Choosing the right freezone for your business setup
By Jahnavi Seth | 18th April 23
Setting up your business in the UAE is a dream for most people. The nation provides a lot of advantages to those who are setting up their business here. The various types of businesses being set up here have different requirements. There are over 45 free zones to choose from in the UAE.
The varying requirements of the entrepreneurs have led to a need for careful consideration of where the business should be set up. This blog takes into account the way in which you should choose the right freezone for your business setup in the UAE freezone. Read on to know more and get your business started in the best freezone according to your needs.
Which freezone should you choose?
All the free zones provide a range of benefits. These benefits are one of the major reasons why people choose to set up their businesses in the free zones. The 100% foreign ownership, 100% repatriation and tax benefits are some of the most preferred reasons for shifting to one of the UAE free zones for business setup.
There are a few considerations that are required for knowing which freezone is the best for you.
- What type of business activity do you want to conduct?
- At what scale do you want your business to be in the UAE?
- Do you need Office Space or Warehousing facilities?
What are the capital requirements?
One of the requirements of setting up your business in a free zone is to deposit a specific amount as share capital. Different free zones have different requirements of minimum capital that one must deposit to set up their business. It can be a simple process if you are aware of the minimum capital requirements of that particular zone selected by you.
What type of business activity do you want to conduct?
The type of business activity you want to conduct decides the free zone where you will setup your business. Many free zones allow you to conduct only certain business activities. These free zones allow you to get the license according to your business activity. In fact, you can do more than one activity with a single license. So it is essential to choose the license according to your business activity.
At what scale do you want your business to be in the UAE?
There are many free zones in the UAE that do not provide the option of getting a warehouse or do not provide an office space. It is therefore necessary to know what you want for your business and to abide by it.
What is the cost of setting up in a free zone?
The cost of setting up a business in a freezone depends on the free zone you choose, the business activity you choose and the type of license you get. It is therefore quite difficult to give a general cost since it varies greatly based on the various factors mentioned above. This is where you need expert help and opinion. You can also enter your details in the RadiantBiz cost calculator. By entering your details you can calculate the cost of business setup in a free zone.
How can RadiantBiz help?
RadiantBiz has been working for 12+ years and has helped 100+ people setup their businesses and be successful. We have experts from all the areas and have been providing people with all the help they need to successfully setup their business. We make tailor made strategies for your business and help you implement them. Get in touch with our experts to get all the guidance you need to get your business setup in the UAE. Get started today!
Frequently Asked Questions
No, freezone companies can only do business in their jurisdiction. In case someone wants to expand their business they can opt for a different license.
The companies benefit by saving a lot of the funds since the free zone provides many tax benefits to the entrepreneurs setting up their business.
Yes, you can own 100% of the company shares if setting up in one of the UAE free zones.
One can use our cost calculator to get an estimate of setting up their business in a free zone.