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Why Choose SPC Free Zone for Your Business?

SPC Free Zone is more than just a place to set up a business; it’s a strategic platform for success. It offers a host of compelling reasons why entrepreneurs from around the globe choose it as their business home.

  • 100% Foreign Ownership: Unlike some mainland jurisdictions, the SPC Free Zone allows foreign investors to maintain full ownership of their companies without needing a local sponsor. This gives you complete control over your operations and profits.
  • 100% Repatriation of Profits and Capital: You can transfer all your business profits and capital back to your home country without any restrictions, providing excellent financial flexibility.
  • Zero Corporate and Personal Income Tax: Companies in the SPC Free Zone pay 0% corporate tax and no personal income tax, as long as they qualify as a “Qualifying Free Zone Person” and do business within the free zone or internationally. Trading with the UAE mainland may follow different rules.
  • Strategic Location: SPC Free Zone is strategically located on Sheikh Mohammed Bin Zayed Road (E311), a major highway, which provides excellent connectivity. It’s just a 7-minute drive from Sharjah International Airport and 15 minutes from Dubai International Airport.
  • Over 1,500 Business Activities: While its name suggests a focus on publishing, SPC Free Zone offers a vast range of over 1,500 business activities across various sectors, including trading, services, media, and e-commerce. You can also combine multiple activities under a single license.
  • Flexible Visa Packages: SPC Free Zone provides a flexible visa quota, letting you obtain residence visas for yourself, your employees, and your family. The entry permit is usually valid for 60 days, and completing the medical test and Emirates ID process typically takes 3–5 working days.
  • Fast and Efficient Setup: The SPC free zone business setup process is streamlined for speed and efficiency. You can get your license and company documents issued within a matter of days. For instance, some packages can deliver documents within 48 hours.

Are You Curious About to Start a Business in SPC Freezone: Register Today and Get Expert Support

What are the Different Types of Company Formation in the SPC Free Zone?

When you plan your company formation, you can choose from three main legal structures to suit your business needs in the SPC free zone:

  • Free Zone Establishment (FZE): This structure is for a single shareholder. An FZE is treated as a separate legal entity with its own distinct liabilities.
  • Free Zone Company (FZC): An FZC is suitable for businesses with two or more shareholders. Like an FZE, it is a separate legal entity.
  • Branch of a Company: If you already have a company in the UAE mainland or abroad, you can establish a branch in the SPC Free Zone. A branch operates under the legal name and activities of its parent company.

Want to Explore More? Discover the advantages of setting up a free zone company in Dubai and how it can benefit your business.

SPC Free Zone License Types in the UAE

SPC Free Zone offers a variety of licenses to cater to different business activities. Choosing the right license type is a crucial first step.

  • Commercial License: This license is ideal for businesses involved in the trading of goods, including import, export, and retail. It also includes the popular general trading license option.
  • Service License: A service license covers a wide range of professional activities, such as consultingmarketingIT services, and management consultancy.
  • Publishing License: As its name suggests, this is for businesses in the publishing industry, including printing, book publishing, and e-publishing.
  • E-commerce License: This license is tailored for businesses that sell goods and services through online platforms.
  • Freelance Permit: This is a great option for individuals who offer professional services and work on a freelance basis.
  • Holding License: Allows a company to own shares in other companies, manage investments, and oversee subsidiaries.

The application process for a license is integrated into the overall company setup process. After you select your business activity, the free zone authority issues the appropriate license along with your company’s other legal documents. The license lists the specific activities you are authorized to perform.

How to Set Up a Company in the SPC Free Zone?

The process for SPC free zone company formation is designed to be quick and simple. You can complete the entire process remotely, so a physical visit to the UAE is not required at the initial stage.

  1. Select Your Business Activity and Company Name: You first choose from the list of over 1,500 available activities and propose a few names for your company.
  2. Submit Required Documents: You provide the necessary documents, such as passport copies and the application form, to the free zone authority or your consultant.
  3. Receive Company Documents: The Free Zone Authority processes your application. You receive your trade license, certificate of incorporation, and other legal documents, which can often be issued within a single day.
  4. Apply for a Visa and Immigration: Once your company is registered, you can apply for a residence visa and those for your employees and family members. This involves an entry permit, medical fitness test, and Emirates ID application.

Documents Required for SPC Free Zone Company Formation

The documents needed for your SPC free zone business setup are typically straightforward. A business setup consultant can help you prepare and submit these correctly.

  • A scanned color copy of the shareholder’s passport(s).
  • A recent passport-sized photograph of the shareholder(s) with a white background.
  • A completed application form.
  • Additional documents might be required for a branch setup, such as the parent company’s attested certificate of incorporation and Memorandum of Association (MoA).

Cost to Setup a Company in SPC Free Zone

The Business setup in the SPC Free Zone is known for its affordability. The costs vary depending on the package you select, which is often tied to the number of visas you need and the type of office space you choose.

1. SPC License Package Cost

Particulars Details Amount (AED)
Trade License (1 Year)
Includes MOA, allows 1,500+ activities
6,875
Certificate of Formation
Proof of company registration
Share Percentage Certificate
Confirms ownership distribution
Lease Agreement
Legal office/desk space contract
Establishment Card
Mandatory for immigration & visa processing
640
E-Channel Registration
Online system for visa applications
2,280
Total License Package
9,795

2. Visa Costs (Per Person)

Particulars Details Amount (AED)
Visa Allocation
Reserves a visa quota for your company
1,600
Employee/Investor Visa
2-year residency visa
3,360
Medical Test
Mandatory for residency approval
365
Emirates ID
Government-issued identity card
330
Total Visa Cost (1 Visa)
5,655

3. Estimated Total Setup Cost

Scenario Total Amount (AED)
License Package Only (No Visa)
9,795
License + 1 Visa
15,450
License + 2 Visas
21,105

Please note that these are approximate costs and can change. It’s always best to get a customized quote directly from the free zone authority or a business setup consultant.

Legal Requirements for Setting Up a Company in SPC Freezone

While the setup process is flexible, you must adhere to certain legal requirements for company registration in the SPC Free Zone.

  • No Objection Certificate (NOC): For employed individuals in the UAE, you may need a No Objection Certificate from your current employer to proceed with the company setup. However, in SPC, an NOC is not always required, which streamlines the process.
  • Corporate Tax: As of June 1, 2023, the UAE implemented a federal corporate tax of 9% on taxable profits exceeding AED 375,000 for mainland companies. Free zone businesses, including those in SPC, are subject to this tax only if they have operations in Mainland UAE or exceed a certain turnover threshold. It is critical to stay informed about the latest tax regulations.
  • Bank Account: You must open a corporate bank account for your new company. The free zone provides a lease agreement and other necessary documents to help you with this process.

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Frequently Asked Questions (FAQs)

Q-1. Can I get a residence visa for my family after I set up my company?

Yes, you can. After securing your investor visa, you can apply for residence visas for your spouse, children, and parents, provided you meet the minimum salary and housing requirements. The process is streamlined as the immigration services are often located on-site.

Q-2. Is a physical office space required for my business setup in the SPC Free Zone?

No, a physical office is not always required. You can opt for a cost-effective virtual office or co-working space package. These options are perfect for entrepreneurs who don’t need a dedicated office.

Q-3. How long does the SPC free zone company formation process take?

The business setup process in the SPC Free Zone is extremely fast. You can receive your trade license and company documents in as little as one business day, with the entire visa process typically taking a few weeks.

Q-4. Can I do business with companies on the UAE mainland?

Yes, you can. While a free zone company cannot trade directly on the mainland, you can operate there by partnering with a local distributor or by obtaining a dual license from SPC, which allows you to operate in both the free zone and the mainland.

Q-5. Is a dual license beneficial for my business?

Absolutely. A dual license is a significant advantage. It allows you to enjoy the benefits of a free zone company while also accessing the lucrative UAE mainland market, giving you the best of both worlds.

Q-6. Do I need to have a share capital to form my company?

SPC Free Zone allows a zero paid-up share capital, meaning you don’t need to deposit a minimum amount of money into a bank account to prove your business’s financial viability. This significantly reduces the initial investment.

Q-7. What is the renewal process for a business license?

License renewal is a straightforward annual process. You submit the required documents, pay the renewal fee, and the free zone authority extends your license for another year. Many companies find multi-year licenses a more convenient option.

Q-8. What types of businesses are best suited for the SPC Free Zone?

SPC is an excellent fit for freelancers, startups, e-commerce businesses, media companies, and consultancy firms. Its flexible packages and extensive list of business activities make it suitable for a wide range of ventures.

Q-9. Are there any hidden costs I should be aware of?

The prices for packages are generally transparent. However, you should account for variable costs such as visa-related fees, potential courier charges, and any additional services like bank account opening assistance. Always ask for a detailed breakdown.

Q-10. What is the difference between a Free Zone Establishment (FZE) and a Free Zone Company (FZC)?

The main difference lies in the number of shareholders. An FZE is a legal entity for a single shareholder, while an FZC is for two or more shareholders. Both enjoy the same benefits within the free zone.

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