Free zone areas are those authorized business zones where corporation and personal income taxes are minimal. Many factors influence the selection of a free zone, including the nature and type of business, the size, flexibility, and availability of office space, location, and pricing.
If you have the proper set of professional guidance, then setting up a free zone company is simpler and more straightforward than doing it on the mainland or offshore. Whether you decide to establish a business in the UAE free zone entirely depends on the kind of business you want to launch.
What is a Free Zone?
A Free Zone, also known as a Free Trade Zone or a Special Economic Zone, is a designated area within a country where companies can operate with little or no tax, customs, or regulatory barriers. In this blog, we will learn in detail about Free Zone Company.
These zones are established by governments to promote economic growth, attract foreign investment, and create job opportunities. Furthermore, Free Zones are typically located near ports, airports, and major highways, which allows for easy transportation of goods and materials. Free Zones attract a diverse range of businesses, including manufacturing as well as research and development centers.
These zones also contribute to the development of regional trade by providing a platform for businesses to establish partnerships with other companies in the region. Overall, Free Zones provide companies with a competitive advantage and allow them to expand their operations while reducing costs and increasing profitability.
Benefits of Setting up a Free Zone in the UAE
Setting up a business in the United Arab Emirates can be a profitable decision for entrepreneurs. The following are the benefits of setting up a Free Zone in the UAE:
- 100% foreign ownership and repatriation of profits.
- No personal income tax or corporate tax.
- Streamlined procedures for setting up a business.
- Access to state-of-the-art infrastructure and facilities.
- Exemption from customs duty for goods and services.
- Flexibility to conduct business in a tax-efficient manner.
- Free Zones in the UAE allow for a wide range of business activities.
- Opportunity to expand business globally.
- Option to avail of residency visas for investors and employees.
Steps for Dubai Free Zone Company Setups
Opening a business in a Dubai Free Zone can be a lucrative opportunity for entrepreneurs. Here are the steps involved in Free zone Company registration:
Select a business activity (or activities)
Making a decision about the kind of businesses you want to operate in the Dubai Free Zone is the first step in getting your company off the ground because it will influence where you can register your business.
There is no need to limit yourself too much in this situation, as many Dubai free zones let several commercial activities to be conducted under one Dubai Freezone License, even though listing every activity you desire to engage in may seem challenging.
Dubai has specific rules regarding which activities can be carried out with which licenses. To ensure a smooth process, the best advice is to consult with our company formation professional at this point.
Choose a free zone
Choosing the best free zone for your business is the next step after deciding on the type of enterprise you want to launch. There are lots of exceptional UAE-free zones to select from. Searching through the list and choosing the location for your business might be a challenge.
You must take into account a number of criteria when making this choice, beginning with whether you want to locate your business in a sector-specific free zone. The following are a few sector-specific professions that are prosperous in Dubai free zones:
Choose the appropriate corporate structure.
In a free zone, you are able to create the following types of legal entities:
- FZC LLC stands for Freezone Company Limited Liability Company.
- FZE LLC, or Free Zone Establishment Limited Liability Company.
- Branch Company.
- Free Zone Corporation.
- Free Zone Establishment.
The following paperwork must be submitted to open a business in Dubai Free Zone:
- Copy of a passport.
- Visa copy.
- Copy of an Emirates ID, if applicable.
- Passport photo.
- Business plan. (Only valid for specific free zones & activities)
You might need to take further steps and submit more documents, depending on the free zone you choose.
Pick a name for your free zone business.
No matter where in the world you choose to establish your company, choosing a name for it might be challenging.
There are many things to take into account, from the emotional to the pragmatic. In addition, there are other name traditions to consider in the United Arab Emirates.
Make sure your company name is eligible for registration first. An expert in business setup can quickly check this for you and even assist in naming your UAE company. The name must also correspond to a number of requirements.
Make an application for a license
It’s time to make your Dubai free zone company formation official by submitting your application now that you’ve determined what you want to do, where you want to do it, and under what name you’ll trade.
Dubai Free Zone Company Setup Cost
When it comes to setting up a free zone company in Dubai, the cost can vary depending on several factors. These factors include the type of legal entity chosen and the Free Zone in which you want to establish your business. Furthermore, the cost typically includes registration fees, license fees, office rent, visa fees, and other expenses.
However, the good news is that setting up a business in a Free Zone can be a cost-effective solution when considering the tax advantages, administrative costs, options for office space, and other benefits. Dubai’s Free Zones aim to create a business-friendly environment. Moreover, this enables businesses to focus on their growth and success.
Top Dubai Free Zones
Dubai’s Free Zones provide businesses with unique advantages, such as special privileges and exemptions from specific laws and regulations for operation. Some of the top Dubai Free zones are as follows-
- International Free Zone Authority (IFZA)
- Jebel Ali Free Zone Authority (JAFZA)
- Fujairah Creative City Free Zone
- Sharjah Media City Free Zone
- Ras Al Khaimah Economic Zone
The International Free Zone Authority (IFZA) is the best choice if you want to establish a free zone business in Dubai. In the UAE, IFZA has become one of the most well-known free zones over the years. This is due to the numerous benefits that investors can receive when establishing a business in the free zone.
Because of its distinctive advantages and the prospects, it offers investors, IFZA is one of the few free zones in the UAE that distinguishes out. These consist of:
- The investor is not required to provide an annual audit report.
- There is no need for paid-up share capital.
- For business owners and staff, a two-year visa
- There is no need for a free zone employee guarantee deposit.
- Approval for a virtual office
- There is no necessity for investors to be present in person when a company is formed.
Why start your free zone company through Shuraa?
We can assist with company formation and can provide further details on free zone company registration.
Whatever your objectives are for forming a free zone company in Dubai, we can handle all the hassle and have you up and running as soon as possible.
We can handle every stage, including selecting a business activity and company name, business setup charges, registration with the appropriate authorities, quickly opening corporate bank accounts, and processing visa applications.
In some cases, registering your business may even be achievable without traveling to the UAE.
Contact the Shuraa London Branch right away if you believe that establishing your business in a free zone is the best option for you.