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Things to know before setting up a company in Dubai free zone

2 min read
Things to know before setting up a company in Dubai free zone

Setting up a company in Dubai free zone is a simple process. However, most people feel hesitant to invest in UAE. There are plenty of reasons,

  • making a partnership with a local resident,
  • do not possess complete ownership
  • heavy investment for setting up a company
  • immigration policies
  • recruitment process
  • higher freight charges

Find here the merits of DMCC business setup.

Dubai free zone:

During the past few years, the government of the UAE is establishing free zone areas for foreign investors. These free zones attract trade investment by offering them business flexibility and numerous benefits. Here are the following benefits of setting up a business in the Dubai free zone.

  • Easy process to format business.
  • 100% ownership
  • 100% corporate tax exemption
  • 100% personal income tax exemption
  • 100% exemption from import/export duties

There are at least fourth plus free zones in UAE, but most of the free zone is located in Dubai because this state is considered the best business hub in UAE.

However, before setting up a free zone company, you should know the following things.

Choosing the right business legal entity:

When it comes to set up business in the free zone, the step is to choose the right legal entity for your business. There are three main entities where you can start your business.

  • Free zone limited liability company (FZ-LLC)
  • Free zone Company (FZCO.)
  • Free zone establishment (FZE)

Business activity:

After making the final decision about a business entity, the next step is to choose a business activity that you want to run. There is plenty of free zone in Dubai that offers multiple business activities to foreign investors. It is one of the most important aspects that you should consider when choosing a legal entity.

Business license:

The business license depends on your business activity. There are various choices in the business license that you can choose for your company like Trading Media Educational e-commerce industrial freelancing offshore manufacturing warehousing moreover, free zone companies also allow you to obtain multiple business licenses at one time.

Types of Dubai free zone:

As we have mentioned above a trade license depends on your business activity, which also allows you to select a free zone area for your business. It is essential to know that all free zone does not allow the same trade license.

Thinking about how to start Ajman Free Zone Business Setup? Look here.