The Middle East is in the middle of an economic has upsurge significantly and millions of companies have found their way into its state-of-the-art corporate climate where the small business becomes big; the big gets bigger and the corporate giants get even better.
The free zones are the primary growth drivers; with more than fifty free zones like Shams Freezone, the business eco-system here allows everyone to establish businesses and the perks are quite enticing. Facilities like 0% corporate tax, 100% free ownership, the easy recruitment processes are a few notable benefits of setting up the business in the free zone. Let’s have an in-depth look at it;
What should be the approach?
First, you need to understand that each free zone has its own distinct specialization; therefore, the identification for the right zone is the first step towards a successful venture. After determining the zone, you need to find out the license types that you need for the business. The licenses are categorized into three distinct types and the following are the types of the licenses and the descriptions.
- Service Licenses:
This license enables you to carry out various professional services such as IT, a consulting firm, designing and architectural firms and a lot more.
- Trading Licenses:
The trading license is meant to give you freedom of exporting and importing goods from within and outside the UAE; while a standard trading license categorizes the products, the general trading license will let you import and export any kinds of products without restriction.
- Industrial License
The industrial license deals with import, export, and selling of the industry-specific products such as manufacturing products, sourcing raw materials and selling finished products.
As mentioned earlier, the choice of free zones greatly decided the course of your business and you have to find consulting firms that can offer you comprehensive business set up solution such as advice for jafza company formation, visa requirement, recruitment, banking, auditing and a host of other services.
The sponsors play a big role in UAE; a sponsor could be a person, a company or a relative who can take the responsibility of your investment or employment or it could be a simple visit. Setting up a business in the free zone means you got the free zone as the sponsor.
So, if you are looking for LLC formation in Dubai, you must have a local who should ideally own 51% share of the business; well, he might not actively get involved in the business and settle for an annual payment or some percentage of the yearly turnover.
Hence, the need for finding the right consulting firm is of utmost importance. As an outsider, you might find it difficult to understand the stringent laws of this region; so, find out the right consulting firm that deals with all the aspects of company formation in the region.
The company should be able to undertake your project and execute it properly. In fact, an expert organization with experience can make it look an easy process. So, connect to the right people.