Choosing a Right Free Zone in the UAE is a Strategic Decision in 2021
In 2021, a new enthusiasm is seen in the landscape of business setup in Dubai, driven by factors such as EXPO 2020, peace accord with Israel, retirement and remote-work visas, citizenship for foreign investors and resumption of trade ties with Qatar. Foreign investors with a sound business plan are eyeing the potential benefits arising out of these opportunities.
When it comes to starting a company in 2021, business setup in Dubai free zones is the ideal choice for foreign entrepreneurs. However, choosing the right free zone in Dubai is a challenge that requires an effective strategy in place to suit the business plan and therefore it makes sense to seek advice from right business setup consultants in Dubai as choosing the right free zone for company formation is as important as choosing the right business consultant.
Here are some factors that shed light on why you need to plan before choosing a free zone in Dubai in 2021.
Location Plays a Key Role
Foreign investors mostly favour business setup in Dubai free zones to conduct exports or imports. Excellent connectivity through land, sea and air is a prerequisite to run businesses that depend on imports or exports. Location of the free zones becomes an integral component in this respect, which requires the investors to select free zones that offer easy access to target markets. Jebel Ali Free Zone (JAFZA), Dubai South Free Zone and DAFZA are some of the best free zones in Dubai known for location benefits.
Industry-Specific Vs General Purpose Zones
The free zone you choose for company formation in Dubai must align with your business purpose. You have to strategies whether you should go for an industry-specific free zone or general-purpose free zone. Dubai Silicon Oasis provides specialised infrastructure and facilities of tech companies. Similarly, Dubai Media City is a haven for companies operating in the media industry. Meanwhile, EZ Dubai and Dubai CommerCity provide specific support for e-commerce companies. You can also choose general-purpose zones like Dubai South or Dubai Airport Free Zone (DAFZA) in case you are not planning for industry-specific benefits offered by the Dubai free zones.
The Right Kind of Facilities
Free zones in Dubai provide a diverse range of licenses to suit the kind of activities that investors are planning to carry out. It could be professional, commercial or industrial activities. The type of facilities each of these activities demand starkly differ. For instance, manufacturing companies require large warehouses, production facilities and accommodation for labourers. JAFZA is known for providing excellent facilities for companies that carry out activities permitted under industrial license in Dubai.
Start-ups mainly require cost-effective office spaces that would help boost their businesses, especially in the pre-funding stages. Fortunately, most of the free zones offer co-working or Flexi desk options that won't put a hole in the entrepreneur's pocket. These co-working spaces come with all the facilities such as Wi-Fi, 24-hour security, and access to conference rooms etc. If you are selecting the free zone that doesn't offer the desired facilities, ultimately your business is bound to suffer.
Ease of License Approvals
Obtaining a trade license involves a series of complex steps while setting up a business in Dubai mainland. Most of the hassle is associated with getting approvals from government bodies for undertaking special activities. On the other hand, business setup in Dubai free zones offers a hassle-free solution for foreign investors to gain a strong foothold in the Middle East markets.
The free zone authorities take less time to approve the application and documentation. However, a sound strategy is necessary for investors as the licensing procedure may differ in each free zone. Foreign entrepreneurs can explore the legal prerequisites regarding company formation by consulting with business setup consultants in Dubai.
License Costs may vary in Each Free Zone
The cost of a license is one of the most crucial elements the investors give much thought while pondering over starting a business in Dubai free zones. After identifying the free zones that offer the desired business activity, you must check the cost of incorporation and other administrative costs. Consult with the company formation advisers in Dubai to get insights about free zones that provide your proposed business activity at lower costs.
Strategy for Easy Exit
Before setting up a company in Dubai free zones, the investors must make sure that the exit will be easy. Many free zones have an easy entry and ease of doing business but closing down the business is hard. It's a time-consuming process and requires a strategic plan to exit and liquidate the company and surrender the facilities, including cancellation of visas.
A One-stop Solution for Business Setup in Dubai Free Zones
For a new entrepreneur, it is often difficult to navigate the process of business setup in Dubai. Apart from understanding the laws, finding the right free zone is a hard task as there are more than thirty free zones in Dubai. Support and advice from trusted business setup consultants in Dubai ease the difficulties faced by investors while setting up a business in Dubai free zones. Jitendra Business Consultants (JBC) has been providing efficient advice on business setup in Dubai free zones for more than twenty years. We have highly qualified company setup specialists who would ensure that foreign investors can start their company without any hassle.
Published: Thu 4 Feb 2021, 7:50 AM
Updated: Sun 7 Feb 2021, 9:38 AM
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