Benefits of Setting up a Business in Dubai Free Zone

by Zaara 22, Aug 2017

Benefits of Setting up a Business in Dubai Free Zone

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.

Benefits of Setting up a Business in Dubai Free Zone

There are more than 30 free zones operating in Dubai. The major ones are:

  • 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

Registering a Dubai Free Zone company is pretty straightforward and usually takes 3 weeks to incorporate. After deciding on the preferred free zone, one would need to:

  • Reserve the company name
  • Rent office premises
  • Arrange for the deeds of establishment and the articles of association
  • 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

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:

  • 100% tax exemption on personal or corporate income or gains
  • 100% ownership for investors regardless of their nationality and domicile
  • 100% repatriation of capital and profits
  • Exclusion from all import and export duties
  • Exemption from corporate tax for 15 years, with an additional renewal option for 15 years
  • No capital deposit required

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

There are more than 30 free zones in Dubai. Therefore, 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, if your company will be providing IT services, you should consider the Dubai Media City or Internet City zone, or for 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.

Free zones in Dubai provide multiple investment opportunities to investors and offer them the flexibility to select a business entity that fits with their unique business needs and objectives. Freedom of doing business, substantial tax savings, and a robust infrastructure lead investors and businessmen 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 rigmarole, visa applications, documentation, and licensing formalities, residence permits, banking details, etc., as our team takes care of all these requirements. Should you decide to open a business in Dubai free zone, don’t hesitate to contact us, even if it’s just for a friendly advice.