Top Factors to Consider when Starting a Free Zone Company in the UAE

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The Free Zone Authorities issue licenses to and maintain control over Free Zone businesses. Free zone business setup is perfect for new businesses. Establishing a business in the UAE Free Zone involves a slightly different process than on the mainland.

Since each Emirate has its own free zone authority, the controlling body of the free zone business setup is distinct from that of the UAE Mainland Business or offshore Business. The primary advantage of establishing a business in a free zone is that customs duties are completely tax-exempt, meaning that businesses can benefit from complete tax exemption on imports and exports, making free zones more appealing to investors. It can be difficult to assist business owners in establishing their ventures with the best resources and benefits, but the UAE government offers plenty of investment opportunities.

A well-known business with years of experience starting businesses in all UAE Free Zones is Business Link. In order to give you the best services possible, our business setup services abide by all laws and government regulations.

Some things to consider when deciding where to license your new business are listed below:

1. What sort of business endeavors are you planning?

Business operations in free zones typically allow most activities, but some require a mainland license or LLC, requiring a UAE national partner. The choice of free zone depends on whether business will be conducted in mainland UAE, and a free zone license may not be sufficient for significant government contracts.

2. Which ownership structure are you trying to find?

UAE nationals or local sponsors must hold a 51% stake in a business on the mainland path, but a historic law allows 100% FDI ownership for 122 activities, with minimum capital requirements.

3. Which kind of factory/warehouse space is required?

Establishing a business in the UAE mainland offers various space options, but certain free zones have limitations on factory or warehouse selection, height, and smoke emission capacity.

4. What’s the budget like? Business license fees in the UAE Free Zone versus the Mainland.

Free zone licenses are slightly more expensive than mainland licenses, with less expensive options costing slightly over AED 8,000 and more costly options exceeding AED 60,000. The MSI team can help determine the best option.

5. How simple is opening a business bank account in the United Arab Emirates?

As the UAE’s economy has grown, compliances have been implemented, making opening a bank account simple. The license’s activity, the licensing body, and the owner’s past are what determine any potential setup challenges.

6. How many passports are required? UAE requirements for business visas.

To ensure business success in the United Arab Emirates, check the number of visas linked to your license and ensure it meets your needs. Establishing a business in the UAE, such as Dubai or Abu Dhabi, can increase brand value.

Overview of the UAE Free Zone

The free zone is a designated area within a country where businesses can operate with special tax and regulatory benefits. In the UAE, there are over 40 free zones located in different emirates, each with its own set of rules and regulations. A free zone company is a business entity that is registered in a free zone in the United Arab Emirates (UAE). Free zones are special economic zones that offer a number of benefits to businesses, such as 100% foreign ownership, no corporate taxes, and low import and export duties.

TOP 10 Best Free Zones

  1. IFZA, founded in 2018, relocated to Dubai’s downtown, Dubai Digital Park, under DSO’s control. Known for cost-effective business setup solutions and customized approaches.
  2. Fujairah Creative City, a digital hub in UAE, offers advanced infrastructure, telecom connectivity, and high-tech communication links, catering to various business sectors and providing administrative support.
  3. Sharjah Media City Free Zone (SHAMS) is a modern hub for startups, SMEs, and established companies in the media and creative industry, aiming to make creative entrepreneurship accessible to all.
  4. Sharjah Publishing City (SPC) Free Zone offers over 1,500 business license activities in the UAE, including publishing, printing, general trading, e-commerce, information technology, and consultancies. It allows dual licenses and provides modern office spaces, warehouses, storage, and co-working spaces.
  5. Ras Al Khaimah Economic Zone (RAKEZ) in UAE offers customizable solutions for company formation, residence visa services, and value-added services to over 21,000 businesses across 50 sectors.
  6. Dubai’s Meydan Free Zone offers a unique blend of sports, entertainment, and leisure sectors, with advanced infrastructure, top-notch amenities, 100% foreign ownership, and a tax-free environment.
  7. Dubai International Financial Centre (DIFC) is a prominent Middle Eastern financial hub, attracting companies from various sectors, offering services like visas, licensing, and company registration, with 100% foreign ownership.
  8. DMCC, or Dubai Multi Commodities Center, the largest free zone in the world, Dubai Multi Commodities Centre (DMCC), offers a platform of support to companies in the commodities sector. It provides a number of services, such as help with visas, licensing, and company registration. A tax-free environment, 100% foreign ownership, and access to global markets are further advantages for DMCC companies.
  9. Masdar City Free, Abu Dhabi’s sustainable free zone, offers technology and clean energy support, business services, a tax-free environment, foreign ownership, and an investor network.
  10. Abu Dhabi Global Market (ADGM) is a financial-free zone in Abu Dhabi, providing business services like visa assistance, licensing, company registration, foreign market access, and a tax-free environment.

Benefits of starting a company in the Dubai Free Zone

The UAE’s free zones are highly accommodating to a variety of industries. Some of their benefits are as follows:

  • Due to the remarkable digitization and ease of doing business, processing business documentation and requests for the UAE free zone takes a lot less time now.
  • Your company may be able to reach both domestic and foreign markets.

Within a specific free zone, there may be business-to-business opportunities available to you.

  • World-class amenities in free zones, advanced digital infrastructure, and strong road networks can all be advantageous to your business.
  • The free zones’ close proximity to airports and seaports will help your company’s logistics.
  • In a free zone, you can enjoy complete ownership of your company. Profits and fully invested capital can also be repatriated. Moreover, free zones are exempt from paying customs duties.
  • There are no taxes in the UAE. Thus, there won’t be any taxes due.

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