HOW TO CHOOSE THE RIGHT UAE FREE ZONE FOR YOUR BUSINESS
Tips to Remember Before Choosing Free Zone Companies in Dubai — UAE
Factors to Remember before choosing free zone companies in Dubai are -
Business Specific Zones
Investors’ business activity is a vital consideration in the selection of free zones in the UAE.
Certain free zones in UAE are business and infrastructures specific that permit and scope specific business activities under a single business license.
Engaging in more business activities increases the cost but the final decision of going with additional business is with the investor.
Some free zones require more than two business licenses for a single company and more conditions differ zone-wise.
Business Licensing Determination
The first criteria to set up business in the free zones in Dubai, UAE is to relate the nature of business with the license types that the UAE authority provides, listed below.
Mainstream business licenses for:
• Commercial
• Production/ Manufacturing
• General Trading
• Service
• E-commerce
• Media license
Capital Requirement
The UAE Free Zones mentions the minimum share capital investors need to deposit for company registration.
The investors need to deposit the share capital amount for company registration in Dubai, UAE. In the United Arab Emirates, every free zone has its minimum share capital deposit requirements.
The capital threshold requirement is detailed by the respective free zones authorities and your business activity is the determiner of the capital deposit value.
Types of Capital Shares Deposits:
Paid Up: Requires share capital deposit with deposit proof
Authorized: Share Capital deposit not required
Free Zone Facility Factor
Selecting a free zone depends upon business activities and the number of employees.
Investors can purchase office premises, leases, or warehouses in the free zones in Dubai, UAE. The investor needs to make a note of it that office space is allowed only at the registered location of the business.
Choosing the apt free zone in UAE depends upon –
- Infrastructure
- Location
- Availability
- Zone Benefits
- Strategic position
- Office amenities and peripherals
Visa Specifications
There are additional parameters that business investors need to adhere to compared to the jobseekers and students. Apart from business licensing, location, and capital, there are several factors that affect the Free Zone selection.
The UAE immigration norms are visa specific.
Assumption of Stature
Investors need to procure residence visas for their employees assuming their stature as nonresidents — Deemed non-residents.
Mandate UAE Residence Visa and Count Determiner
To establish a company in the UAE or to start a new business in Dubai, UAE, investors need UAE residence visas from the authorized body. The count of UAE residency visas also influences investors’ decisions regarding choosing the free zone.
Key Features — Specific Visas
• Deemed Non-resident stature for employee visa
• Quota limits depend upon the Free Zone facility
• Permissible Visa allotment per Free Zone
• Shared Desk Facility permits 2–3 visas
• Dimension Specific Visas — One visa issuance per 9–10 Sq. meters office space
Location Vantage
Investors engaged in the import-export business look for port proximity like airports and seaports. It reduces their cost of transportation and facilitates quick market access to Asia, Africa, etc.
Know Your Ground
If you are a competitive market player and believe that your business services/products have a quality element, then you may ignore this point.
In general, businesses are keen to know about their competitors.
To know competitors’ concentration and their area of monopoly also impacts investors’ decision in choosing the free trade zones in the UAE.
Statutory Compliances
Some of the specific Free Zones in UAE mandate the submission of financial documents like the annual audit reports while company registration and no objection certificate (NOC).
Ajman Free Zone or Ajman Media City Free Zone for Start-Up
Ajman Free Zone (AFZ), located in Ajman, UAE, is one of the UAE free zones located in the coastal Arabian Gulf and started its operation in 1988. It offers impressive infrastructures and top facilities for both foreign and local investors.
AFZ is known for its industrial expansion initiative that gated its rapid growth, providing reliable and credible facilities for business setup in the Free Zone.
In April 2022, Ajman Free Zone confirmed being an AWS Activate Provider. The start-up affiliates of AFZ, who have or are in the process of building Amazon Web Services, stand eligible for AWS Activate incentive program, and reap the benefits like free AWS credits, technical support, and more. It helps the start-up to scale their business on Amazon Web Services.
It offers grants up to USD 25000 to qualified startups, in addition to the AWS Founders Box program, which offers exclusive credits, discounts, and software service access.
Ajman Free Zones offers investors diverse and wide growth prospects for the investors who will start their free zone companies in Dubai.
For the qualified start-up, offers program grant up to USD 25000 Incentive benefits of Amazon Web Services Founder Box Program for Start-ups
Allows obtaining credits, partner funding, and up to USD 5000 Business Support plan
AFZ best suits the requirements of the start-ups by providing and promoting cutting-edge infrastructure, which has always been dedicated to aiding the growth of startups by providing them with cutting-edge infrastructure including all the facilities that help in the growth of the business.
- Free Zone that promotes start-ups
- Friction-less company registration
- Free Zone that facilitates with Amazon Web Services Activate Credits
The investors get the added benefits of boosting their start-up business as Ajman Free Zone, through the AWS Activate incentive program, scopes wider business growth programs to the start-up companies in AFZ, Dubai.
One of the reasons why start-ups should consider having their business set up in Ajman Free Zone in Dubai is because of the inclusion of Ajman Free Zone in Amazon Web. Services Activate Program.
Issuance of business licenses in UAE Ajman Free Zone
The investors are eligible for Service Licences for their business services relating to Information Technology consulting, management, marketing, and E-Commerce Licences for electronic trading activities.
Issuance of Industrial Licensing in UAE Ajman Free Zone
- Businesses to be GCC countries registered with minimum ownership of 51%
- Minimum manufacturing process to be 40% and within the Free Zone vicinity
- Minimum of 40% of the manufacturing process should be within the Free Zone.
Offshore Licence prerequisite
- Business needs to be operated outside the United Arab Emirates
Summary:
Its economic & trade policies are transparent, welcoming foreign investors to set up their business in the Free Zones. For the start-up, Ajmal Free Zone is the best investment option in UAE due to the dilution of AFZ with Amazon Web Services which incentivizes the affiliates of AFZ.