The United Arab Emirates is rapidly becoming the business hub in the world due to its investor-friendly atmosphere and tax benefits. UAE offers multilingual and highly skilled professionals with a stable regulatory environment and advanced innovation, which makes setting up of company in the UAE a lucrative opportunity for business owners.
As an entrepreneur, investor or business owner business setup in Freezone is the right place to start for you to reach your business globally. UAE-free zone jurisdictions provide business owners/investors with lucrative deals, world-class infrastructure, a lifestyle, and hassle-free company registration. With company formation in UAE, you can ensure that your entrepreneurial journey can be started.
There are several advantages of setting up a company in a free zone in Dubai, UAE, including:
Benefits of setting up a company in a free zone in the UAE
• 100% foreign ownership
• No personal, income, or corporate taxes
• Full repatriation of capital and profits
• Strategic location-boosting opportunities
• World-class infrastructure
• Exemption from all import and export duties
• Eligible to obtain a UAE residency visa
• Eligible to obtain the UAE tax residency certificate
• Eligible for obtaining a multi-currency bank account in Dubai
• Eligible to sponsor the family visa
• Eligible to take a UAE investor visa
• Eligible to register the company vehicle under the Freezone company
How to choose the UAE Freezone for your company.
As you know, proper plans and research are essential while starting a business in UAE. While choosing freezoneFreezone, it’s important to consider many things before moving on. This blog discusses how to identify the right Freezone for your business.
STEP 1: Choose a business activity for your business in UAE
The first step for setting up Freezone in UAE is to choose the right activity for the proposed business. You can choose the dedicated Freezone for your activity and your business operations.
STEP 2: Choose the facility type your business will require
Once we choose the activity, you should decide what facilities you need for the UAE business. Whether you need a physical office or Flexi office, or warehouse facilities.
STEP 3: Decide how many UAE Residence Visas your company will need
You should allocate HR resources and deploy employees depending on your business and operation mode. All the companies in UAE should have to provide residency visas to their employees to work. Allocation of visas depends on the facilities and activity of the companies.
STEP 4: Decide whether you need to be close to sea ports or airports
Infrastructure and logistics facilities are very important factors, especially for trading, manufacturing and import/ export/ reexport business in UAE. You should have the proper logistic infrastructure to move the goods from one location to another. Depending on the goods you are handling, choose the Freezone, which has the facilities and easy access to the airport or seaport. For example, if you are looking for air cargo facilities, you can choose Dubai Airport Freezone or Dubai South Freezone. On the other hand, if you are looking for sea cargo, the best options are setting up the company in Jebel Ali Freezone Authority (JAFZA – Dubai ) and registering the company in Hamariyah Freezone and Umm Al Quwain Freezone.
STEP 5: Find out if a share capital amount is required
When registering the company, mention the share capital in the memorandum of association/ article of association. We should show the paid-up capital in some free zones to obtain the share certificate. In some free zones, it’s not mandatory to show the capital
In the bank to issue the share certificate and the trade license.
STEP 6: Find out whether an annual audit report is required
As you all know, proper accounting and auditing are the backbones of every business. As per the rule, all companies should appoint auditors and keep the book of accounts. Most Freezone authorities request audited financials during the time of license renewals.
STEP 7: Find out the reputation of a Free Zone with local and international banks in UAE
There are more than 40 free zones in the UAE, and it’s essential to identify the correct free zone acceptable to the UAE banks. Bank account opening for Freezone company in UAE is easy if you follow the banks’ requirements. When opening a company in UAE, If you are an investor/ shareholder of the company, it’s very important to know the bank requirements before opening the company in Dubai, UAE.
The following points should be considered before opening the Freezone company for an easy bank account opening process;
• Which emirates should the company be a register
• Residency visa of the shareholder/ owner
• Proof of address of the shareholder/investor
• Activity of the company
• Source of income for opening and operating the company
• Nationality of the shareholder/ owner
• Which are the countries dealing with business
• Whether the company have a Flexi office or a physical office
We advise contacting the right business setup consultants to schedule meetings/calls with banks before starting your company in Freezone.
STEP 8: Create a budget for your annual operating costs
Budgeting is vital to the company’s business growth and smooth functioning. It’s essential to know the operational and other hidden costs associated with running the business in UAE free zones and make a proper annual budget to meet the expenses. Expenses like rent, the annual salary of employees, ongoing compliance services, UAE visa expenses, license renewal costs in Freezone etc.
When starting a business in the United Arab Emirates, many questions arise. Nex Consultants will assist you with company formation in Dubai and ongoing statutory compliance requirements in UAE. Depending on your needs, we analyse the correct business entity and ensure the best solutions for your business setup. We will act as a one-stop-shop service for all your market entry, bank account opening assistance, tax advisory, accounting and UAE residency services.