Thinking about setting up a business in the UAE? Then your best bet might be a Free Zone, a popular option for foreign entrepreneurs for a number of very good reasons.
Building a company in the Free Zones of Dubai or UAE means being able to repatriate 100% of the profits, maintaining 100% ownership of the activity, exemption from customs duties, no taxes, infrastructural benefits (such as pre-built offices, factories and warehouses equipped with set up of electricity, internet, water and other amenities – packages are available to suit companies’ requirements), no need for sponsors, much faster paperwork trails to start the activity in little time, easier recruiting and long-term leasing options for better planning.
There are many options for a business startup in Free Zones; these special economic areas offer different benefits as well as cater to different business types. With 45 Free Zones available in the UAE and 20 only in the Dubai areas, it is clear how it is important to do your homework prior to embarking in your new business adventure in the UAE.
Why Start a Business in the UAE? As told Andrew Scott, Journalist, The National, in a recent article said, “This year will be a good one for start-up acquisitions.” Much of course is due to Dubai being the Expo 2020 site, so this is the right time to get a front-row seat and bank on an opportunity that should not be missed.
Each zone has its own benefits as well as requirements. The Dubai South Free Zone, for example, is ideal for many businesses as it allows the establishment of a wide range of activities, from IT to design to HR and e-trading. Only a small starting budget is necessary and this is good news for businesses that start with little capital to invest that want to be up and running in no time. Location is also a premium feature, as Dubai South Free Zone is the closest to Expo 2020 and is widely accessible via land, sea or air.
Alternatively, there’s the Dubai Logistics District that offers simplified start-up procedures to build the right corporate structure in a transit hub for the entire region and allows companies to reduce operational costs.
Another great possibility is the Fujairah Creative Zone. This FTZ caters to the creative industry and allows for businesses like media and advertising, but also consultancy, design, IT, e-commerce and broadcasting. You are not required to have a physical space and businesses don’t need to submit annual book-keeping. It is also easy to setup a corporate bank account.
Free zones have become an incubation center for start-ups to target new and emerging markets effectively. Make sure to work with a knowledgeable business setup service provider that can provide insights and the needed know-how to prevent false starts. They can help with paperwork, visa applications and residence permits, as well as explain how to open a bank account.
To get more information about professional company formation in Dubai and in UAE, please contact us.