The recent initiatives introduced by the government make this the best time to set up business in the UAE. Over the long term, the free zones of Dubai have been drawing attention to entrepreneurs from every nook and cranny of the world. Maybe you’ve come up with a solid business plan and you are keen to benefit from the tax break and the ownership benefits found in the free zones. Nonetheless, you will not be able to start your entrepreneurial journey without the right choice of the free zone. There are many free zones in Dubai which is why it may be a tough job to choose the right one.
To make it easy for you, here are 5 tips to choose the right free zone in Dubai.
Tip #1: Decide Whether an Industry-Specific or a General-Purpose Free Zone is the One for Your Business
The selection of a free zone depends exclusively on your business operations. Your business success depends on having a clear plan that details the precise business activities before you can select the right free zone. The Free Zones of Dubai operate either as specialized spaces for specific industries or as standard business territories. The general-purpose Free Trade Zone IFZA welcomes companies from various segments but Dubai Media City specializes in businesses from the Media & Publishing fields. Free zone users benefit from diverse customer streams yet competitors stay at bay within this space which welcomes startups of all varieties.
Businesses within industry-specific free zones discover new opportunities to work together with companies operating in their particular fields. For example, in a free zone like Dubai South Free Zone, an e-commerce retailer could acquire delivery services of a logistics firm based in the same free zone. Free zones initiate educational programs that teach entrepreneurs specific industry knowledge. Dubai Internet City showcases entrepreneurship development through training and mentorship programs including technological and media-focused content and design expertise.
Tip #2: Pick the Right Business Activity
Business activity selection may appear easy because business nature directly indicates the choice but the available free zone options challenge this assumption. Free zones offer many business activities to choose from making the decision process complex. Selecting the appropriate activity right at the beginning is important because later on offering a service not authorised by your Dubai trade license, attracts the risk of legal action and penalties.
You should consider including multiple related business activities in your selection. Different activities within separate categories will result in higher licensing fees for your business. Universally adding multiple activities from the same activity classification will help you keep costs low because it avoids added fees. Some business entities need to operate across different license categories which ends up requiring increased licensing fees.
A business focusing on IFZA Free Zone as a free zone provider can function optimally since they allow you to arrange commercial, industrial and professional activities through one unified licensing structure.
Tip #3: Ensure the Free Zone’s Location is Ideal for Your Business
Choose a free zone that meets your location requirements first. An appropriate site for your business operations stands as an essential requirement for selecting a free zone. Evaluating the free zone’s access through all transportation networks must become one of your evaluation points. You should choose JAFZA as your definitive choice when operating import/export functions that need efficient handling between ports and aircrafts yet DWTC stands out for its downtown positioning while DAFZA offers its closest point to Dubai International Airport. Specially designed demographics focus will ensure that business finds its optimal workforce and client base. Your chosen free zone location should be accessible by your staff and suppliers and customers alike.
Tip #4: Check Out the Facilities Offered
When selecting a free zone facility range must receive careful attention. Your business development needs and budget determine which facility to choose from free zones for your office setup. Set up an automobile production company and you need large warehouses alongside extensive workshops and enough showrooms. Founders of start-ups should select affordable co-working space but business owners planning growth would require dedicated office space. Free zones provide their clients a comprehensive choice of locations for business activities and storage requirements. Meydan Free Zone stands out with its advanced offerings which combine premium facilities including five-star hotels with race facilities and golf clubs alongside business spaces. The requirement for office space that most businesses need ends with certain exceptions established in free zones such as IFZA that exempt this need. DMCC sells its physical offices while other free zones limit their options exclusively to leasing.
Tip #5: Determine the Costs Involved
Before determining total investment into your free zone company you need to determine the expenses related to company formation. You must deal with the share capital deposit requirement from your free zone to start operating. Consider establishing your business in one of the IFZA free zones because they operate without requiring your company to deposit any paid-up capital.
The total price of your free zone license extends from its time duration to visa quantity and building selection for establishment. Every free zone features its unique license fee structure for business registration services. Free zone selection presents multiple choices alongside various factors affecting pricing which inevitably leads to confusion about total expenses. Consider using the cost comparison portal devised by GFLO Consultancy, a leading business setup provider in Dubai. By entering a few details, you can do instant price comparisons for different free zones and place your order for company formation instantly.