The free zone company formation in Dubai has been a preferred choice for foreign investors due to 100% ownership and other factors such as one-stop services, cost-effectiveness, quick business setup procedures, and smooth visa processing. If you are an investor and you want to do business with clients outside the UAE, the free zones are the best option for business setup in Dubai. There are over forty free zones in the UAE and a majority of them are in Dubai.
As an entrepreneur, you will be faced with the crucial question of which free zone to set up your business. This question needs careful thinking and a decision should be made only after having expert advice from someone who possesses in-depth knowledge in the local laws and regulation of the UAE. However, this is not a herculean task as you only need to hire the best business setup consultants in Dubai who will guide you about choosing the right free zone in Dubai for your business setup.
Top Factors You Must Consider Before Choosing a Free Zone in Dubai
Foreign investors have been attracted to the process ofdue to a slew of advantages they offer including 100% ownership, zero corporate tax, 100% repatriation of the capital, and hassle-free registration. However, that doesn’t mean you should jump into any free zone that you see in the advertisements. There are certain factors that need to be considered before proceeding with the free zone company formation in Dubai. Some of the top factors are given below,
- Business Activity
Every free zone offers a list of business activities, based on which your trade license in Dubai will be issued. Entrepreneurs need to browse through the activities in each free zone and decide which free zone is better for their business. There are industry-specific and general-purpose free zones in Dubai. Dubai Media City, Dubai Internet City, and Dubai Production City are the top industry-specific free zones that exclusively cater to media and tech industries. If you are not planning to go for the industry-specific free zones, then there are other well-known free zone options like the DMCC,Dubai Airport Free Zone (DAFZA), etc.
Depending on the nature and size of the business, the entrepreneurs need to ensure they are having the best facilities in the free zones they opted for. For small startups that are not planning any big expansion in one or two years after the company incorporation in Dubai, a co-working space would be better. Such startups should also ensure that facilities like telecommunication, storage, and ample space are available within the free zone co-working space. If the company requires regular client visits and has good staff strength, then an office space with better facilities is the best option. Manufacturing companies need to ensure the availability of land and warehousing facilities before initiating the process of business setup in Dubai free zones.
- Best Location
Most entrepreneurs who set up a company in Dubai free zones engage in activities like imports and re-exports with international clients. While targeting international clients, setting up a business in free zones that offer excellent connectivity by air, sea, and land would be important. Proximity to important international airports and seaports must be considered while choosing the free zone. Discuss your business requirement with the reputed business setup consultants in Dubai and they will share details on the free zones that offer the best location benefits for your proposed company.
Based on business activity, free zones issue general trading and service licenses. Apart from that, there are many free zones that offer special types of licenses. Some free zones offer media, e-commerce, and other licenses catering to different business activities. Depending on the activities, you can choose the free zone that offers the right type of licenses.
- Share capital Requirement
A share capital amount is required to set up a business in the UAE Free zones. However, you need to ensure whether the share capital amount is required to be deposited or not for setting up a business in the free zone. The requirement of depositing the share capital amount varies from the free zone. Most of the free zones in theare not strict on this requirement, while the Dubai free zones mandate the requirement of depositing the share capital amount. Hiring well-known business setup consultants would help you clear the air on whether the free zone of your choice mandates this requirement or not.
How Business Setup Consultants in Dubai Help You to Choose the Right Free Zone?
Free Zones are one of the most attractive business jurisdictions in the UAE due to an array of benefits that it offers to foreign investors. Each free zone is governed by different free zone authorities and has a different set of regulations. The procedure of business setup in Dubai free zones also vary from each other. Having a greater understanding of the facilities, procedures, and regulations in each free zone will make the process of company formation in Dubai much quicker. However, to set up a business in Dubai free zones, you need to have expert assistance that could be offered by the reputed business setup consultants in Dubai. Apart from helping you choose the right free zone, the business setup services in Dubai helps you in company registration, documentation, drafting of Memorandum of Articles (MoA), processing your visa, etc.