Most Affordable Free Zones in the United Arab Emirates!
The UAE is the ideal business location, ranking 16th in the World Bank's Ease of Doing Business 2020 report for various reasons, including being the cheapest free zone in the UAE. Its strategic position and 0% tax policy attract a large number of international and domestic investors. Whether you're wanting to expand your company or establish one from scratch, the UAE provides a fast-paced business climate.
Apart from the numerous benefits the emirates provide, the 'free zones' are another reason why the UAE is becoming a global economic center. Free zones are becoming increasingly popular in the UAE as the economy grows. Company formation professionals at Dhanguard, on the other hand, can help new-age investors choose the best and cheapest free zone in the UAE.
Therefore, in today’s blog, Dhanguard will extensively discuss the most Affordable freezones in UAE. So, without any further ado, let’s learn!
Freezones: What is it?
Freezones are special economic zones in the United Arab Emirates where enterprises can operate at reduced tax and customs rates. A geographical area within the emirate defines each free trade zone. Furthermore, each free zone has its own set of rules and jurisdiction.
The goal of free zones is to encourage foreign investment by providing several privileges such as 100% business ownership. With over 40 free zones in the UAE, many of which are divided into categories based on commercial activity, it's critical to know your business requirements before choosing the cheapest free zone in UAE 2022.
Why Would You Want to Start a Business in a Freezone?
Business owners must be informed of the benefits that Freezones can provide before choosing one. There are numerous advantages to getting the cheapest free zone license in UAE.
Here are the top five advantages of starting a business in a Freezone:
Setup is simple
Obtaining a freezone license in Dubai is a simple procedure. The particular company creation process, however, may be determined by the type of business operations you choose. However, in most circumstances, minimal documents and paperwork will suffice to get you started.
Duty Exemption on Imports and Exports
Business owners in the UAE are immune from paying import and export duties, and there are no currency limits. Financial transactions are made easier by currency exchange flexibility.
Government Assistance
The UAE government is particularly supportive and accommodating of new-age investors, thanks to its superb infrastructure. The authorities in charge of the free zones assist new firms in obtaining a free zone license in Dubai and subsequently.
Foreign Ownership is 100 percent.
Full ownership rights are one of the most appealing aspects of starting a business in a free zone. Without the assistance of a UAE sponsor, an investor can acquire 100% of a free zone.
Exemptions from Corporate and Personal Taxes
One of the most obvious reasons to establish a corporation in the UAE is the tax policy. In Dubai, you may get the cheapest freezone license because the free zones exempt you from all personal and corporate taxes.
Read More: A Thorough Guide to Licenses of DIFC! Read Now
The UAE's Top Four Cheapest Freezones.
Because of the numerous advantages they provide, freezones are becoming increasingly popular among investors. When looking for the cheapest free zone in UAE, it's critical to look at where they're located and what services they provide.
Here are the top four low-cost freezones that provide similar economic benefits to the other freezones-
Ajman Media City (AMC)
Ajman Media City is a brand-new investment location in the UAE that offers an extremely rapid and simple company establishment process. By providing simple and cost-effective services, this free zone attracts enterprises from all over the world. AMC is involved in a wide range of media and entertainment operations.
It also provides flexi-desks and tiny coworking spaces. This free zone is suited for small and medium-sized businesses. AMC is known as one of the most affordable free zones in the UAE, with trade licenses starting at AED 8500.
AMC permits some trading operations in addition to media-related activities. The following are the major business activities:
-
Consultancy and Service
-
E-commerce and media-related training
Sharjah Media City Freezone (SHAMS)
SHAMS, the UAE's fastest-growing media freezone, is home to some of the world's largest industries and corporations. For aspiring entrepreneurs, Sharjah provides a vibrant and expanding environment. As a result, SHAMS has become one of the best free zones for both new and established firms.
SHAMS provides a diverse range of commercial services. Despite the name, the company's activities are not limited to the media industry. Per licence, you can conduct several business operations. SHAMS offers the following categories of business licenses:
- Trading and Professional License
This free zone is suitable for anyone who wants to start a business without having to travel to the UAE.
Ras Al Khaimah Freezone (RAKEZ)
RAKEZ is another jurisdiction that offers one of the most affordable free zone permits in the UAE. This freezone now has over 14000 enterprises operating in over 50 specialist industries. This free zone is an attractive alternative for aspiring enterprises due to its proximity to RAK airport and seaport.
RAK is well-known for its adaptable warehouse options. Depending on your business needs, you can select between small, medium, or large warehouses. It also makes labor and staffing resources readily available. The following headings provide the most comprehensive list of business activity in the UAE:
-
Media License
-
Educational License
-
Professional License
-
Commercial License
-
Service License
-
Industrial License
Starting a business is both inexpensive and speedy. A company can be started in as little as a week.
International Freezone Authority (IFZA)
IFZA is one of the UAE's competitive freezones, located in the Silicon Oasis Area in Dubai. It provides a diverse range of low-cost company formation packages, making it one of the most cost-effective free zones in the UAE to start a business.
The spectrum of business activities that can be done in this freezone is determined by the Dubai Department of Economic Development. A single licence allows you to choose up to seven activities. The following licenses are available in the IFZA freezone:
-
Service License
-
Trading License
-
Consulting License
By forming a corporation in IFZA, you can reduce your company's capital needs and reduce annual audit fees. Another benefit of establishing a company in IFZA is that you can have your office, warehouse, and residential apartment all on the same property.
Conclusion
Because of government policies, starting a business in the UAE is significantly easier currently. Prior knowledge of the freezones and the license application process is essential before beginning your search for the lowest freezone license in Dubai. Invest your time with Dhanguard’ s dependable company setup professionals to harvest long term profits and growth, and experience stress free incorporation. Thus, we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website as well or get in touch with our Experts by visiting our Branch Office.
