Key factors to consider before setting up a business in a free zone

Key factors to consider before setting up a business in a free zone

Setting up a business in UAE is quite a challenging and complex task for foreigners. During the past few years, UAE has opened plenty of Free zones for multiple industries such as consultants, freelancers, small businesses, and services. However, forming a company in a Free zone requires a trade license in UAE.

See here the Ajman free zone business setup cost.

While there are numerous benefits of free zones, but still many factors are needed to consider before setting up the company in free zones. Therefore, it is essential to ask the following questions before choosing a free zone area for your business.

What is the cost of establishing a business in a free zone?  

There are plenty of free zone areas in the UAE where you can establish your company with little investment, but there various expenses that you have to bear, like, name reservation, fee Registration, fee trade license cost, office expenses, and rent visa expenses. There may include further expenses such as annual fees and other hidden charges.

How many expenses do you need to obtain for a trade license?

The cost of a trade license depends on the trade activities you choose for your business. The range of trade licenses starts from 10000 AED to 20000 AED annually. You are allowed to choose activities from 2 to 10; the free zone representative provides you a list of acceptable trade activities in this area. However, the cost varies on the types of the free zone.

What is the difference between an office and a Flexi desk?

Most people consider hiring Flexi desks that is the smallest form of office available in the free zone. You can also share your office space with other businesses. This is the cheapest option in the free zone that you may hire. On the other hand, the office is different from the Flexi desk. You have to buy or lease special space for your company, and the number of visas depends on your office space.

What are the benefits of setting up a business in a free zone?

Setting up a company in UAE free zone offer you various benefits such as

  • You have 100% ownership.
  • You enjoy 100% profit.
  • You have an exemption from corporate and personal income tax.
  • You have an exemption from import and export duties.

Read more info about free zone business.