December 17, 2024 • 16 mins
Watch on YouTube: https://youtu.be/ljn4eqMPYdw
Explore the benefits and drawbacks of establishing a free zone company in Dubai. Learn why this could be a strategic move for entrepreneurs and investors, what free zones offer, the tax benefits, and key points to consider before making your decision. Plus, clear up common misconceptions and gain insights into making the best choice for your business structure. Ideal for English-speaking entrepreneurs from the UK, USA, Europe, Canada, and Australia.
Mentions: Deciding Between Mainland vs Free Zone companies article - https://handlrzone.com/blog/mainland-vs-free-zone-navigating-the-best-business-setup-in-dubai/
Start your business in Dubai with my agency, Handlr Zone: https://handlrzone.com/yt
OR get a direct referral to my contact at the IFZA free zone: https://aaronhenriques.com/ksbc
Follow: https://www.instagram.com/aaronhenray
00:00 Introduction to Free Zone Companies in Dubai
00:18 whats a free zone company
00:18 What is a Free Zone Company?
00:53 Choosing the Right Free Zone
01:58 Benefits of Free Zone Companies
03:01 Tax Implications
04:38 Ownership and Regulations
07:00 Visa and Bank Account Considerations
09:13 When Not to Set Up a Free Zone Company
13:43 Choosing Between Free Zones
14:46 Setting Up Your Free Zone Company
16:36 Conclusion and Final Tips
#opportunity #motivation #success #businessstrategy
The information in this video is for general guidance only and does not constitute tax, legal, financial, or business advice. Viewers are solely responsible for their own decisions and should seek advice from a qualified professional. While every effort is made to ensure accuracy, no responsibility is accepted for errors, omissions, or reliance on this content.
Full Disclaimer at https://aaronhenriques.com/disclaimer
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Today, I'm going to talk about thebenefits of setting up a free zone company
(00:03):
in Dubai and when it makes sense to set upand when it doesn't make sense to set up.
Plus, I'm going to cover afew misunderstandings and
misconceptions that people haveabout setting up a company in Dubai.
So pay attention because it couldcost you thousands if you don't.
So what is a free zone company?
essentially a free zone company is aspecial type of business structure in
(00:25):
Dubai, which allows foreign entrepreneursand investors to to set up a company
and operate from Dubai without having toadhere to all of the rules and regulations
that are applied on traditionalmainland companies here in the UAE.
The free zones set their own rules andregulations to an extent And some of
(00:45):
these rules and regulations may wellsuit you and they may not as well.
a lot of it may come downto where you're from and how
you're used to doing business.
In the UAE, there are over 40free zones for you to choose from.
They all have their own pros andcons, different costs, different
rules, different regulations.
And so you can get boggeddown doing all your homework.
(01:05):
But ultimately, the free zone thatI'm with, which is IFZA, based in the
Dubai Silicon Oasis, I think is a goodall around general free zone for most
business owners and investors who arecoming from places like the United
Kingdom, Europe, Australia, the UnitedStates, Canada, places like that,
because the structure is quite familiarwith how we do business in the West.
(01:28):
And that's because it's predominantlyrun and managed by European management
or people who have had their careers asmanagement within the European Union or
other Western countries around the world.
So why choose a free zone inthe first place, you may wonder?
Well, if you look back on the previousvideo, I've already spoken about
the differences between mainlandcompanies and free zones very briefly.
(01:50):
But if you want a more comprehensiveguide, there is a link in the
description about choosing betweenmainland and free zones, but this
video is all about free zone.
So let's move on.
the first reason people may choose a freezone business is you can trade globally,
bar few exceptions from trading in theUAE mainland for some types of businesses.
for most free zone companies, particularlyif you're in consulting or professional
(02:14):
trades where you're trading remotely, ortrading globally, you can trade anywhere.
And at the time of this recording,you can earn profits, which are
tax free, up to 3 million dirhams,which is about $815,000 US dollars.
And for my friends back in theUK, that's about £650,000 that you
(02:37):
can earn tax free before you haveto start paying corporation tax.
And the corporation taxthat you pay will be 9%.
Now that is a temporary measure.
Over the long term, it's expected thatthe actual tax free allowance is going
to be AED 375,000 dirhams before youhave to pay any UAE corporation tax.
And that's about $100,000 or £80,000.
(03:01):
and for those of you who may be lookingat other sources, which may be saying
that the UAE is completely tax freefor corporation tax, it's not anymore.
The law has changed in 2022, and allcompanies are now subject to corporation
tax, whether you're a mainland company ora free zone company, over that threshold.
Another benefit is personal income tax.
(03:23):
Now, I need you to pay attentionto my words really carefully here.
If you qualify as tax resident here inthe UAE, and you pay yourself a salary
or you take dividends, then you willthen you will qualify for 0% income tax.
And I will say this again, if youqualify as tax resident in the UAE,
(03:43):
you do not automatically qualify as taxresident in the UAE just because you
have a company here, or just becauseyou're living here for a period of time.
So it's really important that you speakto a tax advisor where you're from to
find out if you're going to qualify.
And for our friends in the United States,I'm afraid that your government's rules
(04:04):
make it even harder than most peoplefor you to be able to make any real tax
benefits For you coming over to the UAE.
But for most other people like from theUnited Kingdom or in Europe, Australia,
wherever else, you may well qualifyas a UAE tax resident Provided you
follow the rules of where you're from.
And the rules vary, so it's best that youspeak to a qualified tax advisor where
(04:28):
you're from so they can set a plan foryou to see exactly how you can qualify as
being tax resident in the UAE if that'syour intention to get 0% income tax.
Now another benefit is100% foreign ownership.
Most foreigners are able to setup a free zone company in the UAE.
By foreigner, I mean people like me,from the United Kingdom, or Europeans,
(04:51):
or Australians, or Canadians, orpeople from the United States, or
wherever else, other than people whoare from the United Arab Emirates.
You can own 100% ofyour free zone company.
And for people wondering,well, Isn't that obvious?
Maybe not so much, because typicallyin the past, you have required local
sponsorship for a mainland company inthe UAE and not a free zone company in
(05:16):
the UAE, but people get the two confused.
And it's also no longer the case thatall mainland companies require local
sponsorship, but again, this is aboutfree zones, so I'll stick to that.
There are fewer UAE regulationsthat apply to free zone
companies, as I've said earlier.
However, your free zone willhave their own rules and
regulations for you to adhere to.
There's no physical office spacerequirement for many free zones, which
(05:38):
is a huge consideration particularlyfor online entrepreneurs and people
who traditionally work remotely wherethey don't need a physical office
and they're used to working from homeor from coffee shops or when they're
traveling around the world or wherever,that's really useful to not have to
pay for a physical office, a dedicatedoffice when you don't really need it.
With a FreeZone license, youcan sponsor your staff to come
(06:01):
and live and work in the UAE.
and actually when you've set up yourfree zone company in Dubai, it's
actually your free zone company thatsponsors you and your visa for you
to be able to come and live here.
And another huge benefit of settingup a free zone company in Dubai is
that massive concentration of otherentrepreneurs and investors that you find
(06:23):
here, which gives you opportunities tonetwork with really progressive people
and people who are doing business.
They want to do a lot more andyou might be able to collaborate
with them on future projects.
So when is it not right toset up a free zone company?
Now, the first thing I would sayis if you're not sure if you should
set up a mainland company or a freezone company, then don't go ahead
(06:44):
and set up a free zone company.
that's the most important firstdecision that you need to make
when deciding between the two.
And as I mentioned earlier, there'sa link in a description to an article
that I wrote, which can help youdecide if you need to set up a mainland
company or a free zone company.
your company sponsors yourvisa for you to be able to move
(07:05):
into the UAE and reside here.
that means your company is formedbefore you even have your residency
visa in most cases, and it is possiblefor you to never get your residency
visa and still own the company.
I get a lot of enquiries frompeople who have no intention of
getting a residency visa in the UAE.
(07:26):
The problem is, you cannot open abank account in the UAE for your
business if you do not have EmiratesID and you don't get your Emirates ID
unless you've got a residency visa.
So that will make it really difficult formost people to be able to set up a company
and actually operate the company in theway of charging for your services, And
(07:50):
unfortunately, there are lots of agenciesout there who won't tell you that.
they'll open up your company for youknowing that you have no intention
of getting a residency visa justso that they can make a commission.
And it's only later you then find out thatactually you can't open a bank account.
Now there are people out there who areoffering bank account opening services.
(08:11):
Apparently they cost a lot of money.
I don't really see why youwould need the help in paying
for opening up a bank account.
It's really super simple.
I've helped my clients throughmy agency here in Dubai to
open up their bank accounts.
Literally just for an online video thatthey get access to once they've signed up.
I don't know if they can actuallyopen a bank account for you if you
(08:31):
haven't got Emirates ID, perhaps that'ssomething that they offer as well,
which they can somehow bypass that.
I don't know how they would, but whatever.
The main thing is if you do intend onever taking any money into your company,
you'll need a bank account, whichmeans you will need a residency visa.
for the people who are already here inthe UAE with residency visas, of course
(08:52):
you don't need another residency visa,provided that your visa allows you
to operate the company and isn't somesort of temporary visa, for a specific
event for a few days, for example.
Now, here's another reason why Iwould personally say, and this is
just a personal opinion on this oneas to why you shouldn't come to the
UAE and set up a free zone company.
(09:13):
If you don't have enough runway, andby runway, I mean enough cashflow from
your other investments or your otherbusinesses, and you're a startup and
particularly a first time business owner,I would highly recommend you look at
your sales targets that you reckon thatyou're going to achieve from your lovely
business plan in the world of everythinggoing perfectly and swimmingly for you.
(09:33):
You halve your sales targetsand then you halve them again.
To come up with a closer figure andit's probably still not there yet
I believe that you need at least$3500 to $4000 USD a month at a
minimum for you to survive in Dubai.
And that is based on you being, thesole person like I am myself going into
a one bed or a studio and not bringingyour family over because anything other
(09:57):
than that, and you don't have cash flowbehind you from other businesses, to
be able to fund your life out here.
you may find you may run out ofyour pot of money very quickly
and then have to go back home
And this comes after your cost of actuallysetting up the company, whether you've
done it directly with the free zone orfor an agency, you still need to find the
(10:17):
cash to be able to cash flow yourself.
And that's the biggest problem thatpeople don't come here with realistic
expectations or the knowledge behindthem because they're first time business
owners and they're moving to the UAE.
Trying to work out howto start their business.
you may find it's a lot harder and alot more expensive than you expected.
And if you want to live in nicer places,I don't live in a dump, but I don't live
(10:41):
in the most lavish place if you want tocome here and have a load of experiences
and go off doing all sorts of things,then you may need even more than that.
If you're an experienced businessowner, then you probably have other
income coming from other places orsome money behind you, where it's
not going to be so much of a problem.
But it's particularly those Who arecoming with unrealistic expectations,
(11:04):
thinking that they're going to bemaking millions within the first
few weeks or months of being inDubai, need a serious reality check
And if you've calculated the costof living to be less than what I've
said as the minimum, then I wouldsuggest that you go to numbeo.
com and look at the cost of livingcalculators to compare it from where
you live now to you coming to Dubaiand be realistic because it doesn't
(11:30):
help for you to put your head inthe sand, not be realistic and just
hope everything's going to work outbecause that will cause you stress.
Money is the biggest stressoron the planet for most people.
And if you're out here on your ownwith money, you'll be like so many
people that I've seen before thathave to go back to the UK or Europe,
(11:50):
wherever you're from, if you tellbetween your legs with no business and
no money, and you're starting again.
So please ensure that you haveenough savings to last you
ideally three or six months.
to cover your full costsbefore you even come here.
You also shouldn't set up a freezone company if you plan to sell
physical products or physical goodsin the United Arab Emirates mainland.
(12:14):
You can do it using a local distributoragent or logistics partner, But you
cannot sell your products directly topeople in the UAE mainland, and you
certainly can't have something likea shop under your free zone license.
the problem is these logisticspartners or agents or whatever may
charge you anywhere between 5% to 30%of your revenue for them to fulfill
(12:38):
those services for you in the UAE.
they're taking a huge cut of yourmargin if you do this structure
via a free zone business.
If you plan on doing that type of businessyou're really going to want to look at
those costs and then examine should yoube looking at a mainland company instead.
Now, a really common one, real estate.
If you plan on coming here to set upa real estate company, meaning you can
(13:01):
go and sell the properties to peoplewho are inside the UAE at that time.
you can go and rent out propertiesto people in the UAE at that time.
Then think again, Real estate companies,one, they're a regulated business anyway.
It's a regulated trade.
And two, you're only going to be ableto do that on a mainland license.
There are some exceptionsunder a free zone license.
(13:22):
However, it means you cannot do itwhilst you're actually in the UAE.
So you can't be that agent goingand showing people around or have
agents here showing people around.
You can't do that basically.
So I would just say if you're planningon setting up a real estate agency
in Dubai, don't do it, not through afree zone, perhaps not do it at all.
But anyway, mainland companywill be the one for you.
(13:43):
So on to the last bit, how do youchoose between the free zones?
Now, there are some free zones thatspecialise in certain things, like
Dubai Healthcare City, for example.
And some are more generalist, likethe free zone that I'm with, IFZA,
in the Dubai Silicon Oasis, is moregeneralist, it's more, adapted to
professionals and consultants of that ilk.
(14:04):
Some are better for Westernerslike me from the UK or from the
United States, Australia, Europe,Canada, places like that, just
because of how they are structuredand how they're run and managed.
it's more familiar to howyou do business in the West.
whereas there are others who operate inways Which are more sort of traditional
or May be more familiar with peoplefrom other cultures and other countries
(14:28):
around the world Where someone fromLondon like me may find it completely
alien And that's why I chose the IFZAFreeZone, because it's mainly operated
by senior management and the CEO whoare from Europe and have operated
European companies, which is a lot morefamiliar to how I do business back home.
You can set up your freezone company yourself.
(14:49):
Most FreeZones will allow you to setup directly with them without the
need of using a third party agency.
However, please bear in mind, for thoseof you who are from the UK, for example,
you may be familiar, you can go online,you can set up your company through
Companies House or one of these low costcompanies out there, But then that's it.
There is no help beyond that.
They expect that you would knowyour rules and regulations or
(15:11):
get your own professional help.
Now, using an agency canbe beneficial for some.
I found that through the inquiriesthat I get, It's probably about 50/50
for those who want to do it themselvesand try and save a bit of cost versus
those who just prefer because it'smore convenient or they would like
the extra support of an agency.
All I would say for sure is if youare going to choose an agency to
(15:34):
set up your free zone business.
please do your homework.
Do not just look at the initialGoogle reviews because there are
a lot of fake reviews out there.
Also, do your homework inrelation to their contract.
Really actually read the thing because youmay find that the low cost agency setup
this year actually doubles or triplestheir fee in admin costs next year.
(15:56):
And there are others who are not licensedagents who will just take your money
and you may never hear from them again.
So if you want help with getting yourfree zone company set up in Dubai
without all the nasty surprises and alsowith guaranteed renewal fees look at
my company Handlr Zone, the link is inthe description, and also if you don't
want that help, if you are that personthat wants to go direct and set up your
(16:18):
FreeZone company yourself, and you'dbe happy going with IFZA, the Free Zone
in Dubai Silicon Oasis that I'm with,then if you want a direct intro to my
contact at IFZA, Check the link in thedescription, fill in your details, and
I'll connect you with my contact atIFZA so that you can set up directly.
Anyway, hopefully you've enjoyed this.
Like and subscribe, comment, shareit with someone who you know who
(16:41):
might be considering setting upa free zone company in Dubai.
If you do want extra help, look atthe information in the description.
I'm Aaron Henriques.
Thanks for staying with me.
Bye.
Today, I'm going to talk about thebenefits of setting up a free zone company
(00:03):
in Dubai and when it makes sense to set upand when it doesn't make sense to set up.
Plus, I'm going to cover afew misunderstandings and
misconceptions that people haveabout setting up a company in Dubai.
So pay attention because it couldcost you thousands if you don't.
So what is a free zone company?
essentially a free zone company is aspecial type of business structure in
(00:25):
Dubai, which allows foreign entrepreneursand investors to to set up a company
and operate from Dubai without having toadhere to all of the rules and regulations
that are applied on traditionalmainland companies here in the UAE.
The free zones set their own rules andregulations to an extent And some of
(00:45):
these rules and regulations may wellsuit you and they may not as well.
a lot of it may come downto where you're from and how
you're used to doing business.
In the UAE, there are over 40free zones for you to choose from.
They all have their own pros andcons, different costs, different
rules, different regulations.
And so you can get boggeddown doing all your homework.
(01:05):
But ultimately, the free zone thatI'm with, which is IFZA, based in the
Dubai Silicon Oasis, I think is a goodall around general free zone for most
business owners and investors who arecoming from places like the United
Kingdom, Europe, Australia, the UnitedStates, Canada, places like that,
because the structure is quite familiarwith how we do business in the West.
(01:28):
And that's because it's predominantlyrun and managed by European management
or people who have had their careers asmanagement within the European Union or
other Western countries around the world.
So why choose a free zone inthe first place, you may wonder?
Well, if you look back on the previousvideo, I've already spoken about
the differences between mainlandcompanies and free zones very briefly.
(01:50):
But if you want a more comprehensiveguide, there is a link in the
description about choosing betweenmainland and free zones, but this
video is all about free zone.
So let's move on.
the first reason people may choose a freezone business is you can trade globally,
bar few exceptions from trading in theUAE mainland for some types of businesses.
for most free zone companies, particularlyif you're in consulting or professional
(02:14):
trades where you're trading remotely, ortrading globally, you can trade anywhere.
And at the time of this recording,you can earn profits, which are
tax free, up to 3 million dirhams,which is about $815,000 US dollars.
And for my friends back in theUK, that's about £650,000 that you
(02:37):
can earn tax free before you haveto start paying corporation tax.
And the corporation taxthat you pay will be 9%.
Now that is a temporary measure.
Over the long term, it's expected thatthe actual tax free allowance is going
to be AED 375,000 dirhams before youhave to pay any UAE corporation tax.
And that's about $100,000 or £80,000.
(03:01):
and for those of you who may be lookingat other sources, which may be saying
that the UAE is completely tax freefor corporation tax, it's not anymore.
The law has changed in 2022, and allcompanies are now subject to corporation
tax, whether you're a mainland company ora free zone company, over that threshold.
Another benefit is personal income tax.
(03:23):
Now, I need you to pay attentionto my words really carefully here.
If you qualify as tax resident here inthe UAE, and you pay yourself a salary
or you take dividends, then you willthen you will qualify for 0% income tax.
And I will say this again, if youqualify as tax resident in the UAE,
(03:43):
you do not automatically qualify as taxresident in the UAE just because you
have a company here, or just becauseyou're living here for a period of time.
So it's really important that you speakto a tax advisor where you're from to
find out if you're going to qualify.
And for our friends in the United States,I'm afraid that your government's rules
(04:04):
make it even harder than most peoplefor you to be able to make any real tax
benefits For you coming over to the UAE.
But for most other people like from theUnited Kingdom or in Europe, Australia,
wherever else, you may well qualifyas a UAE tax resident Provided you
follow the rules of where you're from.
And the rules vary, so it's best that youspeak to a qualified tax advisor where
(04:28):
you're from so they can set a plan foryou to see exactly how you can qualify as
being tax resident in the UAE if that'syour intention to get 0% income tax.
Now another benefit is100% foreign ownership.
Most foreigners are able to setup a free zone company in the UAE.
By foreigner, I mean people like me,from the United Kingdom, or Europeans,
(04:51):
or Australians, or Canadians, orpeople from the United States, or
wherever else, other than people whoare from the United Arab Emirates.
You can own 100% ofyour free zone company.
And for people wondering,well, Isn't that obvious?
Maybe not so much, because typicallyin the past, you have required local
sponsorship for a mainland company inthe UAE and not a free zone company in
(05:16):
the UAE, but people get the two confused.
And it's also no longer the case thatall mainland companies require local
sponsorship, but again, this is aboutfree zones, so I'll stick to that.
There are fewer UAE regulationsthat apply to free zone
companies, as I've said earlier.
However, your free zone willhave their own rules and
regulations for you to adhere to.
There's no physical office spacerequirement for many free zones, which
(05:38):
is a huge consideration particularlyfor online entrepreneurs and people
who traditionally work remotely wherethey don't need a physical office
and they're used to working from homeor from coffee shops or when they're
traveling around the world or wherever,that's really useful to not have to
pay for a physical office, a dedicatedoffice when you don't really need it.
With a FreeZone license, youcan sponsor your staff to come
(06:01):
and live and work in the UAE.
and actually when you've set up yourfree zone company in Dubai, it's
actually your free zone company thatsponsors you and your visa for you
to be able to come and live here.
And another huge benefit of settingup a free zone company in Dubai is
that massive concentration of otherentrepreneurs and investors that you find
(06:23):
here, which gives you opportunities tonetwork with really progressive people
and people who are doing business.
They want to do a lot more andyou might be able to collaborate
with them on future projects.
So when is it not right toset up a free zone company?
Now, the first thing I would sayis if you're not sure if you should
set up a mainland company or a freezone company, then don't go ahead
(06:44):
and set up a free zone company.
that's the most important firstdecision that you need to make
when deciding between the two.
And as I mentioned earlier, there'sa link in a description to an article
that I wrote, which can help youdecide if you need to set up a mainland
company or a free zone company.
your company sponsors yourvisa for you to be able to move
(07:05):
into the UAE and reside here.
that means your company is formedbefore you even have your residency
visa in most cases, and it is possiblefor you to never get your residency
visa and still own the company.
I get a lot of enquiries frompeople who have no intention of
getting a residency visa in the UAE.
(07:26):
The problem is, you cannot open abank account in the UAE for your
business if you do not have EmiratesID and you don't get your Emirates ID
unless you've got a residency visa.
So that will make it really difficult formost people to be able to set up a company
and actually operate the company in theway of charging for your services, And
(07:50):
unfortunately, there are lots of agenciesout there who won't tell you that.
they'll open up your company for youknowing that you have no intention
of getting a residency visa justso that they can make a commission.
And it's only later you then find out thatactually you can't open a bank account.
Now there are people out there who areoffering bank account opening services.
(08:11):
Apparently they cost a lot of money.
I don't really see why youwould need the help in paying
for opening up a bank account.
It's really super simple.
I've helped my clients throughmy agency here in Dubai to
open up their bank accounts.
Literally just for an online video thatthey get access to once they've signed up.
I don't know if they can actuallyopen a bank account for you if you
(08:31):
haven't got Emirates ID, perhaps that'ssomething that they offer as well,
which they can somehow bypass that.
I don't know how they would, but whatever.
The main thing is if you do intend onever taking any money into your company,
you'll need a bank account, whichmeans you will need a residency visa.
for the people who are already here inthe UAE with residency visas, of course
(08:52):
you don't need another residency visa,provided that your visa allows you
to operate the company and isn't somesort of temporary visa, for a specific
event for a few days, for example.
Now, here's another reason why Iwould personally say, and this is
just a personal opinion on this oneas to why you shouldn't come to the
UAE and set up a free zone company.
(09:13):
If you don't have enough runway, andby runway, I mean enough cashflow from
your other investments or your otherbusinesses, and you're a startup and
particularly a first time business owner,I would highly recommend you look at
your sales targets that you reckon thatyou're going to achieve from your lovely
business plan in the world of everythinggoing perfectly and swimmingly for you.
(09:33):
You halve your sales targetsand then you halve them again.
To come up with a closer figure andit's probably still not there yet
I believe that you need at least$3500 to $4000 USD a month at a
minimum for you to survive in Dubai.
And that is based on you being, thesole person like I am myself going into
a one bed or a studio and not bringingyour family over because anything other
(09:57):
than that, and you don't have cash flowbehind you from other businesses, to
be able to fund your life out here.
you may find you may run out ofyour pot of money very quickly
and then have to go back home
And this comes after your cost of actuallysetting up the company, whether you've
done it directly with the free zone orfor an agency, you still need to find the
(10:17):
cash to be able to cash flow yourself.
And that's the biggest problem thatpeople don't come here with realistic
expectations or the knowledge behindthem because they're first time business
owners and they're moving to the UAE.
Trying to work out howto start their business.
you may find it's a lot harder and alot more expensive than you expected.
And if you want to live in nicer places,I don't live in a dump, but I don't live
(10:41):
in the most lavish place if you want tocome here and have a load of experiences
and go off doing all sorts of things,then you may need even more than that.
If you're an experienced businessowner, then you probably have other
income coming from other places orsome money behind you, where it's
not going to be so much of a problem.
But it's particularly those Who arecoming with unrealistic expectations,
(11:04):
thinking that they're going to bemaking millions within the first
few weeks or months of being inDubai, need a serious reality check
And if you've calculated the costof living to be less than what I've
said as the minimum, then I wouldsuggest that you go to numbeo.
com and look at the cost of livingcalculators to compare it from where
you live now to you coming to Dubaiand be realistic because it doesn't
(11:30):
help for you to put your head inthe sand, not be realistic and just
hope everything's going to work outbecause that will cause you stress.
Money is the biggest stressoron the planet for most people.
And if you're out here on your ownwith money, you'll be like so many
people that I've seen before thathave to go back to the UK or Europe,
(11:50):
wherever you're from, if you tellbetween your legs with no business and
no money, and you're starting again.
So please ensure that you haveenough savings to last you
ideally three or six months.
to cover your full costsbefore you even come here.
You also shouldn't set up a freezone company if you plan to sell
physical products or physical goodsin the United Arab Emirates mainland.
(12:14):
You can do it using a local distributoragent or logistics partner, But you
cannot sell your products directly topeople in the UAE mainland, and you
certainly can't have something likea shop under your free zone license.
the problem is these logisticspartners or agents or whatever may
charge you anywhere between 5% to 30%of your revenue for them to fulfill
(12:38):
those services for you in the UAE.
they're taking a huge cut of yourmargin if you do this structure
via a free zone business.
If you plan on doing that type of businessyou're really going to want to look at
those costs and then examine should yoube looking at a mainland company instead.
Now, a really common one, real estate.
If you plan on coming here to set upa real estate company, meaning you can
(13:01):
go and sell the properties to peoplewho are inside the UAE at that time.
you can go and rent out propertiesto people in the UAE at that time.
Then think again, Real estate companies,one, they're a regulated business anyway.
It's a regulated trade.
And two, you're only going to be ableto do that on a mainland license.
There are some exceptionsunder a free zone license.
(13:22):
However, it means you cannot do itwhilst you're actually in the UAE.
So you can't be that agent goingand showing people around or have
agents here showing people around.
You can't do that basically.
So I would just say if you're planningon setting up a real estate agency
in Dubai, don't do it, not through afree zone, perhaps not do it at all.
But anyway, mainland companywill be the one for you.
(13:43):
So on to the last bit, how do youchoose between the free zones?
Now, there are some free zones thatspecialise in certain things, like
Dubai Healthcare City, for example.
And some are more generalist, likethe free zone that I'm with, IFZA,
in the Dubai Silicon Oasis, is moregeneralist, it's more, adapted to
professionals and consultants of that ilk.
(14:04):
Some are better for Westernerslike me from the UK or from the
United States, Australia, Europe,Canada, places like that, just
because of how they are structuredand how they're run and managed.
it's more familiar to howyou do business in the West.
whereas there are others who operate inways Which are more sort of traditional
or May be more familiar with peoplefrom other cultures and other countries
(14:28):
around the world Where someone fromLondon like me may find it completely
alien And that's why I chose the IFZAFreeZone, because it's mainly operated
by senior management and the CEO whoare from Europe and have operated
European companies, which is a lot morefamiliar to how I do business back home.
You can set up your freezone company yourself.
(14:49):
Most FreeZones will allow you to setup directly with them without the
need of using a third party agency.
However, please bear in mind, for thoseof you who are from the UK, for example,
you may be familiar, you can go online,you can set up your company through
Companies House or one of these low costcompanies out there, But then that's it.
There is no help beyond that.
They expect that you would knowyour rules and regulations or
(15:11):
get your own professional help.
Now, using an agency canbe beneficial for some.
I found that through the inquiriesthat I get, It's probably about 50/50
for those who want to do it themselvesand try and save a bit of cost versus
those who just prefer because it'smore convenient or they would like
the extra support of an agency.
All I would say for sure is if youare going to choose an agency to
(15:34):
set up your free zone business.
please do your homework.
Do not just look at the initialGoogle reviews because there are
a lot of fake reviews out there.
Also, do your homework inrelation to their contract.
Really actually read the thing because youmay find that the low cost agency setup
this year actually doubles or triplestheir fee in admin costs next year.
(15:56):
And there are others who are not licensedagents who will just take your money
and you may never hear from them again.
So if you want help with getting yourfree zone company set up in Dubai
without all the nasty surprises and alsowith guaranteed renewal fees look at
my company Handlr Zone, the link is inthe description, and also if you don't
want that help, if you are that personthat wants to go direct and set up your
(16:18):
FreeZone company yourself, and you'dbe happy going with IFZA, the Free Zone
in Dubai Silicon Oasis that I'm with,then if you want a direct intro to my
contact at IFZA, Check the link in thedescription, fill in your details, and
I'll connect you with my contact atIFZA so that you can set up directly.
Anyway, hopefully you've enjoyed this.
Like and subscribe, comment, shareit with someone who you know who
(16:41):
might be considering setting upa free zone company in Dubai.
If you do want extra help, look atthe information in the description.
I'm Aaron Henriques.
Thanks for staying with me.
Bye.
Popular Podcasts
Amy Robach & T.J. Holmes present: Aubrey O’Day, Covering the Diddy Trial
Introducing… Aubrey O’Day Diddy’s former protege, television personality, platinum selling music artist, Danity Kane alum Aubrey O’Day joins veteran journalists Amy Robach and TJ Holmes to provide a unique perspective on the trial that has captivated the attention of the nation. Join them throughout the trial as they discuss, debate, and dissect every detail, every aspect of the proceedings. Aubrey will offer her opinions and expertise, as only she is qualified to do given her first-hand knowledge. From her days on Making the Band, as she emerged as the breakout star, the truth of the situation would be the opposite of the glitz and glamour. Listen throughout every minute of the trial, for this exclusive coverage. Amy Robach and TJ Holmes present Aubrey O’Day, Covering the Diddy Trial, an iHeartRadio podcast.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy And Charlamagne Tha God!