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Setting Up a Company in UAE Free Zone Procedure and Reasons Why You Should
A free zone’s primary benefit is helping businesses efficiently conduct their operations. Obtaining a trade license or setting up a company in the United Arab Emirates (UAE) may seem lengthy and challenging. However, setting up a company in UAE free zone requires simple process with minimal paperwork and effort.
Free Zones are designed to lure international investors and support them in starting and growing their businesses. The freedom of choice from the different free zones comes with no restriction on foreign ownership. Also, independent free zone authorities govern the entities, regulate the business operations, and issue trade licenses. Therefore, UAE-free zones are ideal for establishing businesses.
Steps on Setting Up a Company in UAE Free Zone
Setting up a company in UAE free zone is a less tedious process. Free zone authorities do not require too much time and involve minimal paperwork. Below are the major steps in starting a business in UAE free zones:
Identify the Type of Legal Entity
You can start up one of the following categories of legal entities in a free zone:
- Branch or representative office of a foreign company
- Free zone company
- Free zone establishment
Our Company Formation Specialists can guide you on which type of legal entity will cater to your business and entrepreneurial goals the most. Moreover, they can assist you throughout the whole process of starting a business in a UAE free zone.
Select the Trade Name
As you contemplate the type of company your business will relate to, you need to decide on a trade name. There are specific guidelines on how to register a trade name, and it is necessary to confirm with the respective Economic Development Department or the free zone. It is also crucial to confirm whether your chosen name is registered already.
Choose the Type of License
The primary activities of your intended establishment are the guideline on the kind of business license you need. Various type of company licenses includes but are not limited to:
Once you have decided on the type of license you will get, you can submit the application and the necessary documentation to our Dedicated Account Manager to handle the license processing for you and request for the necessary approvals. The documents required differ depending on the type of legal entity, business activities, and specific free zone authority requirements.
Costs of Setting Up a Company in UAE Free Zone
There are various license options available for your free zone setup; you can opt for a Sharjah Free Zone or a Dubai Free Zone, depending on your business needs. Here is what’s included in your free zone business setup:
- Sharjah Free Zone: Trade license in Sharjah Free Zone costs AED 6,500 and is valid for 1 year. You can choose upto 3 business activities and have 7 shareholders free of charge on your company setup.
- Dubai Free Zone: A one-year trade license in Dubai Free Zone costs AED 12,500. You have up to 3 business activities free of charge and get a guaranteed IBAN that serves as your online wallet for payments and transactions.
Whether you opt for a Sharjah or Dubai Free Zone setup, both free zones offer outstanding benefits for foreign investors and entrepreneurs. It will provide you with the maximum opportunity to trade locally and internationally.
Benefits of Setting Up a Company in UAE Free Zone
Free zones are an attractive base for investors offering modernized business environments. In addition to acquiring a UAE residency visa, there are other benefits such as:
- 100% foreign company ownership
- 100% corporate tax exemption.
- No foreign currency restrictions.
- Shared desk facilities and offices.
- Fast and easy company incorporation.
- World-class infrastructure with up-to-date communication systems.
- Over 1,500 business activities to choose from.
The type of business activities greatly influences the selection of the Free Zone to align with the operational requirements. However, setting up a legal entity in any free zone has several benefits that will boost business growth and expansion. Start operations in any UAE free zone, and enjoy world-class benefits.
How Can Choose UAE Help
We at Choose UAE can provide all the assistance you need to successfully start a business in your preferred free zone in the UAE. Our team of experts can guide you all throughout the whole process with efficiency and make sure that everything is in place.
Our goal is to provide a setup that stays worry-free and hassle-free for foreign entrepreneurs. Giving them the opportunity to open their business remotely– in the comforts of their own home. Start a business with Choose UAE today and experience a business setup like no other.