How to Choose the Best Free Zone for Your Business in UAE

Best Free Zone for Your Business in the UAE

The United Arab Emirates (UAE) has become a global hub for international businesses because it attracts entrepreneurs and investors worldwide. Numerous UAE free zones are one of the significant factors that contribute to the business-friendly environment. Free zones in the UAE provide attractive options for foreign investors to set up a business. Every free zone area is considered a different geographical location. In addition, each of them follows rules and regulations unique to its specific free zone. Choosing the Best Free Zone for Business in the UAE is essential for the success of your business. With more than 50 free zones available in this country, selecting the right free zone area for your business might be overwhelming for foreign investors.  If you are facing difficulties choosing the appropriate free zones in UAE, stay with us w   e will provide some essential tips to choose the right free zone area for your company. 

Top tips to select the right Free Zone in the UAE

When you are a foreign investor, choosing a reliable Free Zone from more than fifty free zones in the UAE for businesses is difficult. You must perform proper research to select a reliable free zone for your business in this country. To make your research process easier, you must follow the following tips to opt for the best UAE free Zone:  

1. Consider business activities

Business activities are one of those factors that can help you choose the perfect UAE free Zone. Each free zone in the United Arab Emirates has different guidelines related to the business activities that may be performed within the area. These zones also have their own set of permissible business activities.  There are also different rules in each free zone in UAE regarding how many business activities are allowed within the particular free zone. Remember, the more activities you choose, the more license costs will increase. Sometimes, you must obtain two or more business licenses for the same company. Therefore, you must carefully assess the nature of your business activities and choose a reliable free zone.  

2. Choose the facility types you need.

Facilities are among the top factors in choosing a reliable free zone. Remember, a company registered within the free zone can only have the facility within the free zones where it is registered. The free zone offered a range of facilities for businesses in their area. The facility you choose to set up your businesses in UAE free zones must be aligned with your business needs and budget. When starting a business, you must plan for the future. If you are not planning for a big company expansion in the following years (increasing the number of employees), you must obtain a shared or flexi desk at a co-working space. These free zones also have the minimum facility requirements for a business or trade license in the UAE. Most free zones offer numerous options for work and storage space. Free zones, like Meyden Free Zone, offer premium facilities, like luxurious hotels, golf courses, racecourses, and more. While holding a physical space is essential for most free zones, certain free zones, like IFZA, are exempted. Therefore, you should choose a free zone as per your facility requirements.  

3.  Ensure the Free Zone’s location is suitable for your business.

Location is another essential criterion in selecting the free zone for your company in the UAE. The Free Zone’s location must be reliable for your line of company. The connectivity of the free zones with airports, seaports, and roads must be evaluated.  If you want to set up an export or import business, a popular sea-air hub like JAFZA would be suitable for your business. While DWTC might be your best choice for your central location, DAFZA might be reliable if you are looking for proximity to airports. In addition, you must pay special attention to the Demographic of the region because it attracts the right pool of skilled workers and clients. You should choose a free zone where your employees, clients, and suppliers easily locate your business.   

4. Understand the tax incentives and custom benefits.

A favourable tax environment is one of the main attractions of the UAE Free Zone. Many free zones offer 100 percent foreign ownership and exemptions from personal and corporate tax based on specific requirements. Before choosing the Best Free Zone for Business in the UAE, you must research the specific tax incentives and custom benefits that you can enjoy by selecting that free zone. While performing research, you should consider factors like customs duties, export and import process, and VAT regulation of these free zones. Remember, these perks may significantly impact your business’s competitiveness and profitability.  

5. Consider the Type of legal entity.

Most free zones allow numerous types of legal entities for the formation of your business.  Indeed, you have guessed it right! The types of legal entities are another crucial factor in choosing a reliable free zone for your business. You can set up your business as a “Free Zone Limited Liability Company (FZ LLC), also known as Free Zone Company (FZ Co.)”  or Free Zone Establishment (FZE). Remember, the type of legal entity you choose will have a limitation on the number of shareholders that your company will have.  This also depends on whether a shareholder is a natural or legal person. Each free zone authority has its own guidelines on the types of legal entities you can register. For instance, the DMCC allows the creation of a limited liability company (LLC), which could be a newly created entity with one or multiple shareholders or a completely owned subsidiary of a local or foreign business or company.  

How Can Flyingcolour Help You?

Finding the Best Free Zone for Business in the UAE requires proper research and knowledge. Flyingcolour Business Setup has enough knowledge to help you choose the suitable free zone for your business. In addition, our experts can also help you to set up your business in your preferred free zones in an easy way.  To learn more about the Best Free Zone for Business in the UAE , book a free consultation with one of the Flyingcolour team advisors, Simply call  +97144542366 or send WhatsApp messages to +971554413566. you can also drop an email to info(at)flyingcolour(dot)com. *Please note that this article was published on 23/03/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.