February 14, 2021
Forming a Company in UAE is a quite complicated and challenging task for foreign investors. During the past few years, there are several free zones has opened in Dubai to help small businesses, consultant and even freelancers. While there are several benefits of a free zone company, but make sure to consider some crucial factors before starting up a business. In this blog, we have listed some important questions that you should ask before the formation of a free zone business.
Wondering how to initiate a Mainland Company setup in Dubai? See here!
What is the cost of establishing a free zone business?
Many people think that setting up a free zone business requires little investment, but there are many hidden costs that you don’t know. Here are some key costs that can increase your overall expenses.
Annual fees included also in this cost. So, approximately setting up a free zone company can cost you more than 30000 AED.
What is the cost of a trade license?
When it comes to getting a free zone trade license, it may cost you 10000 to 20000 AED annually. But it depends on the number of business activities that you choose for your business. Usually, the free zone allows you to choose 2 to 10 business activities, and they provide you a list of all business activities. The cost of a trade license varies on the types of free zones.
What are the benefits of setting up a free zone company?
Establishing a free zone company offers you plenty of benefits such as
There is some free zone that also provides you training and learning sessions without any fees. They also provide you with meeting rooms and promote your business.
Do you need to open a company account?
Generally, in Dubai free zone business setup is required to open a bank account before getting a trade license. But some banks can ask you to provide a copy of the trade license before opening an account. Therefore, it is better to take advice from considered free zone area as they can help you regarding this matter.
Do you need a local sponsor or partner?
One of the key benefits of forming a free zone business is you do not have to find a local sponsor or partner for your company. You have 100% ownership of your business.