The UAE is the ideal business place to start and grow your business.
Free zones are economic areas in the UAE where business owners can open companies at privileged taxes and customs rates. Each free zone has its own rules, regulations and its specific offers.
Several reasons such as 100% foreign ownership and 0% taxes, attract a huge number of foreign and local investors. Free zones have become popular with an increasing number of businesses.
Benefits of setting up your company in a UAE free zone
Before selecting a Free zone, business owners must be aware of what Free zones can offer. There are plenty of benefits that compel ex-pats to obtain the cheapest free zone license in the UAE. Here are the 5 top benefits of setting up a business in a Free zone:
1. 100% Foreign ownership
One of the most attractive benefits of establishing a business in a free zone is full ownership rights. In a free zone, an investor can enjoy 100% ownership without the help of a UAE sponsor.
2. Corporate and personal tax exemptions
UAE’s tax regime makes it one of the most evident reasons to set up a company here. You can obtain the cheapest free zone license in Dubai as the free zones offer 100% exemption from personal and corporate taxes.
3. Easy setup
Getting a free zone license in Dubai is a straightforward process. However, the exact company formation process may depend upon the type of business activities chosen by you, however, in most cases, basic documentation and paperwork are enough for you to start.
4. Import and export duties exemption
The jurisdiction of the UAE exempts business owners from paying import and export duties along with no currency regulation restrictions. Flexibility in currency exchange makes financial transactions easier.
5. Support from the government
Powered with excellent infrastructure, the UAE government is very supportive and welcoming to the new-age investors. The free zone authorities assist the new businesses in getting a free zone license in Dubai and thereafter.
Top 5 Cheapest free zones in the UAE
1. Sharjah Research Technology and Innovation Park (SRTIP)
SRTIP free zone is aligned with the UAE’s 10-year strategic plan to position the country as a global industry leader which promotes research in renewable energy, water management, environmental technology, transport and logistics, production, design and architecture and digitalization solutions.
SRTIP free zone is a relatively new player in the industry and is currently offering trade licenses from AED5500 for different activities.
You can start any business activities that belongs to the below-given categories:
2. Ajman Media City (AMC)
Offering an extremely quick and simple company formation process, Ajman Media City is a brand new investment destination in the UAE. This free zone attracts businesses from all across the world by offering easy and cost-effective services. AMC incorporates a wide variety of media and entertainment-related activities.
It also offers Flexi-desks and small sharing workplaces. With a trade license starting from AED 8500, this free zone makes it an ideal place for small and mid-sized business owners to set up their businesses.
Along with media-related activities, AMC allows some trading activities as well. Below given are the major business activities this free zone is focused on:
- Service and Consultancy
- Media related training
3. Sharjah Media City free zone (SHAMS)
SHAMS is UAE’s fastest-growing media free zone, it fosters a vibrant and growing atmosphere for new entrepreneurs. That being said, SHAMS is now one of the ideal free zones for new-age investors as well as established businesses.
SHAMS offers a vast list of business activities. You can get trade licenses from AED 5750 with multiple business activities per license type. This free zone is ideal for people who want a business setup in Dubai without a physical presence. The types of business licenses offered in SHAMS are:
- Holding and other types
- Social media influencer
4. Ras Al Khaimah free zone(RAKEZ)
RAKEZ is another jurisdiction offering one of the most cost effective free zone licenses in the UAE. This free zone is located close to the RAK airport and seaport which makes it a lucrative option for aspiring entrepreneurs.
RAKEZ offers SME packages from AED 8240 & is renowned for its customizable warehousing solutions. You can choose from low, medium and high sized warehouses depending upon your business activities. It also provides readily available staff and labour accommodations. Providing the largest list of business activities in the UAE covering:
5. International Free Zone Authority (IFZA), Dubai
Located in the Silicon Oasis area in Dubai, IFZA is one of the most competitive free zones in the UAE. It offers a different choice of low-cost company setup packages starting at AED 11,500 making it one of the most cost effective free zones in the UAE to establish a business.
The Dubai Department of Economic Development decides the range of business activities that can be conducted in this free zone. You can choose a maximum of 7 activities under one license. The types of licenses offered in the IFZA free zone are:
How Decisive Zone can help you choose the right free zone company setup
With support from the government authorities and free zones, opening a company in Dubai, UAE is much easier now. However, while searching for the cheapest free zone license, prior knowledge about different free zones and application processes is essential. At Decisive Zone, your business setup consultant will help you choose the right & cheapest free zone for your business requirements and guide you through the entire process of company setup.
For a free consultation, please get in touch with our tax consultants at Decisive Zone on +971 4 581 3618 or email email@example.com