Numerous Fortune 500 companies and other huge multinational corporations have opened offices in the UAE, which is currently ranked 16th globally in the Ease of Doing Business Index. The same is true for independent business owners and small and medium-sized enterprises. But which UAE free zone is the cheapest? Let’s investigate.
UAE’s Free Zones have made a significant contribution to the nation’s business-friendly environment. In the United Arab Emirates, there are more than 50 free zones, each with its own set of guidelines and advantages.
Let’s examine the cheapest free zones in the UAE and see what they have to offer in order to assist you in selecting the ideal free zone for your business.
Why should you establish your business in a free zone?
There are numerous benefits for startup companies and business owners to utilize the free zones in the UAE, including:
1. Unrestricted capital and profit repatriation
Free Zones in the UAE allow you to bring all the capital or profit from your business operations home, or wherever you choose.
2. Tax exemption
There is no personal income or capital gains tax imposed on businesses operating in the free zones of Dubai.
3. Quick company formation
In the free zones, you can register your business and get a trade license in as little as five days.
4. Sector-specific advantages
The UAE has a number of free zones with infrastructure support specific to your industry of business.
In the UAE, there are different types of free zones, including media, offshore, economic, and free trade zones. Economic free zones are typically the most affordable.
Top 5 Cheapest Free Zones in the UAE
A list of the least expensive free zones in the UAE, excluding DIFC, is provided below.
1. International Free Zone Authority (IFZA)
IFZA has become one of the main centers for company registration in the UAE as a result of its rising popularity. Over time, IFZA has developed into a strong platform with a large global network of more than 800 partners. The best part is that if you choose IFZA, you can get the cheapest license in the UAE.
Benefits of forming a business in the IFZA:
- provides investors with a variety of packages to choose from.
- The investor is not required to deliver an annual audit report.
- Hub for IT and Tech companies
2. Dubai Silicon Oasis (DSO)
In Dubai, DSO is the epicenter of cutting-edge development and technology. It is a free zone where the workers can find work and housing amenities. In Dubai Silicon Oasis, you can find several tech giants, telecommunications firms, etc. Although technology is this free zone’s main draw, you can also find law firms and consulting firms among other businesses.
Advantages of establishing a business in Dubai Silicon Oasis:
- Certain exemptions from a range of taxes, including income, corporate, and import/export taxes.
- Near Jebel Ali Port, Port Rashid, and Dubai International Airport.
- modern IT infrastructure and a Tier 3 data center.
3. Jebel Ali Free Zone (JAFZA)
The UAE’s earliest free zone also offers the most affordable conditions for starting a business. JAFZA is also among the biggest free zones in the world, to add to that. JAFZA is the best free zone for logistics, commodity trading, and shipping companies to operate in the UAE.
The free zone provides six different kinds of business licenses so that you can operate the venture of your dreams. In JAFZA, you can start a business that is involved in manufacturing, trading, development, or providing services.
4. Dubai Media City (DMC)
Dubai Media City is the place to go if you want to start a media company. With best-in-class infrastructure, it serves as a hub for international media and makes it easier for businesses to operate in and out of Dubai. Additionally, the DMC jurisdiction offers media and creative business firms the cheapest business license in the UAE.
One of the best and most affordable free zones in the UAE, DMC has quickly grown into a center for international media. Businesses like event planning, advertising, news media, and many more call it home.
5. Sharjah Media City (SHAMS)
The least expensive free zone license in the UAE is offered by Sharjah Media City, also known as SHAMS, which offers business setup packages for as little as AED 5,750. A professional media license and one of the 13 listed activities are included in the package.
The media license is most appropriate for first-time business owners, UAE residents, and proprietors of established companies because this company formation package does not include any visas. Thus, SHAMS enables the most affordable company formation in the UAE for creative businesses of all sizes.
Steps to Establish Your Company in the UAE Free Zone
- Identify the Nature of Your Business Activity.
- Determine Your Company’s Legal Structure.
- Register the Trade Name.
- Apply for Initial Approval.
- Create LSA or MOA.
- Choose Your Business Location.
- Apply for Additional Government Approvals.
Cost of Cheapest Free Zone in the UAE
Free Zones in the UAE provide investors with a variety of Low-Cost Business License Packages to quickly establish a business there. The UAE has several free zones that provide low-cost business license packages. With a low company registration fee, anyone in the UAE can easily establish a free zone company. The cost to start a business in a free zone starts from 12,500 to 30,000 AED.
Conclusion
Shuraa Business Setup assists you in comparing and locating the most affordable free zone in Dubai. As a result, they help you select from the various jurisdictions and laws that are applicable to particular free zones. To prevent mistakes, you can follow the guidance provided by of our experts as you go through this process.
In order to reap the greatest benefits and experience exponential business growth, it is essential to implement your business idea in the right free zone environment.