The United Arab Emirates is famous worldwide for countless premium and luxurious things which are normally out of the reach of a person who isn’t rich enough. The first one is that it is a business hub and the best place in the world to start a company. The second thing is its taste for appetite and an outrageous demand for gold. This piece of writing will give you an insight into the cheapest freezone in UAE and the low costs way to establish a company here in the Emirates.
Table of Contents
What is a Free Zone in the UAE?
In the United Arab Emirates, free zones are special economic zones where companies can be established with predefined yet advantageous customs and tax rates. A certain geographic region inside the given emirate serves as the area for a free trade zone. Additionally, the regulations and jurisdictions controlling the enterprises change from one free zone to another.
Free zones seek to increase foreign business by providing many advantages, including 100% ownership of a company. There are more than 40 free zones in the UAE, many of which are divided into categories based on commercial activities. So, before you pick the cheapest free zone in the UAE, it is recommended you should comprehend your business needs.
Top 5 Cheapest Free Zones in the UAE
There are five cheapest freezones in UAE that you can opt for. These jurisdictions offer various benefits to businesses that help you in making good profits. Go through the details of each one of them to choose the free zone that matches the needs of your business. It will help you to start the cheapest free zone company in UAE.
1. Ajman Media City (AMC)
Ajman Media City is a brand-new investment location in the UAE that provides an incredibly straightforward and rapid business establishment process. This free zone draws the attention of companies from across the globe by providing affordable and simple services. Numerous entertainment and media-related activities are incorporated by the AMC.
AMC also permits some trading activities in addition to media-related ones. Business activity will primarily come under one of the following categories:
- Consulting and service
- Media-related education
In addition to that, AMC provides small shared offices and Flexi-desks. It is the perfect location for mid-sized and small business entrepreneurs for establishing their companies in the UAE. AMC is recognized as one of the most affordable free zones in the UAE.
2. International Free Zone Authority (IFZA)
The International Free Zone Authority (IFZA) has become one of the main centers for setting up business in the UAE as a result of its increasing popularity. With the passage of time, IFZA has been developing into a strong platform with a large worldwide network consisting of above 800 partners across the globe. The best thing about IFZA is that if you choose this free economic zone, you can get the cheapest free zone license in UAE.
The best part is that you can secure the cheapest license in the UAE when you choose IFZA.
There are various advantages of forming a business in the International Free Zone Authority such as:
- You are allowed to work from home.
- The economic zone provides investors the option to select a product of their choice.
- For employees and owners, a three-year visa is available.
- The investor is not required to provide a yearly audit report.
3. Sharjah Research Technology and Innovation Park (SRTIP)
The SRTIP free zone supports research in production, water management, renewable energy, transport and logistics, environmental technology, digitalization solutions, and design and architecture. These features of the economic zone are in line with the UAE’s 10-year strategic plan to make the country become a global industry leader.
Any business activity falling under the following areas is allowed in this jurisdiction:
SRTIP free zone, a newcomer to the market, is now selling trade permits starting at affordable rates for a variety of business activities.
4. Dubai Meydan Free Zone
One of the best places to find inexpensive office space in Dubai is Meydan Free Zone. It is one of the cheapest freezone in Dubai. A businessman can get a No Objection Certificate to open an office space anywhere in Dubai from this free zone.
The investor stands to get multiple benefits from the abundance of inexpensive office spaces available in the free zones of the UAE. The investor can select their office space based on the needs of their budget and their business.
The Free Zone is the ideal center for foreign investors because it is located inside the Meydan Hotel and close to the Meydan Racecourse.
But most importantly, this economic zone provides cheap licenses and a variety of commercial activities to foreign investors. Businesspeople can network and socialize in this open space while working together on different projects.
5. Ras Al Khaimah Free Zone (RAKEZ)
RAKEZ is another jurisdiction in the UAE offering a cost-effective free zone license. It is conveniently located near the RAK seaport and airport, making it a lucrative option for aspiring entrepreneurs.
Additionally, RAKEZ offers staff accommodations and makes it easy to hire skillful labor. You can pick a business activity from the following list of activities allowed in this free zone:
RAKEZ is famous for its warehouse solutions that can be customized. It provides affordable SME packages for entrepreneurs and businessmen. Depending on your business needs, you can pick from low, medium, and high-sized warehouses in this economic zone.
Benefits of Doing a Business in the Free Zone of the UAE
If you are looking to find the cheapest free zone company setup in UAE, you are in luck. Business owners should know what free zones can provide before choosing one. Expats are always looking to purchase the lowest free zone license in the UAE in 2022 due to the numerous perks.
The following are the 5 major advantages of establishing a company in the UAE free zone:
1. Support from the Government
The UAE government is very supportive and welcoming to new-age investors due to its excellent infrastructure. New businesses in Dubai are assisted by the free zone authorities in acquiring free zone licenses.
2. Easy Business Setup
It is easy to set up a business in Dubai, You can effortlessly get a free zone license in Dubai. A company’s formation process will, however, depend on the type of business activities you choose. But mostly submitting the required documentation and paperwork to get started is usually sufficient.
3. Exemption from Personal and Corporate Taxes
It is obvious that setting up a company in UAE is attractive due to its tax regime. There is no personal or corporate tax in Dubai’s free zones, so you can obtain the cheapest free zone license in Dubai.
4. Import and Export Duties Exemption
A business owner operating in the UAE does not have to pay import or export duties or comply with currency regulation restrictions. Financial transactions are easier when currency exchange is flexible. This means you can easily carry out transactions from different banks in the world.
5. 100% Foreign Ownership
Having full ownership rights is one of the most appealing benefits of establishing a business in a free zone. Investors in free zones can own 100% of their business with no assistance from a local resident or UAE sponsor.
Financial Requirements of Free Zones in the UAE
There exist some financial requirements for forming a company in any free zone of the United Arab Emirates. Setting up a business in a UAE free zone involves the following costs:
- Some free zones require minimum holding capital amounts.
- Fees for registering a trade license.
- Rent for facilities or working spaces.
How to Start a Business in the Cheapest Free Zone in the UAE?
Follow the steps given below to start your business in the UAE’s cheapest free zone:
Step 1. Choose the business activity that you want to conduct in the UAE
Step 2. Choose the company structure that you want for your company
Step 3. Choose the cheapest free zone for your business in any part of the UAE
Step 4. Select a trading name for your company. Make sure to follow the naming rules set by the government.
Step 5. Submit the required documents and application form for getting the license and registering your business in the free zone.
Step 6. Select an office space or workplace for running your business.
Step 7. Open an account in any corporate bank in the UAE.
FAQs – Frequently Asked Questions
Which is the best free zone in UAE?
The top 6 free zones in the United Arab Emirates for your business in 2022 are as follows:
- JAFZA Free Zone
- Free Zone under DMCC Authority
- Economic Zone of Al Khaimah (RAK EZ)
- Dubai Airport Free Zone Authority (DAFZA)
- DWC Free Zone
Which is the most profitable business in UAE?
Top 8 Most Lucrative Business Concepts in Dubai, UAE to Implement in 2022
- Food and drink
- Contractor Services
- Auto/Gadget Repair
- Consultancy for freelancers.
- Jewelry Industry
- Property business or real estate
- Employment agency
What is the cheapest license in Dubai?
The cheapest license in Dubai is the Meydan Free Zone. The cost of the license varies depending on the circumstances. Typically, this license costs between 10,000 and 13,000 AED.
What is the easiest business to start in Dubai?
The top 8 easiest businesses to start in Dubai in 2022 are:
- Recruitment services
- Construction business
- Cleaning services
- Travel agency
- Online trader
- Healthcare service provider
Which free zone is best?
The following free zones are the best in the UAE:
- Dubai Multi Commodities Center Free Zone.
- Jebel Ali Free Zone Authority (JAFZA)
- Ras Al Khaimah Economic Zone ( RAKEZ)
- Umm Al Quwain Free Trade Zone.
- Sharjah Media City Free Zone (SHAMS)
- Sharjah Publishing City Free Zone (SPCFZ)
Get Help from Riz and Mona to Select the Ideal Cheapest Freezone in UAE
The government’s assistance and availability of the free zones have made it much simpler to start a business in Dubai, United Arab Emirates. However, first-hand information and in-depth details of various free zones and application procedures are crucial when looking for the cheapest free zone license in UAE. This is why you should contact professional business setup consultants in UAE like Riz and Mona. Your business setup experts at Riz and Mona will assist you in selecting the most cost-effective and ideal free zone for your business needs and will walk you through the whole incorporation procedure. So, book your free slot now to avail the cheapest free zone company setup in UAE with ease.