Top 10 Advantages Of Setting Up A Free Zone Company In Dubai
Up A Free Zone Company In Dubai-Free trade zones in the United Arab Emirates were developed to entice international businesses to this part of the world. It provides a hassle-free environment for manufacturing, trading, and providing services. In the UAE, starting a company is simple and inexpensive, and taxes are either low or non-existent.
The UAE has 37 free zones, with nine more under construction. Goods trading, commodities, health care, education, information technology, and finance are among the industries included. Also, the business services, newspapers, advertising, automobiles, and the environment are included too.
If you plan to start a free zone company setup in Dubai, you are at the right place. However, the first step should be to know the top 10 benefits of forming a free zone company in Dubai.
What Is Meant By Free Zones?
Free Zones are areas within a country where products, services, and commodities can be exchanged. This can be done without having to comply with strict customs regulations. Companies are taxed minimally or even completely exempted in most Free Zones to promote economic development.
The Free Zones in the UAE
Free zones are special economic zones or jurisdictions that offer financial and tax exemptions to businesses in exchange for operating licences. In total, the seven Emirates have over 40 free zones. The Free Zone Authority is the government agency in charge of a Free zone. The Free Zone Authority is the governing body responsible for the crucial activities related to free zone operations and licence issuance.
In a UAE free zone, an investor may form three different types of business entities. These are described below.
- Free zone company (FZCO) – To form a free zone company in the UAE, you must have at least two shareholders. Individuals or corporations may be allowed to participate as shareholders.
- Free zone establishment (FZE) – FZEs can only is opened by one person or one corporation as a shareholder.
- Branch of a business concern- It refers to the subsidiary of any parent company.
Advantages of Forming a Free Zone Company in Dubai
Free zones in the United Arab Emirates offer various benefits, including zero taxes, full ownership, no custom duty benefits, and much more. This is one of the reasons why free zones are so attractive to expat investors. A free zone company setup in the UAE fascinates a lot of people, mainly expats.
- Complete Foreign Ownership– One of the most apparent advantages of starting a free zone business in the UAE is to have 100% foreign ownership. This ensures that a foreign investor does not need to find a UAE national sponsor to start a business in the UAE. Foreign investment is possible no matter what the nationality of the investor is.
- Absence Of Currency Regulations – Currency controls are government-imposed limits on the exchange of foreign currencies. In UAE free zones, there are no currency restrictions of any kind. This facilitates financial transactions.
- Import And Export Duty Exemption – The UAE’s free zone territories are exempt from import and export duties. This contributes to the promotion of foreign trade.
- Tax Benefits – Free zone businesses are tax-exempt to the full extent of the law. This covers both personal and corporate income taxes.
- Repatriation Benefits – Total repatriation benefits are available to businesses. Income and capital assets are included in this.
- Smooth Labour Recruitment– Companies in the Free Zone will perform labour procurement formalities quickly and cost-effectively. Companies are permitted to hire foreign nationals.
- Readily Available Workspaces – Free zone jurisdictions have plenty of warehouse and office accommodation. Free zones in the United Arab Emirates are suitable for SMEs and start-ups.
- Ease Of Company Incorporation – The procedures for forming a business in a free zone are plain and straightforward. In comparison to other jurisdictions, you will be able to complete the licencing procedures in fewer days.
- Trouble-free Immigration Procedures – The immigration facilities associated with UAE Free zones are effective, saving time.
- Excellent Communication and Infrastructure– Free zones in the United Arab Emirates have the most up-to-date connectivity networks and facilities. Energy is both cheap and available in free zones.
Steps to establishing a free zone company in the United Arab Emirates
In any of the UAE’s free zones, starting a company is far more accessible. The paperwork and time required are also significantly reduced.
If you want to establish a business setup in the UAE’s free zones, you’ll need to do the following:
- First, decide on the legal entity through which you will provide your services.
- Next, choose a trade name for your company.
- Apply for a business licence based on the company’s needs.
- Select the best location for your business.
- Obtain all necessary pre-approvals, register your company, and obtain the licence.
Dubai’s thriving economy is well-known around the world. As a result, an increasing number of entrepreneurs are taking their entrepreneurial ideas to the Middle East’s business capital. There are numerous benefits to establishing a company in Dubai, including excellent infrastructure, a strategic position, and a favourable market.
The legal procedures are expedited, there is no paperwork, and registration is straightforward. When contrasted to other nations don’t forget about the savings on investments and tax breaks. A dedicated team of business consultants is ready to go above and beyond to help you set up your company in Dubai. They can even help to maximise your return on investment in no time.
These were some of the advantages of establishing a company in one of Dubai’s free zones. Get advice from the experts to develop your company efficiently and legally. When it comes to company registration, and much more, skilled business setup experts are excellent service providers.
You can depend on them for all of your business requirements. They’d be there for you, giving you the best advice. So, don’t wait any longer and make your dreams a reality.