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.
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
5 Benefits of Incorporating a Business in Dubai Free Zones
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:
1.Full Foreign Ownership
One of the most evident benefits of forming a free zone company in UAE is that complete foreign ownership is possible. This means that the foreign investor need not find a UAE national sponsor for company formation. Foreign ownership is possible irrespective of the nationality of the investor.
2.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. This makes financial transactions easier.
Import and Export duties are not applicable to the free zone jurisdictions in the UAE. This helps in promoting international trade.
4.Full Repatriation of Capital and Profits
The companies are eligible for full repatriation benefits. And this includes profits and financial assets.
5.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.
6.Hassle-Free Company Incorporation
The free zone company incorporation procedures are simple and straight forward. You may accomplish the licensing procedures in less number of days compared to other jurisdictions.
7.Easy Immigration Process
Immigration facilities connected with UAE Free zones are efficient and therefore saves time.
Other benefits include –
- 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 to have a free zone business setup in Dubai is an attractive avenue for foreign investors, as it expedites business activities and attracts companies looking to invest their capital in entrepreneurial businesses. If you are looking to setup a company in Dubai Freezone, you might also want to look into the procedure.
How to Setup Company in Dubai Freezones?
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:
- 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
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, 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.
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.