The UAE has become an outstanding country in which all kinds of businesses can reach success. Therefore, investors from all around the world have decided to set up new companies in this country. Also, reaching global markets is now possible with the Multi-year Business License that some UAE free zones have launched.
In this article, you will learn everything you need to know about this new license in the UAE. Besides, you will learn some important information regarding the company formation in these free zones that offer this license. Most importantly, you will learn about some of the benefits of setting up a company in the UAE. Let’s observe:
- Why should you consider setting up your business in the UAE?
- What is a multi-year business license in the UAE?
- Where can you obtain a multi-year business license?
- How does the new multi-year business license encourage new businesses?
- What is the difference between a regular business license and a multi-year license?
- How much do both regular and multi-year licenses cost?
- How can you set up a free zone company in the UAE?
- What benefits can investors obtain in the UAE free zones?
- How can Connectfz help you set up your business in a UAE free zone?
1. Why should you consider setting up your business in the UAE?
All investors who have established their businesses in the UAE have succeeded and accomplished their goals. As a result, more investors come to the country every month looking forward to setting up a business in UAE. With support services and benefits at your disposal, you can establish your company and success will be guaranteed.
Therefore, if you’re interested in doing business here, let’s take a look at some reasons why you should:
- This country is in a strategic location between three continents, which are Europe, Africa, and Asia. Consequently, all investors have easy access to the GCC and the Middle East market.
- There are three options you can choose from, which are free zone, mainland, and offshore company formation in Dubai. If you choose the free zone company option, you can choose between the 45 available free zones.
- You will be able to choose from a variety of available business licenses in any location. Among the most common licenses, you can find the commercial license, industrial license, service license, professional license, and more.
- The country also has a favorable legal framework and laws that motivate investors to open their companies. For example, you can obtain tax exemptions in all free zones, including corporate and income tax exemptions.
Here you can learn about some free zones in Dubai and the cost of the company registration process in them.
2. What is a multi-year business license in the UAE?
Among the several innovating elements, you can find the Multi-year Business License. This license was recently incorporated in some free zones to boost the different businesses in the country. However, it is only available in few specific locations. You might find this new license as a new resource that will help you save money and time. Keep reading this article to find more information about it.
Here you can learn about the setup process of a software company and the Software Development Business license.
3. Where can you obtain a multi-year business license?
Currently, the Multi-year Business License is only available in two free zones in the UAE. These free zones are SHAMS (Sharjah Media City) and IFZA (International Free Zone Authority). You can find the first free zone in the Sharjah emirate. Meanwhile, you can find the other free zone located in Dubai.
3.1. Sharjah Media City Free Zone (SHAMS).
This free zone dedicates its space and resources to boosting media-related companies. All investors can find the opportunities they need to make their media and creative businesses succeed. SHAMS Free Zone was launched in 2017 and since then it has been a popular location among media-related enterprises. If you are looking forward to setting up a media company, this is the best option for you.
In this location, you will be able to find several licenses, such as trading, industrial, and service license. Besides, you can obtain other benefits to help you operate your business easier. For instance, there is an allocation of up to six visas on a shared desk facility. Also, you can find two important airports nearby, which are the Sharjah International Airport and Dubai International Airport.
3.2. International Free Zone Authority (IFZA).
On the other hand, you can choose to set up your business in the International Free Zone Authority in Dubai. Although it is among the newest free zones in the UAE, it has earned an outstanding reputation in no time. Nowadays, this location is home to many local and international companies. Besides, it works with more than 400 company formation specialists to help investors set their companies up.
Just like in SHAMS, here you will find the trading license, the service license, and the industrial license. In addition, you can find others, such as the general trading license, the consultancy license, and the holding license. Among the benefits that this location provides, you can establish your company remotely. Another advantage is that it is one of the cheapest free zones in the country.
Here you can learn about the company formation process in the available Sharjah Free Zones.
4. How does the new multi-year business license encourage new businesses?
With the new Multi-year Business License, some changes are now advantages to many kinds of companies. For instance, in Sharjah Media City, this license provides an ecosystem for entertainment and media companies. This ecosystem helps them set up their base and expand exponentially. On the other hand, investors can avail discounts on the license package with this new license.
To summarize, the new multi-year license allows investors to obtain cost-effective business setup packages during their setup process. Moreover, it allows them to save money and time.
5. What is the difference between a regular business license and a multi-year license?
The only difference between these two types of licenses is their duration. While the regular license is only valid for a year, the Multi-year Business License lasts for at least 2 years. However, this license can be valid for 3 or 5 years too, depending on the chosen package. Another difference between these licenses is the cost of each one.
With a multi-year license, you won’t renew your license every year, which is the case with the regular license. This is an advantage if you do not desire to spend time renewing your business license annually. Besides, it could help you save money too since you will not have to pay an annual renewal.
6. How much do both regular and multi-year licenses cost?
The cost of the Multi-year Business License may vary according to the free zone. In Sharjah Media City, a package could cost AED 37,800 approximately. This package includes a three-year business license plus one visa quota. However, other fees are calculated separately, like the fee for the visa, Emirates ID, and e-channel registration.
On the other hand, in the International Free Zone Authority you can find other prices. In this location, a package costs around AED 40,300. The package includes a business license valid for three years and one visa quota. Any option could be an advantage, as we mentioned before. Analyze the fees and costs to make the right decision.
Here you can learn how to apply for a trade license in Dubai and obtain its advantages.
7. How can you set up a free zone company in the UAE?
Establishing a free zone company in this country is a simple process. To build your business in a free zone, you must follow certain steps. Here we’ll briefly explain each of them to help you understand better how the process goes:
- Choose the business activities that you want to perform in your company. It is essential to define them in order to obtain your Multi-year Business License or regular business license. However, it is recommendable to select a proper location before start building your company. For instance, choose a location in which you can find many potential customers according to your business activities.
- After selecting your activities, continue the process by choosing a name for your company. Remember that it must not contain religious or sensitive content. Besides, there are other rules that you must follow when formulating a proper name. For instance, if you will name your company after a person, it must be the investor’s name. Another useful tip would be not using acronyms or initials if the company will carry the investor’s name.
- Right after the previous steps, the documents will be next. Firstly, prepare the required documentation that the process demands and submit them. And then, you will be able to apply for your business license.
- Opening a corporate bank account is the next step. If you have a reliable business partner, you can let your partner finish this process. This way, you will be able to save your time and skip formalities.
- Remember to apply for the visas you need after completing the previous steps. And finally, your company formation will be completed and you will be able to start operating it.
Here you can learn how to set up your business in Umm Al Quwain Free Trade Zone.
8. What benefits can investors obtain in the UAE free zones?
If you choose to set up your business in a free zone, you can receive several benefits to boost it. Keep in mind that you might receive some additional benefits depending on the free zone you choose. But here we will only take a look at the common benefits that all free zones offer:
- 100 percent of foreign ownership of the company.
- Full repatriation of profits and capital.
- Total exemption from export and import taxation.
- Full exemption from personal and corporate income tax.
- Business-friendly laws and regulations allow your company develops its activities freely.
- Access to a large pool of high-qualified workers that you can hire.
- World-class infrastructure and logistics facilities, including warehousing services.
- Support services and incentives to help you improve and develop your business efficiently.
However, it is important to choose a free zone that fits your business type. And in case you desire to obtain the Multi-year Business License, you can only choose between SHAMS and IFZA. For now, these are the only free zones that have launched this license in the UAE.
Here you can learn about the benefits of a restaurant license in Dubai and how to obtain it.
9. How can Connectfz help you set up your business in a UAE free zone?
Asking for professional support services during your company’s setup process could make it easier and faster. Therefore, you can count on Connectfz to help you fulfill your business requirements to complete your company formation process. If you need business licenses to operate your business, we can offer different packages depending on your desired location.
Besides, if you need assistance during the setup process, we can offer you our helping hand to handle different procedures. Our professional team will provide the solutions you need to complete the process and get the desired results. Similarly, there are other available services that you can request after completing your company formation process.
Once you have established your company, you can request other services to make it more efficient. For instance, you can request our HR consultancy services to make improvements in your human resources department operations. Or in case you need more employees, we can offer you our recruitment and staff outsourcing services.
Would you like to contact Connectfz to know more about the new Multi-year Business License in the UAE free zones? If you have any questions, call us on +97143316688. You can email us at firstname.lastname@example.org, and you will talk to one of our representatives who will answer your questions.