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How to Choose the Right Freezone for your Business

Establishing a free zone business is very appealing option especially for foreigners interested in having full control of their business. However, there are many free zones in UAE that it can be quite overwhelming to sort through this and decide what’s the right free zone for a business. We are going to clear things up for you, so you can choose the right UAE Free Zone for your business.

How to choose right freezone for your business
  • Determine the business activity of the business

Each free zone has its own set of specific activities which are allowed to be performed within the jurisdiction. There are also different rules in each free zone when it comes to how many business activities are allowed using one business license.

  • Check out the facilities the business will require

A business has several facility requirements depending upon its business activities. If you are planning on meeting with clients regularly and plan on hiring employees, you should opt for an office. Take into account the availability of THE facilities you need as they may not be in all Free Zones.

Also, remember that a company registered within the Free Zone is only allowed to have a facility within the UAE Free Zone where it is registered.

  • Decide the location

Proximity the main target market is a key factor to consider when selecting a location for a business. Also, if an investor is looking for a strategic location for the business, it is especially important to choose a location which can be easily accessible and allows for ease of doing business.  For example, if you choose JAFZA freezone for a trading or manufacturing company, the business should be located in the Jebel Ali Port.

  • Choose a free zone based on the amount of capital to be invested

One of the common requirements when registering a company in UAE is to deposit a share capital amount, differs in each free zone. Company registration cost is also an important aspect to consider.

  • Check the licensing requirements

Each of the free zones in UAE has its own types of licenses. Usually, the licensing names might differ but the protocols and the set of activities that can be performed using the licenses are similar. There are three common licenses available in all free zones such as trading license, professional license and service license. Apart from that, some free zones also offer additional licenses based on the activities of the company. It is best to verify what the exact requirements are before choosing a free zone to open.

  • Find out the reputation of the free zones with local banks

This is a very important task to complete prior to establishing a company in a particular Free zone. You may seek guidance of a business setup expert who can assist in opening up a corporate account in an established bank in UAE.

Also Read: Steps to Setup a Free zone Company in the UAE

Business Setup Consultants in UAE

There are many free zones, and the procedures, cost, and requirements may vary for each one. The official websites of various free zones offer a wealth of information, that help make the process more convenient and efficient. However, considering the complexities involved, it would be wise to seek the advice of legal advisors or company formation specialists.

While you focus on the core business operations, marketing strategy, and revenue plans of your new business, business setup consultants in UAE handle the company formation process to establish your business in the appropriate UAE free zone.

Below are some of the most common questions related to free zones in UAE

What is a free zone in UAE?

Free zones are designated zones for international business. Companies in each free zone can trade only within the same free zone and nowhere else in UAE.

For a free zone company formation, does an investor need to be a resident in UAE?

An investor is not needed to be a resident of UAE for free zone company formation. However, free zones do require a general manager to be a resident of UAE.

Also Read: Free Zone Business Setup with no Capital

What are the advantages of business setup in free zones?

As a free zone company, the investor can have full ownership of the company and get access to freehold property anywhere in Dubai. The business is exempted from paying income taxes and enjoy low import and export duties. To know more about the advantages, you may seek guidance of a business setup specialist in UAE

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