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Stimulus Packages for Free Zone Companies in UAE | COVID- 19

Across the world, life has become uncertain, and people are facing issues in coping up with the economic impact of the COVID- 19 pandemic. It is not predictable how much time and what kind of hurdles businesses are going to face even after the Coronavirus cure reaches everyone. Accordingly, various Free Zones in UAE have unveiled Business Stimulus Packages for Free Zone Companies in UAE.

The UAE government has smartly managed to keep the economy go forward without letting the coronavirus spread. There is an immense number of testing going on, and medical departments are performing their job efficiently. Similarly, to fight with the economic crisis, the Department of Economic Development (DED) and other local, as well as national authorities, are taking crucial steps.

The UAE Central Bank, along with different Free Zones, has initiated strong measures that are expected to be effective in shielding the business, not letting the Corona pandemic hinders business growth.


Business Stimulus Packages for Free Zone Companies in UAE

Initiatives taken by various Free Zones

The top free zones which house numerous company, have come up to solve the issues business are facing during the pandemic. By their end, the authorities are providing various types of relaxations, which will ease the continuity of the business. Let’s have a look at each free zone one by one, and check the measures they have implemented.


JAFZA (Jebel Ali Free Zone Authority)

Stimulus Package for JAFZA Companies


JAFZA

Business Stimulus Packages offered by JAFZA are not only aiding the new business set up in Dubai but are also beneficial for the ongoing businesses. The initiatives by JAFZA are well-timed, inspiring the businesses to continue with the same determination.

For the companies working in Jebel Ali Free Zone or the investors planning to start a company here, JAFZA has initiated packages with highly reduced costs. The authority is providing a discount on license registration and costs related to administration. Just go through the below-mentioned point to brief yourself about the initiations:

  1. All the administration fees, licensing costs, and registration costs are reduced by 50 to 70%.
  2. Online services are completely free to boost the digitalization process of JAFZA.
  3. A payment flexibility plan is created for JAFZA, Dubai Auto Zone (DAZ), and National Industries Park (NIP).

Dubai Multi Commodities Center (DMCC)

Stimulus Package for Free Zone Companies


DMCC

Dubai Multi Commodities Center (DMCC) has taken numerous measures to safeguard the business community. The measures also help investors who are planning for a business setup in Dubai.

Let us first go through the initiatives taken for the new company registration in Dubai Multi Commodities Center:

  1. The total company set up cost will be reduced by 80%. However, it applies to the condition that the shareholder should be a resident of JLT (Jumeirah Lakes Towers).
  2. In case, if the resident is not from JLT, still up to 50% reduction can be provided. One obtains the benefit of having a Flexi Desk for one year along with it.
  3. There is no need to visit departments for setting up the company. You can complete the process digitally just by sitting at your home.

For the companies which are already functioning in DMCC, relaxation is offered to reduce the overall cost:

  1. No late license renewal penalties, a 100% waiver is given on the penalties.
  2. Other penalties related to DMCC are also provided with a 100% waiver.
  3. DMCC has even come up with taking no charge for getting a Company Reinstatement fee and Office Sharing Permit.
  4. Companies will get a discount of 30% on license renewal.
  5. JLT retailers who are having existing contracts will receive a waiver on outdoor area rents.
  6. The commercial establishments which were required temporary closure will not need to pay two months’ rent.
  7. For Flexi Desks and Tenant Renewals, three months suspension is provided. However, one will receive no discount for it.

Dubai International Finance Center (DIFC)

DIFC Stimulus Package


DIFC

Dubai International Finance Center (DIFC) is having the back of companies as it has come up with several measures. These measures will take care of the businesses’ necessities for the next three months, starting from 1st April 2020.

  1. All the lease payments are suspended for three months
  2. New companies do not need to provide any annual licensing fees as a 100% waiver is provided
  3. For existing companies, a 10% discount is provided on the total license renewal cost
  4. For property registration, a discount between 4% to 5% will be given

Dubai World Trade Center Free Zone (DWTC)

DWTC COVID- 19 Free Zone Stimulus Package


DWTC

Due to the impact of the Coronavirus, DWTC is offering relaxation to business like other top fee zones. DWTC has taken the following measures to ensure that the businesses continue operating the same as they were operating before.

  1. For all three licenses: commercial license, professional license, and event license, the DWTC is offering more than 50% discount.
  2. For the aforementioned licenses, a 70 % discount is provided for executive offices.
  3. Talking about the standard offices, the DWTC is providing more than 60% discount on licenses, which we have mentioned above. In case you own a General Trading License, you will get more than 50% discount on all three options: hot desk, standard office, and executive office.
  4. For new visas and visa transfers, the benefit of a 10% discount is provided. For visa renewal, the applicants will get a 65% discount.

Ras Al Khaimah Economic Zone (RAKEZ)

RAKEZ Companies Business Stimulus Package


Rakez

Ras Al Khaimah Economic Zone is one most vital zone for SMEs. SMEs are the backbone of any nation, and to save it, RAKEZ has come up with a support initiative safeguarding the business continuity and growth. The highest points of RAKEZ initiative are the following:

  1. Discount on total renewal package: 15%
  2. Discount on getting a new independent visa: 25%
  3. Late renewal penalty: Nil
  4. Cheque postponement fees: 100% waiver
  5. No fees on package downgrade.
  6. No fees on the activity change request
  7. The applicant receives a 100% waiver of new visa requests’ security deposits.
  8. Installment options are provided to all the companies allowing them to make the payment with the flexibility
  9. These measures are effective until 30th June 2020.

Khalifa Industrial Zone (KIZAD)

Business Stimulus for KIZAD Companies


KIZAD

Khalifa Industrial Zone is offering several discounts to existing and new companies. The discount will make sure that during the tough time of the COVID- 19 pandemic, clients are moving forward with their business goals.

  1. On renewal of licensing, KIZAD is providing a discount of 15%. This discount is applicable for all license types.
  2. In case if you need to setup up a new business in KIZAD, there are different discount options available according to the plan you select:
  3. For a one-year license plan: 15% discount
  4. For a two-year license plan: 20% discount
  5. For a three-year license plan: 25% discount

All the options come with Q2 2020 without any charge.


Ajman Free Zone (AFZA)

Business Stimulus Package for AFZA Companies


AFZ

AFZA is one of the prominent free zones all across the UAE and high in demand due to its facilities, infrastructure, and benefits. To secure the businesses, Ajman Free Zone has taken various steps in favor of companies which are as follows:

  1. There will be no cheque service fee
  2. Stacked fines will be reduced to 50%
  3. Labor accommodation charge is reduced to 25%
  4. A six-month installment plan is introduced for the benefit of companies
  5. Exemptions are provided on delayed fines
  6. No e-channel smart service fee

Ajman Media City Free Zone

COVID- 19 Stimulus Package by Ajman Medity City Free Zone


AMCFZ

Ajman Media City Free Zone Authority is dedicated to lowering down the burden of businesses that they are facing due to the pandemic. The authority is providing continuous support to them by launching new provisions and discount options.

  1. Rent guarantees which were paid by investors will be refunded.
  2. No collection of rent guarantee will take place before the end of 2020.
  3. The fines which were placed due to not renewing the lease contracts will be waived off. This applies to valid as well as expired contracts that were required to be renewed before April 2020.
  4. The free zone authority will be issuing NOCs for the employees’ movement between different media city companies.

Sharjah Media City (SHAMS)

Business Stimulus Packages offered by SHAMS


SHAMS

With Sharjah Media City, you get immense discount options and steps which will support your business in this time of crisis.

  1. Between 22nd March 2020 and 23rd March 2020, SHAMS provided a 20% discount on all the visa packages.
  2. The number of activities with one license is increased by two. The increment is for both zero visa and all visa packages.
  3. For zero visa packages starting from AED 5750, the companies are provided with a 50% discount on the license fee.  
  4. For one visa packages starting from AED 9425, the companies are provided with a 50% discount on the license fee. 
  5. Additional charge on the addition of additional activities during renewal is waived off.
  6. A total wavier of AED 5000 on an E-channel deposit is offered for all visa packages obtained on new licenses.
  7. Various discount packages according to different periods are introduced:
  8. Two Years: 20%
  9. Three Years: 25%
  10. Five Years: 35%
  11. One can choose to combine service and general trading activities in one license.

Hamriyah Free Zone (Sharjah)

Economic Stimulus Packages for Harriyah Free Zone Companies


HFZA

Under current circumstances, like every other free zone, Hamriyah Free Zone is providing discounts and waivers suitable for the companies functioning here.

  1. On renting infrastructures such as offices, warehouses, and plots, a 20% discount is provided
  2. For new companies, a 50% waiver on incorporation fee
  3. No license fee for the 1st year
  4. 50% discount on service charge for the 1st year
  5. No security charge will be taken before the license gets renewed next year
  6. This offer is only valid between 1st April and 30th June 2020

Creative City Fujairah

Stimulus Packages for Free Zone Companies


CCF

Creative City Fujairah is offering different discounts for new companies and existing companies. These are introduced to help the companies to cope up with the current situation arising from COVID- 19.

For those forming new companies:

  1. One free visa for baby business, Freelancer Company, and GENIUS
  2. Total waiver of AED 5,000 on an E-channel deposit

For existing companies:

  1. There is a discount of 15% on license renewal for licenses with one-year validity
  2. For a two year license, 50% discount is provided for the second year
  3. No license penalty
  4. You can add one activity without any additional charge

International Free Zone Authority (IFZA)

Discount on Packages offered by IFZA


IFZA

IFZA holds the responsibility of taking care of numerous businesses by supporting them in the current situation. The measures that IFZA has introduced will surely help the businesses to get out of losses caused due to Corona outbreak. It is providing one visa license package at the cost of AED 11,500 after providing a discount of 25%. It is only applicable until 23rd April 2020.


UAQ Free Trade Zone

Stimulus for Free Zone Companies


UAQ

Umm Al Quwain Free Trade Zone has offered a helping hand to companies to shield them with the economic impact caused due to COVID- 19 pandemic.

  1. Companies get an additional three months for renewing the licenses and leases. This is applicable until 14th July 2020 for clients of the business center.
  2. The business center packages are available with additional visa eligibility allowing the investors to take additional aids from partners as well as employees.
  3. Overall, the new package scheme will save up to 25%.

Sharjah Airport International Free Zone (SAIF Zone)

Discounted Packages offered by SAIF Zone


SAIF Zone

SAIF ought to safeguard the companies operating in the free zone. Therefore, discounted packages that work for the welfare of businesses are introduced. Core features of a discounted package by SAIF Zone are:

  • Business setup in just AED 10,800, which includes dedicated furnished office, utility charges, a quota for three visas, and signboard.
  • Business set up for AED 15,650, which includes an executive office. The license fee is waived off under this package. It includes dedicated office space, utility charges, five visas, and signboard.
  • The warehouse lease offer starts from AED 48,000 (125 m2) with the waiver of license fees and 50% company registration charges. This offer ends on 30th June 2020.

Dubai Silicon Oasis Authority (DSOA)

Stimulus Package for Free Zone Companies


Dubai Silicon Oasis Authority

Dubai Silicon Oasis Authority (DSOA) has also introduced incentive packages for companies. These packages aid the companies by providing relaxation in-licensing and renewal. They also take care of the residential and rent payments. There are specific discounts for the retail sector as well.

Companies:

  • Three months deferred payment on all leases
  • Waiving late payment penalties
  • Providing a grace period until the end of May 2020 for new companies
  • 10% discount on rental value upon renewal
  • Flexible payment plan

Residential Projects:

  • Postponement of rent payment up to two months
  • 100% late payment fine waiver until 31st August 2020
  • Monthly rental plan for existing & new tenants
  • Up to 10% discount on rental value upon renewal

Retail Sector:

  • Rent waiver from 15th March 2020 is provided. It is applicable to restaurants, gyms, and shops, which have an impact due to the Coronavirus. The wavier continues until they resume working.
  • Postponing rental payments for three months period
  • Waiving late payment fines until 31st August 2020
  • Up to 10% discount on rental value upon renewal
  • Flexible payment plan

Dubai South

Stimulus for Free Zone Companies


Dubai South

Dubai South announced several economic stimulus incentives for existing members of the free zone. The highlighted points are mentioned below:

  • Flexible payment plans are offered where the cost-effective installments are introduced.
  • Waivers of penalties on late renewals
  • 20% reduction on license fees renewals

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Free Zone Company Setup in UAE

N R Doshi and Partners knows that the times are tough as businesses are trying their best to cope up with the Coronavirus pandemic. Besides the health impact, it is also impacting the economy, making the survival of businesses questionable.

However, the UAE government initiatives bring the light of hope by minimizing the current expenditure. This is done by the introduction of the packages in various free zones.

We wish that your dreams must not be harmed when you strive every second to fulfill them. N R Doshi and Partners is pledged to support each and every business whoever seeks advice and aid for running the company in this situation. We will make sure that your business functions with a minimal outflow of the money. It will buy you time until your business gets back on track when you can move towards growth.

With our planning and precision, we are even ready to help out new businesses that are just a bud now and willing to blossom. Our experts will select the best location and package for your business to get started with expending the least.

Contact us now to boost your business or boost your dream by forming a Free Zone Company.


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