Points to remember before setting up a business in the UAE Free Zone

Freezone Business Setup in UAE is a promising option for starting a business in Dubai. While the government has encouraged foreign investment ahead of Dubai Expo 2020 and created opportunities for entrepreneurs, it appears that the free zone business formation option is among the preferred forms of business setup in the UAE.

The UAE Ministry of Economy together with various UAE Free Zones, in collaboration, have decided to discover the partnership and strengthen the mutual means of corporation. As it is known globally, UAE Free Zone Company Formation is a free economic area or economic free zone jurisdiction, which provides the maximum benefits of companies established in the region, such as tax advantages, full ownership, repatriation of profits and capital, no import export charges, no customs fees, free transfer of funds, less monitoring or regulations, freedom at work module and much more. Freezone’s business setup in the UAE is nothing more than a haven for all entrepreneurs.

Freezone Business Setup in the UAE is one of the quickest procedures for incorporating a business in the UAE and is typically not an expensive affair. However, with all the good factor pointed out, there are also a few points of caution that a future entrepreneur should remember!

Here are the points to remember before setting up a business in the UAE Free Zone:

• Thing precisely:
The UAE Free Zone offers various options regarding jurisdiction, legal type, legal structure, establishment process, numerous regions, their separate rules and regulations, etc. Before setting up a business in the UAE Free Zone, choose exactly which umbrella best suits your needs and those of your business.

• To be informed:
Having adequate knowledge about the free zone company formation process and a timely indication of the implemented laws is always a main advantage. A guide from a business training advisor or business setup consultant is the best option in this scenario, allowing you to focus on your business while the consultants take care of the paperwork. It also tells you about changes in the business configuration pattern and ensures up-to-date services.

• Difference between FZE and FZCO:
Understanding the difference between a free zone establishment and the formation of a free zone company is essential before forming a free zone company. A free zone establishment is a company established by a single entity and has a single shareholder, while a free zone company is actually a limited liability company and is linked by 2 or more shareholders. Although they both provide the same operational rewards, the main difference is in the capital stock requirement.