Aurion Business Consultants

How to Choose a Free Zone for Establishing a Business in UAE?

UAE is known for its business-friendly ecosystem, e-governance, improved lifestyle, world-class infrastructure, and more. UAE is ranked 16th in the ‘Global Ease of Doing Business Report’ and top in the MENA region.

The UAE Government is constantly implementing measures to restructure legislation, company setup procedures, business license cost, and time to set up business in the region.

About the Free Zones of UAE – The Ideal Choice for Setting Up Company

The Free Zones in the region are the perfect destination for private sector business investment. The 100% foreign ownership, 100% profit repatriation, lower taxes, etc., lures foreign investors to the Free Zones.

There are more than 40 Free Zones in UAE that offer exceptional business infrastructure for large and small companies alike.

Choosing the Free Zone in UAE

The competitive Company Setup Packages offered by the Free Zones are attracting the small and medium companies, individual investors, and UAE residents for establishing a company in the region.

There is a wide range of industry sectors having a strong presence in the Free Zones of UAE. Numerous businesses in the manufacturing, high-tech industries, entertainment, engineering, management consultants, etc., are present in the Free Zones of UAE.

Things to Consider Before Establishing a Company in UAE

The Free Zones are a center for foreign investment, business growth, and sustainability in the region.

Now, when it comes to choosing the right Free Zone for establishing a business in UAE, there are few things to consider.

1. Choosing the Business Activity for the Business

Selecting the business activity for a company is crucial as the continuity of the business operations are heavily dependent on the chosen business activity.

Aurion will assist you in choosing the right business activity for your company by assessing your requirements and the Free Zones list of business activities.

2. Choosing the Office Type and Visa Requirements

After selecting the business activity, the next steps involve the residence visa requirements for hiring employees, sponsoring directors, etc.

Also, the right office space requirements are an important choice for establishing a company and sustaining the business in the long term.

The Free Zones in UAE offers various office spaces ranging from Flexi-Desk, Shared office, Office with Warehouse, and more.

3. Location for the Business

The location of the Free Zone is important for trading companies, consultancies, services business, etc.

Business Activities that require more physical meetings, client walk-ins, accessibility; choosing a Free Zone in Dubai is important due to the prestigious address of ‘Dubai’.

For Trading companies specifically, the proximity to the Airports and Seaports helps in easily facilitating global trade.

4. Share Capital Requirements

For business activities like General Trading, there is a requirement of depositing the Share capital in the company bank account and sharing the proof of investment with the Free Zone Authorities.

Investors need to have a check on the capital requirements in their selected Free Zone and plan the inflow of funds accordingly.

5. Approvals, NOCs, Other Clearances

Investors need to get special clearances for certain business activities such as healthcare, transport, real estate, etc., from the respective authorities.

Also, for UAE residents to establish a company few Free Zones require a No-Objection-Certification from the sponsor company of the resident.

Choosing the Free Zone in UAE

Also, there may be a restriction to certain nationalities to apply for Visa via the Free Zones of UAE. Expert Business Consultants like Aurion are aware of the latest updates on the Visa norms.

6. Annual Audit Report Requirement

There are Free Zones that require an annual audit report and companies must prepare the annual audit report during the renewal.

Whereas few Free Zones do not require any Audit Report Filing for renewals. Depending on the nature of work, annual turnover, business laws; the investor must plan their auditing accordingly to avoid any penalty.

7. Criteria for Bank Account Opening

Opening a Corporate Bank account in UAE is a very important aspect after establishing a company.

There is a robust banking network in UAE with numerous local and international banks offering secure banking services.

For each Free Zones, there are selected banking partners that will open business bank accounts for investors provided the right customer information is provided and fund flows are maintained.

8. Budget for Running the Office

The investors must have a clear understanding of the overhead expenses of running a company.

The company setup fee is only for securing the business license. There is a list of administrative fees for UAE residence Visa, obtaining emirates ID, obtaining company documents, and more.

The rent for the offices, maintenance &, technology requirements, hiring staff, transportation, daily errands, etc., are to be scheduled and the budget has to be attributed accordingly.

The above checklist could be followed by an investor to establish a company in the UAE the right way and continue the business in the region. To know more about company registration in UAE Free Zones connect with our team right away!

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