The establishment of a company in the United Arab Emirates is an increasingly popular choice among foreign entrepreneurs, particularly in the context of free zones. These special economic areas provide favorable conditions for business operations, offering a range of advantages, such as 100% ownership by foreigners and streamlined registration and licensing procedures. There are currently over 40 free zones operating across the UAE, each designed around specific industry categories to cater to diverse business needs.

It’s essential to consider several critical factors (type of business, location, costs) while selecting a free zone. The UAE boasts several prominent free zones with unique offerings:

• Jebel Ali Free Zone (JAFZA): one of the largest and most developed free zones, focusing on logistics and manufacturing. 
• The Dubai Multi Commodities Centre (DMCC): provides a specialized platform for commodity trading
• The Sharjah Publishing City Free Zone (SPCZ): offers low levels of government fees. 
• The International Free Zone Authority (IFZA): allows the integration of professional, commercial and industrial operations under a single license. 
• Meydan: located close to key commercial and financial hubs, providing easy access to Dubai International Airport and essential infrastructure.
• Dubai International Financial Centre (DIFC): the first financial and economic zone of the UAE.
• Umm Al Quwain Free Trade zone (UAQFTZ): known for its cost-effective setup options, ideal for startups and SMEs.
• Ras Al Khaimah Economic Zone (RAKEZ): offers a diverse range of industrial and business activities with flexible packages.

When selecting a free economic zone, it is crucial to take into account several critical aspects:

• The nature of the business: certain free zones are specialized in specific industries, such as technology, logistics, media, diamonds, precious metals (silver, gold, etc.)
• Location: the geographical location of a free zone can significantly impact logistics and market access. 
• Costs: various free zones require different levels of initial investment, with some offering incentives for startups.

The registration process includes several crucial stages, starting with submitting an application and acquiring a license. These stages include:

1. License Type Selection: determining the type of business activity, such as trading, production, or services.
2. Application Submission: completing the required forms and documentation. Providing essential documents, including a passport, proof of office rental and a business plan. 
3. Fee Payment: paying registration and licensing 
4. Approval process: verifying of documents by respective Government Authorities, approval and issuance of License.

The documentation required for registration includes: 

• A copy of the owner’s passport
  • Office lease agreement
  • Confirmation of personal place of residence (payment of utilities, bank statements with address, etc.)

Financial and legal considerations

Financial and legal considerations are crucial during this process. However, there are other fees to be considered, such as those associated with registration and license renewals. 

The Free Zones have their own regulations governing business operations. Companies must adhere to UAE labor laws as well as regulations on data protection and intellectual property. 

With KAIDZEN BIZ, you can set up a company in a Free Zone quickly and effortlessly, leaving the details to us.

Got questions? Reach out to our team—we’re here to help!