Here at InZone, one evening we discussed about the relationship between a free zone and a company. Some said that that this relationship is a two-way street. Some used the word ‘co-existing’. Some were of the view that the relationship is like a two-edged sword i.e. both the success and failure of the free zone and company are related to each other. We all concluded that the one word that can be most aptly used to describe the association of a free zone and the companies incorporated in it is ‘symbiotic’. It is because Google defines ‘symbiotic’ in the following two ways:
- Involving interaction between two (2) different organisms living in close physical association.
- Denoting a mutually beneficial relationship between different groups or people.
It was unanimously agreed that both the above definitions are applicable (in their own way) to the relationship of a free zone and a company.
While applying the first definition, we discussed that when a company is incorporated in a free zone then both the entities automatically live in a close physical association. Now, the rise and fall of the free zone and the company is solely based upon how interactive this physical association is. Interaction or in other words communication is the key. This continuous and ongoing communication helps both the free zone and the company to better understand each other needs, which when catered to will result in the growth of the two entities. Conversely, if there is no interaction then there is no growth.
Speaking of the second definition, we found that its applicability is equally relevant. This is because the relationship of a free zone and a company is mutually beneficial. The success of a company in one way depends upon the ease of doing business in that free zone. If the free zone facilitates business transactions, companies will grow. If companies will grow in a particular free zone, then more and more companies would like to be set up at that free zone. This will expand the horizons of the free zone. Therefore, both the free zone and a company mutually benefit from each other.
We have found some free zone in the United Arab Emirates (UAE) that are taking the above definition (and the discussion surrounding it) rather seriously. Free zones such as the International Free Zone Authority (IFZA), Sharjah Media City (SHAMS), and Ras Al Khaimah Economic Zone (RAKEZ) are improving themselves day by day to provide the best experiences to the companies incorporated with them. So, what are they exactly doing?
Below, we have listed a few things that the most sought-after free zones in the UAE are doing to be ahead of their competition:
1. Swift Processes
In our opinion, the magnet that attracts successful companies is a business environment that is quick and streamlined. Business owners want their businesses to grow and transform rapidly. They are willing to give in a 100% and desire a transactional system that can match up their efforts. So, the free zones that can aid and assist the entrepreneurial fire are normally seen ahead. One way to do this is to have a speedy and simple company incorporation process with minimal documentation. Free zones such as IFZA, SHAMS and RAKEZ incorporate companies within a weeks’ time, and therefore are a major attraction for people wanting to set-up businesses.
2. After Sale Services
In any relationship chemistry and compatibility must be seen as two (2) different concepts. Chemistry is what leads to initial attraction and compatibility is what makes that relationship persist. It is a mixture of both chemistry and compatibility that gives us examples of successful relationships. The same is the case between the relationship of a free zone and a company. Company owners may get initially attracted to a particular free zone because of the quick registration process that kick starts the company (chemistry). However, the growth of the company largely hangs on to compatibility with the free zone, which is mostly the after-sale services. IFZA and RAKEZ lead the pack when it comes to after sale services. Company needs are always tended to at these two (2) free zones.
Some are born entrepreneurs and some need training. Company owners also need their ‘gurus’ to teach them everything from the tricks of the trade to the killer instinct, so that the top positions do not elude them. One free zone has understood this and is not only ready to provide one ‘guru’, but multiple. Sharjah Media City (SHAMS) holds regular training sessions to educate and train the owners of the companies set up with it. Successful business owners and entrepreneurs are invited from different countries to share their knowledge and experiences. There is no limit to business knowledge that one can gain at SHAMS.
If you also think that the triumph of any company is dependent on its free zone and wish to form a company with a leading free zone, then do contact us. InZone specialises in company formation with all free zones in UAE. We offer company formation solutions that will meet your needs.