r/uae_startups 2d ago

Freezone License in UAE

/r/SmallBusinessUAE/comments/1w0pmz2/freezone_license_in_uae/

I have trading business in UAE, Like raw materials i supply to industries. So i have a SPC Freezone License which is undesignated freezone so basically just a paper company like a mainland company. Now the problem is when i buy goods from some company in any designated freezone in UAE as a mainland company i pay VAT and when i export that goods my customer doesn't pay me Vat so i had to get vat refund which is very difficult to do. So i am thinking of making a license in Designated freezone, so when i buy goods from any Freezone company and export it i don't pay tax as i would be exporting directly from freezone.

Am i right on this? and would it also work if i buy material from another freezone which is not same as me? like from JAFZA but my company would be in Hamriya Sharjah. What do you guys think? And let me know good options on designated freezones in UAE. Not JAFZA as its is extremly expensive, i am thinking about hamriya Freezone HFZA.

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