31 January, 2022
Best ways to set up Freezone Business in UAE
Are you looking to set foot in the business world? Are you one of them to explore various business opportunities? Then, you must know that UAE can be a right start for you.
Being a hub, UAE attracts a number of foreign investors, SMEs and start-ups to form their company in the region. It provides enormous options for setting business, flexible laws to favour investors, and a growing working environment.
This can be a dream for entrepreneurs, SMEs, investors and this can be fulfilled through one of the most popular ways of company setup that is Freezone business setup.
Freezone Business also known as trade zones is one of the exemplary ways to set up a well-flourished business without no or very low tax and customs rates. It’s the economic area where goods and services are dealt with preferentially low custom rates.
Therefore, it is one of the good opportunities for foreign investors. These areas are established in UAE with the vision to promote business, investors, entrepreneurs towards setting up a business and taking advantage of the resources.
Several free zones in Dubai are built near the seashore, airports to attract more trade and business. You can choose any of them according to your needs and requirements.
Best ways to set up Freezone Business in Dubai
There are key steps to follow for setting up a legal business in Freezone in UAE
Type of your Business
Before going for any freezone, you need to decide the type of legal entity and business that you will start. As per your business, the requirements for the freezone company formation in UAE will be different, therefore it will be easy to opt for the right business setup.
In the freezone you can set up one of the two types of companies –
- Freezone Limited Liability Company (FZ LLC) or Freezone Company (FZ Co.) – In this freezone companies are set up with two or more shareholders as individuals or corporate shareholders.
- Free Zone Establishment (FZE) – In this type you can establish companies with one shareholder.
You can choose your legal entity depending on the type of your business/trade setup. Since all free zones might not be registered for both types of companies and choose what fits your requirement.
Your Business/trade name
It’s a necessary part for any business to have a trade name as the trade name conveys your business. Also, while naming the same, keep in mind to follow the making conventions laid out by the Government.
Business license by authorities
A business license is necessary for a legal reputation for the business. Once the name is decided, next we need to register with the concerned authority and apply for the business license.
Suggested Read – How to Start A Freezone Business Setup In Dubai
Different free zones provide a different license for various activities. So, choosing that free zone will comply with all your trade needs and requirements.
Choose an Office Space for Freezone Business setup
The business license and now time for opting for an office space. Either buy it or rent it whatever suits you. Make sure you choose an office space that can motivate you to work consistently and can be a safe and healthy place for you and your employees.
Pre-approvals and licenses are important for freezone company formation
The companies in different free zones are governed by respective rules of free zones. To get the pre-approval, you need to apply with documents which are detailed below.
- Completed Application form
- Business plan and business card
- You need to submit MOA (Memorandum of Association) and AOA (Articles of Association)
- Copies of Passport
- Banking references
All this is followed by the Registration process, licensing, and Visa process.
All businesses need to follow all these steps and procedures to set up business in the Freezone in UAE. This whole process is laid down in simpler terms and will take around four weeks to complete and then you are free to start your business.
There are various consultancies and organizations which assist in freezone company formation and one of them is The Corporate Group. They can make the process smooth, flexible and easy for you. You can hop on their services as they assure a strong knowledge base, efficient customer support and interaction, and a structure for smoothing running of the work.