Published on December 29th, 2020 | by Sunit Nandi


How To Choose The Best Free Zone For Your Business In the UAE

There are plenty of Free Zones in the United Arab Emirates [UAE] to choose from. This can make it quite overwhelming for foreign investors to choose the right one. You need to do your research and make an informed decision before you set up a business in one of these Free Zones.

It is worth mentioning that these Free Zones have their different costs, different locations, and different lists of business activities permitted. Of course, this can make Free Zones selection quite overwhelming and the internet won’t make it any better because of the immense information available.

That’s why we are giving you an ultimate guide to help you choose the right Free Zone for your business in UAE.

1. Determine the business activity of your business

You need to know is that each Free Zone has its own specific set of permitted business activities which are allowed to be conducted within a particular Free Zone. Furthermore, there are different rules in each Free Zone regarding how many business activities are allowed to use the same business license. The more activities you select, the higher the cost of the license.

2. Select the facility type that your business will require

A business has numerous facility requirements depending on its business activities. For instance, if your business will require you to meet up with clients or hire employees, then it is mandatory to have an office space in a separate physical location. Moreover, take into consideration the location and infrastructure within a Free Zone and other facilities available in a particular Free Zone since not all Free Zones have specific facilities, such as warehouses or retail shops. It is worth mentioning that a company registered within the Free Zone is only allowed to have a facility within the UAE Free Zone where it is registered.

3. Determine how many UAE Residence Visa your company will need

Each employee working in your company in UAE will require Residence Visas. The quota for visas will depend on the type of the facility. A shared desk provides a limited number of visas and generally differs depending on the Free Zone.

4. Decide the location

Location is also a major factor to consider when choosing a Free Zone. Do you want your business to be near the port or airport? Of course, as a business person, you want to ensure that your business is located strategically to lower transportation charges.

5. Select a Free Zone based on the amount of capital to be invested

When you want to register a business in UAE, you need to deposit a share capital amount. This capital amount differs from one Free Zone to another. So, you need to choose a Free Zone you are interested in setting up your business and find out the minimum share capital amount you would be required to pay.

6. Check the licensing requirements

The last step is to check the licensing requirements. There are generally three licenses available in Fee Zones, including a trading license, professional license, and a service license. It is advisable to verify the exact requirements before choosing a Free Zone.

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I'm the leader of Techno FAQ. Also an engineering college student with immense interest in science and technology. Other interests include literature, coin collecting, gardening and photography. Always wish to live life like there's no tomorrow.

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