Any one set up a small business in the UAE? - Page 4

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Any one set up a small business in the UAE? - Page 4


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  #31 (permalink)  
Old 16th June 2013, 03:53 PM
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I see lots of people looking for a company set-up just to get UAE residency. Most have no actual business in the UAE itself. Nowadays all what you need is a connected computer to do your work remotely. So if anyone falls into this category please PM me. I am looking for people to partner with in a company set-up. 5 partners the cost would be very low, less than 10000 AED including visa cost.

I`d like to point out one thing here, lets say you have 3 people performing different type of business activities no free zone will tolerate this as you are not paying for all activities also on yearly audit report you submit to free zone that will create problems too ... So in case of join venture make sure all partners have same kind of business activities as there is risk in case partners don't have a common business activity ...

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Old 16th June 2013, 03:59 PM
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I`d like to point out one thing here, lets say you have 3 people performing different type of business activities no free zone will tolerate this as you are not paying for all activities also on yearly audit report you submit to free zone that will create problems too ... So in case of join venture make sure all partners have same kind of business activities as there is risk in case partners don't have a common business activity ...
1- There is no capital or audit report required in FFZ
2- There is zero activities in the UAE so I don't know which activities the free zone will not tolerate!

The guys working in FFZ know very well that many companies formed just to get the residency with no actual business.

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Old 16th June 2013, 04:34 PM
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first off i am not trying to discourage you or anything i am saying that you need to submit a business plan rite ? if lets say you have 3 partners with different type of activities you will either have to have 3 business plans, but for each activity you will have to buy separate license , Because that's how your free zone is making money ... so that is risky ... you will have to find partners who have same business activity as you ...
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1- There is no capital or audit report required in FFZ
2- There is zero activities in the UAE so I don't know which activities the free zone will not tolerate!

The guys working in FFZ know very well that many companies formed just to get the residency with no actual business.

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Old 16th June 2013, 04:59 PM
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first off i am not trying to discourage you or anything i am saying that you need to submit a business plan rite ? if lets say you have 3 partners with different type of activities you will either have to have 3 business plans, but for each activity you will have to buy separate license , Because that's how your free zone is making money ... so that is risky ... you will have to find partners who have same business activity as you ...
Its ok, I understand what are you saying but you are misleading people. I think someone have miss lead you such as set-up consulting companies.

There is no need to submit any business plans. From where you got this?

Even in RAK FZ they don't require it. All what they asked for is passport copy, application form and fees.

It seems hard for you to believe that I have no business activities in the UAE what so ever. So why I would need a plan?

FZ makes money when you set-up the company not when you do business.

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Old 16th June 2013, 06:07 PM
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I wish it was as easy as you are stating it i have actually gone through all the process just now few days ago Anyways best of luck and let me know once you are actually gone through all the process and done with it , there is a huge diffrene in actually creating one

Here are requirements from RAK

Required Documents - RAK Free Trade Zone

Company registration:

Certificate of Incorporation/Formation
Application form (applicable to Free Zone Company/Establishment only)
Brief project description (Usually called Business Plan)
Bank letter to open an account in the name of the company
Passport copies
Bank references
List of Trade Names form
Additional documents may be required by the Licensing Department

For bank balance requirements have a look at page one under bank balance requirements here >> http://www.rakftz.com/en/media/get/2...-Optimized.pdf

And you need a physical address Companies offering virtual offices are scam read here Virtual offices are illegal, says DED - Emirates 24/7 companies used to offer virtual offices but no more .


Free zone charge you for licenses and i assume they ask you for money rite ?

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Originally Posted by Maxfree View Post
Its ok, I understand what are you saying but you are misleading people. I think someone have miss lead you such as set-up consulting companies.

There is no need to submit any business plans. From where you got this?

Even in RAK FZ they don't require it. All what they asked for is passport copy, application form and fees.

It seems hard for you to believe that I have no business activities in the UAE what so ever. So why I would need a plan?

FZ makes money when you set-up the company not when you do business.


Last edited by kismatco; 16th June 2013 at 06:13 PM.
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  #36 (permalink)  
Old 16th June 2013, 06:18 PM
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Originally Posted by kismatco View Post
I wish it was as easy as you are stating it i have actually gone through all the process just now few days ago Anyways best of luck and let me know once you are actually gone through all the process and done with it , there is a huge diffrene in actually creating one

Here are requirements from RAK

Required Documents - RAK Free Trade Zone

Company registration:

Certificate of Incorporation/Formation
Application form (applicable to Free Zone Company/Establishment only)
Brief project description (Usually called Business Plan)
Bank letter to open an account in the name of the company
Passport copies
Bank references
List of Trade Names form
Additional documents may be required by the Licensing Department

For bank balance requirements have a look at page one under bank balance requirements here >> http://www.rakftz.com/en/media/get/2...-Optimized.pdf

And you need a physical address Companies offering virtual offices are scam read here Virtual offices are illegal, says DED - Emirates 24/7 companies used to offer virtual offices but no more .
Sure you can give them a plan but its not required. I know people working in Fujairah free zone. So I am sure there is no need for bank account and plan.

Even if they want a plan, if there is no business done would they come to you and say, hey you didn't do any work, you should close the company!!!

As long as you pay the rent and other fees they would be glad to have you. Get real.

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Old 17th June 2013, 05:54 AM
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Max, you are mistaken.

If you take a RAK freezone company you have to declare the sectors you are working in, these are limited and it costs to have more added.

After your first year with RAK you have to submit an independent audit on accounts with the yearly license renewal.

Yes, there are people who have freezone companies as a way of buying a visa but they still have to adhere to the rules.
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Old 17th June 2013, 07:36 AM
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Max, you are mistaken.

If you take a RAK freezone company you have to declare the sectors you are working in, these are limited and it costs to have more added.

After your first year with RAK you have to submit an independent audit on accounts with the yearly license renewal.

Yes, there are people who have freezone companies as a way of buying a visa but they still have to adhere to the rules.
Will not open in RAK then, there lots of other options and I was talking mainly about Fujairah FZ not RAK.

Even in RAK I would not have a problem, its pretty easy to declare a sector and submit audit, there is lots of companies that can do that for me.

I know a guy opened at JLT FZ, he deposited the capital, after he got the license took the capital out and never had problems in the next three years. Nobody asked him where is your activities.

I don't understand why you are trying to make it sound a hard thing to do. You have never heard of Creative City? They do set-up of companies that in reality do not exist at all.

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Old 17th June 2013, 07:56 AM
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I have had a personal experience with RAK FTZ and while I agree with some of things mentioned, I would also have to agree with the fact that it is rather easy and simple to set-up a company there.

Regarding the business plan, I was not required to submit anything in writing, just a verbal discussion at the meeting with the rep, was all that was needed, maybe it's not the same for everyone, but I certainly didn't submit a detailed business plan or anything of the sort.

Regarding the capital deposit, the 100K was needed for the purposes of opening and activating the company bank account, which took about 7 business days, after that I was free to withdraw the money from my account or do whatever I like with it. Also the FZ rep himself mentioned to me at the time of signing up etc, that there are services out there that will undertake the responsibility of activating the company account by deposting their money in the account for the required amount of time and then withdraw it once activated, all for a fee of course, I believe it was supposed to be around 5K for that.

About the audit report, having asked some of my friends in the external audit field, apparently it isn't a big deal either, would costs around 2K to get done and is really just a formality, or so I am told (haven't gotten that part done yet so can't say for sure)...
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Old 17th June 2013, 11:45 PM
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I set up a company in Fujairah last week in their main freezone (not the creative part) - They were very professional. It took an entire 2-3 hours with window service. You walk out the same day with your license and 1 activity defined. This is the flexi-desk option. There are no audit or capital requirements. There are fees of 18K annually for renewal (which is considered rent) and visa renewal fees. very straightforward if you want to explore the market place seriously. I have no idea on how long the "security check" process takes for the visa, but considering the free zone is your advocate, it might be faster as well.. overall pleased. there is no need to go through the brokers like virtuzone and others people have mentioned. work directly with the government and get it going.

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