Free Zones in the UAE
Starting a business in the United Arab Emirates (UAE) can be an excellent opportunity for entrepreneurs looking to tap into the country’s booming economy. One popular option for setting up a business in the UAE is to establish it in a free zone. Free zones are special economic zones that offer a range of benefits to businesses, including 100% foreign ownership, tax exemptions, and streamlined company formation procedures.
As a result of these wide-ranging benefits, entrepreneurs from all over the world travel to Dubai to conduct business and take advantage of the favorable business environment. And if you’ve considered forming your own business in the UAE, this blog is for you!
Today, we’ll dive into the Dubai business market and feature several affordable jurisdictions for Free zone company registration.
What Is a Free Zone?
A free zone in Dubai is a special economic zone that offers a range of benefits to businesses looking to set up operations in the United Arab Emirates (UAE). These zones are designed to encourage foreign investment and promote economic growth by providing a range of incentives, such as 100% foreign ownership, tax exemptions, and streamlined company formation procedures.
Businesses operating in a free zone in Dubai are required to register with the relevant free zone authority, and the process of free zone company registration is generally more straightforward and less time-consuming than setting up a business in other parts of the UAE.
One of the main advantages of business setup in UAE free zone is the cost. Free zones in Dubai offer a low-cost business setup in the UAE option for entrepreneurs, with lower costs for company registration, office space, and other expenses compared to setting up a business in the mainland. Additionally, free zones also offer a range of business-friendly facilities and services, such as dedicated trade and exhibition centers and easy access to ports, airports, and other transportation hubs.
The Cheapest Free Zones in the UAE
When it comes to business setup in UAE), there are tons of Free Zone jurisdictions available, each with its own advantages and unique opportunities. So let’s take a look at some of the most affordable Free Zones in the UAE.
1. International Free Zone Authority (IFZA)
This free zone is located in Fujairah and offers a range of services for businesses looking to set up in the UAE. It provides flexible and cost-effective solutions for business setup in UAE and company registration, making it a popular choice for entrepreneurs.
2. Dubai Silicon Oasis (DSO)
This free zone is located in Dubai and is dedicated to technology and innovation-based companies. It offers a range of facilities and services, including incubation and research and development centers, and the UAE free zone company registration process is simple and easy.
3. Jebel Ali Free Zone (JAFZA)
The Jebel Ali Free Zone is one of the largest free zones in the UAE and is located in Dubai. It offers a range of business facilities and services, including warehouses, office spaces, and easy access to ports and airports. The company registration process is less time-consuming and more streamlined.
4. Dubai Media City (DMC)
Dubai Media City is a free zone centered around the media and entertainment industry. It offers a range of facilities and services for businesses in the media and advertising sectors, and UAE free zone company registration process is simple and easy.
5. Dubai Healthcare City (DHC)
The DHC is a free zone dedicated to the healthcare sector. It offers a range of facilities and services for healthcare businesses and a streamlined process of UAE free zone company registration.
6. Sharjah Media City (SHAMS)
SHAMS is a free zone located in Sharjah and is committed to the media and entertainment industry. It offers a range of facilities and services for businesses in the media and advertising sectors, and UAE free zone company registration is easy and straightforward.
7. Dubai International Financial Center (DIFC)
DIFC is a free zone dedicated to the financial services sector. This jurisdiction offers a wide range of facilities and services for businesses in the financial services sector.
Steps for Starting Your Business in the Cheapest Free Zones in UAE
The UAE has made considerable strides in making UAE free zone company formation easy and straightforward. However, if you’re an ex-pat or are unfamiliar with the process of business setup in UAE, you might not know exactly where to start. So, to help make the process hassle-free, we’ve put together the steps you’ll need to take to start your new business.
1. Choose the Ideal Free Zone for your Business.
The first step in Free Zone business setup in UAE is to choose the right free zone for your business. There are many free zones in the UAE to choose from, each with its own benefits and costs. Research and compare the different options to find the best fit for your business needs.
2. Determine the Type of Corporate Structure.
Once you have selected the ideal free zone, the next step is determining the type of corporate structure that best suits your business. Most free zones offer different types of legal entities, such as limited liability companies (LLCs), branches, and sole proprietorships.
3. Select a Trade Name for Your Company.
After determining your corporate structure, the next step is to choose a trade name for your company. It is important to choose a unique name that reflects the nature of your business. You’ll need to submit your trade name request to the Department of Economic Development (DED), ensuring that your submission does not violate any rules or restrictions.
4. Gather and Submit Documents.
The next step is to submit all the required documents to the free zone authority. This may include documents such as business plans, proof of identity, and proof of address.
5. Choose an Office Space.
Once the registration process is complete, you must choose an office space for your business. Most free zones offer a range of office spaces to suit different business needs and budgets.
6. Open a Bank Account.
The final step is to open a bank account for your business. This is necessary for financial transactions and sending and receiving customer payments. The UAE is home to a wide selection of internationally recognized banking institutions, allowing you to choose the right one for your needs.
Why Set Up Your Business in a Free Zone?
Business setup in a UAE Free Zone can be a great opportunity for entrepreneurs for several reasons. Here are some of the main benefits of setting up a business in a free zone:
1. 100% Foreign Ownership
One of the main advantages of setting up a business in a free zone is the ability to fully own and control the company as a foreign national. This may not be entirely possible in other parts of the UAE, where a local sponsor must hold a majority stake in the company.
2. Tax Exemptions
Free zones in the UAE offer tax exemptions to businesses operating within the zone. This means that companies do not have to pay corporate or personal income taxes, which can significantly reduce business costs.
3. Streamlined Company Formation Procedures
Setting up a business in a free zone is generally more straightforward and less time-consuming than setting up a business in other parts of the UAE. Free zones have dedicated authorities handling all company formation aspects, from registration to licensing and certification.
4. Access to World-class Facilities and Services
Free zones in the UAE offer businesses a range of facilities and services, such as dedicated trade and exhibition centers, incubation centers, and easy access to ports, airports, and other transportation hubs.
5. Business-Friendly Environment
Free zones in the UAE provide a business-friendly environment that is conducive to growth and success. This includes a supportive government, a skilled workforce, and the availability of funding and other resources.
6. Low-cost Business Setup
Setting up a business in a free zone can be a cost-effective option for entrepreneurs, with lower costs for company registration, office space, and other expenses compared to setting up a business in the mainland.
Need Professional Business Help? Let MSZ Handle It!
MSZ Consultancy offers a wide range of services, including company formation, PRO services, legal advice, and more. We have a team of experts with extensive experience in the UAE market and can provide you with the guidance and support you need to set up your business successfully.
We possess a vast knowledge of the UAE market and can help you find the right Free Zone that suits your business needs and budget. We can help you find the cheapest Free Zone company in UAE and can guide you through setting up a business in the UAE.
So, if you’re ready to take advantage of a wonderful business market full of potential and helpful incentives, let MSZ help!
Give us a call today at +971 52 544 1248 for a free quote and game plan on how we can help you make the most of your investments!