Modern Dubai is more than just a paradise for shoppers and tourists; It is also a rapidly rising global hub that offers a wide range of opportunities for contemporary companies and the best circumstances for Startups.
Entrepreneurs who start a firm in the city are given nearly endless options: offices of all types, storage facilities, manufacturing facilities, land, port and airport infrastructure, etc. It enables a businessman to work in the most comfortable settings and to combine work with leisure and exercise.
What are Free Zones in Dubai?
Free zones in Dubai are special economic areas that the UAE government established to attract foreign entrepreneurs and investors to start their businesses here. Every free zone is governed by the Free Zone Authority (FZA).
There are around 46 Free Zones in the UAE while 26 of these Free Zones are in Dubai. These free zones are usually sector-specific. Each free zone is designed to support specific types of businesses and provides the relevant infrastructure.
For example, Jebel Ali Free Zone (JAFZA) is known for its logistics and shipping capabilities while Dubai Healthcare City (DHCC) delivers to the healthcare sector:
1. 100% Foreign Ownership: One of the most significant advantages of establishing a business in a Dubai Free Zone is the allowance for 100% foreign ownership. This means that the foreign investor need not find the UAE national sponsor for company formation. Foreign ownership is possible irrespective of the nationality of the investor. This policy grants entrepreneurs complete control over their business operations and profits.
2. Tax Benefits: Dubai Free Zones offer considerable tax advantages, including:
• Corporate Tax Exemption: No corporate taxes on business profits for Qualifying Free Zone Persons
• Personal Income Tax Exemption: No personal income taxes for employees.
• Customs Duty Exemptions: Free zones also provide exemptions from import and export duties, aiding in cost-effective international trade.
3. Repatriation of Profits and Capital: Free zones in Dubai allow for 100% repatriation of profits and capital. This means that businesses can transfer their earnings back to their home country without any restrictions. This policy provides security to investors.
4. Streamlined Company Formation: Setting up a company in a Dubai Free Zone is typically faster and more straightforward compared to “Mainland”. The administrative processes are streamlined, with many free zones offering dedicated support services to help with company registration, licensing, and visa applications. This helps make things smoother and start your business quickly.
5. Strategic Location: Dubai is popularly known as a strategic location. It is at the crossroads of Europe, Asia, and Africa and provides businesses with access to key global markets. The city’s world-class ports and airports facilitate top-tier logistics and international trade. This accessibility allows trade and commerce on an international scale.
6. Intellectual Property Rights: Dubai’s free zones provide sturdy legal frameworks that protect the interests of businesses, including strong intellectual property rights (IPR) protection. This will ensure that companies can safeguard their innovations, brands, and proprietary information.
7. Flexible Office Solutions: Dubai’s free zones offer many office solutions such as virtual offices, flexi-desks, and traditional office spaces. This helps businessmen choose a suitable workspace for their operations at an affordable price.
8. Flexibility in Business Activities: Many free zones in Dubai allow businessmen to perform a wide range of business activities under a single license. This helps companies diversify their operations, explore new markets, and enter new segments without getting multiple licenses. Moreover, businesses can benefit from shared services and facilities offered by the Free Zone Authority (FZA).
9. Visa Benefits: Free zones offer a very simplified visa procedure for employees and their families. Also, setting up a business in a Dubai Free Zone grants the owners and employees long-term residence visas, usually, that is up to three years.
Companies can also sponsor visas for their staff, making it easier to attract and retain international talent. This convenience of obtaining visas often helps hugely to a stable and motivated workforce, which guarantees a better business environment.
Conclusion
Starting a company in a Dubai free zone presents countless advantages, from tax benefits and full foreign ownership to world-class infrastructure and access to international markets. These positives make Dubai’s free zones an attractive option for every entrepreneur and business looking to establish a strong presence in the Middle East and more.
Those interested in playing upon these advantages can reach out to AKW Consultants . They can provide just the guidance you need. For help with company formation or more information on Free Zone company registration, they are here to help.
Book your free consultation today at +971 4393 6500.
Take the first step towards your business, we wish you success in Dubai.