The goal of creating Free Zones throughout the world was to create a model that stimulates economic activity by providing essential benefits that allow entrepreneurs and multinational corporations to set up shop and do business freely. Due to their total ownership, 0% taxation, and customs benefits, Dubai free zones are the most advantageous sites in the Middle East for international business.
Unlike the heavy legislature and operating prerequisites for enterprises on the continent, such as the initial consultation of a UAE national, local promoter, the policies and timeframe for new business setup in Dubai free zones are much lighter and faster, with minimal documentation and administrative requirements, and no need to assign a local service representative to obtain a license.
Why Should You Launch A Business In Dubai?
With the UAE’s 0% income tax plan, you may keep all of your earnings.
- Send 100% of your profits and money back to your native country.
- Profit from the increased market demand brought on by Expo 2020.
- Imports and exports are free from customs charges.
- It is not necessary to rent office space (depending on the free zone).
- Only the bare minimum of documentation and audits is necessary.
- New markets in the Middle East, Africa, Europe, and Asia are available.
- Take advantage of more than 110 international double taxation agreements.
Company Category In Free Zones
The UAE Commercial Companies Law does not apply to companies established in free zones. Dubai Free Zone Companies are deemed to be outside of the UAE’s jurisdiction and are governed by the laws and regulations of the relevant free zone administration.
- Free Zone Establishment (FZE): A single person or corporation holds this sort of business.
- The Free Zone Company (FZCO): This kind of corporation requires at least two shareholders. Individuals and corporations can both be shareholders.
- A firm can open a branch office in one of Dubai’s free zones, whether it is based outside or inside the UAE.
Dubai has more than 20 free zones collectively. Each Free Zone registers businesses based on their field of activity, and each has its own set of regulations, costs, and legal framework. However, suppose a free zone firm wishes to deal with the mainland (Dubai). In that case, it will be charged a 5% tax and will be unable to sell its products directly to Dubai residents instead of going via a local distributor or agent.
Dubai Free Zone Company’s Benefits
- Foreign ownership is 100 percent.
- Corporate and personal income or profits are free from taxation to the full extent of the law.
- Capital and earnings will be repatriated in their entirety.
- Your company’s location should be strategic.
- Don’t get bogged down by quarterly reporting requirements.
- Business operations are thriving in the world-class infrastructure.
- There is a modern transit system accessible to fulfill commuting needs.
- A large pool of international talent is accessible for hire.
- Pre-designed and customized storage and office spaces
- Possibility of owning property, engaging in numerous activities, and opening a bank account in Dubai.
- Assistance with housing, visas for employees, and other support services.
License Types In A Free Zone
The following sorts of permits are available from free zone authorities for the establishment of a firm in the Dubai free zone:
- Trading Permit
- A General Business License
- Professional Certification
- Industrial Permit
With a DED license, you can deal with government agencies and trade across the UAE. The concierge staff at Creative Zone will make the otherwise tedious process of creating a bank account a breeze.