Starting a business in a new destination entails a lot of pressure for any investor. If not correctly advised, the businessperson incurs costs and delays in implementing the business. Traditional setups can be very limiting concerning foreign ownership, usually requiring local sponsors. The problems can be resolved by setting up a company in a UAE free zone. Free zones give full foreign ownership with tax incentives and simplified registration processes. They enable cost-effective and efficient setting up of businesses in one of the most preferred commercial hubs in the world.
Jitendra Business Consultants (JBC) helps entrepreneurs fulfil their dream of doing business in UAE. With our comprehensive services, setting up a business in UAE freezones is a seamless task.
What is a UAE Free Zone?
A free zone is an area that has special economic advantages for businesses. These include exemption from tax, repatriation of profits, and other administrative concessions. There are more than 40 free zones in the UAE, giving entrepreneurs the leeway to choose according to their needs.
Each free zone caters specifically to selected sectors such as technology, media, healthcare, and logistics, thus enabling businesses to grow in the environment that suits them.
Advantages of Registering in a Free Zone
- 100% Foreign Ownership: Unlike on the mainland, no local sponsor is required.
- Tax Benefits: Exemption from corporate and personal taxes.
- Full Profit Repatriation: Owners of businesses may repatriate profits without restrictions.
- Simple Setup: Registration and all procedures are simple with very little paperwork.
- Easier Procedures: Registration processes are easy with less paperwork.
- Industry-Specific Support: Free zones serve the various industry sectors and offer particular facilities and services.
- World-Class Infrastructure: Office spaces, warehouses, and logistics are widely available.
Steps to Register a Company In a UAE Free Zone
- Choose a Business Activity
The business type needs to be determined, as most free zones usually attract the following industries: IT, trade, consultancy, and manufacturing. The desired activity must fit the permitted activities within the specific free zone.
- Select the Right Free Zone
There are various types of industry specifications in free zones. You can choose based on location, facilities, and least costly options.
Most Famous Among Such Options Are:
- IFZA Free Zone: Recommended for startups and SMEs.
- Meydan Free Zone: This is known for having cutting-edge infrastructure.
- Choose between Legal Structure
Decide whether you want to make a Free Zone Company (FZC) or Free Zone Establishment (FZE) since the decision depends on the number of shareholders and the requirements for business.
- Register a Business Name
Choose a name that is suitable and compliant and is distinct from any other. The name must comply with free zone guidelines and receive its approval.
- Submission of Legal Documents
Prepare and further submit the needed documents as follows:
- Passports copies of the shareholders
- Business plan
- Application forms
- Apply for a Business License.
Once all the documents have been verified, it is time to apply for the specific business license. The relevant free zone authority then issues the license upon approval.
- Pay Fees and Capital Requirements
The cost differs from one free zone to another and by the business type. It may also include the following costs:
- License registration fees
- Office Space Rental
- Visa charges.
- Acquire Office or Warehouse Space
It offers flexible office solutions for most free zones. Depending on the business, you can rent an office, co-share working space, or even a warehouse.
- Obtain the Business License
Upon completion of capital requirements and payment, the free zone shall grant you your business license. The next step is to legally conduct yourself within the free zone.
Cost of Setting Up a Company in a Free Zone
The cost inherent in registering a company depends on the selected free zone, type of business, and facilities therefore. Usual expenditures are:
- License Fees – The cost would probably start from AED 12,500 with a 0-visa quota.
- Office Space Rental – The fee depends on size and location.
- Visa Fees – Include processing and medical examination fees.
Despite all these expenses, the advantages of registering in a free zone usually outweigh the cost involved.
Seek Help from Jitendra Business Consultants
Setting up a business in the UAE free zone is now the best option for all entrepreneurs wanting a very quick and economical entry to the market. The process becomes even more seamless when you have a team of expert business consultants managing your legal processes for you. Various steps involved in opening a business in the UAE freezone can be simplified with the help of expert consultants at JBC.
