There are numerous free zones in the UAE that have offered a myriad of business start-up opportunities for local, Indian, and other international investors. Free zone business setups are common among new entrepreneurs because they do not apply VAT taxation laws. However, like all other business setup regions in the UAE, most free zones requires some form of monetary investment prior to issuance of a trade license. A business setup applicant must provide their valid passport, deposit a predefined amount of money in a UAE bank for 2 to 20 days or until the business setup process is completed, and acquisition of a business license. Though you are allowed to withdraw and spend the deposited money upon successful business setup, you are required to submit an audit report on the same. This may be demotivating for most Indian investors but the good news is that, not all free zones uphold the initial capital deposit rule. Such free zones include;
Ajman Free Zone: It does not charge capital for business service licenses. However, trade and industrial licenses attract capital requirements that should be met within 2 or 3 months from registration date. Trade license capital requirements is $50,000.
RAKIA Free Zone: RAKIA has no capital requirements for service and training licenses. Industrial licenses require AED 200,000 when working with multiple partners and AED 150,000 for sole proprietorships.
Hamriyah Free Zone: Hamiryah exempts companies with office facilities from the capital requirement rule. However, if you intend to lease a warehouse or land, you must have AED 150,000.
Fujairah Creative City Free Zone: in Fujairah business setups are not subject to any form of capital requirements despite the nature of business they intend to carry out.
Dubai World Central Free Zone: DWC free zone does not impose any capital requirements for all new business setups. You start any type of business entity without requiring any capital.
These no capital free zones are ideal for new entrepreneurs who wish to start multi-national and internationally recognized enterprises but lack the capital to achieve their dreams. This coupled with the lenient free zones business operation rules and availability of good infrastructure within the UAE allow entrepreneurs to build their businesses with ease.
Summary
The no capital free zones in the UAE are a clear indication that the UAE government is dedicated and highly supportive of both foreign and local business investments. They offer an opportunity to any daring Indian entrepreneur to build an internationally recognized business empire in one of the rapidly growing business hub globally.
