When it comes to establishing economic norms, UAE has always set a good example. The zero-tax policy and simple laws and regulations establish worldwide standards for online and offline firms, whether LLCs or import/export businesses. As a result, it is clear that the UAE developed the idea of free zones to control a greater volume of commerce reaching the mainland via a free zone company setup in UAE.. The greatest thing is that there are several advantages for Business setup in UAE Free Zone if you choose the appropriate structure and jurisdiction.
In fact, there has never been a better moment to register a free zone corporation in UAE. Over the years, the UAE has positioned itself as a destination for entrepreneurs looking to succeed in business. The UAE is currently one of the top nations for starting a company in the globe.
Furthermore, the UAE has achieved many milestones throughout the years. According to the IMD World Competitiveness Ranking 2021, the UAE is the world’s ninth most competitive economy. Furthermore, it ranks sixth in the Europe, Middle East, and North Africa areas. Not to add that the UAE was among the first nations to recover from the epidemic.
Furthermore, the government has gone to great efforts to implement creative ways in order to stay up with the ever-changing business market and establish itself as a leading commercial center. Furthermore, the UAE has established free zones particularly to welcome international investors, providing them with a variety of free zone privileges for company creation.
Let us now learn more about the concept of owning businesses in UAEi’s free zone areas, the benefits of free zone businesses, and the cost of a UAE free zone license for those interested in starting a business in one of the world’s most profitable markets, i.e., UAE.
This article will teach you all you need to know about the advantages of Business setup in UAE Free Zone.
What is a Free Zone?
Free zones are geographic locations inside the UAE where products, services, and commodities may be exchanged without the interference of stringent customs rules. The goal of these special economic zones is to help expat investors in the UAE. These free zones provide foreign investors 100% ownership, therefore increasing international commerce. Furthermore, one of the most prominent UAE free zone perks is the low cost of business establishment.
Jebel Ali Free Zone (JAFZA) is the UAE’s first free zone, founded in 1985. This free zone has been a vital contributor to the country’s economic growth and is hence the flagship free zone of Dubai Ports (DP) World. It is conveniently positioned near the seventh-largest container port, Jebel Ali Sea Port. This makes it the perfect free zone for importing and exporting commodities.
Most free zones focus on commercial, service, and industrial sectors. However, there are free zones in the UAE that are comparable to JAFZA and serve certain businesses or sectors. Some such jurisdictions include:
- Ras Al Khaimah Economic Zone (RAKEZ)
- Sharjah Research Technology And Innovation Park (SRTIP)
- Fujairah Creative City Free Zone (FCC)
- Dubai Multi Commodities Centre (DMCC)
- International Free-zone Authority Dubai (IFZA)
- Meydan Free Zone (MFZ)
- Dubai International Financial Centre (DIFC)
- Sharjah Media City Free-zone (SHAMS)
- Sharjah Publishing City (SPC)
- Jebel Ali Free Zone Authority (JAFZA)
Currently, the UAE has over 46 free zones. Over 150,000 enterprises operate in free zones throughout the nation. This figure is increasing over time, as the UAE introduces new free zones virtually every year.
Free zones in the UAE and Dubai are controlled by a unique set of laws and regulations that are specific to each free zone. The individual free zone authority oversees and regulates the different free zone activities in Dubai. These jurisdictions likewise operate outside of federal rules and Ministry of Labor restrictions.
Free zones in the UAE are often linked to a port. Free zones are also suitable for freelancers who want to start their own business but don’t want to commit to a single corporation.
Dubai Free Zone Company Benefits
First and foremost, free zones in Dubai are essentially geographical territories inside a nation. In these locations, products, services, and commodities may be exchanged without the need for severe customs procedures. Most free zone businesses in Dubai are taxed slightly or even completely exempt.
This promotes economic activity and increases the likelihood of doing lucrative company without having to worry about paying taxes and capital income to authorities. Each free zone in Dubai Mainland is an independent entity with its own free zone authority. This authority administers, registers, and grants licenses inside the boundaries of the free zone.
The free zone business setup in Dubai was designed to serve as international business centers for firms doing business outside of the UAE since they were not originally permitted to operate in the rest of the UAE. Although most free zone enterprises were initially engaged in import and re-export, the majority of them today do business inside the UAE and GCC via local distributors and dealers.
Free zone business setup in Dubai provides the most fertile ground for establishing industries, complete with cutting-edge infrastructure, duty and tax exemptions, commendable business opportunities, flexible government policies, and facilities that make running a business appear effortless.
To conclude, business investors get the following free zone benefits:
1.100% foreign ownership of business
Foreign investors in free zones may own 100% of their businesses.
2. 100% Repatriation of capital and profits
Companies operating in free zones may return all of their revenues to their native nation. This allows them to transfer 100% of their money to their nation of origin without any conditions.
3. 0% Corporate Tax
According to UAE legislation, firms who establish a company in the UAE are not required to pay corporation tax on their business earnings, allowing you to retain 100% of your revenues.
4. 0% import or export tax
Unlike the mainland, business setup in UAE Free Zone are free of all customs duties.
5. Strategic location:
Dubai boasts world-class telecommunications, pioneering financial interconnections, cutting-edge industrial infrastructure, an e-governance system, and service sectors. The position of the free zones allows for very cost-effective living.
6. Global Connectivity:
Dubai boasts a multicultural culture and offers opportunities to engage with a worldwide business community.
7. Range of business activities:
Free zones provide you the opportunity to engage in a variety of commercial operations.
8. Time-efficient process:
The whole procedure of acquiring a license is rather quick and simple.
9. Convenient Registration:
Dubai allows you to register from the convenience of your home. You may email all needed papers to the free zone without physically being there for submission.
10. No Currency Restrictions:
One of the most significant advantages of a free zone firm in Dubai is that there are no currency restrictions. Currency regulations are government-imposed restrictions on the exchange of foreign currency. There are no currency limitations in the UAE’s free zones. This allows for more convenient banking transactions.
11. No logistical Issues:
The UAE’s free zones include multiple warehouses as well as ample office space. Free zones in the United Arab Emirates are ideal for SMEs and start-ups. Furthermore, the steps for starting a corporation in a free zone are simple and uncomplicated. Compared to other nations, you may finish license requirements quickly. Furthermore, the immigration facilities in UAE-free zones are efficient, saving time.
Connect with ExpressPRO Business Setup In UAE Free Zone
Business setup in UAE Free Zone is undoubtedly one of the finest moves an entrepreneur can make. This is because UAE free zones provide several perks to entrepreneurs wishing to start a company in the nation. Furthermore, the advantages of a free zone firm in Dubai outweigh a few drawbacks.
Many agencies work tirelessly to find the most reliable local sponsors who exactly match the company’s aims and aspirations. The top agency in Dubai is ExpressPRO Business Setup.
ExpressPRO is a major Business setup company in UAE Free Zone. For more than 20 years, we have assisted entrepreneurs in establishing and maintaining their enterprises throughout the nation. We promise you that your company’s establishment will go easily. Our skilled advisers will walk you through the whole process, from registering your company to comprehending the cost of a free zone license and receiving clearance from the authorities.