All You Need to Know About Free Zone in Dubai

Dubai is one of the most prosperous economies in the world. Being one of the leading centers of art, culture and commerce, it has become a lucrative destination for investors. However, there is a wrong notion among many entrepreneurs that setting up a business in Dubai is very troublesome.
Most of them consider that there are limited types of company incorporation. Only a handful of them are aware of the other setup possibilities like Representation/ Branch office, Offshore Company, Free Zone Company etc., and most of them solely consider the business set up rules of LLC Company.
Free Zones in Dubai

In order to ensure entrepreneurs can earn huge profits, there are several Free Zones in Dubai. These zones are special economic zones where foreign investors can carry out their business at ease. One can own a business in some of the following forms mentioned above. Dubai has the maximum number of Free Zones among all the other emirates of UAE and thus is one of the fastest growing economies in the world.

Benefits of Free zone company setup in Dubai

Free zone company setup in Dubai is encouraged because there are several benefits which are as follows:

• A Free Zone company formation allows 100% foreign ownership. 
• An organization can enjoy 100% conversion of capitals and profits. 
• It is free from personal and corporate taxes and need not pay any custom duties and import and export taxes. 
• There are minuscule restrictions on recruiting labor.
• A free zone company can share services and collaborations with other companies in the free zone. 
• The incorporation process of a company in the free zone is faster and easier than incorporation outside it. 

How to setup a Free Zone Company in Dubai 

There are a few basic requirements for business setup in Dubai free zone like:

• One needs to acquire a trade license to conduct business in Dubai. This license should be renewed annually. Therefore, to acquire the trading license at the earliest ensure the nature of your business as not every Free Zone allows every kind of business. 
• It is important to have an office with the company’s name in the Free Zone. One can rent a place to set up his office. 
• A company should have a manager who would be the authorized acting representative of the company. 
• It must have a shareholder.

Even though there are several advantages of business setup in Dubai free zone, there are a few limitations as well, for example, a Free Zone company is not allowed to trade directly with the UAE market.

Role of Business setup Consultants in Dubai 

It is often suggested that an aspiring entrepreneur should probably seek the services of a business setup consultant in Dubai. This is because; the consultants with the team of experts will give you customized insights based on your type of business. This makes the business incorporation easier and faster. The consultants also offer other business management services like account outsourcing, payroll outsourcing etc., which can be used at later stages of your business.  

All You Need to Know About Free Zone in Dubai

Dubai is one of the most prosperous economies in the world. Being one of the leading centers of art, culture and commerce, it has become a lucrative destination for investors. However, there is a wrong notion among many entrepreneurs that setting up a business in Dubai is very troublesome.
Most of them consider that there are limited types of company incorporation. Only a handful of them are aware of the other setup possibilities like Representation/ Branch office, Offshore Company, Free Zone Company etc., and most of them solely consider the business set up rules of LLC Company.
Free Zones in Dubai

In order to ensure entrepreneurs can earn huge profits, there are several Free Zones in Dubai. These zones are special economic zones where foreign investors can carry out their business at ease. One can own a business in some of the following forms mentioned above. Dubai has the maximum number of Free Zones among all the other emirates of UAE and thus is one of the fastest growing economies in the world.

Benefits of Free zone company setup in Dubai

Free zone company setup in Dubai is encouraged because there are several benefits which are as follows:

• A Free Zone company formation allows 100% foreign ownership. 
• An organization can enjoy 100% conversion of capitals and profits. 
• It is free from personal and corporate taxes and need not pay any custom duties and import and export taxes. 
• There are minuscule restrictions on recruiting labor.
• A free zone company can share services and collaborations with other companies in the free zone. 
• The incorporation process of a company in the free zone is faster and easier than incorporation outside it. 

How to setup a Free Zone Company in Dubai 

There are a few basic requirements for business setup in Dubai free zone like:

• One needs to acquire a trade license to conduct business in Dubai. This license should be renewed annually. Therefore, to acquire the trading license at the earliest ensure the nature of your business as not every Free Zone allows every kind of business. 
• It is important to have an office with the company’s name in the Free Zone. One can rent a place to set up his office. 
• A company should have a manager who would be the authorized acting representative of the company. 
• It must have a shareholder.

Even though there are several advantages of business setup in Dubai free zone, there are a few limitations as well, for example, a Free Zone company is not allowed to trade directly with the UAE market.

Role of Business setup Consultants in Dubai 

It is often suggested that an aspiring entrepreneur should probably seek the services of a business setup consultant in Dubai. This is because; the consultants with the team of experts will give you customized insights based on your type of business. This makes the business incorporation easier and faster. The consultants also offer other business management services like account outsourcing, payroll outsourcing etc., which can be used at later stages of your business.  

Five Myths Debunked About Hiring A Business Setup Consultant In Dubai

Dubai is one of the fastest growing economies in the world and this is the reason why it is a lucrative spot for investors and entrepreneurs. For setting up the business in Dubai, experts suggest that it is best to seek the services of business setup consultants. However, there are many wrong notions surrounding business setup consultants in Dubai that persist among the group of investors and small entrepreneurs. So, here are 5 myths that are associated with business setup services.

  1. “Such services are suitable for big companies” 

One of the biggest misconception surrounding Dubai business setup consultants is that small scale entrepreneur believes that these services are appropriate for bigger firms. They believe that these services are needed to handle a company with complex processes and those with a massive organizational structure. But in fact, business setup services are needed to ease company incorporation because one might not be aware of the rules and regulations that govern the processes involved.

   2. “ Consultancy services provide you limited guidance” 

Consultancy services provide you guidance throughout the incorporation procedure. They start from building a proper plan for your start-up and instruct you to furnish all the required documents, which are essential for the registration of your business.
They then make sure that the documents reach the right department and are forwarded after successful scrutiny. One of the biggest advantages of seeking the services of business setup consultants in Dubai is that one need not run from one ministry to another to get all the permissions in place.

  3. “ Consulting is same as outsourcing”

Consulting is not the same as outsourcing. While outsourcing refers to hiring another organization on a contract to complete a process for your organization, consulting refers to the advisory services, which one might need to conduct on a task or process. Therefore, one can say that a management firm renders both outsourcing and consultation services, but both the services are very different from each other.

  4. “ Your data can be easily misplaced as they handle several clients” 

Even though the consultants handle a huge number of clients, they have defined teams that handle one client at a time. Moreover, these services are meant to speed up the company formation process, so the goal of these services is to deliver you the result at the earliest. Therefore, a mistake from their end may happen once in a blue moon.

Additionally, if you hire the same firm for outsourcing any service, even then they make sure that a high level of confidentiality and accuracy is maintained in rendering you the services. So, your data is safe with these firms in every manner.

  5. “The services of a business setup consultant is overpriced”

Business setup consultants in Dubai help you in getting a business license, incorporating your company and opening a bank account. All these processes can be smoothly done only if all the requirements are fulfilled, so the consultants ease this task. Therefore, the charges are set in accordance with the effort, expertise and time required to accomplish these tasks.