Dubai Flower Centre FTZ

The Dubai Flower Centre is the free economic trade zone, which is located in close proximity to the Dubai international air harbor. A vast area of this FTZ is the region's largest centre for stimulating and development of business projects in the field of floriculture.

The implementation of the project for supplying the increasing demand

The Dubai Flower Centre specialized area is aimed to supply the increasing consumer demand for floral and other perishable products. It is not a secret that the modern scale of international trade requires a completely new approach of entrepreneurs. Against this background, there is a worldwide shortage of effective commercial tools and innovative solutions in the field of logistics.

The project is created to decide effectively such important issues of the wholesale floral industry as:

• improving of the quality of deliverable perishable goods and floral products;
• packing, repacking and consolidation of goods;
• time reduction for  transit and delivery to the markets;
• increase of profitability of the business schemes which work in the flower industry.

But still, the main strategic goal of the Dubai Flower Centre free economic trade zone remains the provision of foreign entrepreneurs and investors with favorable conditions for commercial and economic activity related to flowers wholesale trade, and thereafter, the increase of investments in the national economy of the Emirate.

It should be noted that the automated center of processing the flower products has the operating capacity of 150 thousand tons of perishable and floral products. There are equipped and full-automatic stations for packing flowers and sorting products which make the work more convenient. Storage facilities and office premises are available on the territory of the economic area.

Dubai Flower Centre FTZ: services and types of state licenses

The following opportunities can be singled out among the main services for entrepreneurs and investors:

• prompt and well organized supply of flowers and other perishable products;
• approved and effective transport channels in any point of the globe;
• opportunities and resources that can significantly reduce the final cost of production and therefore increase the profitability;
• twenty-four-hour and qualified support of commercial operations and transactions.

The current legislation requires to get several types of state business licenses, which operate in the Dubai Flower Centre specialized area, in particular:

• business license for trade: gives the right to carry out various wholesale trade operations, including export, import, storage and distribution;
• business license for the provision of services: allows you to carry out activities related to the provision of professional services in various sectors;
• business license for companies with limited liability: this type of state license is issued by the Department of economic development of the Emirate and gives the right to carry out any activity in such fields as: gardening, floriculture, sales of vegetables and fruits and so on.

Registration of companies in FTZ: legal forms and conditions

The norms of corporate law which operate in the economic area, allow the registration of the following legal forms of companies:

• Free Zone Company: a company which is registered in the free zone. The number of incorporators – from 2 to 5 persons, both physical and legal entities. The liability of the shareholders corresponds to the size of the allotment in the charter capital of the company. The minimum threshold of the charter capital for registration is 50 thousand Dirhams;
• Free Zone Establishment: an organisation created for free economic trade. The incorporator of this organization may be a private individual or a company, and the shareholders' liability as to the obligations of the company is limited to the participant's allotment. The minimum threshold of the charter capital for registration of a company is 100 thousand Dirhams;
• representative offices, branches of local and foreign companies. No requirements for the minimum size of the charter capital.

The registration and the further work of foreign companies in the Dubai Flower Centre Free Zone is carried out under the following conditions:

• the 100% foreign ownership of the capital of the company;
• no restrictions on repatriation of the investment assets and gained profits;
• no corporate taxation;
• tax holidays for all the types of state fees for up to 15 years;
• no state foreign exchange control.

In conclusion it should be noted that the FTZ Dubai Flower Centre project had embodied all the advanced technologies and developments in the field of floriculture and trade of perishable products. Here one knows everything about how to preserve the flower production in its original form and deliver it to the customer in the shortest possible time. There are special refrigerated trucks for delivery, refrigerating chambers for storing, air and vacuum systems of cooling and ventilation – everything for business, which is carried on in the flower industry, have no problems with the delivery and transit of products.

As of today, the Dubai Flower Centre special economic area is an ideal terminal for packing fruits, vegetables, and floral products, as well as for prompt delivery to the largest markets in the world. It is a great opportunity to organize a profitable business scheme without numerous agents, and using advantages of the customs facilities and tax remissions, and also the absence of state exchange restrictions.