Free Zones in Dubai and UAE: The Basics You Need to Know

If you are planning to invest in Dubai and you’re wondering if it’s a good idea to set up your company in a Free Zone, it’s essential to know the advantages of doing so. In fact, it is a good idea to learn as much as you can about Free Zones in Dubai and the UAE so you’ll know what you’re getting into and what you can expect should you decide to have your business there. 

If this is something you are interested in, you are in the right place as Dacha shares some valuable information on this topic with you:

What Is a Free Zone?

Free Zones or Free Trade Zones, as they are also called, are set up to improve international business, providing businesses to have 100% foreign ownership with preferential rates and taxes. When Free Zones expanded, they began to focus on specific industries, each offering its competitive advantages. One of the benefits of a Free Zone business is that it is a pretty straightforward process. It can also be a cost-effective option. 

The Advantages of a Free Zone

Aside from the fact that Free Zone businesses are easy to set up, there are many other benefits to consider. Here are some of them:

• You are granted 100% foreign ownership, which means you can set up your company without needing a local sponsor.
• You get support for recruitment, bank account setup, and many other administrative tasks.
• You may be entitled to corporate and tax exemptions (these may be time-limited, though).
• Depending on which Free Zone you’ll be in, it will be easier to process your visa, housing, and immigration concerns. 
• You can incorporate your company faster as you get documentation tailored for foreign business owners and investors.

How Much Will It Cost to Set up a Business in a Free Zone?

The total cost of Free Zone registration depends on various factors. Typically, companies just look at the fees for registration and licensing, but there are other costs and requirements that you have to consider. Unless you belong to a specific niche that needs to be in an industry-specific Free Zone, you should seek the help of an expert to ensure you find the best solution for your needs.

That said, here are the four main expenses related to setting up a Free Zone Business:

• Registration Fees – this could be between 6000 to 15000 dirhams, but this largely depends on which Free Zone you’re choosing.
• License Fees – these are smaller fees for smaller niche Free Zones. The price ranges between 3000 and 20000 dirhams. You may also be asked to pay name approval fees and costs for document attestation, or this will be added to the total license fee.
• Flexi Desk Fees – Not all Free Zones come with Flexi-desk capabilities. If you choose a Free Zone with a Flexi-desk option, you could pay between 10000 and 20000 dirhams every year.
• Share Capital Requirements – this can significantly vary. Some do not require share capital for the company registration, while others require a deposit of at least 50000 dirhams. 

Free Zones by Industry Specialization

Depending on your business, it may be right to choose a Free Zone based on the industry you belong to. Here are some of the advantages to that:

• You’re closer to partners and competitors
• You’re in a spot where businesses want to interact with you
• You get niche-specific services

Conclusion

Free Zones provide you the perfect opportunity to invest in Dubai or UAE. The benefits offered by Free Zones attract many foreign businesses. If you are considering setting up a Free Zone business, why not start by searching for commercial rental properties in Free Zones?

Dacha Real Estate is among the top property agencies in Dubai that can help you find commercial properties for rent for your businesses, including those in Free Zones. Contact our team today to find out more about our services!