In the United Arab Emirates, there are over 40 different free trade zones. While they differ in various characteristics, the bottom line is that people receive a company they own in that particular free trade zone.
Frequently, we encounter clients interested in opening a company in a free trade zone. As savvy consumers, they compare providers and service suppliers, where in most cases, the primary (if not exclusive) parameter is the setup cost or the fees paid to those free trade zones they checked. Undoubtedly, as smart consumers, we are obligated to check and compare prices. This is true whether we are buying a television, a flight ticket, or even when coming to open a company in a free trade zone. However, when it comes to a free trade zone in the United Arab Emirates, making a decision based solely on the initial price is, in the vast majority of cases, a mistake. In this article, we will try to understand why not all free trade zones were created equal, and why it is imperative to weigh many parameters when deciding which free trade zone to establish a company.
First, let’s start with the issue of price. If we set aside specific free trade zones designed for very specific industries, for which the prices they demand are tens of thousands of dirhams more than the average of other free trade zones, the differences, after summing all costs, will at most reach a few thousand dirhams. We do not disregard even one dirham, but, as we will see below, in our opinion, this difference is more than compensated for if we examine the following parameters: Reputation: When choosing where to establish a company, it is not only essential to consider everything that happens until the company is set up, but also, and perhaps mainly, the day after, or in other words, when the company starts to operate and trade/provide services with and against third parties. How these third parties see your company has great significance, especially regarding banks. The more seriously the banks regard the free trade zone where your company was established, the higher the chances that transfers will be approved more quickly, and opening a bank account may be simpler. This is true not only for foreign banks but also for banks in the United Arab Emirates, who perhaps understand best that not all free trade zones were created equal. Professionalism: The level of professionalism of the free trade zones varies from one to another. An unprofessional free trade zone, which makes mistakes, whether in legal documents or in ongoing handling, could cause discomforts and, no less importantly, expenses that the client will have to bear, which may cause any initial savings to disappear. Customer Service: Sometimes changes, updates, additions, and other actions are required, which necessitate attention from the free trade zone itself. Prompt, professional, and efficient customer service will make your life much easier and allow you to manage your business much more smoothly. Geographical Location: As you know, establishing a company grants the right to receive a residence visa for the shareholder and their family. This is true for all free trade zones, and one can live in any city and any emirate regardless of the company’s location. However, it’s important to remember that all procedures related to obtaining the visa, changes, updates, etc., must be done in the same emirate where the free trade zone is located.
We at WeDubai would be happy to advise you on the most suitable free trade zone for you, which best meets your needs. Contact us for a free consultation.
