Free zones are special economic areas in the UAE that offer unmatched benefits to entrepreneurs, such as 100% ownership, top-notch infrastructure, developed business communities, and a variety of industries to choose from. There are more than 40 free zones in the UAE that specialize in diverse industries such as media and creation, finance, IT, healthcare, science and research, education, and more. The benefits they offer makes business setup in Dubai freezone a top choice among aspiring entrepreneurs and investors.
In this article, we will explore how to start a business in a free zone successfully and the factors you must consider for a successful launch.
What are freezones in UAE
Free zones, also called free trade zones, are special economic zones where businesses can be set up in Dubai. They have their own respective regulatory bodies and specialize in specific industries. Businesses that establish themselves in free zones can trade within that zone and internationally. To do so, they need to obtain the proper business license from the selected free zone authority. In Dubai, there are more than 30 free zones where one can start a venture.
Benefits offered by business setup in Dubai freezone
Free zones are very common and foreign-friendly for businesses. They offer some unmatched benefits, which is why they remain the preferred choice for foreign investors as well. Here are the benefits of business setup Dubai freezone:
- 100% foreign ownership
- 100% profit and capital repatriation
- Top-class infrastructure and office options
- Fast and simple business setup
- Very low corporate tax
- No personal income tax
- Diverse business operations
- Developed business community
- Low-cost business licensing
It is due to these benefits that many foreign investors are attracted to investing in Dubai.
Factors to consider for business setup in Dubai freezone
While choosing a free zone for your business, there are certain factors that can help you make a better decision:
Available Facilities:
Check the infrastructure and facilities offered by the free zone. For your business, you may need office space, warehouse, and other utilities. All these should be readily available for smooth business operations.
License Options:
There are mainly three types of licenses available: commercial, industrial, and professional. The type of license you would need depends on the nature of your business, and the selected free zone must be providing that.
Location:
A free zone’s strategic geolocation helps you reach more and more international clients. If your business focuses on international trading, then you must consider the location of the free zone.
Regulations:
Each free zone has its own regulatory framework. It is essential for you to understand the regulations of your chosen zone beforehand. Understanding how the regulations will impact your business is imperative.
Networking Opportunities:
A strong business calls for strong networks. In free zones, you should be able to develop a strong network with people around you. It will depend on how well the business community in the free zone is built. Remember, good networking can help your business reach more and more potential clients.
Cost and Fees:
You must evaluate the costs associated with starting and running a business in the free zone and see if it meets your financial budget and requirements. Consider licensing costs, visa costs, office rent, etc.
Banking Services Available:
You would need financial services for your business to thrive. You must research which banks are available and what kind of services they offer in free zones. How easy or difficult is it to open a bank account there? These things must be assessed.
Visa Regulations:
Check the visa regulations of the free zones. Some free zones may have stricter regulations. Check how to obtain a business visa, as well as the conditions for family and staff visas. After all, the visa is primarily needed to stay and work legally in the city.
How to set up a business in Dubai freezone
Now that we have seen the essential factors, let us have a look at the process to start a business in freezone Dubai. Here are the steps needed for business setup in Dubai freezone:
Choose the ideal freezone:
Based on research and your business needs, select a suitable freezone.
Select legal form:
Decide if you want to establish a sole proprietorship, a partnership firm, an LLC, or a branch, etc.
Register business name:
Select and get a unique and lawful name registered for your business.
Get initial approval:
Obtain a NOC from the respective free zone authority.
Get additional approvals:
For some business operations, you may need to get additional approvals from specific government departments.
Choose office space:
For some businesses, a physical space may be essential, while in some cases you may get the option to operate virtually.
Apply for the business license:
Gather the documents like passport, passport photograph, business plan, trade name options, tenancy contract, etc. and apply for a business license with the respective free zone authority. You will need to fill in and submit a license application form, submit the documents, and pay the necessary fees. Once your application is reviewed and approved, your license will be issued to you.
Get the visa and bank account:
As a foreigner, you must get the necessary visas to enter, stay, and work legally in the Emirates. You may also obtain visas for your staff and family members. Additionally, you would need to open a corporate bank account for your business setup in Dubai freezone.
Conclusion
Starting a business in Dubai free zones is a promising step, but you need to consider the factors we discussed carefully and follow the legal procedures for a smooth setup. You must also ensure that you meet all the legal requirements, such as a business license, visa, bank account, and permits. As a newcomer, you may face difficulties in this, and we suggest you get assistance from business setup experts like Dubiz Business Setup. They can guide you through the entire process of business setup from start to finish in the UAE while taking care of all the paperwork and approvals on your behalf. Book your free consultation with them today for your business setup Dubai freezone.