Ranked one of the topmost business hubs worldwide in the World Bank’s Ease of Doing Business 2020 report, the UAE is the ideal business place owing to several reasons such as being the economical free zone for cheapest company setup in UAE, along with its strategic location and 0% tax policy. So, if you’re planning to expand your business or establish a new one, the UAE can offer an accelerated environment for your dream venture.
Apart from the significant advantages the emirates offer, another reason why the UAE is becoming a global business hub is the ‘free zones’. With the increasing rate of business in the UAE, free zones are gaining much popularity among global investors. However, business setup consultants at Shuraa can assist new-age investors to select the best and cheapest freezone for company setup in UAE.
What is a free zone?
Freezones are special nominated areas by the UAE government where businesses can be set up at nominal tax and customs rates. Each freezone is determined by a geographical area, confined within the particular emirate. Moreover, each free zone follows a different set of laws and commands governing the businesses.
The purpose of free zones is to boost foreign business by offering numerous benefits such as 100% business ownership, full repatriation of profits, exemption from corporate and personal taxes, freedom from currency restrictions, as well as the availability of several licensable activities. With every freezone in the UAE categorized based on business activities, it is essential to recognize your business requirements while choosing a free zone for cheapest company setup in UAE.
Why set up your business in a free zone?
There are plenty of reasons that coerce expatriates to go for the cheapest free zone license in the UAE. Therefore, before selecting a freezone, business owners must be mindful of the deal a freezone can offer. Here are the 5 top advantages of setting up a business in a Freezone:
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100% Foreign ownership
The most prominent benefit of starting a business in a free zone is full ownership rights. In a free zone, a business owner can enjoy 100% ownership without the intervention of a UAE sponsor.
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Corporate and personal tax exemptions
UAE’s tax system makes it one of the most obvious reasons to set up a company here. One can obtain the cheapest free zone license in UAE with an offer of 100% exemption from personal and corporate taxes.
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Easy setup
Getting a freezone license in Dubai might be an easy process, however, the exact company formation process may depend upon the type of business activities chosen by you. In utmost cases, basic documentation and credentials are sufficient to establish your business.
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Import and export duties exemption
Business owners are exempted from paying import and export duties by the UAE authorities. Financial transactions are much more easier with a flexible currency exchange system and no currency regulation restrictions.
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Support from the government
Driven with world-class infrastructure, the UAE government is very supportive and hospitable to budding investors. The Free zone authorities assist the new businesses by providing a freezone license in the UAE and thereafter promoting and backing their business activities.
Cheapest free zones in the UAE
The Freezones in the UAE offer a host of benefits for its investors, thus becoming a popular choice for business setup. However, various factors need to be considered during shortlisting freezones for the cheapest company setup in UAE.
Here are the top few free zones which are relatively cheap and offer several other benefits as the other free zones.
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Ajman Media City (AMC)
Ajman Media City is the brand new investment destination in the UAE that offers an extremely quick and simple company formation process. This free zone attracts businesses from all across the world by offering easy and cost-effective services, making it an ideal place for small and mid-sized business owners to set up their businesses.
AMC incorporates a wide variety of media and entertainment-related activities, along with some trading activities as well. The business activities majorly fall under the below heads:
- Service and Consultancy
- Media related training
- E-commerce.
AMC also offers a world-class infrastructure with shared as well as customized offices, Flexi-desk, etc. to the business owners.
With a trade license starting from AED 11,000, AMC is renowned as one of the cheapest free zones in the UAE.
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Sharjah Media City free zone (SHAMS)
SHAMS in the UAE is the fastest-growing media-free zone which accommodates some of the biggest businesses and companies. Sharjah fosters a vibrant and growing atmosphere for budding entrepreneurs, promising ideal freezones for new-age investors as well as established businesses.
SHAMS offers a vast list of business activities. Moreover, multiple business activities can be undertaken under one license. The business licenses that are offered in SHAMS are:
- Trading
- Professional
- Holding and other types
- Social media influencer
This free zone is the best preference for people willing to set up a business remotely, without having to visit UAE.
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Raz Al Khaimah free zone(RAKEZ)
RAKEZ, at present, houses more than 14k companies under more than 50 niche sectors. Setting up a business in RAKEZ is cheap as well as quick. The proximity to RAK airport and seaport makes this free zone a lucrative option for aspiring entrepreneurs.
RAK is renowned for its customizable warehousing solutions. You can choose the size of the warehouse as per your preference, depending upon your business activities. It also assists in recruitment and provides labor accommodations. Providing the largest list of business activities in the UAE, the below heads incorporate them all:
- Commercial
- Service
- Industrial
- Media
- Educational
- Professional
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International Free zone Authority, Dubai (IFZA)
Located in the Silicon Oasis Area in Dubai, IFZA is the cheapest and one of the competitive free zones in the UAE. It offers a vast choice of low-cost company setup packages and world-class infrastructure, along with a wide range of modern office solutions that match international standards.
The Dubai Department of Economic Development is the sole decision-maker of the range of business activities that are ought to be conducted in this freezone. You can choose a maximum of seven activities under one license. The types of licenses offered in the IFZA are:
- Consulting
- Service
- Trading
Establishing a business in IFZA can minimize the capital requirements for your company, thus saving on your annual audit costs. Another advantage of setting up a business in IFZA is that you can set up your office, warehouse, and a residential apartment on the same premises.
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Umm Al Quwain Free Trade Zone (UAQ FTZ)
UAQ FTZ is the best freezone in the UAE for start-ups, SMEs, and business groups for setting up offices. Its easy access to Dubai, international ports, and top-class infrastructure make it a favorite choice for investors.
UAQ FTZ has been operating as an autonomous Freezone since 2014. It is widely popular for its low-cost business setup and low running costs. However, UAQ FTZ is expected to witness rapid growth in the coming years.
The types of licenses offered in the UAQ FTZ are:
- Commercial
- Consultancy
- Industrial
- Services
- Freelance permits
- General Trading
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Fujairah Creative City
One of the cheapest free zones in the UAE, offering a variety of affordable license packages with no paid-up share capital requirement, no annual audit and an easy incorporation process.
Fujairah Creative allows entrepreneurs to establish and run their company remotely, without being present in the UAE.
Conclusion
Starting your business in the UAE is much easier now. However, while getting on your search for the best freezone for cheapest company setup in the UAE, prior knowledge of the free zones and the company formation process is required. To reap long-term profits and growth, it is important to seek advice from the best business set up consultants in Dubai and other emirates. Invest your time with Shuraa’s reliable company setup experts and enjoy hassle-free incorporation.
Get started!
To learn more about the best and cheapest freezones to open a company setup in the UAE, call +97144081900 or drop a WhatsApp message on +971507775554. You can also email us at enquiry@shuraa.com.