How to do Business Setup in Dubai Free Zones
Business Setup in Dubai Free Zones, If you are planning to invest in Dubai by starting a business, you must be aware of few things for sure-first, it’s not that easy, second, it will require enough funds, and then third, you will need to check which free zone suits your business activity.
Right from initial investment to business setup in Dubai free zones cost one has to be determined and focused towards the objective. If you want to do it, you must do it somehow adhering to rules and conditions declared by the government and authorized bodies.
You will learn everything about forming a business in UAE, Dubai in this post.
Here are the points that we have covered for you in detail:
- Procedures to follow for business formation in UAE
- What makes UAE the most preferable country to invest in?
- What are the industries you can do business in?
- Things to keep in mind before doing business in the UAE
- Ways to start up a new business in Dubai free zone at a lower cost and making it a fair win-win.
With the increase of giant foreign investors and small to mid-size entrepreneurs, new business launches are facing higher competition. According to the global investment report, UAE is one of the largest FDI recipients in Asia.
Procedures to follow for business formation in UAE
Registering for a company in Dubai free zone is a 3-week process. One will need to decide the category/area and after doing that following will be required;
Company name registration: respecting norms set by the UAE government, such as no political views, mafia, or religious related offensive content. No abbreviation only the full name of the owner or partner.
Renting office space: either renting full space or flexible desks on an hourly basis.
Paperwork and registration: Legal documents and other paperwork arrangements of the establishment, including government and agent fees.
Corporate bank account creation: UAE offers plenty of bank options, right from international to local. Check with your agent and pick the most suitable one.
Receive bank statement: Receive the bank statement confirmation after fulfilling minimum balance in the account
Notarization and budget: get notary procedures done and create a budget by taking expert business setup agent guidance.
Business license: receive the license to business formation and receive the paperwork.
VISA: get the VISA done for all the stakeholders, staff, partners, spouse and children.
Now the question arises, what makes UAE the most preferable country to invest in?
The best part of establishing a business in the free zone is that it gives exemption from tax on corporate or personal incomes, no extra cost or hidden charges coming out of the blue from nowhere, world-class amenities including all basic features that are required in the new age world.
Government policies are quite fluctuating here, but still, it keeps up with the flexibility. Know why Dubai is a great place for starting your business?
- The business owner gets 100% possession irrespective of their nationality and legal residence.
- Full repatriation on net profit and capitals
- Zero import and export duties
- No corporate tax for 15 years, and add on renewal offer for the next 15 years
- Zero capital deposit
It all seems dream come true but every good thing comes with a certain limitation. What are these limitations? Let’s learn it.
- Fulfill obligatory formalities before renting the space in the free zone, mainland, offshore
- Cannot do business with clients or suppliers in Dubai mainland
- Translation and notarization costs are high
When in such a situation, experts are always there to help you out and guide you throughout the processes. Right from application to VISA formalities and the first day of a business launch.
UAE now is known to be an investor-friendly country and many businesses first seek to set up their company in much possible lower costs. But is that possible? Of course, it is.
Keep reading to learn everything.
- Multiple and flexible investment opportunities offered by free zone Dubai to make space selection easier for you.
- Best in class infrastructures inviting investors across the globe helping save them additional costs and taxes.
- Freedom to do business, which means you are not limited to carry only one business-related activity.
- Expert business setup agents with rich years of experience in handling various applicants by taking them through every procedure and suggesting the best option.
What are the industries you can do business in?
You have the freedom to do almost any type of business that comes under the law of UAE standards. Aviation, media, IT, communication, logistics, education, finance are a few to name.
Keeping everything apart, when you have finally made up your mind to do the business in free zone Dubai, there are few things we will recommend you should clear or learn before taking any big step. What are those points?
Things to keep in mind before doing business in the UAE
Know your business: Mainland, Offshore or free zone
Business setup in UAE is categorized in three areas depending upon business needs, commercial activities, possession, and levy.
Mainland: it allows to do business locally as well as outside the UAE market. There is no such restriction on that part. Being an onshore country it comes under DED, which stands for the department of economic development.
Offshore: in this post as well we have mentioned that offshore companies come under the free zone category, however it has a major difference that operations of methods are different in offshore companies. Also, it only includes a license and not the VISA.
Free zone: chosen by many, companies under free zone get tax exemption, 100% ownership and you do not have to share 51% of your company with the local sponsor.
Know your business: calculate the tentative cost of your business
Although, forming a business setup in Dubai free zones has become easier still it is advisable to set up a budget before keeping the hopes high or committing anything. The business formation does not only take investment plans but other operational costs.
The final costing depends on the type of business, its size, jurisdiction and most importantly the area (free zone, mainland, offshore) you have chosen to set up your business. Along with the paperwork, documentation of other formalities such as VISA, passport, license, bank account creation and minimum balance for it, certification, government fee, and other miscellaneous charges must come under budget planning.
Know your business: UAE Law for business
You might want to skip the other points and save them to read later, but not the UAE business law plan. Read them carefully or better get an expert or agent to take you through the entire law system and requisite to avoid any future hassle. UAE is strict with its norms, which includes, agreements, documents, paperwork, legalities, etc.
If you are an offshore investor make sure you have a complete end to end knowledge for the same. In case you did not know, on delaying the process by you or late documentation submission you might have to pay a heavy penalty.
Known your business: Get to know the local place better
You know where your company is going to be, and you plan to continue it in the long run. Plus, you will be dealing with many people mostly locals. It is always better to learn about the culture and people of the place where you are about to work. It will only help you strengthen your roots in the place.
Know your business: the customer is everything
Any business, small, medium, large totally depends on its customers. Fulfilling their needs and making their life happier and easier is the only motto of any company, be it food business, or IT firm or anything. They all are working for customers and so you are. Before establishing your company in the market, always learn about the customers and their requirements.
Keep in mind already there is a lot of competition in the market and you just have to come up with some exciting and innovative ideas to win the race. Also, keep analyzing the market to check the scope of your business. You can either hire professionals to do the market research or perform surveys to know customers better and what approaches competitors are making to survive in the market.
These points will help you make proper and logical decisions.
Here is how you can start up a business in Dubai free zone at lower cost
Turn step-by-step procedure into All-inclusive package
To achieve something big, one must follow the stages. That’s true, but what if you get all in a package which is inclusive of everything that covers every stage. Not just for the sake of time-saving but also the money-saving and hassle-free documentation processes, passport formalities, business formation to VISA in one go.
Documentation process in itself has many phases, such as filling application forms, registration, licensing, acquiring office space, government fees, expert guidance or call it agent. Instead of taking it all up on the shoulder and running in vain only to learn the application got rejected due to some missed out process will send you in the disheartening situation.
Business setup packages are a great way to make sure your application is on the right track. These packages come with a discounted range along with all the steps and prerequisites. All-inclusive packages are a great way to provide full value to your money.
Learn everything about renting out space
When renting out space in three areas, mainland, Freezone or offshore, you must ensure what type of business setup you are looking for. First of all, you must know that UAE company formation is mainly divided into three areas as stated above.
The mainland requires office setup, whereas Freezone and offshore give you options such as flexible desks and office per hour. With the right agent you can get great deals in rented spaces. These agents will help you get 100% tax-free space, without any hidden charges and full ownership for your venture.
UAE has come up with a free trade zone culture where the business formation is lower or no tax in order to bring more growth in the economy by inviting great business ideas.
Business Setup expert guidance
Business setup agents can make a huge difference by bringing all the required procedures on the right track as they have experience in it and are already aware of potential risks and downs that might come in the way of your application.
They ensure everything goes smoothly and happens as fast as possible. This is not the only task, but they also lead you through profitable ways to set up a venture. They guide you through every A to Z saving you from any hidden charges or fraud or unwanted expenses.
The laws of UAE keep fluctuating and these agents are well informed prior or updated on their devices, it brings you in an updated state. They give enough time to you and sit with you to give efficient ways to register and perform other procedures at a lower cost in Dubai.
However, there are over 30 free zones in Dubai. Before setting up a business in the free zone it is advised to look closely into each space and its associated benefits and attributes. Every free zone has a list of the domain which clearly means which space is better for your business
For example, if you plan to open an IT firm, pick the Internet city in Dubai or Media city. If you are a company that requires often shipping goods and easy access to the airport, Jebel Ali free zone is the best option. Your business setup agent will help you find the most suitable and profitable free zone.
The last word, no matter how you see the procedures and make the decision at the end you must know well that you will require a sponsor and getting the help of expert business setup agents will make all the procedures and required formalities on time and hassle-free.
Quick nutshell guidance again, learns about the city and area you are dwelling into. Learn UAE laws for business, set up a budget and do proper market research to excel into what you plan to do.