01Trading and import-export businessesBusinesses involved in international trading may look at free zones with established logistics, warehousing, port or airport connections. The right choice can depend on the products being traded, where goods are coming from and where they are ultimately being delivered.
02Professional and consulting businessesConsultants, advisers and professional service providers may have different requirements from trading companies. In these cases, the nature of the service and the permitted activity can be more important than access to warehouses or ports.
03Technology and digital businessesTechnology companies, software businesses and digital service providers may prefer jurisdictions that offer activities and facilities aligned with technology-focused operations.
04E-commerce businessesAn online business still needs to select appropriate licensed activities. The fact that sales take place online does not remove the need to understand licensing, fulfilment, payment and customer-location considerations.
05Manufacturing and industrial businessesManufacturing companies generally have more substantial premises, equipment, storage and operational requirements. A free zone with suitable industrial infrastructure may therefore be more relevant than a jurisdiction designed mainly for office-based companies.
01Start with the business activityDefine what the company will actually sell or provide. This determines which licence categories and free zones may be suitable.
02Compare the free zonesLook beyond the headline setup price. Compare activities, office options, visa capacity, renewal costs, facilities and the practical needs of the business.
03Decide the company structureChoose the appropriate legal form based on the shareholders and applicable free zone rules.
04Reserve the company nameThe proposed name must meet the relevant naming requirements and receive approval from the authority.
05Prepare the applicationSubmit the required shareholder, company and activity information together with the supporting documents.
06Obtain initial approval where applicableSome free zones have an initial approval stage before the remaining incorporation requirements are completed.
07Arrange the required facilityDepending on the licence and package, this may involve a flexi-desk, shared workspace, office, warehouse or another approved facility.
08Pay the applicable feesOnce the required approvals and documents are in place, the relevant government and free zone charges are paid.
09Receive the trade licenceThe authority issues the company's licence once the incorporation requirements have been completed.
10Complete post-licensing requirementsDepending on the business, this can include immigration establishment procedures, visas, Emirates ID applications, corporate banking and other operational requirements.
01Choosing a free zone based only on priceA low-cost package may not include the office, visas or facilities your business needs.
02Selecting the wrong activityYour licence should reflect what you actually intend to do. Changing activities later can involve additional procedures and costs.
03Assuming every free zone works the same wayEach authority has its own rules, activities, packages and facility requirements.
04Ignoring the business's future needsIf you expect to hire employees, expand activities or require a larger workspace, consider those plans before selecting the initial package.
05Treating the free zone licence as a banking guaranteeBanks make their own decisions and conduct separate compliance checks.
06Overlooking ongoing complianceCompany formation is only the beginning. Renewals, accounting, tax obligations, visas and corporate records may continue after incorporation.
