3 Tips for Opening a Business in the UAE Free Zones

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0 Comments October 23, 2018 0 Comments

Have you ever wondered why so many savvy business people are looking to start…

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3 Tips for Opening a Business in the UAE Free Zones

Have you ever wondered why so many savvy business people are looking to start a business (or move their current operations) to a UAE free zone?

Maybe you have; perhaps you haven’t. But these UAE free zones are becoming exceedingly popular for business owners around the world due to their offering of some of the most liberal provisions for trading and business establishment.

One of the ways they do this is by making it as easy as possible to start a business there — although you are still recommended to get professional help during the process.

Furthermore, by opening a business in a UAE free zone, you can run your firm with fewer tax responsibilities, conduct global transactions without extensive red tape, formulate a substantial network of connections, and have greater access to some of the world’s wealthiest consumers.

Sounds pretty good, right? If you are interested in learning more, read on for three tips for opening a business in the UAE’s free zones.

1. Educate yourself on the policies.

Before you dive into opening a business and taking advantage of the possibilities that are available in the UAE’s free zones, it is crucial that you take the time to educate yourself on the policies and requirements that govern these regions.

  • First and foremost, you need to identify which of the tax responsibilities you must uphold — no matter what — and which ones are based on the type of business you are running.


  • Secondly, please familiarize yourself with the new VAT tax that has been implemented this year as it may affect the operations of your business.

When it comes to licensing requirements, it is better if you work with professionals from the get-go. By collaborating with professionals who have plenty of experience in this kind of organization, you can be assured that your business setup in a free zone is going to be compliant with all rules and regulations and processed in the most efficient manner possible.

2.  Know that you can maintain 100% ownership of your business.

One of the biggest draws for business-minded folk to the UAE’s free zones is that they recognize that they can maintain 100% ownership of their business. This is an entirely different practice from those observed in many other parts of the world, where you are required to have a local sponsor.

For business owners in all industries, this is significant, as it means you can continue to run your firm exactly how you want to, and have full authority over your offshore company bank account, without agonizing over working each issue out with a local sponsor.

3. Opt to focus on investing in your team.

Anyone who has started a business overseas will tell you that after ensuring that everything is legally under control, the next most crucial step is to focus on investing in your team.

Whether you are going to spend all of your time in the UAE, or are looking to outsource all of the operations (or something in between), you still need to be dedicated to spending the time and resources required to create the best team possible.

These workers will be the spokespeople for your company, and they also need to understand the local customs and lifestyle and be able to help you navigate the new market.

Therefore, to honestly get the most out of creating a company in the UAE’s free zones, you must assemble a group of dedicated workers who are not only passionate about your firm but are also committed to learning about and speaking directly to your target market.


Additionally, as soon as possible, you should be seeking to outsource your bookkeeping and accounting services to guarantee that all your financial records are up-to-date while not taking away dedicated human resources from other essential tasks.

Have you ever considered opening a company in the UAE? Maybe anywhere else in the world? Why or why not? Let us know your thoughts in the comments below!


Raj Herry is the Founder and Chairman of Flying Colour Business Setup Services. His extensive experience comes from more than 15 years in the field of company incorporation for Dubai Mainland, all Free Zones across the UAE and offshore companies worldwide. He also owns several business centres offering furnished and ready-to-move offices in Dubai.

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