What Is The Best Free Zone For Your Business?

August 31, 2022 Comments Off on What Is The Best Free Zone For Your Business?
Entrepreneur thinking at a laptop in a bright office, illustrating how to choose the best free zone

UAE Free Zones

There are over 40 free zones in the United Arab Emirates and determining the best free zone for incorporating a business is a very common question raised by aspiring entrepreneurs and business owners alike.

To be able to address this, it is important to understand the history of free zone authorities in the UAE dating back to 1985. This started when JAFZA, which was the first official UAE free zone authority, was established as a move to attract foreign investment by allowing 100% foreign ownership and to diversify & grow the economy.

Today, free zone authorities are geographically segregated and have the autonomy to operate under their own UAE-compliant regulatory framework. Each authority has dictated its own administrative processes and licensing requirements, promoting specific industries, and effecting competitive advantages and disadvantages, thereby ensuring that no two free zones are 100% alike.

Why are Free Zones attractive?

Free Zones provide a wide range of incentives to business owners, starting with 100% full ownership and extending to other financial benefits. However, the more important benefits are usually unique to each free zone such as:

  1. The ability to combine trading and professional business activities in one trade license
  2. The ability to become an investor/partner without a No Objection Certificate requirement
  3. The ability to obtain the fixed incorporation fee as opposed to estimates
  4. The ability to obtain multi-year licenses (up to 10 years invalidity)
  5. The ability to obtain a dual license to operate the business in the mainland
  6. The ability to avail of discounts incentives/promotions offered by the free zones

What is the Cost of Incorporating in a Free Zone? 

Depending on the free zone that best suits your business requirements. The starting cost of obtaining a free zone license would be AED 3700 for freelance approval, to AED 5750 for a media/publishing license, and AED 15,750 for a license which includes a visa package.

In Conclusion

Each Free Zone has its pros & cons, it is, therefore, important to speak to a Business Setup Consultant who has industry knowledge and business acumen to ensure you establish your business in the most suitable free zone specific to your business activity and in line with your long-term plans.

So to the question of what is the best free zone for your business? The answer is – there is none. There is, however, the most suitable free zone for each business owner and their business requirements.

Whilst the various free zone options are attractive, as a business owner, the most important point to consider is – Will a Free Zone license be beneficial to achieving your business objectives in the long run?

If you are a business owner looking to start your business or relocate your business to the United Arab Emirates and are overwhelmed with the various free zone options in the market, our EZONE Business Setup Consultants are available for a free consultation to provide you with unbiased guidance & direction without commitments.

At EZONE, Your Business Matters to us and we believe that starting your business right begins with making an informed decision in the jurisdiction you will register your license in.

UAE Free Zones Directory 

Dubai

Abu Dhabi

Sharjah

Ras Al Khaimah

Ajman

Fujairah

Umm Al Quwain

Information is current as of 15 June 2021. Prices can vary depending on the month’s free zone promotions.

Once you have picked a zone, our guide to company formation in Dubai covers the remaining steps.

Price is one factor in choosing a zone, and our cheapest free zone comparison lists starting packages from AED 5,530.

Tech founders can see how zones differ for their sector in our guide to the best free zone for IT and software companies.

For media and marketing businesses, see the best free zones for an agency.

If you move goods, our trading company free zone guide compares the zones that suit it.

Aashish Bhakri leads the business setup team at EZONE, working directly with founders on UAE free zone and mainland company formation.

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