# Cheapest option for Setting up Business in Free Zone



## stamboy

I've read quite a few threads on setting up a business, but none of them seem to answer this question my friend from the UK has.

He's a consultant (wouldn't require an office) and wants to know the cheapest way of getting a company set up here in the UAE. He'd be working at his clent's office hence wouldn't require a physical desk/office.

I read that RAZ of other freezones are cheaper but want he needs to know is the full set-up costs and requirements. He did get in touch with someone from the UK but I said I would try and find out details for him from here.

Many thanks


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## Stevesolar

Hi,
Fujairah creative freezone is ideal for consultants.
They have an office in Dubai - Iridium centre, al barsha next to Pan Emirates furniture store.
Around 20,000 AED to setup and then visa costs on top of this -around another 6000 AED for 3 year visa.
I also believe Ajman could be even lower cost than this.
Both have websites with plenty of info.
Cheers
Steve


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## saraswat

When looking at it from a strictly cost perspective, RAK FTZ is the cheapest. For the first year it will come out to a little less than 23K in total. That would include your visa, trade license, flex office etc.. Following years it gets cheaper (about 18K).


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## stamboy

Thanks for the replies. Quite expensive compared to the UK then. Is it necessary to "rent an office"


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## Malbec

You can see my summary here. Keep in mind that RAK FTZ requires auditing and the total 2nd year onwards fees will be around AED 25,000 / year.

RAKIA FZ seems to be the cheapest, however I am recently being told to avoid dealing with RAK authorities as they change the rules too often + they require more documents (business plan, proof of paid up capital and immigration pre-approval) than say Fujairah Creative.

Fujairah Creative looks as the most promising option these days as there are no paid up capital, no detailed business plan required. Incorporation fees approx. AED 25,000 with 3 year visa (flexi desk - virtual office included) and yearly renewal licence fees of AED 17,500.

You can open the Fujairah Company remotely if you are using the agent. This is a convenient option and their charges are usually around AED 7,000 which is reasonable if you are not in UAE. However once the company is incorporated with all documents ready, you have to travel in person in order to open corporate bank account and get resident visa.


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## expatsue

We recently set up a consultancy through Virtuzone at JBR (they register the businesses in Fujairah Creative City Free Zone). They were very helpful and efficient and we can highly recommend them. As mentioned above no capital and no business plan required. Their costs are all detailed here: Tailored Packages for Business Set-Up in UAE


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## Malbec

expatsue said:


> We recently set up a consultancy through Virtuzone at JBR (they register the businesses in Fujairah Creative City Free Zone). They were very helpful and efficient and we can highly recommend them. As mentioned above no capital and no business plan required. Their costs are all detailed here: Tailored Packages for Business Set-Up in UAE


I do not recommend this option though as you are simply paying them AED 8,000 per year just for the annual renewal of the company licence. They setup the companies in Fujairah Creative City which as I mentioned in previous post yearly annual renewal fees are AED 17,500 vs 25,500 (VZ). It is better to pay agent one time fee for incorporation instead of being tied up with VZ. And once you incorporate through VZ, you cannot do renewals yourself. Even if you don't want to renew the company licence yourself, 3rd party agents charge maximum of AED 2,500 for this process. So as much as I don't mind paying premium for certain services, VZ is a rip off.


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## stamboy

My friend was quoted GBP 2100 from the UK which sounds fishy! Bet they weren't including the rental costs and other add-ons based on this thread.


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## RandomDude

Free zones companies in the UAE always baffle me.

Officially, you are a foreign company, cannot bid for governmental tenders, or do businesses in each of the emirates,even with private sector, you can export/import, and if a company hired your services, it is like they hired a foreign company.

In practice, many operate at freezones and no problems at all or what so ever as it depends on the client or the company you are doing buisness with.

For example, Masdar city was set as a freezone mostly for Renewable energy companies, so now you have big names like Siemens HQ there, and they got special permission to bid for Abu Dhabi governmental tenders.

You'll find many companies operating in freezone, doing business in the country and life is great. Now, how much of this "technically,you are not supposed to do business in the UAE" is relevant or applied, I don't know, there is never a straight answer from free zone admin or even the government bodies.

I have reached a conclusion, which might be totally wrong : No one seems to really care if your trade licensee is not based in the same Emirate (most Abu Dhabi government companies ask for Abu Dhabi trade license, if you show a freezone, a little smile and Yella Habibi don't be like this, to the clerk will solve things. Now if you have a commercial dispute and take it to court, then you need to consult a lawyer because you might find the it is illegal to do business inside the UAE is applicable


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## marbar

Malbec said:


> I do not recommend this option though as you are simply paying them AED 8,000 per year just for the annual renewal of the company licence. They setup the companies in Fujairah Creative City which as I mentioned in previous post yearly annual renewal fees are AED 17,500 vs 25,500 (VZ). It is better to pay agent one time fee for incorporation instead of being tied up with VZ. And once you incorporate through VZ, you cannot do renewals yourself. Even if you don't want to renew the company licence yourself, 3rd party agents charge maximum of AED 2,500 for this process. So as much as I don't mind paying premium for certain services, VZ is a rip off.


thanks for all the information you have posted to date. 
do you have a recommended 3rd party agent, with a once off 2500 AED payment, that you can recommend to set up a company in Fujairah Creative City?

if i understand the process correctly, they will do all of the set ups for you for this fee. the only requirement from my end would be to set up a bank account. 
is that correct?


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## Malbec

marbar said:


> thanks for all the information you have posted to date.
> do you have a recommended 3rd party agent, with a once off 2500 AED payment, that you can recommend to set up a company in Fujairah Creative City?
> 
> if i understand the process correctly, they will do all of the set ups for you for this fee. the only requirement from my end would be to set up a bank account.
> is that correct?


AED 2,500 are agent's fees for renewal but this is something you can do on your own as well. First year & first time fees are AED 17,500 (registration + licence) + flexi desk AED 7,500 (allows for 3 visa for the company) + agent fees (approx AED 5,000). 2nd year onward fees are AED 10,000 (annual licence) + flexi desk AED 7,500 + agent's fees for handling the renewal (if required).

Keep in mind that above fees are related to incorporation within Fujairah Creative City and prices are lower if your company doesn't require visa sponsorship or higher should your company employment visa requirements be up to 12. Also these fees are not including visa processing fees and agent's fees should you require help with visa application.

At this point of time I can't recommend any particular agent, at least until I will have all paperwork in hand which will probably take few weeks.


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## whittleman

Malbec said:


> AED 2,500 are agent's fees for renewal but this is something you can do on your own as well. First year & first time fees are AED 17,500 (registration + licence) + flexi desk AED 7,500 (allows for 3 visa for the company) + agent fees (approx AED 5,000). 2nd year onward fees are AED 10,000 (annual licence) + flexi desk AED 7,500 + agent's fees for handling the renewal (if required).
> 
> Keep in mind that above fees are related to incorporation within Fujairah Creative City and prices are lower if your company doesn't require visa sponsorship or higher should your company employment visa requirements be up to 12. Also these fees are not including visa processing fees and agent's fees should you require help with visa application.
> 
> At this point of time I can't recommend any particular agent, at least until I will have all paperwork in hand which will probably take few weeks.


Hi Malbec, 

I was wondering whether you did use an agent and what the final cost was?


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## Malbec

whittleman said:


> Hi Malbec,
> 
> I was wondering whether you did use an agent and what the final cost was?


Yes, I did. The final cost was AED 30,000 excluding visa to setup a company in Fujairah Creative City. If I would do it myself, it would be AED 25,000. Residence visa processing AED 7,900, If I would do it myself it would be AED 6,400.


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## whittleman

Would you be happy to share the name of the agent?


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## Malbec

whittleman said:


> Would you be happy to share the name of the agent?


I sent you PM.


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## whittleman

Malbec said:


> I sent you PM.


Thanks Malbec. Much appreciated.


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## currently_indian

I need to setup a company in a free zone in UAE. The activity is mobile apps development. I need one visa for my self and will be relocating there. Can someone advice me the cheapest option to choose ? I can work from home, and the only reason of setting up a company in a free zone is to get a residence visa, nothing else ! Someone suggested me Adman free zone but I am not able to find the cost on its website.


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## The Rascal

currently_indian said:


> I need to setup a company in a free zone in UAE. The activity is mobile apps development. I need one visa for my self and will be relocating there. Can someone advice me the cheapest option to choose ? I can work from home, and the only reason of setting up a company in a free zone is to get a residence visa, nothing else ! Someone suggested me Adman free zone but I am not able to find the cost on its website.


Hang on, you posted this, and then 3 minutes later cut/pasted it and added a bit to a new thread?

Guess you app developers can't follow rules cos you're so "out there".

if all it is is app development why do you need to be here anyway, you can set it up anywhere in the world?


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## currently_indian

The Rascal said:


> Hang on, you posted this, and then 3 minutes later cut/pasted it and added a bit to a new thread?
> 
> Guess you app developers can't follow rules cos you're so "out there".
> 
> if all it is is app development why do you need to be here anyway, you can set it up anywhere in the world?


Well I am afraid this isn't an answer to the question. For the forum rules, I was not aware starting a new thread for a question as well as posting it on another active threat is against the rules. Will keep that in mind.


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## Hi All

currently_indian said:


> I need to setup a company in a free zone in UAE. The activity is mobile apps development. I need one visa for my self and will be relocating there. Can someone advice me the cheapest option to choose ? I can work from home, and the only reason of setting up a company in a free zone is to get a residence visa, nothing else ! Someone suggested me Adman free zone but I am not able to find the cost on its website.




I heard Hamriyah is giving good deals as well. Its not this hard to open a company here if you have a right agent. The only problem which some of my friends faced was hard to decide which business to start as its hard to understand the market.

Good Luck with your new company


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## currently_indian

Hi All said:


> I heard Hamriyah is giving good deals as well. Its not this hard to open a company here if you have a right agent. The only problem which some of my friends faced was hard to decide which business to start as its hard to understand the market.
> 
> Good Luck with your new company


Well the business is mobile apps development and I am doing it for past 5 years, I just need to relocate to a country with better quality of life. And Dubai provides 0% tax in addition which is a bonus. Agents are quoting close to 45000 AED which includes setup in Ajman Free Zone and visa processing for the family. Is that a realistic quote or is there a cheaper & alternative way of getting a visa and execute my business from there ?


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## Malbec

Fujairah Creative City will come out around AED 32,000 for setup and visa without agent fees if you go directly with them. Through agent it will be around AED 40,000.


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## currently_indian

Malbec said:


> Fujairah Creative City will come out around AED 32,000 for setup and visa without agent fees if you go directly with them. Through agent it will be around AED 40,000.


Thanks for the response. Does 32000 AED include residence visa processing, Emirates ID, medical checkup, etc ? Also how easy it is to do everything without an agent - do agents really add value to the tune of 10000 AED ?


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## Sinoo101

Malbec said:


> I sent you PM.


Hi Malbec, could you please also share the details of the agent you used.
Im currently in Muscat, the new expat employment visa laws have become quite a hinderance to do anything, hence looking to move to Dubai and start fresh


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## Mr Rossi

App developement you should be able to set up under RAK Free Zone. Around 23,000 the first year, 19,000 after that.

You don't need an agent as their staff are quite helpful.


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## Sinoo101

Hello Everyone,

I just came across some options in Hamriya Freezone - Sharjah

They are offering service call "SME E-office" with packages starting from AED 25000 
The package includes:
1. Office rent for 1 year (Office size: 10 sq. mtr)
2. License fee for 1 year (Commercial or Service License)**
3. Service charges
4. P.O. Box charges (Initial charges)
5. Name approval charges
6. Telephone line charge (1 Line)
7. Allotment of 4 visas (Maximum)***


Has anyone tried this option, I would like to know your opinions on this one, also what could be the additional charges ?

Thanks


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## dime06

*Dubai World Central*

Hi Guys

I wanted to establish a counsultancy company and trying to collect info about various available option - I am looking for the cheapest one as i cannot afford to spend much , I have Just collected info from DWC about smart desk option which is the cheapest at the moment ( if i am not missing anything) and the total cost is coming around 29,900 excluding visa , does anybody has any experience with DWC or they can share any hidden cost , Also if any one can advise any other better option , Any advise is most welcome


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## clr_za

Hi guys,

Malbec you seem to be quite knowledgeable on the subject. I would like to start a freezone business for which I would need 2 visas to begin with (for employees, not myself). It will be a service providing business similar to having a maid live in. Can you or anyone here give me some tips as I don not want to use a company like virtuzone (rip-off) and I am also getting some conflicting information. Thanking you in advance.


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## The Rascal

clr_za said:


> Hi guys,
> 
> Malbec you seem to be quite knowledgeable on the subject. I would like to start a freezone business for which I would need 2 visas to begin with (for employees, not myself). It will be a service providing business similar to having a maid live in. Can you or anyone here give me some tips as I don not want to use a company like virtuzone (rip-off) and I am also getting some conflicting information. Thanking you in advance.


Well for a start a maids service (or similar) isn't allowed under freezone rules.


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## clr_za

It is actually a pet sitting service. Is this also not allowed under freezone?


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## The Rascal

There's a list of what is and isn't allowed on the relevant FZs websites...


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## clr_za

Yes and thank you. I have been in contact with some of them already and I'm getting conflicting information. Which is why I asked here for someone who has been through the process. If none can shed light then at least I've asked


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## deea_andron

*new events company...where to open?*

Good evening everyone,

I am interested to know what would be better...to get a freelancer visa or to set up a company in agree zone? The profile for the company will be events&entertainment...
I am oleo curious from a cost point of view what free zone would be the best option... this will be the first company i am opening, so wish me luck and thank you in advance for your help!


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## singhmanmeet

Hello sir

i want to start an ecommerce business in uae. Can u guide me about which freezone to start and the approx cost in the present time.

Thanks


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## Simey

singhmanmeet said:


> Hello sir i want to start an ecommerce business in uae. Can u guide me about which freezone to start and the approx cost in the present time. Thanks


Would you like us to write your business plan too?


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## umerbhatti21

can you guide me how to find the information on to apply for this type of visa


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## Stevesolar

umerbhatti21 said:


> can you guide me how to find the information on to apply for this type of visa


Hi,
This thread is for discussing setting up your own company in the UAE through one of the many freezones.
The owner of these companies can then sponsor themselves for a residence visa and depending on the Freezone and package chosen - they can employ and sponsor staff on their company visa.
Cheers
Steve


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## AquaSky

Does anybody have any experience with Umm Al Quwein Free zone?


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## currently_indian

AquaSky said:


> Does anybody have any experience with Umm Al Quwein Free zone?


Yes I have my company registered there.


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## AquaSky

May I ask if you apply directly or through agent-if so,which one?
Are you happy with your decision?


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## currently_indian

AquaSky said:


> May I ask if you apply directly or through agent-if so,which one?
> Are you happy with your decision?


No need for an agent, absolutely doesn't adds any value. I went direct. As for my decision, I think it's the best decision simply because there is no cheaper alternative to setup a company and get residence visa as far as I know. It depends on the individual situation and the requirements. What are your requirements ?


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## AquaSky

Sorry for the delay .My situation is similar to you.Thank you very much.


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## currently_indian

AquaSky said:


> Sorry for the delay .My situation is similar to you.Thank you very much.


Ok, have you been to UAQ by any chance ? As I said there are some downsides too, particularly if you need to travel to UAQ more often. For me, the biggest frustration was frequently traveling to UAQ from Dubai atleast 25 times for driving classes & training as my nationality isn't eligible for exchange of DL. But if your nationality is eligible for DL exchange, it should not be an issue. Ever since I got my DL in January, there was never a need to visit again. I guess the next time I go there will be only to cancel visas of my dependents and take back security deposits. And that too wouldn't be a pain as I could now directly drive and reach there.


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## AquaSky

Driving would not be a problem for me.What would be other downside you experienced?


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## currently_indian

AquaSky said:


> Driving would not be a problem for me.What would be other downside you experienced?


Driving is not a problem for me too, but the main pain was going to UAQ from Dubai using public transport, since we can not drive a vehicle until we have a UAE Driving License, once our residence visa is stamped. There is a bus from Union station in Dubai that goes to Ras Al Khaimah that drops you to UAQ. From there you get shared taxi that will take you anywhere in UAQ. While coming back there is no bus, you need to take a shared taxi to Sharjah or Dubai and there is lot of waiting for 4 passengers to fill the taxi. Doing this 25-30 times was so frustrating that once I thought of cancelling the visa and go back. But once I got the DL everything is settled. As I said if in your case you can directly exchange your home country DL with UAE DL, this should not be an issue. But if you can not, you should consider this downside.


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## AquaSky

I see long distance from Dubai as trade-off and am willing to accept it.Other than this factor,may I ask are there any
downsides for UAQ freezone itself compared to other Free zone such as Creative City or Ajman?


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## currently_indian

AquaSky said:


> I see long distance from Dubai as trade-off and am willing to accept it.Other than this factor,may I ask are there any
> downsides for UAQ freezone itself compared to other Free zone such as Creative City or Ajman?


Nothing that I know of. Still I would advice you to do a personal visit to these places to get a feel.


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## AquaSky

Yes that is for sure.Thank you very much!


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## tcf127

Malbec said:


> I sent you PM.


can i get the name of the agent too? Hows your expenrience with FCC so far?


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## tcf127

Malbec said:


> I sent you PM.


Hello Malbec, can you share with me too? TIA


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## tcf127

currently_indian said:


> Yes I have my company registered there.


Can you share why you chosen this free zone? How much the setup cost in total?


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## Sevens

Hello,

If i start a company in rak/shj freezone with shared desk space option and what are the chances of setting up an office outside freezone or in dubai?? is it legal or even possible?


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## shareef

Greeting,

Anyone here have heard or have experience with USA regional trade center in Sharjah?


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