Starting a business in the United Arab Emirates can be a great way for Indian entrepreneurs to expand their operations and reach new markets. The UAE is a very business-friendly country, with its many free zones and other policies that are beneficial for entrepreneurs.
If you want a low-cost business setup, then the UAE could be a good place to launch a company. Setting up a business in the UAE is also a relatively straightforward process. Let’s take a look at the benefits of doing business in a free zone and how to register your business in the UAE as an Indian entrepreneur.
Registering Your Business in a Free Zone as an Indian Entrepreneur
Indian entrepreneurs will be happy to know that starting a business in one of the UAE’s free zones isn’t complicated. According to Shuraa Business Setup, here are the steps to get your business set up in a free zone:
- Choose a free zone: There are many different free zones in the UAE, so you will need to choose one that best suits your needs and interests. Each free zone has its own set of rules and regulations, so be sure to read these carefully before making your decision.
- Determine the appropriate type of legal entity: Common options include Free Zone Limited Liability Company (FZ LLC), Free Zone Company (FZ Co.), and Free Zone Establishment (FZE). You may want to consult with the free zone authority to decide.
- Pick a trade name for your company: After you determine the type of legal entity, you need to choose a unique trade name. The trade name must be approved by the free zone authority before you can start using it.
- Apply for a business license: The next step is to apply for the appropriate free zone trading license. Talk with the free zone authority to find out what business activities can be carried out in the free zone and to make sure you apply for the correct license.
- Find an office space: You’ll need to choose an office for your company. Depending on the free zone you choose, you may have the option to use a virtual address. However, you may need to find a traditional office space.
- Initial approval, registration, and licensing: Next you’ll need to get the initial approval certificate. Then complete the registration application and pay the free zone registration fee. Finally, obtain your business license from the free zone authority.
According to A&A Associate LLC, “a few mandatory visas are granted along with the approval of your business license.” You can also apply for visas for family members, employees, etc.
Necessary Documents To Start Your Business in a UAE Free Zone
When starting a business in a UAE free zone, you’ll need to provide certain documents to the free zone authority. The required documents vary depending on the free zone you choose and the business activity you plan to undertake. But there are some general guidelines to follow.
Shuraa Business Setup says you’ll need to provide a list of your trade names and business activities, copies of shareholders’ passports, and an entry stamp or visa page. Look into the requirements of your desired free zone to make sure you gather all of the required documents.
The Benefits of Doing Business in a Free Zone
According to the United Arab Emirates Ministry of Economy, there are more than 40 free zones “in which expatriates and foreign investors can have full ownership of companies.” The benefits of launching your business in a free zone include:
- Low or no taxes: Free zones in the UAE offer tax-free status for companies operating within their boundaries. This can save your business a lot of money in the long run.
- Ease of setup: Setting up a business in a free zone is much easier than setting up a business outside of one. There are few bureaucratic hurdles to jump through and the process is relatively quick and simple.
- Access to infrastructure: Free zones come with their own infrastructure, including office space, warehouses, and other facilities. This can save you time and money when setting up your business.
- Access to markets: Many free zones have agreements with other countries that allow businesses within their boundaries access to those outside markets. This can be a huge advantage for your business if you want to do business internationally.
- Business-friendly environment: The UAE is well known for being a friendly place to do business. The government is supportive of entrepreneurs and offers many incentives and benefits to businesses operating within its borders.
Things To Keep in Mind
For Indian entrepreneurs looking to set up their businesses in the UAE, registering in one of the many free zones is a great way to get started. With its business-friendly policies, the UAE offers plenty for entrepreneurs from India.
Registering your business in the UAE is relatively simple, and it has many advantages. The benefits of registering in a free zone, for example, include 100% foreign ownership, a low-cost business setup, and low or no taxes.