How Expat Investors Can Make the Most of UAE’s Free Zones
The UAE is one of the premium global locations for businesses. For one, most commodities here are more affordable compared to other economic hubs across the world. This is a big advantage for SMEs that are still developing their own products.
Another reason why the country stands out as a business setup destination is the cultural diversity, which creates a “better” market for new enterprises. But, perhaps the most important one for entrepreneurs and investors, is the presence of numerous free zones in UAE, which presents more liberal conditions for trading and business establishment.
And focusing on UAE’s free zones, ex-pat investors can benefit so much from them. These free zones allow them to:
- better conduct research for market conditions;
- create a stronger network of connections or contracts;
- carry out global transactions without red tape;
- operate with fewer tax responsibilities;
- and build a corporation so much easier and faster with the help of company setup solutions.
But to secure such benefits and more, it is imperative for ex-pat investors to implement best practices for taking advantage of free zone benefits which are all listed below:
1. Get 100% ownership of the business
A lot of foreign business folks still think that they need a local sponsor to establish a business in the free zones but this is not necessary, so full ownership is possible.
If you’re an expat investor, full ownership of your business will provide you with the freedom to operate as you see fit. You do not have to worry about partnerships with a local sponsor that may affect decision-making or the potential of a fall-out in the future which can, of course, derail your operations.
2. Learn about taxation policies
Tax rules are vastly different when you are operating a business in a free zone so make sure you know and understand the few tax responsibilities you must uphold, which are dependent on the nature of your operations.
Also, since longevity is the goal of every business, it is worth taking into account that VAT or Federal Corporate Income Tax may be implemented in the near future. It is crucial to study now how this may affect the financial dynamics of your operations.
3. Ensure that you are legally and industry compliant
Take care of all the licensing requirements right away to ensure compliance. If you find the process complicated or if you wish to expedite this process, you can get professional assistance. We, at Flying Colour, have PRO Business Services that help individuals and corporate organizations in procuring government approvals and legal permits for operations.
You can tap into these services so your business can become compliant hassle-free, and at the same time, give you the freedom to take care of other responsibilities for the launch of your enterprise.
Do not forget about other industry requirements such as medical or health card applications, visa registration for employees, and others.
4. Turn to business development consultants
It always helps to do away with mistakes whether you are setting up in a free zone or anywhere else in the UAE. Business development consultants can help you gain a smarter perspective on the operations you want to start.
With their experience and expertise, they can provide you with pieces of advice that are known to work in ensuring the success of new business ventures. They will help you mitigate risks and prevent you from making costly and time-wasting “newbie” mistakes.
5. Establish your operations in a strategic location
Boost the chances of success for your business in a free zone by setting up a shop or office in a competitive location. This may be a tad difficult to do if you are working with a small budget, considering the rates for prime commercial properties – especially in Abu Dhabi and Dubai.
However, business formation companies like Flying Colour have this problem managed for expat investors. At Flying Colour, we have an “all-in” service package for business entities in search of office space.
Our Business Centre has fully fitted serviced offices with Professional Reception Services and Meeting Room Facilities. That’s not all, we also offer Ready-To-Go Workspaces with the widest possible range of complementary support services which are all available on demand.
Best of all, the Business Centre is in a prime location but the rates we offer are definitely more affordable compared to other commercial provisions.
6. Tap into expert services
Considering the fact that the cost of a startup in the free zones is considerably much lower, invest your money in expert services to enable the smooth flow of your business operations.
For example, there is no need to take the DIY route in keeping the books during the earlier stages of your operations. Outsource bookkeeping and accounting services. This will ensure that all your financial records are accurate while at the same time saving you time and effort in finding manpower to perform such tasks.
Starting a business in a UAE-free zone is definitely much easier than in most other places but it is imperative to know the right way to do so. Doing things correctly and completely will allow you to harness all the advantages each free zone offers.
For more advice, tips, and news about company setup in UAE free zones and business operations, check in here regularly for new posts from us here at Flying Colour.
