7 Reasons to Open a Company in a Free Zone in Dubai
Dubai is currently one of the simplest places in the world to register a business. Apart from that, Dubai has a variety of advantages, which is why the number of foreign investors interested in establishing a business in the Dubai Freezones is steadily increasing. Entrepreneurs in Dubai have two alternatives for founding a firm, as well as a variety of legal entities from which to pick. They have the option of establishing a business within the Emirate or in one of its free zones. Dubai offers around 30 fully functioning free zones and a few more in the construction stage, meeting the demands of individuals looking to start a business in one of the city's free zones. We can assist you with forming a business in any of the UAE's free zones.
Types of businesses that can be established in Dubai's Freezones
Foreign entrepreneurs can form free-zone limited liability firms or function as sole traders, while foreign corporations can form free-zone corporations with corporate shareholders or open branch offices. Alternatively, investors can act as sole proprietors if they apply for one of the free zone authorities' professional licences.
The following licences are available regardless of the sort of firm that is established in one of Dubai's free zones:
General trading licences, Trading Licences, industrial licences, national industrial licences, and service licences are all examples of general trading licences.
Minimum share capital requirements apply to specific sorts of activity, depending on the free zone where the company will be formed.
Benefits of forming a business in a Dubai free zone
The first and most crucial advantage of establishing a business in a Dubai free zone is the emirate's large number of free zones. There are more than 30 free zones in Dubai presently, with a few more under construction. It's also worth noting that the prerequisites for forming a business in any of them are nearly identical.
Companies operating in Dubai's mainland enjoy a variety of tax benefits, which are also available in the city's free zones. We will mention a few of them:
- There are no taxes on corporate revenue earned by locally registered businesses;
- one of the lowest value added taxes in the world (at 5%);
- Profits can be repatriated for free in all of Dubai's free zones.
- access to the UAE's extensive network of double taxation treaties.
Import and Export concessions are also available to Dubai free zone businesses. We can help you with VAT registration in Dubai. Our experts can assist you in forming a corporation in one of the UAE's free zones.
Setting up a business in a Dubai free zone is easier and faster than doing it on the mainland. This is due to the fact that a company's incorporation in a Dubai free zone is completed in a single step.
Office spaces, warehouses, and factories, all of which operate in the same locations as the enterprises, are among the services provided by Dubai's free zones. In this approach, the amount of effort and money spent on such amenities is minimised.
One of the most appealing aspects of establishing a business in the Dubai free zones is the fact that complete foreign ownership is authorised. In comparison to any other free zone, forming a corporation in Dubai necessitates the involvement of a national partner who will control 51 percent of the company's shares.
The following are some of the other factors that make Dubai free zones so appealing:
- A three-year visa is available to investors, who can also sponsor their families.
- Employees can be hired without regard for UAE labour laws.
- Procedures for forming a business are simple and quick.
- For any form of business, the infrastructure is outstanding.
- There are no taxes.
Tax exemption may be given for a term of 50 years, depending on the free zone where the company will be located.
The following are some of the advantages that most foreign investors choose to open free zone companies in Dubai:
- foreign ownership in its entirety.
- Procedure for registering a business is quick and easy.
- Profits can be repatriated for free in most free zones.
- In comparison to onshore corporations, Offshore companies have a wider range of business permits.
- Each free zone caters to a certain industry.
- Every free zone provides office space, industrial parks, and warehouses to meet the demands of any business.
How to Start a Business in the UAE Free Zones?
Foreign investors who want to set up businesses in UAE free zones must adhere to the following guidelines:
- Choose the company's organisational structure.
- submit an application for a residence permit (if applicable).
- The company name will be held in reserve.
- submit an application for a business licence
- Obtain the company's legal address.
- obtain work licences for international workers (if required).
It's good to know that the free zone authority where the business will operate will handle all Visa applications and company registration procedures in a hurry.
Our experts can help you prepare the documentation you'll need to start a free zone business in the UAE.
In order to register a corporation in the Dubai free zones, the following requirements must be met:
- Most free zones allow for single or multiple owners, and the number of shareholders determines the free zone company's corporate form.
- The Memorandum and Articles of Association are the documents that must be completed in order to register a free zone corporation.
- The amount of money required to start a free zone firm is determined by the Dubai free zone authorities (each free zone has its own regulations in this sense).
- Regardless of whatever Dubai free zone a company chooses, it must apply for a licence based on the activities it plans to do.
- In the case of foreigners, appointing a local agent is required to complete the Dubai free zone company registration process.
Which Dubai Freezone should you choose?
When it comes to forming a company in Dubai, foreign investors should be aware that each free zone offers business permits in one or more relevant industries. The following are the many types of free zones in Dubai:
- The new growing industries such as software and media clusters are the focus of Dubai Media City, Dubai Silicon Oasis, and Dubai Internet City.
- The education industry is the focus of Dubai International Academic City and Dubai Knowledge Village.
- The media industry is represented by Dubai Studio City and the International Media Production Zone.
- Dubai Maritime City caters to foreign investors looking to establish businesses in the maritime industry.
- Apart from that, the Dubai Multi Commodities Centre, the Emirate's largest free zone, was established for international investors looking to start businesses and Investments in the import/export market.
Dubai's free zones have their own taxation system
The UAE's taxation structure, which mostly applies to enterprises in the oil and financial industries, is one of the most compelling reasons for international investors to establish businesses there. It's worth noting that each Emirate has its unique set of tax rules. Dubai has one of the most favourable tax schemes among them. In addition, Dubai includes a large number of free zones that are self-governing and have their own taxation regimes.
List of the Freezones in UAE
Here is the following list of freezone to learn which businesses are most likely to prosper, as well as how easy it is to set up a firm in the UAE.
Foreign enterprises operating in Dubai's free zone are normally granted tax breaks for up to 50 years. Foreign shareholders in Dubai free zone companies, on the other hand, must be aware of the taxes they are liable to in their home country and whether or not a double tax treaty applies to them.
If you need help forming a free zone company, you can contact our Dubai-based Company Formation agents, who will take care of the registration and licencing requirements.