If you’re thinking about starting a business and want to learn about the top benefits of Business in Dubai Free zone, you’ve come to the right place. Before learning more about the benefits of free zone company formation in the UAE, review some important information about doing business in the UAE.
For many years, the UAE government has taken the lead in attracting foreign investment from around the world. The UAE’s economic progress is primarily due to a forward-thinking government, business-friendly policies, and its citizens’ entrepreneurial spirit. In this blog, we’ll get a quick overview of the Free Zone jurisdiction, as well as some benefits.
What is a free zone in the UAE?
Free zones are special economic zones or jurisdictions that provide financial and tax exemptions as well as commercial operating licenses. Over 50 free zones are located across the seven Emirates. The administrative unit in charge of a free zone is known as the Free Zone Authority. The Free Zone Authority, or FZA, is the governing body in charge of the critical tasks related to free zone operations and license issuance.
In the UAE, free zones are specific locations where investors can trade and exchange various products, services, and commodities. However, certain regulations and rules must be followed in order to avoid legal issues. However, all regulations are extremely flexible, which is one of the numerous advantages that free zones can provide.
When you establish a Business in the Dubai Free Zone, you will be able to reap those benefits, which will exponentially boost your business. Indeed, these benefits are the primary reasons why investors from all over the world choose to establish themselves in those UAE locations. Now, let’s look at the many advantages that UAE free zones can offer you and discover why becoming an entrepreneur in the UAE can be a good business idea for professionals like you.
An investor in a UAE free zone may establish one of the three business entities listed below.
- Free zone company (FZCO).
- Free zone establishment (FZE).
- Branch of a foreign company.
Advantages of a UAE Free Zone Company
To begin with, free zones in Dubai are essentially national boundaries. Commodities, services, and other goods can be traded in these areas without interference from onerous customs regulations. Companies operating in Dubai’s free zones pay lesser taxes compared to the Mainland, depending on the arrangement.
This stimulates economic activity and increases the likelihood of successful business operations without the need to pay personal taxes or capital gains to the government. Every free zone in Dubai Mainland is a separate legal entity with its own free zone authority. This authority is in charge of administration, registration, and license issuance within the boundaries of that free zone.
The benefits of Business in Dubai Free Zones are as follows:
1. 100% foreign ownership
In a free zone, you can gain complete control over your business. A foreign investor or group of foreign nationals may fully own a free zone company in the United Arab Emirates. A local sponsor is not required for their company. All nationalities are welcome to own businesses in free zones.
When it comes to information on assets owned by free zone businesses, free zone authorities maintain the highest level of confidentiality.
3. No trade restrictions
There are no restrictions on trade or the volume of business that free zone businesses can conduct with businesses both inside and outside the zone.
4. No currency regulations.
Currency regulations are governmental restrictions on foreign currency exchange. The free zones have no currency regulations. There are no currency restrictions in UAE-free zones. This makes financial transactions easier.
5. Import and export taxes are waived.
Free zone jurisdictions in the UAE are exempt from import and export taxes. This helps to advance global trade.
6. Workspaces are conveniently located.
A variety of warehouse and office options are available to free zone jurisdictions. The UAE-free zones are ideal for startups and SMEs.
7. Simple business incorporation
The procedures for establishing a business in a free zone are simple and straightforward. The licensing process can be completed in fewer days than in other jurisdictions.
8. Immigration procedures that are simple
Immigration facilities that are linked to UAE-free zones are efficient and save time.
9. Excellent communication and infrastructure
The infrastructure and communication systems in UAE-free zones are cutting-edge.
What documents are required to register a business in Dubai?
- The following is a list of documents required for business establishment in Dubai:
- An application form for the company.
- A Business Strategy.
- The authority’s duly notarized Memorandum of Association and Articles of Association (in the case of a foreign branch/subsidiary).
- The passports of the proposed business’s managers and shareholders.
- The Sponsor’s Passport to prove that the person is a UAE National (in the case of a UAE company’s branch).
- Letter of authorization from the sponsor (if a salaried person is starting a business/if a spouse-sponsored person is starting a business).
Dubai Free Zone Company Setup in 5 Simple Steps
- Choose your Business Activity
- Select a Free Zone
- Pick a company name
- Compile all the documents
- Apply for a free zone license
When you establish a free zone company in the UAE, you will receive all the benefits that free zones provide. However, if you set up your company with the help of Shuraa Business Setup, you can reap further benefits. In fact, you can make the company formation process easier by utilizing our services and professional guidance.
Furthermore, we can assist you in making key decisions during the establishment of your company in a UAE-free zone. Please contact us if you have any questions.