An entrepreneur, willing to set up business in the UAE, has the option to set up in the mainland or in Free Zones. The Emirates offer numerous benefits to entrepreneurs in the form of super infrastructure, advanced technology, hassle-free licensing, etc. Moreover, the government offers full support for big business houses, to expand their business as well as to start-ups. There are more than 60 Free Zones in the UAE. The emirates are synonym to luxury and opulence. The term affordable may not be associated with it. However, the Free Zones provide benefits which help to make the business function affordable. Before listing out some of the cheapest Free Zones in UAE, lets look at the benefits of Free Zones.
Benefits of Free Zones
- 100% ownership
- profit repatriation
- tax exemption
- secure banking
- world class infrastructure
- fast and easy business set-up
Each Free Zone is designed for specific business types. However, each Free Zone has unique law and jurisdiction. There are many cheap Free Zones in UAE.
Major Freezones in UAE
Listed are some major Free Zones in the UAE:
- Dubai International Financial Center (DIFB): DIFB is a business hub and among top 10 financial centers in the world. Moreover, DIFB has independent regulators, the DFSA ( Dubai Financial Services Authority), along with separate law judiciary DIFC courts.
- DIFB is only 2nd finance FZ in the Emirates.
- However, it is mainly a finance-oriented FZ
- No limit on capital repatriation
- Banking, brokerage, financial management, financial consultancy services are main businesses here. In addition, saloons, gyms, shops, restaurants are other businesses here.
- Dubai Silicon Oasis (DSO): This FZ provides state-of-the-art technology, provides employment and residential facilities.
- Major firms here are law firms and consultancy
- Technology is the main highlight of this FZ
- DOS is near to Jebel Ali Port and Dubai international Airport
- In addition, it has tier 3 data center and advanced IT infrastructure.
- Jebel Ali FZ (JAFZA): This FZ is the oldest in the emirates and also among the largest FZ in the world.
- The major businesses here are logistics, commodity trading shipping companies, etc.
- In addition, JAFZA gives six types of licenses for manufacturing, trading and services related activities.
- Moreover, it is near Jebel Ali Seaport and Al Maktoum International Airport.
- JAFZA has the most powerful business community in MENA (Middle East & North Africa) region.
- Dubai Media City: It has the best in class infrastructure and supports media business. This is one of the cheapest and the best in UAE.
- Major businesses here are event management, advertising, news media
- Exemption from customs duty
- Dubai Health care City (DHC): This is the world’s 1st medical FZ. It has premier healthcare institutes, clinics, pharmacy, and medical equipment trading.
- It is supervised by DHC
- Exemption from tax
- In addition to medical services, there are several 5 star restaurants and other businesses also.
Some of the Cheapest Free Zones in UAE
- International Free Zone Authority (IFZA) Fujairah:
- IFZA has wide range of advanced office solutions.
- High standard warehouse facilities
- Moreover, flexi-desk facility is available here
- In addition, it offers flexible rental facilities
- Fast and easy set up of business
- No foreign currency restriction
- One can set up a LLC here.
- Consultancy, services, trading, general trading industrial license and holding license are the licenses available here.
- Ras AL Khaimah Economic Free Zone:
- Cost- effective Free Zone with modern facilities, services and infrastructure.
- Customer- friendly and easy business set up.
- More than 14000 companies in RAK
- RAK has a business park, 3 industrial parks and an academic zone.
- Provision for Free Zone and Non-Free Zone companies.
- Moreover, RAK has easy access to world market through seaport and airport.
- Umm Al Quwain FTZ:
- Supports start-ups and SMEs.
- Autonomous Free Zone since 2014
- Moreover, it has low cost incorporation and low operational cost
- The major businesses here are of commercial type, consultancy, industrial, services, freelance, and general trading.
- Ajman Media City FZ:
- One of the fastest growing Free Zones
- Offers low rentals for apartments.
- World class infrastructure
- Cost- effective business set up and fast incorporation
- Moreover, multiple business activity license is available
- Hub for media and entertainment business.
- FZ establishments, FZ company, branch of foreign company, subsidiary of foreign company, branch of a UAE company are the business types.
Selection of Free Zone
How to select the cheapest Free Zones in UAE depends on the following:
- location of Free Zone
- the structure of business
- the registration cost in Free Zone
- the license cost
- flexi-desk or permanent office
- low resident visa charges.
In conclusion, the Free Zones offer many benefits. Each FZ has their own specialties. The FZs attract businessmen to expand their business in UAE as well as to set up a start-up company. There are many factors to consider selecting a Free Zone. However, the main factor to consider is the cost of setting up a business. Therefore, the businessman has to make a complete analysis of factors to reach a correct decision.