Dubai free zone. What is the difference between various free zones?

[nakamura]

Hi Guys,

I am checking the free zones in Dubai now.

I can see really really really many free zones in Dubai, I really do not know what the difference is.

In addition, for example Dubai silicon oasis, the name looks like it specializes in IT business but everyone can set up a company with other licenses.

Each free zone`s cost for setting up a company is different as well

It makes me confused.

Basically, Is the regulation, structure, formation, and commercial law of each free zone same in Dubai?

If so, why do people not choose the cheapest option but famous free zones like IFZA, DSO, DMCC etc?

Maybe the famous free zone has a better point than the others.

Has anyone heard about DUQE? It looks like a new free zone in Dubai. I can not find information about the Free zone at all here.


Thank you in advance.

 

[meze99]

In most cases high prices is all about marketing done by Licensed Agents/Promouters, however some free zones offer more anonimity due to lack of public register of companies.
From what I heard on youtube some cheap free zones are just difficult to deal with because of hidden expenses and slow services (RAK for example), but in terms of banking/due diligence bank inspectors don't give any bonus scores for Dubai.
These days only substance really matters for banks (when you have a residential address in your name and your office looks real enough).
Also keep in mind that in 2022 UAE decided to issue 2 year residence permits instead of 3 year ones for investors (free zone users), basically for the same fee, so you never know what changes may hit you next time.

 

[sherax]

I have an offshore freezone company registered in RAK since 2021, its due renewal with aproximately 7500AED fee. but since 2021 I have not been able to open a bank account in any UAE bank. Technically as FREEZONE company, I am not allowed to conduct business in UAE to avail freezone benefits. But Banks won't open bank account unless I have a physical address/office rented on my name or ownership on my name in UAE.
So, the whole purpose of Offshore Freezone dies if you can not have a bank account and have your US/UAE customers pay you to your UAE entity. Don't see any purpose of FREEZONE LLC in UAE.

Anyone here ever have been able to open bank account in UAE with OFFSHORE FREEZONE LLC without any physical office/residence?

 

[Jbb1]

I have an offshore freezone company registered in RAK since 2021, its due renewal with aproximately 7500AED fee. but since 2021 I have not been able to open a bank account in any UAE bank. Technically as FREEZONE company, I am not allowed to conduct business in UAE to avail freezone benefits. But Banks won't open bank account unless I have a physical address/office rented on my name or ownership on my name in UAE.
So, the whole purpose of Offshore Freezone dies if you can not have a bank account and have your US/UAE customers pay you to your UAE entity. Don't see any purpose of FREEZONE LLC in UAE.

Anyone here ever have been able to open bank account in UAE with OFFSHORE FREEZONE LLC without any physical office/residence?

I have a FZ company in RAKEZ.

I was allowed to rent an office space in Dubai and get a bank account with MasreqNeoBiz and Wio.

You don't even need a real office, you can get a tenancy contract and some pictures of an office with your company name on it, which will suffice.

 

[sherax]

Jbb1
Thanks for your response. Can you suggest how you got office space ? any reference
The banks these days say their representative will visit the office for confirmation. How many years back did you open bank account ?

I have a FZ company in RAKEZ.

I was allowed to rent an office space in Dubai and get a bank account with MasreqNeoBiz and Wio.

You don't even need a real office, you can get a tenancy contract and some pictures of an office with your company name on it, which will suffice.

Jbb1
Thanks for your response. Can you suggest how you got office space ? any reference
The banks these days say their representative will visit the office for confirmation. How many years back did you open bank account ?

 

[Jbb1]

Jbb1
Thanks for your response. Can you suggest how you got office space ? any reference
The banks these days say their representative will visit the office for confirmation. How many years back did you open bank account ?


Jbb1
Thanks for your response. Can you suggest how you got office space ? any reference
The banks these days say their representative will visit the office for confirmation. How many years back did you open bank account ?

I used a business centre to get it, you can contact them by telegram.

You can tell them Javi gave you the contact.

@dubaibusinesscentrepoi

 

[JustAnotherNomad]

I have an offshore freezone company registered in RAK since 2021

Do you have a freezone company (FZE/FZCO) or one of those "IBC" offshore entities? I believe the latter are actually rather worthless.

 

[sherax]

Do you have a freezone company (FZE/FZCO) or one of those "IBC" offshore entities? I believe the latter are actually rather worthless.

yeah, I m afraid its IBC......

 

[JustAnotherNomad]

Maybe @Fred has an idea, but I believe those IBC entities are quite useless.

 

[Ancova]

Hello All!

It all depends on what activity your company would be doing. Most of the Free Zones in Dubai are focused towards a certain industry, for example Media City is for media companies, Production City is for production companies, etc.

For anything regulated (financial activities) it must be DIFC (Dubai) or ADGM (Abu Dhabi) and here the incorporation can take up to a year.

For normal businesses, we suggest IFZA because they are the fastest, most responsive as well as being the most affordable (in Dubai).

 

[mgs999999999]

I have an offshore freezone company registered in RAK since 2021, its due renewal with aproximately 7500AED fee. but since 2021 I have not been able to open a bank account in any UAE bank. Technically as FREEZONE company, I am not allowed to conduct business in UAE to avail freezone benefits. But Banks won't open bank account unless I have a physical address/office rented on my name or ownership on my name in UAE.
So, the whole purpose of Offshore Freezone dies if you can not have a bank account and have your US/UAE customers pay you to your UAE entity. Don't see any purpose of FREEZONE LLC in UAE.

Anyone here ever have been able to open bank account in UAE with OFFSHORE FREEZONE LLC without any physical office/residence?

Try wio bank

 

[Ancova]

I have an offshore freezone company registered in RAK since 2021, its due renewal with aproximately 7500AED fee. but since 2021 I have not been able to open a bank account in any UAE bank. Technically as FREEZONE company, I am not allowed to conduct business in UAE to avail freezone benefits. But Banks won't open bank account unless I have a physical address/office rented on my name or ownership on my name in UAE.
So, the whole purpose of Offshore Freezone dies if you can not have a bank account and have your US/UAE customers pay you to your UAE entity. Don't see any purpose of FREEZONE LLC in UAE.

Anyone here ever have been able to open bank account in UAE with OFFSHORE FREEZONE LLC without any physical office/residence?

An offshore and a FZ company are two different things.

The only reason to open an offshore company in UAE is to hold assets under it, but this can be done with a normal FZ as well.

Additionally, a corporate bank account with an offshore uae company is practically impossible.

 

[John Doe GOLDEN STAMP]

Hi Guys,

I am checking the free zones in Dubai now.

I can see really really really many free zones in Dubai, I really do not know what the difference is.

In addition, for example Dubai silicon oasis, the name looks like it specializes in IT business but everyone can set up a company with other licenses.

Each free zone`s cost for setting up a company is different as well

It makes me confused.

Basically, Is the regulation, structure, formation, and commercial law of each free zone same in Dubai?

If so, why do people not choose the cheapest option but famous free zones like IFZA, DSO, DMCC etc?

Maybe the famous free zone has a better point than the others.

Has anyone heard about DUQE? It looks like a new free zone in Dubai. I can not find information about the Free zone at all here.


Thank you in advance.

Greetings!

Let me express my opinion.
Let's start with the main thing. No, the prices in each Free Zone are different. Why? Each Zone is a "private company\ territory". Each has its own rules, regulated exclusively by the owner of the Free Zone.

If your business is related to logistics or, for example, you want to open a new Binance by issuing a license Broker-Dealer Services VDA. Then you need to go to a specific one, but in general there is no difference.

And once again, my advice is Mainland! )

 

[ShillGates]

Greetings!

Let me express my opinion.
Let's start with the main thing. No, the prices in each Free Zone are different. Why? Each Zone is a "private company\ territory". Each has its own rules, regulated exclusively by the owner of the Free Zone.

If your business is related to logistics or, for example, you want to open a new Binance by issuing a license Broker-Dealer Services VDA. Then you need to go to a specific one, but in general there is no difference.

And once again, my advice is Mainland! )

mainland companies are a headache - dealing with the ded . best is still ded cafe - but those fees are ridicilous for sure

 

[John Doe GOLDEN STAMP]

mainland companies are a headache - dealing with the ded . best is still ded cafe - but those fees are ridicilous for sure

What exactly is the headache?) I opened several companies myself and went through all the stages. No problem at all. Most of the issues can be solved by melting the documents online.

But again, if you have a profitable Business (or an AML, KYC business), then the Mainland has more advantages, security and credibility (if we are talking about UAE reporting in the US).

 

[JohnLocke]

What exactly is the headache?) I opened several companies myself and went through all the stages. No problem at all. Most of the issues can be solved by melting the documents online.

curious, are these documents in English ?