KPMG ADVISES FREE ZONE COMPANIES THROUGHOUT THE SETTING UP PROCESS:

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Feasibility analysis • Application guide and After an entity or • Information on the paperwork branch has been UAE as an investment • Guidance on required established, we can location procedures provide a range of • Details on the most • Liaison with free trade advice, including: suitable free trade zone authorities • Reviewing, comparing zones • Setting up policies and and auditing financial SETTING • . Advice on the procedures statements most suitable • Accounting and payroll • Agreed upon business format support procedures • Cash and working • Attestation services UP IN International tax capital management • Secondments of • Advice on how to most management and effectively structure a finance professionals THE new company from a • Transfer pricing advice group tax perspective • Indirect taxation UNITED • Payment processing KPMG’s SME function combines a team of highly professional business experts, with a wide range of experience across industries, geographies and specialisms. Please contact one of our senior executives with ARAB any questions or comments you may have.

CONTACT US

Partner I Advisory Partner I Audit Partner I Tax Director I Audit M: +971 56 681 5277 M: +971 50 240 3580 M: +971 56 683 3219 M: +971 50 240 3609 E: [email protected] E:[email protected] E:[email protected] E:[email protected]

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the situation.

© 2015 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the . The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. The UAE, a federation of seven emirates (, , Sharjah, Fujairah, Ajman, Ras al Khaimah and Umm al Quwain), has undergone a fundamental transformation The UAE’s economy has grown since oil was first discovered in 1962. Once a small, insular economy dependent on Located in the lower part of the spectacularly since oil was first fishing and pearling, the UAE is now a cosmopolitan, business-oriented environment Arabian Gulf, the UAE’s cold exported in 1962. The government, which has attracted tremendous internal and foreign direct investment. The government season lasts from October to keen to diversify the economy, has has invested significantly in infrastructure – highways, telecommunications, sea ports March and is generally dry and invested significantly in tourism, and airports – in the knowledge that such investment leads to innovation in terms of mild. The hot season, from April heavy industries, financial services, new business opportunities and new industries. to September, can be extremely business and infrastructure. The hot and humid. In the summer, previously hydrocarbon-dominated Companies that want to take advantage of the opportunities in the economy need to set most activities take place inside, economy has now developed into the up an entity in the UAE. They need advice on the most suitable location; the optimal with airconditioned malls and region’s leading business, banking form of business; the registration process; and any tax implications. KPMG Lower Gulf other leisure spaces very popular. and logistics centre, with a thriving Limited advises companies who want to establish a presence in one of the UAE’s tourism industry. numerous free zone area, including: Free Zone; Dubai Airport Free Zone; Dubai Multi Commodities Centre; ; ; ; ; Dubai International Academic City; Dubai Knowledge Village; International Media Production Zone; Dubai Biotechnology & Research Park; Dubai Outsourcing Zone; ; Dubai Gold & Diamond Park; DIFC The UAE has high quality highways, While Dubai is a modern, telecommunications, airports and Sharjah Airport International Free Zone; Hamriyah Free Zone cosmopolitan emirate which seaports. Social infrastructure, resembles other developed cities, including education and healthcare, Ras al Khaimah Free Zone, RAKIA UAE society remains conservative. is good. Living standards in the UAE The legal system is based on Abu Dhabi Airport FZ; Twofour54; MASDAR City; Khalifa Industrial Zone; are high and aligned with other Islamic Shari’a. Ramadan, the Abu Dhabi Global Market developed countries. Islamic holy month, is celebrated Ajman Free Zone every year and there are restrictions on eating and drinking Umm al Quwain Free Trade Zone in public that apply to everyone.

SETTING UP IN THE UAE To set up a business in the rest of the UAE – the ‘mainland’ – Individuals and businesses wishing to set up in the UAE can choose to set up requires that 51% of the share capital is owned by a UAE national. on the ‘mainland’ or invest in a free zone. A multinational can establish a branch without local participation, but only certain activities are allowed. Free zones are designed to attract foreign businesses to the UAE. Entities can be 100% foreign owned. Free zones can offer prebuilt offices, warehouses and KPMG has advised a wide variety of companies on setting up on accommodation areas. UAE free zones generally provide entities with 50 year the ‘mainland’ or in one of the UAE’s free zones from business set tax holidays – as well as other benefits. up and formation through structuring and audit assurance to CFO and management support.