Costs and considerations of forming a free zone company DubaiKWS Admin
Free zones have been extremely successful in encouraging company formation in Dubai in the UAE. The authorities painted a picture that tempted the investors all over the world to invest in Dubai. They saw the prospects, came to the UAE and saw that there was no exaggeration by the government of the UAE. The picture shown to investors, the possibilities and the opportunities were actually how they were in the UAE.
No other country had provided them with such brilliant business opportunities and incentives to encourage them to invest in the UAE. There was every type of ease in running a company setup in Dubai in the UAE to cash in the opportunity to provide to a new market that was had not been explored. Today, the same people have accessed the markets in Asia and are successfully providing them with the products and services that the markets demand, using the company setup in Dubai.
Free zones were used as an incentive for investors to complete company formation in Dubai.
Costs and considerations
Processes and procedures are religiously followed in the UAE. This is the key to its success and its growth as a regional business hub in Asia. Let’s first understand what free zones are.
- Free zones are specific areas provided by the relevant authorities of the country or city to use for business and investment purposes.
- In these free zones, the authorities might provide facilities and equipment to allow the businesses to operate and conduct their affairs smoothly. These zones may also allow businesses to significantly reduce costs, that otherwise would not have been possible.
- Free zones also let the businesses in UAE to be exempted from taxes. These incentives allow businesses to operate at reduced costs and improve its performance in the market by taking advantage.
Owning a business in free zone allows you to benefits from provisions like 100% foreign ownership, exemption from personal and corporate tax, exemption from import duties, complete repatriation of profits, confidentiality of your assets and many other benefits.
To setup free zone company, you are might be required to invest a minimum share capital, the amount of which can vary greatly. Major costs include,
- One-time business registration fee for free zones.
- Annual license cost for free zones
- Annual visa fees for free zones
- Yearly or termly office rent
- Annual bank guarantee for every employee
- One-time cost of registered agent, with renewal fees
- One-time cost reservation of trade name
- One-time Memorandum of Association Cost
- Postal services cost
- Cost of health insurance
- You must consider the type of company that is required for the business that you want to setup.
- The right free zone for the right business must be chosen
- Costs and future prospects have to be kept in mind
- The location for investment has to be a well-thought decision
We are here to help
KWS ME, business setup consultants Dubai, can help you choose the right free zone so that your decision aligns with the interests of your business plan and your investment strategy. Our experts will take care of business registration as well as provide pro services, trade mark and product registration, and visa processing as part of the support services that we provide as business setup consultants Dubai.
Call us now and get updated with the information you require. Our experts are always there to help.