Setting up a company in one of the free zones in Dubai could be very appealing the foreign investors. However, the process of deciding on the most appropriate free zone that best fits the needs of the company may prove to be a daunting and often a nerve-wracking task, because each free zones come with different costs, different list of business activities, different location, facilities options, as well as different share capital requirements.
In a bid to ease the process of deciding on which free zone to set up the company, the Dubai Free Zone Council (DFZC) is planning to launch the Free Zone Window Initiative in Q3, 2020. The DFZ has envisioned the Free Zone Window as an initiative that will help investors identify the right free zones through a streamlined online process.
A Quick Snapshot of Dubai Free Zones
Free Zones have played a huge and decisive role in transforming Dubai into a hub of investors, entrepreneurs, startups, innovators, and corporations. Dubai is home to 23 free zones and the emirate has the number of free zones in the UAE. Dubai’s free zones are built around specific business activities ranging from healthcare, media, biotechnology to commodities trading and many more. By offering a host of benefits including 100% ownership, 100% repatriation of capital and profits, free zones have elevated Dubai’s economic status in a big way by attracting foreign investments.
What are the Ways in Which the Free Zone Window Can Help New Investors?
Help With Choosing Free Zone-Based On Business Activity
Conducting thorough research on the Free Zones and the type of business activities permitted there is a major prerequisite while zeroing in on the Free Zone that investors are opting to set a company in. This is a major requirement as Dubai Free Zones are created according to the types of business activities they cater to.
IT activities and innovation are the key business activity on which Dubai Internet City and Dubai Silicon Oasis are based. The Dubai International Financial City’s core business activity is related to regulated financial and banking activities. Meanwhile, primary business activities in Dubai International Academic City and Dubai Knowledge Village are based on research and development activities. Businesses related to the media industry are the central business activity in International Media Production Zone, Dubai Studio City, and Dubai Media City. The Dubai Multi Commodities Centre has been designed with the trade of commodities in mind. A unified online portal will lessen the effort and time required of the research on Dubai Free Zones.
Information About Facility Types Offered By Free Zones
Businesses that are not intending for a big expansion or hiring employees within a few years from the date of incorporation are likely to get a shared or Flexi desk at a co-working space. Companies can opt for a physical office if they are planning to hire employees and hold meetings with clients.
The website of every Free Zone contains adequate information on the types of facilities they offer. However, the types of facilities and the costs associated with it vary according to every Free Zone. Choosing the right kind of facility that best fits the business needs to be a carefully calculated decision. The Free Zone Window would essentially prove to be an easy way to navigate through the facilities offered by each Free Zones.
Knowledge About Number of Residence Visas
Companies in the Free Zones may require Residence Visas for every employee and the quota for visas is based on the type of facility the firm has opted for. Setting up the company office as a shared desk type results in the limited number of visas and it differs from each Free Zones. In the case of physical offices free zones adhere to space requirements. Businesses may get one visa quota for every 9-10 meters.
Choosing the Location that Fits Business Activity
Free Zone Window initiative brings the free zones in Dubai online under one umbrella. With this initiative, companies can choose the free zones that are close to a seaport or Airport depending on the requirements that the particular business activity demands. The Jebel Ali Free Zone (JAFZA) is situated in the Jebel Ali Port and it would best fit companies that are into trading, logistic, or manufacturing. Companies seeking a luxury office in stunningly-built skyscrapers could house themselves in the DMCC Free Zone.
Clarity on Share Capital Requirement
Each free zone has different rules regarding the share capital requirement and the way it should be declared. In Dubai Knowledge Park, the amount of share capital required to be shown depends on the type of business. The Jebel Ali Free Zone mandates that the companies registering there should furnish proof that they have minimum 500k to AED 1m in share capital.
Free Window Helps With Knowledge About Audit Requirement
A prominent free zone like the DMCC demands the registered companies to present an annual audit report at the end of the financial year. Such companies need to perform the audit by appointing an auditor from the DMCC Approved Auditors List. Penalties are likely in case the companies fail to submit the audited report on time.
The Free Window Initiative by DFZC is a bold step in progress which also falls in line with the government’s efforts at innovating and boosting the economy. The initiative provides the foreign investors with a much easier online system that would facilitate quicker company formation in Dubai Free Zones. Jitendra Business Consultants, a pioneer in company formation, will assist you in your process of setting up a company in the free zones. Our veteran business consultants will help you with all the procedures of company incorporation starting from registration, license applications, obtaining and renewal of visas, etc.