If you are planning to start company in Dubai and have complete ownership, then a Free Zone could be the perfect solution.
Free Zones in the UAE are hot spots for the development of foreign companies because of all the benefits that come with the location. Free Zones are known for easy laws, cost-effective business setup, easy immigration process, easier labor, and tax benefits. Not to mention, the paperwork to get things going is pretty simple too.
There’s over 30 Free Zones in the UAE spread across 7 emirates. They are located in Dubai, Sharjah, Abu Dhabi, Ajman, Fujairah, Um Al Quwain, and Ras Al Khaimah. The businesses range in all industries like finance, healthcare, education, goods trading, IT, marketing, advertising, and many more.
Which are The Top Free Zones in Dubai, UAE ?
- Dubai Airport Free Zone
- Dubai Internet City
- Dubai Media City
- Dubai Metal and Commodities Centre (DMCC)
- Dubai Investment Park (only through JAFZA )
- Dubai Silicon Oasis
- Jebel Ali Free Zone
- Dubai Healthcare City
- Dubai World Central
- Dubai Studio City
- Dubai Design District
- Dubai Humanitarian City
While there are so many benefits of company formation in a Dubai Free Zone, we’ve chosen a couple to dig deeper into.
Here’s the list of 7 Best Advantages of Company Formation in Dubai Free Zone:
Hassle-Free and Easy Registration Process
Starting the process to get a company formed in a Dubai Free Zone is a pretty hassle-free process that will take about three weeks to complete. There’s less paperwork involved for a Free Zone than there is for other areas in Dubai.
After getting your paperwork in, you’ll need to:
- Reserve the particular company name
- Rent business office premises
- Open a corporate bank account
- Designate the budget
- Secure the business license
- 100 % Foreign National Ownership
Free Zones give entrepreneurs 100% ownership, unlike other areas in Dubai where the investor only gets 49% of the stake. You also don’t need a local sponsor to setup a company in a Free Zone.
The infrastructure is a big selling point for businesses in Dubai. Free Zones provide all the facilities needed to effectively carry out the business operations for all types of companies, including an efficient communication system and business platforms.
Low Operational Cost and Start-up
If you’re looking for the most cost-effective area to setup a business in Dubai, a Free Zone is your best bet. They provide cost-effective license packages and visa costs. Probably the most significant expense is going to be your business space. Co-working space is common in this area. The space comes with a meeting room, conference room, and reception services – so, basically you just need to bring your laptop and get to work!
And the benefits don’t stop there, you also get a 100% customs tax privilege and no restrictions on currency movements along with a 0% tax rate on both your income.
Profits and Capital May Be Repatriated
The Free Zones in UAE allows 100% repatriation of the business entity’s profits and money to its home country without any restrictions.
As a company operating in Dubai Free Zone, you will benefit from the “Right to Repatriate 100% capital and profits”.
No wonder people choose to setup their companies in a Free Zone with all the Tax Benefits! Companies operating in a Dubai Free Zone get full freedom from corporate and personal taxes. Also, they are not required to follow the procedures related to taxation.
Here’s a breakdown of the Free Zone tax benefits:
- They get the benefit of the lowest value-added taxes globally, which is at the rate of 5%
- Free repatriation of profits and income in all Dubai Free Zones
- Access to Double Taxation Agreements
Some more advantage of the Dubai Free Zone is foreign ownership with no income tax. You don’t need to pay for import and export duty along with international funds transfer.
Access to Skilled Professionals
When you start a company in a Dubai Free Zone, you’ll have access to a large pool of multicultural skilled professionals that are ready to get to work.
There’s also knowledgeable consultants who will have connections with all the government and business authorities you need to help get your business setup quick and running smoothly in no time.
Some More Reasons You Should Start a Business in Dubai’s Free Zone
- Dubai Free Zone business setup is a quick and smooth process.
- The companies in the Free Zone are free of customs obligations.
- Selecting and employing in the Dubai Free Zone’s has a smooth process. If you have an employee you want to bring with you, Free Zones grant permission to that as well.
- The companies operating in Dubai Free Zones can also have immovable properties within the country.
- Single-window clearances for administrative services
- Faster licensing services
- Modern infrastructure
- Multi-tiered data center
- Comfortable and professional working environment
- Easy access to all transport systems
- No visa restrictions (get easy visas for family and employees)
- Prebuilt offices, factories, and warehouses
- Low operational costs
- You can totally control your business
- 100% duty exemption
- No physical office presence required.
- 100% foreign ownership
- Most of them do not require annual audits.
- No need to pay any corporate tax or income tax
You’ve seen all of the benefits of business setup in Dubai Free Zone. So, what are you waiting for? An experienced business consultant can walk you through the entire process from start to finish, including the paperwork, registrations, and licensing that you will need to get started. They have everything you need, so you have a smooth and successful start to your business in the Free Zone.