The whole world knows well that UAE is the biggest hub for trade and commerce for the renowned industry giants in the Middle East. It has been the most favored destination for most business owners seeking the most profitable business formation packages.
Free trade zone in UAE is a designated area that has been created to offer benefits to the working environment, such as 100 percent foreign ownership, no requirement for a local partner/shareholder, and more. The demand and popularity of free zones in the UAE have increased since VAT was introduced in the country. So, if you decide to establish your business in one of the free zones there, the VAT will be exempted for the business development. So, if you are a non-UAE national with dreams of starting a business in the country, the best option for you is one of the free zones. You’ll be surprised to know that each emirate in the UAE has its own free zone, and the whole country has more than 35 free zones.
The various other uses for free zones in UAE mean that not every zone is a comfortable fit for all kinds of businesses. When you’re starting up a business in the UAE, you need to make sure that the location fulfills all of your specific business needs. Several business owners get confused when it comes to a business setup in one of the free zones in Dubai or anywhere else in UAE, so they need to keep an eye on these factors whenever they’re about to choose the best free zone.
Nature Of Your Business Activities
Every free zone that you’ll find in the UAE has a set of rules that govern its business environment. For example, some free zones allow for more than one type of activity to occur within the same license, but others do not. So depending on the free zone you choose for your business, you may need to apply for multiple types of licenses or authorities to start-up operations and conduct business within that free zone’s jurisdiction.
Some of the best free zones available in UAE are:
- Dubai Silicon Oasis (DSO) – this zone focuses on the IT industry and is considered best for the companies that are active in the domains like artificial intelligence, engineering, high-tech functioning, trade, and consulting.
- Dubai Design District (D3) – this zone is suitable for companies operating in the fashion industry. If you’ve decided to establish your boutique design studio, fashion house, or fashion designing firm, this zone is the best for you.
- Dubai Multi Commodities Centre (DMCC) – this zone includes more than 600 industry sectors: energy, technology, construction, healthcare, shipping, media, finance, and many more.
Your Company’s Infrastructure
As you’re going through the business setup in Dubai free zone, you need to focus on your company’s registration and infrastructure. As you’ll be allowed to operate in the free zone jurisdiction and internationally, you need to ensure that you know where your potential clients or customers are residing. So, get information related to the free zones in the UAE and identify which zone will support the company’s structure and its expansion as well. Also, you need to figure out which zone allows you to open a corporate bank account, whether you need a factory or not, if proper office space is important for you, and if you will be able to manage the paid-up capital for starting a new company.
Capital Requirement
The size of capital required to start your business in one of the zones of the UAE plays a vital role in choosing the right zone. When registering your business to a zone, you must have the required capital for it. The zones have differing requirements, but there is a minimum threshold across them all. To ensure you do everything correctly, just make sure that if your company decides to open in Dubai or one of the other leading cities, it’ll be able to live up to the capital management needs of your project. Some zones don’t even have a minimum capital requirement, and you can begin by just submitting a minimum share capital (in some cases, only AED 1000). So, while setting up your business in Dubai free zone, read the guidelines carefully, especially when it is about the capital requirement.
UAE Residence Visas
As you’ll be operating a business in the UAE, you need to make sure that you’ll be able to live there or not. So, get through the visa requirements of the state and the zone in which you’re about to establish your company. Also, the number of residence visas a business can get is completely dependent on the type of office facility.
So, by making sure of these things mentioned above, you can easily decide which free zone would be the best to set up your company in UAE.
If you’re also planning to set up a company in UAE free zone, you can consider seeking help from “House of Business City.” We’ve been active in the industry for more than a decade and have been serving small and big business owners regarding their business establishment in the country. We make sure that our efforts are vital enough to create a positive impact on your business growth and get the profits you expected. Our team knows well what teamwork is, so they always come up with a well-crafted plan to get you away from any issues. Our services include Bookkeeping, Internal and External Auditing, Financial Consultancy, CFO, Business setup, Business Concierge, PRO services, and more. Whether it is about finding the best free zone for your company or focusing on its growth, we’ll take care of it. You can get more information about us at https://hbcs-uae.net.