JAFZA, RAK or AJMAN? Which one has a better reputation and is more cost-effective in terms of annual fees? We're a small business and our nature of business is HR services. Most of our clients are based in the Middle East and Africa region. Is there any cost-effective option that allows us to bill our clients in UAE as well?
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My understanding is:
JAFZA - industrial area, companies here often have some business in shipping/machinery etc. but of course there may also be some "HR"
RAKEZ - very popular if you want something cheaper than Dubai
AFZ - probably similar to RAK but may be cheaper and closer to Dubai
There are also other similar zones in other parts of the country. If you want something with a "reputation", then maybe choose DIFC or similar but of course it will be much more expensive.
If you don't plan having offices there, it doesn't matter that much. The biggest difference will be the address on your invoices if you'll issue any.
If you have a freezone company, you cannot do business in mainland.
JAFZA - industrial area, companies here often have some business in shipping/machinery etc. but of course there may also be some "HR"
RAKEZ - very popular if you want something cheaper than Dubai
AFZ - probably similar to RAK but may be cheaper and closer to Dubai
There are also other similar zones in other parts of the country. If you want something with a "reputation", then maybe choose DIFC or similar but of course it will be much more expensive.
If you don't plan having offices there, it doesn't matter that much. The biggest difference will be the address on your invoices if you'll issue any.
If you have a freezone company, you cannot do business in mainland.
thank you! i don't care about the location because i will be managing the business from another country. which one is the most cost effective?
I would only consider either RAK or Creative City Fujairah. The latter has official presence in Dubai Fujairah Creative City | Business Incorporation Zone , meaning you can do everything in Dubai without having to travel Fujairah. They have different packages, some of the options allow you to use their Dubai address on the invoices, their Dubai PO Box for mails handling etc.
I wouldn’t bother with Ajman.
What about banking when you have a Fujhaira or Rak company? Many have complained about banks being reluctant to open business accounts for these setups. Banks are asking for physical office, residence visa ect....
I think Dubai Freezones would be more easy to deal with when it come to bank opening ect...
Yes I heard that too. Few years back when I opened corporate account for Fujairah company, there were no issues at all with any bank. Times have changed. It would be good to ask the freezone itself these questions first, before incorporating. Also I don’t believe that a bank like National Bank of Fujairah would reject the Fujairah freezone application. They also have small presence in Dubai.
Thanks for your feedback!
What's the problem with Ajman?
Any idea about the set up cost and annual fees for fujairah? But we can't operate in UAE right?
RAK and CCFZ have the best reputation when it comes to freezones outside of Dubai or Abu Dhabi, that’s why they are more expensive. They are the best to deal with. Ajman has been trying to compete with price, but their handling of things and speed is not that great. They also require a business plan, something that was not required at CCFZ. I would also rather bank with NBF than Ajman bank...
You can check the packages for CCFZ on the website I gave. Annual trade licence fees will depend on the type of licence you will have but roughly expect to pay AED 20-22,000 on renewal. They seem to mention package with business bank account setup, I would ask them which bank are they partnering with. Residence visa fees are roughly AED 7000 with medical every 3 years.
Which website? I don't think we can incorporate there because it's limited to creative businesses
It’s not limited to creative businesses. It’s just the name of the freezone, they have many trading licence activities.
https://www.businessincorporationzone.ae/
Do you know if there arz banking options outside UAE for a Fujhaira FZ? Maybe CIM bank or Something?
Ok noted. thanks for the clarifications. any idea about the annual fees for this type of company?
I have no idea.
Trade Licence with 2-4 residence visa expect roughly AED 22,000 yearly, that's without residence visa itself which cost approx. AED 7000 including medicals every 3 years.
Just in case you're still curious about Ajman Media City FZ: I renewed my business license during end of December 2019 and here is what I paid:
Hope that helps.
- Bronze Package Rental Renewal: 6,850 AED (+5% VAT)
- Bronze Package Fees: 550 AED (no VAT)
- Business License Fees: 4,100 AED (no VAT)
- E-Channel Renewal: 1,100 AED (no VAT)
- Establishment Card Renewal: 565 AED (no VAT)
Hope that helps.
Thanks for the info. So this is the minimum cost right? Even if we don't need any visa, space rental... Any idea if we can open the bank account in Switzerland?
What provider / agency service did you use for this setup? Have you received ALL incorporation documents by postal mail or email only?
I received all documents in soft- and hard-copy. Hard-copies in person in Dubai where that agency's office is ( Business Setup in Dubai, UAE | Business Setup Consultants ) and via FedEx. However, I would NOT recommend that agency, because they where quite incompetent... That's not a real problem though, because there are many others with almost similar prices. If requested and allowed I can post some here, don't want to advertise for specific ones...
Regrading the costs, yes, that was the cheapest package. The rental agreement is required even though you don't have a real office just a so called flexi-desk option in Ajman, if needed.
Hope that helps.
Forgot to mention, here is the website from Ajman Media City Free Zone: Ajman Media City Free Zone After a client receives the login details, you have everything available to up- and download on their website. You can make changes to the shareholders etc. that way.
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