Dubai, one of the most developed cities in the Middle East, is the most preferred destination for the global business community for its healthy economic ecosystem. In the last two decades, Dubai saw a massive transformation in technology, infrastructure, and other areas, a testimony to Dubai’s exponential growth in many areas. As a result, the city is one of the top cities for investors worldwide to start a business.
Free Zones in Dubai
Dubai has two main legal business structures – free trade zones and Dubai mainland. It has more than 30 free zones for enterprises of various categories. Free zones are designed to encourage international investors by providing 100% ownership to them and the convenience of a single-window administration. Equipped with excellent infrastructure, duty and tax exemptions, superb business amenities, flexible government policies, and top-notch facilities, Dubai free zones are the resourceful option to set up a business for foreign investors.
Here are some of the benefits of setting up your business in the Dubai Free Zone:
1. 100% Ownership
One of the most visible benefits of setting up a free zone company in the UAE is that it allows 100% ownership to foreign investors. Moreover, the foreign investor will not require to look for a UAE national or local service agent and sponsor for company formation. Instead, any foreign national can avail of this ownership.
2. No Currency Restrictions
The UAE government has introduced currency regulations to impose currency-related restrictions on the transaction of foreign currencies. However, in the free zones, there are no currency regulations of any kind, making financial transactions smooth and more effortless.
3. Import/Export Exemption
In the free zone jurisdictions in the UAE, there are no Import and Export duties. It encourages international trade.
4. Complete Repatriation of Capital and Profits
The companies get full repatriation benefits, which includes profits and capital.
5. Easy Staff Recruitment
The staff recruitment formalities are easy and smooth for free zone companies, and they can conduct it cost-effectively. Moreover, the companies can recruit foreign nationals from anywhere in the world.
6. Hassle-Free Company Formation
The company formation process is straightforward in free zones. The method of obtaining a license is faster as compared to other jurisdictions.
7. Simple Immigration Process
The immigration process with UAE free zones is simple and time-saving.
- 100% tax exemption on personal or corporate income
- Exemption from corporate tax for 15 years, with an additional renewal option for 15 years
- No need for a capital deposit
- Easy connectivity via air, rail, and road transports
- Ready consumer market across MENA and Asia regions
- World-class infrastructure with effective communication and network system
- Budget start-up and operational cost
“If you are determined to start a business in Dubai free zone, you should also look into the procedure.”
How to Incorporate Business in Dubai Free Zones?
Establishing a Dubai Free Zone company is mainly simple and usually takes three weeks to set up.
Once you have decided on the preferred free zone, you will need to start with the below-mentioned points:
- Decide the company name.
- Rent office space
- Prepare for the documents of establishment and the articles of association.
- Open a corporate bank account and include the minimum paid-up share capital to receive confirmation for the bank statement.
- Grant budget for the translation and notarization costs of due diligence
- Obtain the right business license, issued by the relevant 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
Before you initiate the process of business setup in Dubai Freezone, keep yourself informed about the essential traits and advantages. If you are not confident of the process and the regulations associated with company incorporation, hire a professional business setup company in Dubai for smooth and hassle-free service.