UAE is one of the world’s most famous business focal points for a Freezone company setup. An essential reason why UAE is attaining this status is the development of exclusive free zones throughout the region. There are plenty of free zone regions in all the Emirates of UAE. However, Dubai and Abu Dhabi have the most Freezones compared to other states. These economic regions provide instrumental business platforms to the foreign investors because of the distribution of privileges in these zones that are not present in various other Emirates of UAE.
In these regions, the businesspersons have the chance to achieve complete ownership of their business. They don’t have to pay any business or goods taxes. These and many other incentives the UAE free zones offer to entrepreneurs make them the ultimate area for foreign investment in the entire Middle East. These free zones are renowned at the international level.
However, it is essential to find out complete details about the benefits and disadvantages of Freezone company setup in the free economic zones of the UAE before setting up your company in any one of them. Below are vital tips to consider before carrying out a business setup in Dubai Free zone.
1. Basic Understanding about the Freezone Company Formation in UAE
You must learn about the entity type and activity you want to carry out when setting up a business in any UAE Freezone. Moreover, you need to find information on the license procedure and create a name for your company. Therefore you should consider these basic facts before carrying out Freezone company formation in UAE in any of the free zones.
Three types of entities for setting up a business: There are three entity categories according to which you can set up a company in UAE. They are FZE (free zone establishment), an outlet of foreign or local venture and a free zone limited liability firm (FZ LLC or FZ Co). These entities differ from each other because of the main variation in the number and specification of their shareholders.
Select the type of activity wisely: The kind of activity you select is important because it defines the license type you require while giving you an idea about a relevant business name. One of the benefits that some free zones offer is that you can do several business activities in them. That can lead to an independent Freezone company formation.
Types of licences available for doing business: Few of the main license categories obtainable in UAE free zones are for eCommerce, educational and freelance activities. Also, there is licence allotment for media, offshore company formation and industrial trading activities. Moreover, you can receive them for services, warehousing and manufacturing fields.
Select the business name carefully: You must abide by these rules when selecting the business name. It should not be against public morals. It should not be used by any other company in the free zone. It would be best if it suits your activity and present your business’s legal layout. Therefore, these tips can be helpful when you can select the name of your company when you do a Freezone business setup in UAE.
2. Select As Per the Business Category For Freezone Company Setup
There are various types of options available for the Freezone company setup in the UAE. Hence it is necessary to select a suitable business according to region, Emirate, population and other essential aspects. One more thing you should consider is that some companies experience geographical restrictions. That makes it vital for businesspersons to select the best option among the UAE free trade zones. So, the business owners must receive maximum benefits when it comes to company setup.
Plenty of free trade zones are limited to certain areas. Therefore, they may be the best choice for companies where clients prefer visiting the location. A great example of this can be creating an academy in the UAE Freezone. Therefore, the clients will come to this venue for gaining knowledge. However, when setting up a company where you offer training to the employees at work. Then the free zone venue can provide obstacles to the business’s growth. Therefore make sure to do good research before selecting the location for Freezone company formation in UAE.
3. Learn about the Laws
You don’t get the freedom to do business without any restrictions when making a company in a free zone. The seven Emirates of UAE don’t have the same laws. For example, you have set up a business in Dubai Freezone, and you are familiar with its rules. That doesn’t translate into the fact that the same laws will apply in all other UAE free business zones.
Each Emirate has its laws, and when setting up a firm and operating your business, knowing the policies can assist you by preventing issues that can negatively affect your business.