Free zones in the UAE play a vital role in its economic development. Starting a UAE free zone business can help you leverage easy bank account setups, flexible visa applications, and 100% ownership, among many other benefits. Also, free zones in the UAE support over 60,000 businesses and help Indian entrepreneurs grow and expand their businesses.
So, if you’re an Indian business owner wanting to start a UAE-free zone business, continue reading to know about its benefits, setup process, and costs.
What Are the Benefits of Starting a UAE Free Zone Business?
The UAE's free zones are highly accommodating to a variety of industries. Some of their benefits are as follows:
With everything digitized and commendable ease of business, the time required to process UAE free zone business documentation and requests has significantly reduced.
Your business can have access to both local and international markets.
Other companies in a particular free zone can offer you B2B opportunities.
Your business can benefit from robust road networks, cutting-edge digital infrastructure, and world-class amenities in free zones.
Given the free zones’ accessibility to seaports and airports, your business will benefit from convenient logistics.
You can enjoy 100% ownership of your business in a free zone. You can also repatriate profits and capital invested completely. Furthermore, no customs duty is payable in free zones.
The UAE has a tax-free environment. So, you won't have to pay any taxes.
What Documents Do You Need to Start a UAE Free Zone Business?
Gather the necessary and appropriate documents before beginning the company formation process in a free zone. It may keep the process as short as possible. The following are some of the necessary documents:
Copies of passports and visas
Two passport-size photographs
Entry visa and stamp pages
The experts at the UAE Expansion India branch can help you with the complete list of documents for submission to the respective authorities.
How to Start a Business in a Free Zone Business?
Once you have gathered the required documents, you can start setting up your business in a free zone. The steps listed below will help you understand the process better:
1. Choose a Business Activity
The UAE's free zones permit a broad range of businesses. Consultancy services, law firms, tourism services, advertising, perfumeries, and so on are some of these activities.
But, it's essential to comprehend your customer base right away. Market research lowers risks even when your business is still a vision in your mind. So, learn as much as you can about potential clients and business partners. Next, decide on business activity.
2. Register the Name
Your company’s name can have a significant impact on its growth. It is a crucial component of your branding because it is the first point of reference that clients, competitors, and employees have to understand how your business represents itself in the corporate world and beyond. A weak name might hinder its growth and prevent it from being taken seriously, whereas a strong one can make a company iconic.
Therefore, choose a suitable name for your company. Once you've chosen an ideal company name, it's time to register it and secure your brand. So, file a name registration with the appropriate authorities.
The UAE government has specific rules for naming companies. Our professionals can assist you with all aspects of registration, including company naming regulations and registration costs.
3. Select a Company Structure
Your company structure will impact everything, including how much of your assets are at risk, taxes, and day-to-day operations. The types of companies permitted in a free zone are as follows:
Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZCO)
Free Zone Establishment (FZE)
4. Choose a Free Zone
Every free zone has its own specialty. So, decide where you want to set up your company.
Besides that, you'll might need to lease or rent office space or in some free zone Virtual office will work. Depending on your company's size and business activity, each free zone offers a range of desk spaces. The location of your target market, business partners, and personal preferences play a role in where you establish your company. You should also take into account the budget and potential competitive advantages.
5. Apply for the License
Apply for the pertinent license based on your business activity. Free zones usually offer trade, industrial, service, and national industrial licenses. Until a lease agreement with the free zone exists, you can renew your business license yearly.
Moreover, the types or numbers of licenses offered might vary in every free zone. Your business activity and free zone impact your license fee and requirements. It's best to check with our experts for information on the business license cost, appropriate licenses, and approvals according to your chosen free zone.
What Is the Cost of Starting a Free Zone Business?
Many factors decide the cost of free zone company formation in Dubai or any emirate. The type of licenses, the number of visas, license fees, supplementary costs, and more are among them. Furthermore, some free zones have higher expenses. So, it is tough to calculate a precise figure.
Nonetheless, to give you an idea, you may have to spend roughly AED 12,000–AED 25,000 on the license each year depend on certain factors.On top of this, there can also be some additional expenses. Our skilled advisors can help you with the final cost, ensuring you don't exceed your budget.
Here are the key steps to set up a UAE Free Zone Business
Determine the type of legal entity.
Choose a trade name.
Apply for a business license.
Choose an office space.
Get pre-approvals, register your business and get your license.
UAE Expansion India Branch consultants will make establishing a UAE free zone business simple and quick for you. We can also assist you in understanding the most recent government policies and initiatives your business can leverage. Additionally, if your company has specific demands, we can provide specialized business setup plans for you. Reach out to us right away!