The visionary government of the UAE has established free zones to attract foreign investment to ensure the country’s economic progress. With over 30 free zones in the United Arab Emirates, Dubai stands out as the most business-friendly emirate in the country. The city has become an investment hub for global investors who wish to establish their business setup in UAE-free zones.
The UAE is divided into three business jurisdictions: Mainland, Offshore, and Free Zone. They offer special benefits to business owners and investors depending on their business needs and considerations. If you’re planning to expand your business to the thriving business market of Dubai, UAE, then you’ve arrived at the right place. In this blog, we’ll provide the top 10 benefits of free zone companies set up in Dubai. Let’s start with understanding what a free zone is.
What is a Free Zone?
A free zone is a designated area within the country especially created to promote exports, foreign investment, and international trade. In the UAE, free zones are special business-friendly zones that issue business operating licenses and offer benefits like exemptions from taxes, customs regulations, and certain administrative policies. FZA (Free Zone Authority) is the governing body that holds the authority of these free zones and issues trade licenses for Dubai free zone company setup to business owners and investors in Dubai, UAE.
What are the Three Main Types of Business Entities in a UAE-Free Zone?
1. Free Zone Establishment (FZE):
This limited liability company can be incorporated legally by a single shareholder, which can be an individual or a corporate entity.
2. Free Zone Company Orgnaization (FZO):
This limited liability company can be incorporated legally by two shareholders, which can be individuals or companies.
3. Branch of a Local or International Company:
A legally dependent extension of the parent company that is allowed to operate business activities similar to the existing company in the region.
List of the Top 10 Benefits of Freezone Companies Setup in Dubai:
1. 100% foreign ownership:
The top benefit of free zone companies set up in Dubai, UAE, is that foreign investors, irrespective of their nationality, can enjoy 100% ownership of their company. It means a local sponsor is not required by a foreign investor for the company formation.
2. Repatriation of profits:
Investors establishing a business set up in the UAE free zone are not restricted to repatriating 100% of their profits and income to their home country.
3. Import and export duty exemptions:
Companies established in the free zone jurisdictions of the UAE are exempted from any import and export duties, which is a prominent benefit promoting international trade and helping foreign investors save costs.
4. No currency restrictions:
Free zone companies set up in Dubai are not subjected to any restriction on currency regulations, which makes financial transactions easier for business owners and investors.
5. Tax exemptions:
100% corporate tax exemptions are applicable for the free zone companies in the country by the UAE government.
6. Global market reach:
Free zone business setups in Dubai have easy access to the global market as they’re established near the major transportation hubs. It makes the import and export of goods easier and quicker for them.
7. Modern-infrastructure:
Dubai Free Zone company setup offers the benefit of access to world-class modern infrastructure, top-notch internet connectivity, and other essential amenities required for a business-friendly environment.
8. Easy incorporation:
Unlike mainland and offshore business jurisdictions, the process of incorporating a business in a free zone is fast and hassle-free.
9. Trouble-free immigration procedure:
The effective immigration facilities offered by the Free Zone Authority make the immigration process for businesses set up in the UAE-free zones easier and time-saving. Extensive paperwork and legislation are not required in this process.
10. Confidentiality:
Free zone authorities maintain confidentiality by protecting the information related to a free zone business setup, like assets owned by them, and share them with relevant government authorities only with the consent of the business owner.
Most of the free zones are sector-specific, which means a free zone is created for businesses to indulge in specific sectors like media, technology, healthcare, and finance. Also, the efficient and cost-effective immigration facilities and visa sponsorship ease the recruitment of a skilled workforce by foreign business owners. Free zone companies are allowed to hire both international and national employees for their companies.
List of Top 3 Free Zones Best For Dubai Free Zone Company Set Up, UAE:
1. JAFZA (Jebel Ali Free Zone):
Located in an advantageous location between the Jebel Ali Port and AI Maktoum International Airport, JAFZA is the top choice of foreign investors who wish to establish a business setup in the UAE free zone. Established in 1985, presently this free zone is home to businesses that indulge in different sectors like automotive, logistics, electronics, food, and agriculture.
2. RAK (Ras Al Khaimah):
Established in the year 2000, this free trade zone is a cost-effective investment option for foreign business owners and investors. A RAK offshore company setup offers benefits like exemptions from taxes, including VAT and import and export taxes for up to 50 years. It is a suitable option for logistic businesses.
3. DAFZA (Dubai Airport Free Zone):
One of the most popular free zones for businesses involved in industries like manufacturing and pharmaceuticals. It is suitable for business setup as it is located near Dubai International Airport, which offers ease of access to markets in Europe, Asia, and Africa.
Conclusion:
The advisory team of experts at the leading business and management consultancy, Start Any Business, Dubai, UAE, has been assisting business owners for more than 10 years. Coordinating with them will help you throughout the process of free zone companies set up in Dubai.
