By Freezone business formation in Dubai, in the UAE, has become an extremely important means of consolidating the business’ presence in the Middle East paving the way for a larger market and more opportunities. The UAE has facilitated its services to investors, business owners and entrepreneurs availing a business friendly environment in numerous free zones. A Freezone company in the UAE is one of the most favored options due to the many advantages of setting up UAE Freezone Company. Such as zero corporation and personal tax, 100% company ownership, 100% repatriation of capital and profits, no currency restrictions, and 100% import and export tax exemption.
Freezone business setup cost varies due to a number of factors and fees that an entrepreneur must bear in mind whilst preparing for a Freezone business formation, Dubai specifically or elsewhere in the UAE.
Those factors are:
Freezone Company Registration Fee
A one-time payment made to the Freezone authority at the initial stage of registering a business. The cost differs according to the company legal structure (such as FZE, Branch Office, new entity, or Subsidiary Branch), office facility and number of visas.
Freezone License Fee
A yearly charge functional to companies under Freezone jurisdictions. The licensing fees are applicable to trading, services, or industrial companies.
Rental Cost
Although some free zones offer freehold spaces, office rent cost in Dubai free zones is one of the primary expenses of a Freezone business formation in Dubai. Freezone rental cost is annual or even a several-year-lease. Setting up business in a free zone depends on the Freezone jurisdiction and the renting choices the jurisdiction offers. Further, the rented space type and size states the number of visas availed or the business activities that can be conducted.
Share Capital Requirements
Establishing a Freezone company might require investment by the shareholders of the company or the sole-proprietor. Deciding the share capital in the beginning makes the proceedings easier. Most of the free zones in Dubai, UAE have a minimum share capital requirement to start a Freezone company.
Freezone Visa Fee
A Freezone company has limited employment visa entitlement that depends on the area of the office space acquired by the owner. Visa can be a yearly fee and requires renewal. For a new employee outside of UAE, expenses involve; Residency Stamp, Medical Fitness Certificates and ID Card. For a new employee inside UAE, the expenses are the same as mentioned previously in addition to Issuing visa without leaving UAE expenses. Free zones offer investor or partner visa, but most of the free zones offer employment visa for positions like director or manager (with attested degrees) or lower positions like clerk which does not require attestation.
Bank Guarantee for Freezone
A Freezone company might need to show a certain amount of bank guarantee for every employee.
Registered Agent Fee
In a Freezone, a UAE local agent is not required unless the activity of the set up Freezone Company is commercial that includes trading or selling within the UAE local market then appointing a local distributor is needed.
Other important expenses
Depends on Freezone-to-Freezone
- Name Approval Charges
- Notarization Charges
