Free Zones (also known as free trade zones) is designed to boost international business by providing 100% ownership to expatriates and single-window administration convenience. Apart from this, each free zone caters to a different industry and the management takes care to provide them with benefits and features which will allow them to grow and develop. This makes setting up a business in the Free Zone in the UAE a very beneficial prospect.
There are more than 30 free zones operating in Dubai. The names of the major Free Zones in the UAE are provided below:
- Dubai Airport Free Zone
- Dubai Cars and Automotive Zone (DUCAMZ), also known as Dubai Auto Zone
- Dubai Design District
- Dubai Healthcare City
- Dubai International Academic City
- Dubai Internet City
- Dubai International Financial Centre
- Dubai Knowledge Village
- Dubai Media City
- Dubai Gold and Diamond Park
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- International Media Production Zone
- Jebel Ali Free Zone
- Dubai Production City
- Dubai World Central (Dubai South)
- Dubai Studio City
6 Benefits of Free Zone Company Incorporation
Free zones offer the most fertile ground for setting up businesses, equipped with state-of-the-art infrastructure, duty and tax exemptions, world-class business amenities, flexible government policies, and unmatched facilities.
The benefits of setting up your business in Dubai Free Zone are:
Full Foreign Ownership
One of the most evident benefits of forming a free zone company in the UAE is that complete foreign ownership is possible. This means that the foreign investor need not find a UAE national sponsor for company formation. The foreign person owns the complete company and has no use for any local sponsor. Foreign ownership is possible irrespective of the nationality of the investor.
No Currency Restrictions
Currency regulations are currency related restrictions imposed by the government on the transaction of foreign currencies. There are no currency regulations of any kind in UAE free zones which means that there is no restriction on using any type of currency thus making the transaction process easier for the foreign businessman.
Import and Export duties are not applicable to the free zone jurisdictions in the UAE. This will be a huge factor in saving costs and will attract import and export businesses. This helps in promoting international trade and maintaining relations with different countries.
Full Repatriation of Capital and Profits
The companies are eligible for full repatriation benefits. And this includes profits and financial assets. This means that the foreign person is eligible to take all the profits made in the business to his home country.
Easy Labour Recruitment
The Free zone companies can conduct labour recruitment formalities easily and in a cost-effective manner. The companies are allowed to recruit foreign nationals.
Hassle-Free Company Incorporation
The free zone company incorporation procedures are simple and straightforward. You may accomplish the licensing procedures in a few days compared to other jurisdictions making the setup process a whole lot easier.
Easy Immigration Process
Immigration facilities connected with UAE Free zones are efficient and therefore saves time.
There are various other benefits too which include the following:
- 100% tax exemption on personal or corporate income or gains
- Exemption from corporate tax for 15 years, with an additional renewal option for 15 years
- No capital deposit required
- Easy access to air, rail, and road transport systems
- Ready consumer market across MENA and Asia regions
- Provision of world-class infrastructure with an efficient communication system
- Low start-up and operational cost
Exploring options that a Free Zone provides for businesses can lead to the finding of new and better growth opportunities for the business. The free zone helps in speeding up the business activities and attracts companies looking to invest their capital in entrepreneurial businesses. If you are looking to set up a company in Dubai Free zone, the below portion related to Company Setup in a Free Zone can be very important for you.
How to Setup Company in Dubai Freezone?
Registering a Dubai Free Zone company is pretty straightforward and usually takes three weeks to incorporate. After deciding on the preferred free zone, one would need to:
Decide the name of Company
Opt for the name of a company.
Obtain the office premises, either on rent or buy the premises.
Arrange for the deeds of establishment and the Articles of Association
Arrange for Capital
Get a corporate bank account opened, and inject the minimum paid-up share capital to receive the bank statement confirmation
Allocate budget for the translation and notarization costs of due diligence
Secure the appropriate business license, granted by the relevant Free Zone Authority
However, there may be certain limitations in setting up a company in Dubai Free Zone.
- Prerequisite of renting office premises within the chosen free zone
- Being unable to conduct business or engage in business activities with clients or suppliers in Dubai mainland
- High translation and notarization costs
When you set up a company in a Dubai free zone, you must be aware of the attributes and advantages of each one. For example, suppose your company will be providing IT services. In that case, you should consider the Dubai Media City or Internet City zone. In the case of establishing a trading company, Dubai Multi Commodities Centre would be equally conducive. Jebel Ali Free Zone is appropriate for a shipping company or when one needs access to airports and seaports.
Each Free Zone will cater to a different industry thus each free zone will provide different benefits. Such knowledge will allow the management to understand which free zone will be suitable for the business and which free zone should be chosen by the management should plan to set up a business.
How can we Help?
Free zones in Dubai provide multiple investment opportunities to investors and offer them the flexibility to select a business entity that fits their unique business needs and objectives. Freedom of doing business, substantial tax savings, and a robust infrastructure lead investors and business people to set up their operations in Dubai free zones.
Commitbiz Business Setup Consultants, Dubai has the expertise and resources you would need to realize your entrepreneurial dreams without worrying about the nonsense, visa applications, documentation, licensing formalities, and residence permits, banking details, etc.; our team takes care of all these requirements. Should you decide to open a Dubai free zone, don’t hesitate to contact us, even if it’s just for friendly advice.
How many freezones are there in Dubai?
There are more than 30 freezones in Dubai.
Why set up a company in Dubai freezone?
It is ideal for market entry as it has a physical presence in the UAE through office space and visas without the need for a local sponsor.
Are freezones exempted from audit preparations?
Certain Free zone jurisdictions are exempted from Audit preparation. Certain Free zone entities like FZE and FZCO should prepare a year-end audit.
Are virtual offices allowed in the UAE freezone?
Do freezones have Import and Export duty taxes?
Import and Export duties are not applicable to the free zone jurisdictions in the UAE. This helps in promoting international trade.