For entrepreneurs and traders, Dubai has long been as attractive destination all over the world. Due to its low tax benefits, strategic location and fastest emerging markets, everyone wants to start a business in Dubai. Along with this, another major reason why set the overseas traders and entrepreneurs want to set up business in Dubai is – free zones. Here we mention everything you need to know about Dubai free zones.
The free zones are the free trade zones or areas where the oversea investors set up their business smoothly at flank speed. To make Dubai as the business hub internationally, this abstraction has played an essential role. The company set up in Dubai free zone comes up with the massive number of advantages such as complete support and assistance, east setup, lucrative incentives, tax regime, 100% ownership and many more.
Basically, the free zones or free trade zones in Dubai are business zones where companies operating in them are spared from all kind of taxation such as Income Tax, Value Added Tax (VAT), Corporate Tax and Customs. The motive of Dubai free zone is to foster overseas investment and promote economic activity. Dubai was literally the first emirate to introduce the free zone in the United Arab Emirates. To tempt the oversea traders for starting their business easily in Dubai and other emirates of UAE, the idea of free zone company setup in Dubai comes in mind. Free zone official in UAE the governmental body which takes care of the entire procedure of free zone business setup in Dubai.
Why Set Up Business in Dubai Free Zones:
If you are planning to set up a company or business in Dubai, then there are numerous reasons and advantages to choosing Dubai free zones.
1. Easy Setup:- The setup procedure in most free zones is amazingly simple. The definite application procedure will be varying on your business activity and opted free zone; however, in several cases, you are only needed to offer some common documentation like business paperwork and passport copies.
2. Tax Exemption:- While the main countries overhaul their tax laws, Dubai is providing a tax-exempted ambience. This may be the most compelling reason to opt for a Dubai free zone.
3. Foreign Ownership:– The another major benefit of setting up a business in a Dubai free trade zone is foreign company ownership. Conflicting to Limited Liability Company (LLC) clause where you upright as a foreigner is limited, under free trade zone, you will get 100% ownership on your company or business. On the other hand, the other business setups need a local sponsor and partner.
4. Indulge More Than One Activity:- If you are seeking for Dubai business setup, the benefit you get is that you are not prohibited from carrying out only one business-related activity.
5. Support And assistance:- During set up a business and beyond the free zone officials are on hand to provide support. Most of the Dubai free zone help with opening corporate bank accounts. Many also provide assistance with applying for visas for both shareholder and any relevant reliant like domestic staff and spouse.
6. Privacy Protection:- Dubai free zones are specifically famous with deliberate privacy traders because there is no open directory of company ownership. The company information, such as shareholders details are never revealed to the public.
Top Regions For Free Zone Company Set Up In Dubai:
Dubai provides more than 20 free zones and has some of the most remarkable free zones all over the UAE. The company set up in Dubai free zones offer access to excellent infrastructure, a multinational workforce, cosmopolitan lifestyle and vigorous connectivity. The company or business set up in Dubai free zone provides not only multi-purpose setup probability but also has limited tax liabilities, and the companies can enjoy an open economic policy system. Depending on their area of operation, the Dubai free zones are divided into several categories.
1. Dubai South Free zone (DSF)
The Dubai South, previously known as the Dubai World Central Free Zone. It’s a developing gateway to the Middle-East, South Asia and Africa providing a varied married to the world. The government of Dubai has established Dubai South free zone to create an ambience that empowers individuals to get all their aspirations for the greater good of the community. It is a leading and largest business, aviation and global trade hubs.
2. Jebel Ali Free zone (JAFZA)
Jebel Ali Free zone is also known as the JAFZA free zone. It is one of the oldest outstanding locations for business setup in Dubai and other emirates of UAE. Jebel Ali Free Zone is also the most competitive places in Dubai to set up your business. It was set up in the year of 1985 and now the home of some biggest companies in Dubai. JAFZA has been designed with the distinctive needs of trading and manufacturing companies.
3. Dubai Silicon Oasis Free zone (DSO)
The Dubai Silicon Oasis free zone is absolutely government-owned free zone jurisdiction. It was set up in the year 2004. Dubai Silicon Oasis is a free zone which uniquely set up to allow both experienced and aspiring tech investors, and entrepreneurs recognize their dream of revolution and transformation. It offers amazing ambience for businesses to accumulate in the highly-developing advanced technology companies in Dubai.
4. Dubai Internet City Free zone (DIC)
Dubai Internet City free zone is the massive information and communication technology hub in the Middle East and North Africa. It started its services in the year 2000. Dubai Internet City (DIC) comprising both regional and global companies and has heightened to become the most remarkable Business park of the Middle East.
5. Dubai Airport Free zone (DAF)
Dubai Airport free zone was set up in the year of 1996, a strategic plan of the UAE government towards an investment-driven economy. Start a business Dubai Airport Free Zone means linking one of the speedily developing free zones in the UAE. The DAF comprise industries such as food and beverage, pharmaceutical, constructions, logistics, telecommunications, luxury items and IT. There are two types of the company set up in the Dubai Airport Free Zone, such as the Branch Office of an Existing Company and the Free Zone Establishment (FZE).
6. Dubai International Financial Centre Free zone (DIFC)
The Dubai International Financial Centre Free zone (DIFC) was set up in the year of 2004. It is a monetarist hub forming platform for companies and financial institutes to set themselves up in these growing areas. Dubai International Financial Center (DIFC) was established to frame an ambience for progress, develop and commercial growth in the United Arab Emirates (UAE).
How To Start A Business In Dubai Free Zone:
Starting a business in Dubai free zone is a fast and easy procedure as compare to the mainland business setup.
- Choose the type of legal entity
- Select the trade name
- Application for the business license
- Get sufficient office space
- Pre-approvals, business registration and getting a business license