30 May
With over fifty Free Zones in the United Arab Emirates, foreign investors may find it complicated to make any wise decision. Before starting a business in one of the UAE Free Zones, you should give careful thought to alternatives and carry out extensive research. Remember that every Free Zone has different costs, lists of permitted business activities, location options and amenities, and requirements for share capital.
Why would you start a business in Dubai?
Owing to its stable economic climate, tax-friendly legislation, advantageous location, and supportive business environment, Dubai is considered a desirable business destination for various industries.
Dubai is a Commercial Capital. Did you know that among the world’s leading commercial hubs, Dubai holds 17th position? There are benefits to being a quickly expanding commercial centre, particularly for start-ups seeking a foundation for expansion.
Choose a business Start-up Venture in the United Arab Emirates
Every Free Zone has an official list of activities allowed inside its borders. The number of commercial operations that can be conducted under a single business license varies depending on the free zone company setup in Dubai.
The more activities you choose, the more expensive a license will be. Sometimes, obtaining two or more business licenses for the same enterprise is necessary and may be required later for mainland company formation in Dubai. To avoid paying extra, you might choose numerous activities from the same licensing type and inside the same activity group as a workaround.
Among the most dominant are the ones listed below:
- Commercial trade
- General trade
- E-commerce
- Manufacturing
- Media
- Services (consulting)
- Logistics
Decide what kind of facility your business needs
You will need to plan for the years that follow the company’s formation in Dubai. If you do not plan to recruit personnel or grow your business significantly over the next several years, you can get a shared or flexi-desk at a co-working facility. These locations must also fulfil the minimum facility standards to receive a business license in the United Arab Emirates.
If you plan to hire employees and schedule regular customer meetings, you should select an office in a different physical location. Because not all free zones allow for the presence of specific facilities, such as warehouses or retail outlets, you should consider a free zone’s location, infrastructure, and facility availability. Remember that a company registered in a free zone can only own a facility located inside the UAE free zone in which it is registered.
Assess the necessity of being close to seaports or airports
For your Business setup in Dubai, you need to determine if having an airport or a seaport close is essential. You want the most advantageous transportation hubs and routes to minimize your costs. This is particularly vital if you plan to open a trading company in the United Arab Emirates. For example, if you deliberate on operating your trading, logistics, or manufacturing activity in the JAFZA Free Zone, your business would be in the Jebel Ali port.
This area has many storage facilities, brokerage, and logistics firms, and everything a trading company may require is close by. Remember to carry out competition analysis to determine whether businesses are part of your intended market.
Determine how many UAE residence visas your company will need
The visa quota is set by the type of facility. Shared desks can only provide limited visas and differ amongst Free Zones. You can typically get two or three visas if you share a desk in Dubai. There are additional area restrictions on visas. In the case of a physical workplace, one visa is issued for every nine to ten square meters.
High-quality Lifestyle
You may live among individuals from different backgrounds in Dubai, a multi-cultural city, allowing you to broaden your knowledge of diverse cultures, make new contacts, and help your business flourish. Superior services are valued by Dubai inhabitants, which means that you have an opportunity to offer your goods and services to both target audiences and niche markets.
Check with nearby banks to learn about a free zone's reputation
Completing this task is essential before opening a business in any UAE Free Zone. You should consult with experts and business service providers who handle setting corporate accounts at the best UAE banks and establishing businesses in the country.
Find out if you must turn in an audit report every year
Certain UAE Free Zones need the production of financial statements, including an annual audit report, while others do not. Either by the deadline specified in the MOA or at the end of the fiscal year, an annual audit report is to be delivered to the DMCC Free Zone.
Dubai International Finance Centre (DIFC)
The (DIFC) offers a prestigious address and affordable trade license costs. It offers high-tech facilities and set-up, thus making it idyllic for structured financial services and tech start-ups. The DIFC also offers backing for start-ups with access to a thriving ecosystem.
Dubai Multi Commodities Centre (DMCC)
Commodity trading, encompassing cryptocurrency, precious metals, energy, and agricultural items, is flourishing at the DMCC. Situated amidst the opulent Jumeirah Lake Towers in New Dubai, the DMCC provides transportation options, including bus and metro service, and easy access to seaports and airports. It offers SMEs and start-ups a helping atmosphere.
Jebel Ali Free Zone Authority (JAFZA)
The Jebel Ali Free Zone Authority (JAFZA) is an international leader in trade and logistics. Located close to the Jebel Ali Sea Port, it is favorably located. With present-day amenities that include offices, retail stores, warehouses, and storage, make JAFZA a seamless place for import and export manoeuvres. JAFZA offers a round-the-clock customer support team to backing businesses with transportation, storage, and customs clearance.
Dubai Media City
Dubai Media City is the media centre in the Middle East, accommodating renowned global media establishments like the BBC, CNN, and Thomson Reuters. Dubai Media City offers a streamlined business setup process. It fosters ingenuity and innovation within the media, inventive, and digital businesses.
Modern infrastructure and a cosmopolitan lifestyle in the city encourage cooperation and innovation. Its secured business environment is facilitated by strong intellectual property rights protection and stable legislation.
Dubai Airport Free Zone (DAFZA)
Specializing in freight and logistics, aviation, aerospace, IT, engineering, and cosmetics, DAFZA is a rapidly expanding hub. Its key location connected to Dubai International Airport, and world-class infrastructure make it a customer-centric destination with fast-track cargo clearance services and a dedicated logistics centre.
Find out what the needed minimum share capital is
A share capital deposit is typically one of the prerequisites for registering a business in the United Arab Emirates. You must know the minimum share capital requirements for your company activity in each Free Zone beforehand.
Find out what limitations the shareholders have
Restrictions apply to specific shareholder nationalities in Free Zones. One advantage of starting a company in Dubai Emirate is you bring in investors from nations with significant economic risk.
If you live in the UAE, find out what the NOC requirements are
A NOC is essentially a letter from the business currently sponsoring your visa. It states that your company supports launching a business in a specific Freezone.
Prepare a budget to pay for your annual operating expenses
As you enter your first and second years of business ownership, find out how much it will cost to register, obtain licenses, receive an establishment card, and pay leasing charges. You must allocate funds for all required, like visas, encompassing those for shareholders and potential recruits, throughout the initial year of work.
Why choose FIRSTSTEP FZC for business setup in Dubai freezone?
For most new businesses wishing to establish themselves in the Dubai Free Zone, working with a knowledgeable adviser like Firststep is the best option. With their full-featured and all-inclusive solutions for all your business needs, including business banking, trade knowledge, licensing, and VAT, FirstStep can help you reach your company goals as soon as feasible. Contact at +971504586251
