As time passes, the United Arab Emirates is becoming a popular country in the business field due to the benefits and advantages that it provides to its investors and entrepreneurs. More foreign businesspeople come to the country with the same goal of forming a UAE free zone company in Dubai, the most attractive city for investors.

In this article, you will learn everything you need to know regarding some traps you should avoid when forming your company in a UAE free zone in Dubai, and also some tips to make your business grow more efficiently in the country and the advantages and disadvantages of establishing your company here. Let’s observe:

1. Why are UAE free zones popular among foreign investors and entrepreneurs?

2. What free zones are available for you to start building your company?

3. Traps you should avoid when you start forming your company in Dubai.

4. Advantages of setting up as a Dubai free zone company in the UAE.

5. Disadvantages of setting up as a Dubai free zone company in the UAE.

6. Tips to follow when forming a UAE free zone company in Dubai.

7. How can Connectfz help you build your business in a UAE free zone efficiently?

 1. Why are UAE free zones popular among foreign investors and entrepreneurs?

As the country becomes stronger in the economic sector, more investors and entrepreneurs from everywhere are getting attracted every year by the beneficial business environment that the UAE free zones provide, especially the ones that are located in the city of Dubai. Let’s take a look at some reasons why this happens:

• Forming a UAE free zone company in Dubai or any other city of the country is an easy task since the setup process is done using efficient methods that make faster procedures. Moreover, investors can request the services of a local business partner, such as a reliable sponsor in Dubai for their companies, which can help them with tedious procedures in case it is needed.
• Every free zone offers a wide range of benefits to their investors to make their business easier and more profitable. The most outstanding advantages of these free zones are full ownership of the business entity, full repatriation of capital and profits, personal and corporate tax exemption, world-class infrastructure, efficient connectivity and other vital resources, and more.
• It is easy to find a proper business partner during your company setup process in the UAE, which can determine the efficiency and speed of your business strategies. There are countless agencies in the country to help foreign investors to achieve their goals, working as business partners for as long as their clients need.
• Since the country has access to a local and international market, and it is recognized as one of the most efficient countries regarding business affairs, setting up your company in any of the available UAE free zones can guarantee success in a short period, and you will be able to enter the market with ease.

2. What free zones are available for you to start building your company?

If forming a UAE free zone company in Dubai is your goal, you have the opportunity to search for the best free zone in the city with the Connectfz searching platform, which will help you compare the most popular free zones and their details. Once you have selected the most suitable location for your company, you can start building your business with the security of achieving success.

Among the most popular free zones that you can find in the city of Dubai, we can mention the following ones:

• Dubai Airport Free Zone (DAFZA).
• Dubai Media City Free Zone (DMC).
• Dubai Multi Commodities Center Free Zone (DMCC).
• Dubai International Financial Center Free Zone (DIFC).
• Dubai Silicon Oasis Free Zone (DSOA).
• Dubai South Free Zone (DWC).
• International Free Zone Authority (IFZA).
• Jebel Ali Free Zone (JAFZA).

If you are looking for other excellent free zones in other cities, you can discover these:

• Ras Al Khaimah Economic Zone (RAKEZ).
• Sharjah Publishing City Free Zone (SPCFZ).
• Sharjah Media City (SHAMS).
• Khalifa Industrial Zone Abu Dhabi (KIZAD).
• Ajman Media City Free Zone (AMCFZ).
• Umm Al Quwain Free Zone (UAQFZ).

2.1. Which is the cheapest free zone in the UAE?

Analyzing and comparing each free zone to the rest of them, we could mention more than one cheapest free zone in UAE, and then you will be able to know which one could be the cheapest and most suitable zone for your company to grow. Among the cheapest free zones in the country, you can find:

• International Free Zone Authority (IFZA): which including one visa package and general trading license, its cost would be around 17,500 AED per year.
• Ras Al Khaimah Economic Zone (RAKEZ): including commercial license and allowing the performance of 5 similar activities from the chosen classification, it would cost 14,800 AED per year.
• Umm Al Quwain Free Zone (UAQFZ): including commercial license and two visa packages, it could cost around 20,500 AED per year.
• Ajman Media City Free Zone (AMCFZ): including a visa package and commercial license, it would cost 12,000 AED per year.

Keep in mind that packages and prices in each free zone could vary according to the circumstances and the investor’s decisions. Make sure to examine each alternative to choose the one you consider the best free zone in UAE for building your business without failure.

3. Traps you should avoid when you start forming your company in Dubai.

When you start forming a UAE free zone company in Dubai, you will probably have to face some challenges and avoid certain traps during your setup in your selected location. Some of the most common traps you should avoid during your company’s setup are out-of-date information and fake information regarding office space, terms, conditions, annual rental rates, among other details.

3.1. Out-of-date information.

Before you can make a deal in any free zone in the country, you should verify the validity of the published information related to business registrations and other affairs. The main reason why this kind of information needs to be verified is that some rules and regulations tend to change in certain free zones and in the Department of Economic Development.

3.2. Fake information.

It is also possible to find fake information regarding several details when forming a UAE free zone company in Dubai or in any other city of the country. The main elements that are involved in this kind of trap are usually terms and conditions regarding tenancy and office spaces. Sometimes advertisements are different from real-life agreements.

On the other hand, annual rental rates also need to be verified before making any agreement. Take into consideration that they tend to be higher in certain free zones, especially in the ones located in Dubai. The rates will depend on the number of square meters that the company requires for their use.

4. Advantages of setting up as a Dubai free zone company in the UAE.

Besides the ones that were previously mentioned (easy setup process, full foreign ownership, and tax exemption), it is worth to mention that trading within the UAE is possible, even though free zones companies are not allowed to trade directly with the local market in the country. You can easily overcome this by working with a distributor. Only a fee is enough to trade within the market through your distributor.

You can request assistance and support whenever you need it to set up your company in a short period and run it efficiently. The free zones authorities are also willing to offer you a helping hand in case you need it. For example, you will receive assistance when you apply for visas and other important documents.

As for opening corporate bank accounts, you will receive the information and guidance you need if you request assistance. Networking services and ongoing business support are also available for any investor who wants to achieve success in a UAE free zone by setting up a company in any of the available locations.

5. Disadvantages of setting up as a Dubai free zone company in the UAE.

Even though you can find more advantages than disadvantages when forming a UAE free zone company in Dubai, there are certain limitations during the setup and growing process of your company. As you may know, some free zones are specialized in specific business fields, such as DIFC (Dubai International Financial Center), which focuses on financial businesses.

In this specific free zone, you will be limited to perform activities related to this field. Only bankers, wealth managers, insurance intermediaries, corporate financiers, and other professionals with related careers can work and grow in this free zone. Keep in mind that expansion into other UAE markets is not allowed.

However, you have the advantage that most free zones focus on several business sectors at the same time, and you can choose which one has the best offers and benefits for you to increase the possibilities of success of your company during its setup.

6. Tips to follow when forming a UAE free zone company in Dubai.

Before starting our recommendations, it would be good for you to know the governance in Dubai and its free zones since your company will be ruled by the city’s regulations. This little tip will help you follow the rules and avoid making legal mistakes that could cost you a lot.

Following other tips will ensure success for you and your business, such as the following ones:

• Request the services of a reliable business partner to speed up as many processes as possible, plus it will help you obtain better information and guidance to get used to the country’s laws and other elements. Counting on a sponsor in Dubai and UAE is also an excellent option for your company.
• Think about your business field and select the most appropriate free zone to develop your company effectively and with the best benefits. Keep in mind to analyze terms and conditions, costs, distance, and any other detail that you may consider important for you.
• Since visas are required for foreign businesspeople who want to live and work in the UAE, you should confirm your visa eligibility. Remember that numbers could vary according to several elements, such as the nature of the business, office size, your category as investor or employee, among others.

As a final tip, make sure to contact Connectfz if you need more information and professional recommendations to set up your business in any of the available UAE free zones.

7. How can Connectfz help you build your business in a UAE free zone efficiently?

If you are looking for the best free zones in Dubai to build your company, you can count on Connectfz to find, analyze, compare, and select the most convenient free zone for you to start setting up your business. You can also find other free zones in different cities of the country, such as Ras Al Khaimah, Ajman, Sharjah, Abu Dhabi, Umm Al Quwain, and many more.

After selecting your location, you will receive the information you need regarding your free zone’s benefits, regulations, norms, and many other details. Besides, you can also request our services to boost your business growth and make your company more efficient. Some of the services we provide are banking services, payroll services, visa services, and more.

If you need professional guidance when forming a UAE free zone company in Dubai, feel free to get in touch with our professional team members to discover methods and recommendations related to business growth in the UAE free zones, and your company will become more profitable and experienced in a matter of time.

Would you like to contact Connectfz to know more about company setup in UAE free zones? If you have any question, do not hesitate to call us on +97143316688 or email us at info@connectfz.ae, and you will talk to one of our representatives that will gladly answer all of your questions.