Contents
There are dozens of free zones in the UAE. Choosing by the lowest upfront price is a common mistake. These are the criteria worth comparing.
1. Business activity
Not every zone issues a licence for every type of activity. Some focus on trading, others on technology, finance or media. Define the activity first, then look for a zone.
2. Full cost over several years
Compare not the registration price but the costs over 2-3 years: licence renewal, office, visas and fees.
3. Visa quotas
If you need resident staff, check how many visas the chosen office type provides. More in the article Residence Visa Through a Company.
4. Office
Some zones allow a flexi-desk, others require a physical office. This affects both the budget and how banks view the company.
5. Access to the local market
If you will have clients in the UAE, check the zone's rules for working outside its boundaries. You may need to consider mainland.
6. Tax conditions
Zones and formats may have different tax regimes. Tax matters depend on the structure of the business and your country of residence. They are best discussed with a tax adviser.
7. Banks' attitude
Banks are more willing to work with well-known zones and clear types of activity. The choice of zone should be aligned with the account plan.
How to decide
- Draw up a shortlist of 2-3 zones
- Request a full one-year cost estimate from each
- Check the restrictions that apply to your activity
- Cross-check against your banking strategy
We can prepare such a comparison for your business: see the free zone page.