobe company can not use foreign banks or that at least one account has to be in UAE?


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## md000 (Dec 16, 2008)

ipguy said:


> Are you saying a free zobe company can not use foreign banks or that at least one account has to be in UAE?


One account must be in the UAE. 

-md000/Mike


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## readmetwice (Jul 24, 2011)

I agree with others on this thread and want to add one practical tidbit. 

The freezone trade license allows a business within the listed 'activities' - tech services, media, consulting, others - to operate all over the UAE. The kicker is that contracts are not enforceable outside of your freezone in the case where a client disagreed with the terms/did not want to pay and you needed to go to court. Don't think most people know this and have not seen it being abused by clients.

Personally I have looked at Virtuezone and Rak freezones. 





sidney0406 said:


> Hi All
> 
> Long time listener, first time caller here
> 
> ...


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## Dubai_NewKid (Feb 17, 2011)

hey this is an interesting thread as i am curious to know more about incorporating atrading company in freezone, I would be wanting to sell in UAE as well......is it possible? 
ALso to the best of my knowledge, i need to sell the goods to a local company in Dubai...if i do that then do i need to pay any customs on it? and how much?

Can someone tell me a site or points which one needs to keep in mind, as well as the advantages of having a company in freezone over outside freezone.

Also i have been trying to get info on various other freezones, sharjah, RAK etc and would it make sense to even pursue this?

Appreciate all the help.!


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