5 mistakes to avoid when setting up a business in Dubai free zone!!


The Free Zone in Dubai is the government organization that handles all the registration processes and issues business licenses to foreign companies or non-resident businesses for Dubai Free Zone Business Setup. Company formation in Dubai free zone brings with it a plethora of positive opportunities for collaborating, networking, and tremendous growth in the business. The many incentives and tax regime offered by the free zone authorities make Dubai one of the most approved and suitable nations by an entrepreneur for a business set up.

But, to ensure you avail all the possible benefits of Dubai Free Zone Business Setup, there are certain things you need to take care of very wisely-there are certain mistakes you really need to avoid.

Listed below are a few things to keep in mind and avoid when setting up your business in the Dubai Free zone.

1.      You must never make any business plans based solely on advertised information:

Before you plan anything for your company formation, it is very important that you first confirm the validity of the published details. Since the rules and regulations change frequently in the free zones and also in the local Department of Economic Development, it is advised not to go ahead with your business plan until you have confirmed the assumptions through a professional business set up consultant, or the relevant authority.

2.      Do not register your business without considering the office sizes and their conditions:

Often entrepreneurs intending to set up their business in Dubai free zone get overwhelmed with a wide variety of office spaces. However, always remember that the published information about a particular office space keeps on changing, and it’s quite possible that when you actually go-ahead for the registration of your business, you may find that only specific office sizes are available. Or it may also happen that certain offices allow only a single visa and that too only for the investors and not for the employees. So, remember not to proceed with the company formation process until all the aspects of office spaces are clear and confirmed.

3.      Never open your bank account until the bank charges are confirmed:

Banks in the free zones levy varying charges, and for a company formation, these can amount to a significant sum for a bank operation. Thus, you must always confirm the charges and requirements to open a business bank account beforehand. Furthermore, also remember not to choose a bank based on its reputation, instead, consider other factors too.

4.      Don’t pick a license type without confirming if that allows your business model:

When it comes to your business license, make sure you confirm whether your license category allows you all the activities and facilities that will be allowed in the type of business you are planning to set up. Never choose a license category particularly for some services, instead, consider your business type and choose the one that fits all the possibilities.

5.      Make sure you don’t sign your sponsorship with the local sponsors without getting everything in writing:

Your company formation may need plenty of vital support and assistance, and for this, a local sponsor may want to charge you separately for some specific services. So make sure you agree to the deal when you and the sponsor, both have agreed on what to expect from each other, and a written contract is drawn up and attested with the relevant authority.

The freedom of running a business, tax savings, and co-operative government policies-all these lead potential businessmen and investors to set up their company in Dubai free zone. And with these points to avoid, I am certain you’ll be able to set up a successful company in the free zone area.

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