Freezone setup UAE is some trading or industrial zones where the strict custom rules and regulations are not applied and people can run their businesses and administrations and exchange products without any interference. These geographical regions are known as Freezones in which companies are independent for their economic movement and simply charged taxes. There is only the need for copyright registration UAE and you can start your business as you want.
How much does a company cost for a Freezone business setup?
Although the free zones are considered to be a very low investment business startup there are some legal and compulsory investments to keep your business safe and protected. This investment is not something you are paying without any benefit in return but is important for long-term business strength and viability. Some of these costs are for:
- Trading license
- Rent of office space
- Trademark registration of the company name
- Copyright registration of intellectual property
- Visa cost
- Other legal documentation and consultation fees
What are the major benefits of the company formation in a Freezone?
There are more than enough perks of having a business setup in one of the Freezones. From getting a small investment to the exemptions of taxes and other customs. The business owner will have the complete privilege of the company policies. Some of the key benefits are discussed below.
- Complete ownership of business or company on foreign land.
- There will be no need for any sponsored partner or sleeping partner for a business startup.
- You will have the ownership of the local bank account.
- All the business activities and dealings will remain protected.
- You will have international business opportunities.
- You do not have to worry about corporate duty for a long time.
- There is no need for extra 50 years of renewable.
- You can apply for a visa and work permit by simple methods.
- You will be solely responsible for the business activities and policies.
- There will be more chances for you to develop teamwork, business abilities, and opportunities as compared to other zones.
Whether a business needs a local partner or not
There are many differences while working in a Freezone or an on-shore business. The need for a local partner is not essential while having a Freezone setup in UAE. The benefit is to have the sole and complete ownership of your business and company and there is no other party to interfere in your policies and strategies.
Contrary to this, Freezone can also have a bad impact when we talk about some government and semi-government organizations. They do not prefer to work with a Freezone company but rather start businesses with the on-shore company. Considering both, Freezone is beneficial to some extent but can be restricted at some points.
Is there any option to make a branch?
In free zones, there are different frameworks to set up a business company or office including:
- A branch of a foreign business or a company.
- Limited liability company along with the corporate shareholder.
- Limited liability company along with an individual shareholder.
The branch established in this category is legally viable and can run its business smoothly with a foreign company extension.
The first thing to establish a business before copyright registration in UAE is to make sure what type of business company you are willing to run and in which category. To keep your budget low, you can go with the Freezone setup UAE to meet the business requirements and a better working environment.