Meydan Free Zone (MFZ) is a business hub located in Dubai, United Arab Emirates, offering a range of business structures for companies to operate within the zone. The legal framework of Meydan Free Zone is designed to encourage foreign investment and provide a flexible, streamlined environment for business activities.
Here’s an overview of the key components of Meydan Free Zone's legal structure:
Legal Entity Types
- Free Zone Limited Liability Company (FZ-LLC): Most common structure, offering 100% foreign ownership and limited liability.
- Branch of a Foreign Company: Foreign company can establish a branch in Meydan.
- Representative Office: For marketing, promotional, and research purposes only (cannot engage in direct commercial transactions).
Ownership
- 100% Foreign Ownership: Available for businesses in Meydan Free Zone.
Taxation
- No personal income tax on individuals or shareholders.
- VAT: 5% on most goods and services.
- Corporate Tax: According to the Federal Tax Authority (FTA), a 9% corporate tax will apply on net profits exceeding AED 375,000
Licensing
- Business Licenses: Required for business operations in Meydan.
- Commercial License: For trading and import/export activities.
- Service License: For consultancy, IT, and professional services.
Capital Requirements
- No Minimum Capital Requirement: Accessible for small and medium-sized businesses.
Ease of Business
- Flexibility in Business Activities: Up to three activities under one license.
- No General Trading Fee: Eliminated AED 10,000 fee.
- Wide Range of Business Opportunities: Over 2,000 business activities.
Visa and Immigration
- Visa Eligibility: Residence visas for employees and investors, depending on office space.
- Family Sponsorship: Investors and employees can sponsor family members under certain conditions.
Office Space and Infrastructure
- Flexible Office Solutions: Virtual offices, flexi-desks, or fully equipped offices based on needs.
- No Objection Certificate (NOC): Option to open an office in mainland Dubai with reduced visa costs.
Regulatory Framework
- Meydan Free Zone Authority: Oversees compliance with local and international standards.
- Compliance: Adherence to UAE federal laws, labor laws, environmental regulations, and industry-specific standards.
Dispute Resolution
- Legal Arbitration: Available for resolving commercial disagreements, following UAE legal standards and international business laws.
Cost
- Starting Cost: From 12,500 AED, varying with number of visas and business needs.
In conclusion, the legal structure of Meydan Free Zone is designed to provide businesses with flexibility, tax advantages, and 100% foreign ownership, all while adhering to international business standards. Its regulatory framework ensures compliance, offering a seamless environment for companies to operate and grow.