Free Zone Business in UAE – Is It Worth It?

Free Zone Business in UAE – Is It Worth It?

Free Zones in UAE, Free Zone Business In UAE, Business Set Up In UAE, Free Zone Business In Dubai

UAE is undoubtedly the jewel in the crown of the Middle East. The country is home to more than 9 million expats; associated with different business activities. Business is booming in the Emirates with more and more people eyeing a business set up in UAE.

A new company formation in UAE can be done in the mainland (which is called an L.L.C) and in designated free zone. In this blog we take a look at some of the aspects of a free zone business in U.A.E

Free Zones In UAE – What Are They All About?

With an ambition to attract foreign investments, the UAE government was prompted to set up special free zones. The very first free zone established in the country was the Jebel Ali Free Zone in the year 1985.

Since then, free zones combined with an astute economic planning have seen the Emirates transform from a barren desert to a lush oasis. Currently, there are more than 38 free zones operating in the Emirates with plans of setting up more. The free zones have become an integral part of the Emirates economy; especially for expatriates leveraging it to make great returns.

Getting A Trading License in A Free Zone

Of all cities, the Ajman and Dubai free zones remain the hot favorites among investors. Dubai, because of having the status of a global city, and center of all commercial activities sits at the top of the pantheon. Ajman, on the other hand is popular for its ease of doing business and affordability.

All free zones have different types of licenses. Such as the freelancer license, the media city license, the business center license and the standard office license. The individual/organization has to pay the trading license fee (to be renewed each year), visa fee, as well as other formal requirements such as the Emirates I.D fee, stamping costs etc.

What Type Of Business Should I Set Up In A Free Zone?

Company formation in a free zone comes with many benefits. However, you need to take into equation that there are certain types of businesses that work in the free zones. These businesses include:

  1. A Media House
  2. E Commerce Business
  3. Travel and Tourism Agency
  4. Financial Services
  5. Logistics and Supply Chain

All of the above mentioned enterprises require low capital and operating costs, and that is why they are found in abundance in the free zones across the UAE. So, if you are looking for a business set up in UAE, one of the free zones in Dubai or Ajman could be your best bet; especially if you are in the service sector.

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