Why freezone licensing is perfect for tech Start-up's?
UAE is known for its progressive attitude towards technology and digitalization. Starting from software designing, data analysis, and digital currency, digitalization of services to artificial intelligence UAE has always shown its interest and embraced the new technology. According to study by Tech Behemoths, Dubai had invested 20 billion dollars in IT and Innovation in the year 2021 showing the urge to be one of the best IT business Hub on the world map. Hence, it’s needless to say the IT entrepreneurs from worldwide would like to form their company in UAE. Free zones in UAE provides added advantages to the budding entrepreneurs which makes it suitable from all points for starting the new IT business in the land of opportunity, the UAE. An experienced Business Setup Company like OneClik business setup services LLC FZ can assist the entrepreneur to navigate among different free zones to find the right choice according to their requirements.
What are the benefits of opening a company in free zones?
- Flexible rules and regulation: Each free zone has its own rules as per its own legal jurisdiction. Starting from license formation, company documentation, own offices, visa, renewal of license and visa and other services each and every free zone has their own rules and regulation and doesn’t depend on any other authority until and unless the activity of the business doesn’t need a special approval.
- 100 percent ownership: Irrespective of the business activities and its requirements all the free zones provide 100 percent ownership to the shareholders.
- Office space: A small free zone company may not need an office. Even a large IT company also may not need any office as most of the time the work can be done remotely. Free zones provide a license which comes with a lease agreement of an office. This can be a co working space as well where the entrepreneurs meet their clients. Even a bigger IT company can have its own office separately if wants inside the free zone.
- Economical: The cost of the license is relatively lesser than the license setup in a mainland. Moreover not having an office as a mandatory requirement also saves a good amount. The license formation in a free zone without any visa can’t start from as low as AED 6000.
- Infrastructure: Many free zones come with their focused set of activities other than generic activities. For an example Sharjah Media City is focused on media related activities and hence offer podcast room, studio room etc. inside the free zone as an added advantage to the entrepreneurs.
- Business Activities: When it comes for expansion of a business many entrepreneurs want to go with the same set of business activities they have in other countries. Free zone provides flexibility of having different activities under the same license even from different activity groups unlike mainland license.
- Easy company setup: Many entrepreneurs want to remotely form the company which saves their time. Free zones provide the flexibility to form the company without the presence of the shareholders. This saves time and gives a user friendly company formation process to the client.
- Visa options: Starting from Zero visa until to 100 visas or even more than that Free zone offers flexibility for residence visas. If the company have lesser number of visas then the license comes with a co working office. If the number of visas are more, entrepreneur can even take an office for the large number of employees.
- Bank Account opening: Most of the free zones have their own bank partners from the local banks who helps to open the bank account for the new companies right after the formation. Hence, opening a bank account becomes easier as it helps to find out the right bank just after formation of the company and a visa.
Now as we see that formation of an IT related company is much suitable in a free zone company let’s have a look in the activities which are most sought after:
- E-commerce: This activity is exclusively available in only free zones. Whether you are looking to trade or you want to provide services online there is no comparison for an e –commerce license. The entrepreneur just need a gateway service provider and a delivery company on contract (If it’s trading goods) for the operational use of the company.
- Blockchain and Crypto: Specific free zone like RAK DAO is there to provide block chain and crypto related activities.
Software Design and trading – Its completely possible to get a software design and trading activity under the same license. All the free zones offer mix and match activities from media, trading and services for at least 3 to 5 activities unlike mainland license where you can club only activities which belong to the same group and cannot add trading and servicing activities under one license. - Cybersecurity services and equipment trading: A company who wants to do trading of security cameras and other products also wants to provide the after sales service to maximize their expertise and business scope. Free zone provides complete freedom to club all these activities under one license.
Formation of IT related companies in Free zone all over UAE are increasing day by day. Free zone places like Internet City or Silicon Oasis have become tech hub with IT giants like Microsoft, Oracle, and SAP etc. having their head offices located within. The reasons are simple as it’s easier, cost effective and fits all the requirements of an entrepreneur providing all the possibilities to form and expand the business.
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