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The UAE has become a prominent global center for business, trade, and commerce, providing a vibrant business climate ideal for growing or launching a venture. You can easily set up a business in one of 40-plus UAE free zones and choose to deal in over 2,000 activities across several business categories.
But why pick a free zone? It’s a common choice for budding startups and multinational corporations because of the plethora of advantages this type of trading ground offers to international investors, including:
- 100 percent foreign ownership.
- Zero percent corporate tax rate.
- No capital or personal income taxes.
- Full repatriation of earnings and capital.
- Import and export are duty-free.
- Liberal labor laws and rules regarding visas.
- No restrictions on currency.
- A more streamlined hiring procedure.
- The availability of workspaces, warehouses, and manufacturing areas.
Choosing the best free zone in UAE for your business setup
One of the most crucial choices an entrepreneur must make is which free zone to locate their company in. Not all free zones will suit your needs – take into consideration company activities, costs, facilities, incorporation requirements, and procedures. Keep the following things in mind when choosing a location for your business:
- The type and scope of the intended business activity.
- The personnel and visa need of the proposed organization.
- The ‘startup’ budget.
- Infrastructure and location for logistics.
- Free zone licensing concerning the planned activity.
- The procedure for establishing a business, including the required paperwork and expenses.
- The amount and cost of rent for the necessary industrial, storage, or office space.
- Ongoing expenses (renewal of annual license fees).
- Range of services provided.
- Unexpected charges.
Can’t decide which UAE free zone? Check out the top 5 free zones we recommend below.
1. International Free Zone Authority (IFZA), Dubai
IFZA is based in Dubai and offers quick and easy incorporation with competitive packages for free zone licenses. Commercial, industrial, branch and professional licenses are among several kinds you can pick from. Multiple activities are bundled under a single license permit from IFZA.
- Professional License: This is for companies offering various services and professional consulting.
- Commercial License: This allows certain goods to be distributed, imported, exported, and stored.
- Industrial License: A license that permits the import of raw materials and production, processing, packing, and export of goods.
- Branch: This permits overseas businesses to establish a branch. The proposed branch must carry out activities consistent with those of the parent company.
2. Ras Al Khaimah Economic Zone (RAKEZ), Ras Al Khaimah
At the beginning of 2017, the RAK Investment Authority (RAKIA) and Ras Al Khaimah Economic Zone (RAKEZ) merged to form the present-day Ras Al Khaimah Economic Zone (RAKEZ). RAKEZ offers excellent services, affordable setup packages, and contemporary facilities.
Compared to free zones in Abu Dhabi and Dubai, it provides a range of trade licenses in the UAE and activities at reasonable prices. The following categories of licenses are available: freelancing permits, commercial, educational, e-commerce, general trading, individual or professional, industrial, media, and service licenses. RAKEZ features six zones that cater to commercial needs:
- Al Ghail Industrial Zone: This zone is perfect for investors who want to start large-scale industrial manufacturing businesses. It offers land plots ranging in size from 5,000-meter squares and lets you construct or lease on-site housing for your workforce.
- Al Hamra Industrial Hub: This hub is for projects involving both heavy and light industries. Investors can create a free zone and non-free zone entities here. It offers offices, labor housing, warehouse space, and land parcels.
- RAKEZ Academic Zone: Its primary objective is to draw in and assist training centers, professional development organizations, and educational establishments. It offers pre-built facilities for newly established Higher Education Providers (HEP), offices for education support, consulting, and training, and land perfect for constructing a school.
- Al Hulaila Industrial Zone: This region is set aside to produce heavy industrial goods. It offers workspace, labor housing, offices, and warehouses.
- Al Nakheel Business Zone: It’s a center for freelancers, SMEs, start-ups, and entrepreneurs. Both private offices and communal workstations are available here.
- Al Hamra Business Zone: It provides quick access to major retail centers, logistical hubs, and residential and recreational complexes with shared workspaces and private offices.
3. Dubai Multi Commodities Centre (DMCC), Dubai
The government of Dubai founded DMCC in 2002 to promote trade through the city. It is the primary hub for global business and one of the most networked free zones on earth. DMCC offers business centers, office buildings, commercial properties, and serviced offices. It comprises over a hundred retail establishments, 87 residential and business towers, and 19,000 registered organizations. For all your financial requirements, it also provides an extensive array of financial services, trading tools, and investing platforms.
4. Jebel Ali Free Zone Authority (Jafza), Dubai
Jebel Ali Free Zone, formed in 1985, is the oldest and one of the largest free zones in the country, globally emphasizing business, trading, and logistics. Now, Jafza is home to 8,700-plus firms from over 130 countries. It covers 57 square kilometers on both sides of Sheikh Zayed Road (E11) in the extreme western part of Dubai, close to Jebel Ali Port.
Jafza has seven licenses in its portfolio that are given out according to the business activity. Holders of trade license can import, export and distribute specified items; a general trading license allows trade in a wider range of items and activities; service license; industrial involves importing, manufacturing, and, then, importing finished products to other countries; national industrial license; logistics license; and e-commerce license for online businesses.
5. Sharjah Airport International Free Zone (SAIF Zone), Sharjah
With its advantageous location close to air and seaports, SAIF Zone has drawn more than 8,000 businesses from 160 countries. It provides a range of amenities, including several plot sizes, shops, medical clinics, pharmacies, labor accommodations, storage facilities, and flexible desks and offices.
The SAIF Zone offers three different kinds of licenses: trade, service, and industrial. Furthermore, the SAIF Zone provides greenfield and brownfield project financing, capital expenditure financing for facility expansion and upgrades, financial support for integrating industry 4.0 technologies, and financial help for clean energy transformation to SME (small and medium-sized enterprises) and startups who are planning for business setup in Sharjah free zone.
Contact A&A Associate for your Free Zone Business Setup in UAE
If you can envision your enterprise set up house in these trade zones, ring our experts at A&A Associate for a free consultation on +971 50 483 6190 or register your interest on our website for a callback from one of our consultants. You can also chat with our representatives online.
