The Emirates is considered an attractive destination for entrepreneurs to start their business in due to its economic stability, low tax costs and a flexible business structure. Moreover, due to the availability of freezones, company formation has become a primary reason why you should visit the Emirates. However, the procedure of freezone company formation can be a little complicated if you are a newbie.
Since the Dubai freezones come with its share of disadvantages, you must be very alert when you choose a zone for setting your startup. When you establish a free zone company in Dubai, you need to remember that your business will be confined to the activities of that particular zone. Moreover, if you want to expand your business into any other UAE market, the chances are that your action will not be permitted. When you opt for a free zone company formation, you need to remember that you do not get the option to operate outside the scope of the sector that your business belongs to.
Since you are new to this, the company incorporation of your freezone setup can be a challenging task. So here are some tips that will help you with the freezone company formation in Dubai or other parts of the UAE.
TIPS TO START A COMPANY IN THE FREEZONE IN THE UAE
Hire a business consultant
The process of company incorporation is complex and that is exactly why I would recommend you to hire an advisory or an expert business consultant to help you get your company incorporated. The process has several rules that you may not be aware of but a consultant can guide you better.
Select an appropriate location
It is essential that you choose the most suitable location for your business. Consider the distance, the costs involved before choosing the site. Go through the tenancy terms as well.
Check your Visa eligibility
You will need a Visa to start a company in the UAE. Therefore do not forget to check the eligibility of your Visa. Depending on the office size and the nature of your business, you will be given a Visa.
THE TRAPS THAT YOU SHOULD AVOID
Tenancy terms for Office Space
At times theinformation given in the advertisements can be fake. So make sure you invest only after you have crosschecked the tenancy term carefully.
Annual rental rates
The annual rental rates are generally higher in free zones. So you need to understand that the rents can burn a hole in your pockets. DIFC is said to charge a rent in Dubai that goes up to US$ 3,000 per square meter.
Throughout the year, several amendments are made to the rules for freezone company formation. Therefore make sure that you are aware of all the prevailing rules before setting up a company in a Dubai freezone.