Points to remember before setting up a business in UAE free zone

Points to remember before setting up a business in UAE free zone

Free zone company setup in UAE is an encouraging option for starting up a business in Dubai. The Dubai government has been welcoming foreign investments especially before the Dubai Expo 2020 which was postponed due to the Covid-19 pandemic shutdown. However, Dubai has still got a lot of opportunities for entrepreneurs and the free zone company formation option is yet among the most preferred forms of business setup in UAE offering a number of advantages.

As globally famous, the UAE free zone company formation constitutes a free economic area or an economic free zone jurisdiction that provides maximum benefits of business set up in the region. It includes tax exemption, complete ownership, repatriation of profits and capital, no import or export charges, no custom duty, free transfer of funds, less monitoring or regulations, freedom on work module and much more. Free zone business setup in UAE is a retreat for every businessman.

Setting up a business in UAE free zones is amongst the swiftest and affordable procedures of incorporating a company in UAE as compared to other areas including business set up in Dubai mainland.

However, some precautions are to be taken as every good thing come along with some flaws too. Listed below are some points to ponder upon before setting up a Business in UAE Free zone:

• Choose Carefully:
UAE free zone offers several options with regards to jurisdiction, legal type, legal structure, the process of establishment, numerous regions with their independent rules & regulations and so on. Hence, you need to be careful about setting a company in UAE free zone as to which parasol is best for you and your company’s requirements.

• Be Informed:
You need to have proper knowledge of the free zone company formation process and timely indication on the laws implemented. Guidance from a company formation advisor or a business setup consultant is the best option that allows you to focus on your business while formalities are taken care off by the consultants. It also updates you about the changes in the pattern of business setup and assures timely services.

• Difference between FZE and FZCO:

A Free zone Establishment is a company established by a sole entity having a single shareholder, while a Free zone Company is a limited liability company which is bound by 2 or more shareholders. Although both provide the same operational recompenses the main difference is in the share capital requirement.