# Starting Own Consultancy



## jjcanadian (Jan 12, 2011)

Hello,

I am thinking of starting up my own Business Consultancy (initially work from home using a virtual office for the first year) and am quite confused with the benefits/drawbacks of the various free zones such as RAK and Fujairah. Has anyone set up their own companies in any of these free zones and can give me their objective opinion? I would greatly appreciate the advice.


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## incommunicated (Feb 27, 2011)

Me too. I am in pretty much the same position
I have been checking a bit on this and it seems the different freezoness are pretty much the same as far as what they offer and the difference is in price and convenience. Dubai being more expensive than RAK for example. If you set up a company in RAK and live in Dubai you will have to travel to RAK from time to time. To me it looks like RAK is a good choice.

I would like to know how it works and to get recommendations for a lawyer than can set up the company and get the visas or residence permits. 

Some people said they did it all by themselves to save money but I am not sure what that involves and how much they saved.

I have no idea how much it costs to set a company and get a residence visa... been told anywhere from 5000 to 15000 euros. The realto trying to sell me a condo told me 5000 and someone that did it said 15000


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## Gavtek (Aug 23, 2009)

incommunicated said:


> I would like to know how it works and to get recommendations for a lawyer than can set up the company and get the visas or residence permits.*


We used Just & Fair Consultants (part of the worldwide Baker Tilly Group) to set us up in Jebel Ali Free Zone back in 2004 and have used them for just about everything ever since, including our current move to JLT Free Zone.

What they did for us was register us as a company in the British Virgin Islands then used the Free Zone to open a Foreign Branch Office to get around a lot of the Free Zone regulations.

I would budget around $20k if you want it done in Dubai.


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## incommunicated (Feb 27, 2011)

Gavtek said:


> We used Just & Fair Consultants (part of the worldwide Baker Tilly Group) to set us up in Jebel Ali Free Zone back in 2004 and have used them for just about everything ever since, including our current move to JLT Free Zone.
> 
> What they did for us was register us as a company in the British Virgin Islands then used the Free Zone to open a Foreign Branch Office to get around a lot of the Free Zone regulations.
> 
> I would budget around $20k if you want it done in Dubai.


Thank you for the information.
I gather they do not mind that you open a branch for a recently formed company then and that braches are not so complicated as just starting a company. Wich free zone regulation can you avoid that way?
20K is steep but if there is no other way it can be done but how much does it cost to keep that going every year?


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## Gavtek (Aug 23, 2009)

incommunicated said:


> Thank you for the information.
> I gather they do not mind that you open a branch for a recently formed company then and that braches are not so complicated as just starting a company. Wich free zone regulation can you avoid that way?
> 20K is steep but if there is no other way it can be done but how much does it cost to keep that going every year?


If you register with a Free Zone as a Free Zone Company, you need to lodge a fairly substantial bank guarantee for starters.

I would budget about $5k a year for Trade License renewal, etc.

Not sure if you also need to rent office space or not, I think you do in Dubai.


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## Mr Rossi (May 16, 2009)

Gone through RAK, no need for third parties as it's been fairly straight forward, the staff at RAK are helpful and efficient. You don't need a bank guarantee as such just a minimum amount in your bank account when doing the company formation, you can transfer it out again after that. I've had to go up to RAK once, everything else done from offices at Festival City.

Only problem we've encountered was with our first bank. We had a lukewarm relationship with them anyway and when trying to open a business account they put in some 'Dubai clauses'. Thankfully this forced us to shop around and are more than happy with our current business bank account.


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## stuartmatthewson (Feb 15, 2011)

Have a look at this - Virtuzone

VirtuZone


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## incommunicated (Feb 27, 2011)

Mr Rossi said:


> Gone through RAK, no need for third parties as it's been fairly straight forward, the staff at RAK are helpful and efficient. You don't need a bank guarantee as such just a minimum amount in your bank account when doing the company formation, you can transfer it out again after that. I've had to go up to RAK once, everything else done from offices at Festival City.
> 
> Only problem we've encountered was with our first bank. We had a lukewarm relationship with them anyway and when trying to open a business account they put in some 'Dubai clauses'. Thankfully this forced us to shop around and are more than happy with our current business bank account.



How much did it cost you and how long did it take?
I heard that RAK has a rep that is in Dubai or travel to Dubai often. Does anybody have his phone number?

I was just thinking that perhaps I could buy a ready made company from a person leaving Dubai or that somebody that has done this and has the option to hire a foreigner could hire me at my entire expense plus a fee of half what it would cost me to set it up by myself. We could split the costs and save time and money.


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## xchaos777 (Dec 15, 2010)

There are numerous RAK reps in Dubai. Easy enough to find with a search. I can provide you a reference, PM me.

With virtuzone, they have their costs on the web site. They don't require a bank deposit but have a monthly "virtual" office fee (about 500 AED a month). Total is around 18k AED to start, yearly is something like 5k AED. They have an office in Dubai in JBR.

With RAK, it is about 22k AED to start...and I think that includes the office space requirement. Yearly renewal is about the same at 5k I believe. However, you will need to deposit 100k AED into the business account at startup. There is no requirement that this money needs to stay there from RAK's perspective, but the bank account may have a minimum depending on the type of account and bank. You will also need to put 100k AED in the account again each year at renewal.

That about sums it up, I have recently been through this but have gone a slightly different route for the moment.


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## incommunicated (Feb 27, 2011)

]

You have all helped a lot. I am starting to understand.
Thank you.


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## incommunicated (Feb 27, 2011)

I started the process for a new company by filling their online form and they sent back a bunch of forms back. One of the requests is for a university degree related to the field of the business, consultancy, I want to start.
It that a "must have"?
Is there a way around this!


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## xchaos777 (Dec 15, 2010)

Really? This wasn't requested of me a year ago, but I never ended up using them. Maybe required now...


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## incommunicated (Feb 27, 2011)

Yes. I started the process online for RAK FTZ flexi desk offer with a net grand total of 18K for a SEO company or internet marketing and they came back with 7 items needed. Number seven was a copy of the degree that matches the chosen consultancy.
this was to set up a new company.


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## xchaos777 (Dec 15, 2010)

They might be able to accept other certificates in the field (not just University degrees)...


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## incommunicated (Feb 27, 2011)

I do not have a proper education with certificates to show or display. Maybe I should start again with something that is not interpreted as a consulting service.


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## junkymoe (May 10, 2011)

Hi,

I am also in the same boat and have found CreativeZone, which is a free zone area in Fujairah with an office in Dubai. Set up cost is about 17,500 and that includes a company license and up to 5 employment visas. Its a very cost effective method if you ask me and I have been looking for a while at free zones to establish my company.

I do like the idea about the British Virgin Islands though; I was thinking I should set up my company in Canada first but then I might be liable to pay taxes over there

*just realized that VirtuZone offers visas from Creative City in Fujairah, same as CreativeZone. Same fees basically too.


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## incommunicated (Feb 27, 2011)

Are there less requirements if you go for a branch instead of a new company?

Are you saying virtuzone and creative city do not have so many requirements or are you saying they asked you for a university degree?
I was going to give VZ a try first as their Web said it can all be done online, and in ten days, but then their online form did not work or was not ready and they were very slow in answering emails

If you want to start a branch they ask for a business licence for the main company and you can not get that if you use a BVI or Panama company your just bought online and I think the company setting up a brach has to be at least one year old


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