Free Zones in Dubai was designed as international business hubs for companies handling business outside the United Arab Emirates (UAE) since they are not licensed to operate within the UAE. Nevertheless, most of the free zone companies were import and re-export; now, most companies manage the UAE and GCC business through local merchants. There are many benefits of setting a business in Dubai Free Zone. Free zones, also known as free trade zones, are designed to enhance international business by offering 100 % ownership to expatriates and single-window administrative convenience.
As Dubai is developing and people are likely to do business here in Dubai. The government of Dubai has set up a free zone region in Dubai. The Dubai Free Zone authority handles these zones. Dubai free zones are framed for new businesses and startups to begin their new business, and the rules and regulations are also governed by free zone. These zones are specially developed to overcome the problem facing by the new traders. Dubai and UAE free zone offer facilities to start a new business or open a branch or office of their company. These businesses are independent, and the Dubai government does not comprise the industry.
Free Zones are geographic regions within a country where goods, services, and materials may be patronized without the interference of powerful customs laws. In most free zones, companies are taxed minimally or sometimes even wholly exempted to motivate economic activity. Business people and traders always think of the best jurisdiction for their company formation in Dubai. When companies get set in the Dubai mainland, some get their business set up in free zones. In some cases, several entities get formed mainland and free zone jurisdictions.
Free zones are special to assist the new business ad in attracting overseas investment and business in Dubai. These free zones provide tax-free, free custom duty advantages to emigrant traders. Free zones serve as business centers and as relevant contact points for fast entering your products into the market through legal entry details. Along with this, the free zone business setup is relatively less expensive. Most of the regulations in mainland Dubai are not relevant inside a free zone. For instance, employees of free companies have visa validity got three years.
Here Are The Benefits Of Setting A Business In Dubai Free Zone
- 100% ownership for investors regardless of their nationality and domicile
- 100% tax exemption on personal or corporate income or gains
- Exclusion from all import and export duties
- Exemption from corporate tax for 15 years, with an additional renewal choice for 15 years
- 100% repatriation of capital and profits
- No capital deposit needed
- Full-fledged infrastructure with the efficient communication system
- No visa restriction for recruitment with liberal labor laws
- Stable and transparent rules and regulations
- No limitation on currency movements
Although there may be specific limitations in setting up a company in Dubai free zone.
- Being unable to manage a business or engage in business activities with clients or suppliers in Dubai mainland
- Prerequisite of renting office premise within the opted free zone
- High translation and notarization costs
Free zones in Dubai offer several investment chances to traders and provide them with the versatility to choose a business entity that fits their different business requirements and objectives. The freedom of doing business, substantial tax savings, and a robust infrastructure lead traders and business people to set up their operations in Dubai free zones. Dubai comprises more than thirty free zones. Hence, when you set up a company in a Dubai free zone, you must know each one’s attributes and benefits.