Benefits of Setting Up a Company in Freezone in Dubai, UAE

  • When you plan to set up a company, you think of the right location too, as it is one of the most essential factors in starting a business. If you have decided to set up a company in Dubai, then you need to think about the right jurisdiction. While many companies want to establish their business in Dubai Mainland, many are keener on setting up their company in Freezones. 

    It is usual for any investor to look for benefits that they can avail from company formation in Dubai. If you choose the right business structure for your business, keeping the business needs in mind will be beneficial for you in the long run.

     

    What are the free zones in the UAE?

    Free zones are special economic zones or authorities that issue licenses to business entities for operations and, at the same time grant financial support and tax exemptions. In the United Arab Emirates, there are more than 40 Free zones, across 7 Emirates. Free Zone Authority (FZA) is the governing body of Free zones. It is also the authority of key activities in connection with the operations and issuance of the license in Freezones.

    Below listed are three types of business entities that investors can form in a UAE free zone:

    • Free zone company (FZC)
    • Free zone establishment (FZE)
    • Branch of a business concern

     

     Business Setup in Dubai Freezone

     

    Benefits of Forming a Free Zone Company

    Let us try to understand the benefits associated with Free zone company formation in UAE below:

     

    100% Ownership Possible

    The most appealing of all the benefits is the 100% ownership of free zone companies in the UAE. This means a foreign investor does not need a local partner or a UAE national sponsor to register a company. 100% ownership of foreign nationals is possible, setting aside the nationality of the investors and entrepreneurs.

     

    100% Tax Benefits

    Free zone entities are entitled to a 100% tax exemption. This includes both income and corporate tax, beneficial for both individuals and corporations.

     

    Exemption on Import and Export Duty

    Free zone jurisdiction companies are exempted from import and export duties in the UAE. This is beneficial for companies planning to promote international trade.

     

    No Currency Regulations in UAE

    The UAE government has not enforced any currency-related regulations on foreign currency transactions. Free Zones in the UAE have no currency regulation. The financial transaction in Free Zones is easier this way.

     

    Benefits of Repatriates 

    Repatriates are allowed full repatriation and, it includes even profits and financial benefits.

     

    Smooth Labour Recruitment

    Free zone companies are allowed labour recruitment formalities easily and cost-effectively. The companies in Free Zones can recruit foreign nationals.

     

    Ready To Use Workspaces

    Free Zones have readily available warehouses and office spaces. UAE free zones are most suitable for small and mediums sized enterprises and start-ups.

     

    Easy to Form a Company

    In Free Zones, company formation procedures are easy and simple. You can obtain a trade license within fewer days compared to other jurisdictions.

     

    Hassle-free Immigration Process

    Immigration facilities available in UAE Free Zones are systematically done and therefore saves your time.

     

    Excellent Infrastructure

    UAE Free Zones have a world-class infrastructure with the most latest and efficient communication systems. You can enjoy a cost-effective setup surrounded by abundant energy.