Selection of Free Zone
Expert advice in choosing the ideal free zone to achieve your goals
The free economic zones in the UAE are distinct areas that offer advantageous conditions for international companies. With more than 40 zones in total, each one is governed by its own specific regulations, concentrating on various sectors and offering different benefits for business formation.
How to select a Free Zone
01
Start by selecting the type of activities the company will engage in
The choice of a free zone depends on the nature of the company’s activities. It’s essential to select a free zone that can provide licensing for those specific activities and offer optimal infrastructure to support them. For example, if the company specializes in air transportation and related services, proximity to Dubai International Airport with its advanced transportation infrastructure is crucial – in such a scenario Dubai Airport Free Zone (DAFZ) would be highly recommended, as it offers business licensing across more than 20 industries.
02
Determine the number of visa quotas required for your company
For certain clients, the number of visa quotas is a crucial factor when selecting a free zone. For instance, Meydan Free Zone offers 6 visa quotas without requiring the rental of a physical office, whereas most other free zones typically offer only 3 visa quotas.
03
Consider the location requirements and availability of a physical office
For a free zone that mandates the rental of a physical office (without offering a “virtual” office option), or if your intention is to rent an office for business operations in the UAE, it’s advisable to choose the most conveniently situated free zone. Typically, the office should be located within the free zone where the company is registered. However, an exception exists with Meydan Free Zone, which allows the rental of offices in mainland Dubai.
04
Assess the Need for Different Share Classes
Depending on your planned capital structure, you may require different classes of shares. Since not all free zones permit this, you should select one that allows it.
05
Consider your time and financial resources
Registration speed, fees, and office rental costs can vary significantly depending on the chosen free zone.
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