Starting a Business in a Free Zone? Consider These Things First

Before you start the process of free zone company formation in Sharjah publishing freezone, you should know the basics. You need to do some things before you apply for a license. To receive a business license, you must first obtain an initial approval letter from your Board of Directors. Once you have this, you must sign the company incorporation documents, including your lease/tenancy contract.

Make sure that you are eligible for a particular type of business:

Before applying for a free zone license, you must make sure that you are eligible for this particular type of business. Some free zones do not require capital investments but may require some. These zones have modernized facilities and sophisticated amenities for businesses to start. You should also consider the location of the free zone, as some areas are more remote. If you are not comfortable with the location of the free zone, you can look for another location.

Consider you have enough capital to start your business:

Another thing to consider is whether you have enough capital to start your business. The minimum share capital for DMCC free zone companies is AED 50,000 for the entire company, and for individual shareholders, it is AED 10,000. If you plan on applying for a General Trading License, you will need AED 1 million. On the other hand, Hamriya Free Zone allows FZEs with a capital of up to AED 150,000.

Office space:

Before choosing a free zone to establish your business, consider some important things. The office space required for a free zone is different than onshore. The office space for a free zone company must be at least 200 square feet. This is important since a virtual office is not allowed. The office space can be rented if you have employees outside the office. You must show their job titles to establish a branch company.

Type of company:

There are several types of free zones. The most common ones are DIFC and Dubai Healthcare City. Depending on the type of business, you may need a separate license for your industry. In this case, you may need to consider the type of shareholders and the type of business you want to run. The free zone authorities will list all types of companies. If you’re setting up a new one, you should look at the requirements.