Why to choose freezone in UAE?
There are various benefits of setting up a business in the free zones. The location of Dubai is one of the most attractive part, because the Dubai international Airport is a major thing which enables seamless travel to any part of the world to conduct business trips and attend business meetings.
And if someone wants to start their own business in Dubai, then the free zones in Dubai comes first. Each free zone is an independent entity and each of them provides features such as.
- 100% foreign ownership
- Simple setup process
- 100% free transfer of funds
- Different and independent rules and regulations
- 100% exemption of import and export duties
- Provision of step-by-step support
- 100% repatriation of capital and profits
- Free zone company formation is quicker than incorporation outside of the free zones UAE
- Protection of the privacy of the company
- 25 year’s lease options, warehouse facilities, availability of areas for production and assembling
- No currency restriction
- Inexpensive workforce and easy recruitment procedures
- No levy of taxes or import and export duties
- Various locational advantages
- No limit on the currency used
- Complete repatriation of profits
- Apart from these pros mentioned above, there are many other benefits like some free zone even provide benefits according to the size and nature of company and business.
How to Choose a Cheapest Freezone in UAE
It’s difficult to find a Cheapest Freezone in UAE, so we should consider several things while searching, like first we should know business we are choosing and according to our business consider the location of the free zone, in which offers a virtual flexi-desk and package with the price is inclusive of your visa application.
They will provide some incentive to the company in certain situations, and some will allow specific subsidies for company incorporation in the free zone.
Let check out some of the most cost-productive free zones present in the United Arab Emirates:
Top 5 cheapest Freezone in UAE
The Most Cost Effective Free Zones In The UAE
Among the 38 free zones in UAE, here are some free zones, where we can have a cost effective business set-up.
1. IFZA- (International Free Zone Authority)
IFZA free zone in Fujairah is one of the most cost effective business center in UAE. In Fujairah, the east coast emirates of United Arab Emirates having quick access with other emirates like Dubai and Sharjah makes IFZA a global attraction for the new business setup.
This Freezone offers various services in international standards, like a one-stop shop for all permits and license. Providing all the required benefits make IFZA an ideal free zone to all the investors who are planning to set up company in UAE, at cost effective fee structure.
- 100% foreign ownership
- 3 year UAE Residency visa for Owner & Employees
- Cheapest, quickest and easiest company formation
- Availability of a range of business activates
- No requirement of a physical office
- 100% exemption from corporate and income tax
- Passport copy of your origin Country
- No Share capital
- They need no guarantee deposit for employee visa
- It does not require physical presence of shareholder
- Ability to incorporate holding companies
- Easy to open a UAE bank account
- It requires no annual audit report
- Company setup in just one day
- Consultancy license
- Service license
- Trading license
- General trading license
- Holding license
2. RAKEZ (Ras Al Khaimah economic Free Zone)
RAKEZ Free zone is situated in the heart of Ras Al Khaimah. They established this free zone because of an initiative taken up by the government two separate free zones, namely RAK Investment Authority (RAKIA) and RAK Free Trade Zone (RAKFTZ). RAKEZ also has the provision of formation of a Free Zone and a Non-Free Zone company.
- 100% tax-free
- Zero customs duty on re-exported goods
- 100% repatriation of profits /funds
- Free Zone company can access to local market through a local agent
- Freedom to source labor from local and international market
- Customized Solutions
Non–Free Zone companies are considering as a local company and they have full-fledged freedom of doing business inside the free zone and outside the free zone with no restrictions.
Features of RAKEZ non-Free Zone
- No customs duty on sales in local and GCC markets
- Non-Free Zone company is subject to UAE labour law
- They can establish a company in association with a UAE partner
- Direct sales in a local market and there no restriction for dealing with local and international companies
- 0% taxation
- Commercial license
- Educational license
- Commerce license
- General trading license
- Professional license
- Industrial license
- Media license
- Service license
- Tourism license
- Types of facilities
- Standard Office
- Executive Office
- Shell and Core Office
- Warehouse Facility
- Land for development/building facilities
3. KIZAD (The Khalifa Industrial Zone Abu Dhabi)
The Khalifa Industrial Zone Abu Dhabi (KIZAD) is Abu Dhabi’s first integrated trade, logistics, industrial and free zone, offering outstanding market access, lower operating costs, and greater ease of doing business in the region and globally.
The Free Zone meets the highest standards of infrastructure, logistics and investor support, and built right next to the Khalifa Port, linked to UAE’s major road networks.
The unique advantages of KIZAD are extensive, world-class infrastructure, free zone, and non-free zone solutions, dedicated investor support, tax-free environment with competitive operating costs and strategic location with access to regional and international markets.
Benefits of choosing KIZAD
- Millions of air freight capacity
- Low operational costs
- Easy access to markets
- Shipment capacity
- Customized packages for many business
- Easy access to a different mode of transportations
- No currency restriction
- Purpose-built infrastructure
Types of business license in KIZAD
- Industrial License
- Trading and general trading License
- Services License
4. UAQ FTZ (Umm Al Quwain Free Trade Zone)
Umm Al Quwain Free Trade Zone (UAQ FTZ), is the latest Free zone in UAE, in Umm Al Quwain Emirate. It is friendly, progressive and in prosperous emirate with the modern infrastructure.
UAQ FTZ is situated close to the UAE’s primary sea ports and within one hour’s drive of Dubai International Airport and Sharjah International Airport, ensuring easy access to the rest of the world.
This Free Zone authority is government backed autonomous arm of Umm Al Quwain emirate in the UAE, which may incorporate business companies with trade license.
If you want a transparent and modern legal framework, open investment climate, low costs of living and labor and easy access to trading partners in the Middle East, Africa and Asia, then UAQ FTZ is the best choice.
Benefits of choosing UAQ FTZ
- Investor–friendly climate
- Cost effective leasing options for office space and warehousing
- 100% tax free operations for Umm Al Quwain free zone.
- Flexibility and ease of doing business
- Customer-friendly approach
- 100% company ownership
- Ideal location for SMEs and micro-businesses
- Special concessions via Umm Al Quwain free zone sea port
- Full range of business activities permitted
- Cheap licenses for various activities
Types of license provided by UAQ FTZ
- Commercial License
- General trading License
- Consultancy License
- Premium consultancy License
- Freelance Permit
- Service License
5. AMC (Ajman Media City Free Zone)
Ajman Media City Free Zone is a new free zone in Ajman, UAE. Ajman is one of the fastest growing emirate in UAE and it creates a professional environment for business start-ups.
Different from other free zones, Ajman Media City Free Zone encourages creative entertainment and media business in UAE and offers benefits such as low-cost business setup, ease of doing business and exemption from personal and corporate taxes amongst others.
Proximity to international airports and major cities like Dubai and Sharjah makes Ajman Media City Free Zone an ideal place to start, grow and promote a business on a wide scale in a quick time.
- Easy business setup plans
- Start your business starting from AED 8,500
- Affordable setup costs
- Share certificate for both FZE and FZC
- Hassle-free process to register a free zone company
- Availability of a sustainable framework
- Capital repatriation
- Incorporation of a free zone company in just 24 hours
- Remote business setup
- Multiple licensing options and business setup packages
- A gateway to both local and international markets
Ajman Media City free zone packages
- Business club
- Silver packages
- Bronze packages
- Gold packages
- SMI packages
Business Activities in Ajman Free zone
Ajman Media City Free Zone has a very specific list of activities. Most of the companies registered in AMC, their business activities are advertising, media and IT segments. Free zone allows to have up to 5 business activities under 1 license.
- Social media influencer
- Courier activities
- Legal activities
- Temporary Employment agency activities
Ajman media City allows a to mix commercial and service activities at no extra costs. It should connect them to each other and represent the same business.
These are the five free zones where setting up a company can be very beneficial. Talking about the cost of setting up a business in the free zone, each free zone will have their pros and cons.
Some will provide some incentive to the company in certain situations, and some will allow specific subsidies for company incorporation in the free zone.