How to start a company in Free Zone? - International Business Forum

One of the most demanded business startups in UAE is the Free zone company business setup.

Its relatively easier to setup a free zone company compared to a mainland company. Free zone authorities require minimum paperwork and duration as well. There are over 40 Free Zones in UAE.

Each Free Zones has its own quirks and features that offers opportunities and benefits for businesses. For instance, UAE has specific free zones dedicated to Education, Research and Innovations, Technology, Entertainment and Media, Healthcare and etc.

With a wide variety of activities inside Free Zones, identifying the most suitable Free Zones for your business is a challenge faced by new businesses today. Given below are three steps that you could follow to identify the most effective Free Zone for your businesses.

Build the initial plan for your business
Choose the most suitable Free Zones that would suites your business plan
Setup your business

1. Build the initial plan for your business

The most common mistake that people make is that they do not have a proper idea about the rules and regulations of the Free Zones.

Opening a business in Free Zones is relatively easy. Some Free Zones offer business licensing within hours and does not even require a capital.

But there are other aspects like Visa processing, Government Registrations and Business Renewals (License Renewal, Facility Renewal, Establishment card Renewal, E-channel Renewal, Government Renewals) that could be complexed for new businesses and will acquire a considerable amount of money and time based on your preparation.

Another major problem that people face is winding up a company. UAE Free Zones have a detailed process when it comes to winding up a company. People who fail to meet the requirements will have to pay huge amount of fines. None of this problems would exist if you have a proper plan for your business and understand the Legal system of the dedicated Free Zone. So it is crucial that you have a proper plan for your business before choosing any Free Zones in UAE. Start building your plan with these steps.

Determine the number of investors (Legal Entity)
Choose a company name
Identify the business activity
Choose a facility for your business (Offices, Warehouse, Plot of Land)
Number of Visas required for the business

2. Choose the most suitable Free Zones that would suites your business plan

Once you have a plan for your business you could choose a Free Zone. Plus you could have access to all the information of the Free Zones by visiting their website.

Once you know more information about Free Zones, find which will offer you the best advantage based on your business plan. Or else you could request assistance from a consultancy company to provide you more information for free without any cost. Present them your overall business plan and they will provide you the solutions.

Many Free zones offer discounted price due to the current pandemic situation and you could use this as an advantage to start your business for a great price. Given below are some of the recommended Free Zones for your business setup.

3. Setup your business

Speak with a representative of the chosen Free Zone and present your business plan to them. The team will guide you through the process. Most importantly, they will check the availability of the suggested name and the business activity of your company. If your business is related to Medical, Education you may require to take approvals from the relevant authorities. Further the owners and shareholders of the company will have to sign the documents provided by the Free Zone. Upon completion of these steps you will get your business license.

Eagle Eye International is a professional business consultancy company with over 40 years of experience in UAE. We have assisted over hundreds of business formation. We will assist from analyzing your business requirement to delivering your business license. These are the below services that we would assist you in the business formation.