Setting up in a freezone may seem simple at first glance, but small steps left unchecked could affect progress later. Paying attention to paperwork, timelines, and local rules helps keep things on track.
Mistakes to avoid in freezone business setup Dubai mostly relate to early planning and basic administrative details.
Unclear business activity selection:
Picking the correct business activity is a step that should match the exact nature of the work planned. Selecting the wrong one may cause licensing issues later or limit future operations. Each freezone allows specific categories, so checking the available list before applying is useful.
Missing or outdated documents:
Submission of outdated or incorrect documents is one of the reasons for processing delays. Some applicants overlook expiry dates on passports or forget to include compulsory attachments like passport-sized photos or address proof. Verifying that all documents are updated and complete before submission helps avoid rejections.
Incomplete application forms:
Leaving parts of the application form blank or filling in unclear information may delay review. This often happens when details about shareholders, business activities, or office space are left uncertain. Every field in the form should be reviewed before final submission.
Ignoring freezone-specific rules:
Each freezone in Dubai works under its own set of rules. Some ask for different types of office space, while others have unique rules about visa quotas or capital deposits. Assuming all freezones work the same may lead to unexpected adjustments.
Selecting the wrong freezone:
Freezones are designed to support specific industries or services. Picking one that does not match the business purpose may cause extra steps in licensing or limit future expansion. Reviewing the main industries linked to each freezone before registering avoids this mismatch.
Overlooking visa and employee limits:
Certain freezones have limits on how many visas are allowed or the size of the office based on staff numbers. Starting a company with plans for a large team without checking these details may create barriers. Reviewing employee and visa terms early helps maintain clarity.
Not checking name availability:
Choosing a company name that is already taken or not allowed under UAE law can delay registration. It is useful to prepare a few name choices in case the first one is not approved.
