In the United Arab Emirates, establishing a business is a straightforward and quick process. However, many business owners are apprehensive to open a company in the United Arab Emirates. This is so that a UAE citizen, who is referred to as a partner or sponsor, must possess 51% of the firm in order for it to be incorporated in the UAE.
UAE has created the concept of free zones to help with this. Numerous free zones that make it easier to start a business and draw in businesses from around the world have been established. As a result, the economy of the nation benefits and there are more prospects for aspiring businesspeople and entrepreneurs.
It’s imperative to gain in-depth information of the advantages and disadvantages of the free economic zones in the UAE before beginning any business. Before starting any form of economic activity in these freezone zones, the following six crucial factors need to be taken into consideration.
- Tax benefits are one of the main benefits of establishing a business in a free zone in Dubai. Since free zones allow for 100% foreign ownership, you can run your company independently without the requirement for a local partner. Free zones also offer exemption from company and individual income taxes, as well as import and export customs fees.
- Simple Company Formation: Establishing a company in a free zone is a quick and simple process. To help with firm registration, licensing, visa issuance, and other administrative tasks, the free zone authorities offer expedited processes and effective services. This enables you to smoothly and quickly launch your business operations.
- Dubai’s strategic location at the intersection of Europe, Asia, and Africa makes it a prime center for global trade and commerce. The city features a cutting-edge logistical network, first-rate air and maritime connectivity, and world-class infrastructure. Being in a free zone in Dubai enables simple distribution of your goods or services and gives you access to a global market.
- Profit repatriation: In Dubai’s free zones, cash and earnings may be returned in full. This indicates that there are no restrictions on the free transfer of your earnings back to your place of origin. By making it simple to access and use your assets, this feature offers financial freedom and guarantees that you may profit from the success of your business.
- Business Support Services: Free zones in Dubai provide a variety of business support services to aid entrepreneurs and businesses in thriving. Access to modern office spaces, warehouse facilities, business centers, networking opportunities, and mentorship programs are a few of the services offered. Additionally, free zones frequently offer help with visa processing, hiring, and legal and administrative support, allowing you to concentrate on expanding your firm.
- Focus on a particular industry: Dubai’s free zones serve a range of businesses, with each zone concentrating on a particular industry, including technology, finance, media, healthcare, logistics, and more. This industry-specific strategy establishes an ecosystem where companies in the same sector can cooperate, pool resources, and gain from synergies. Additionally, it encourages innovation, information sharing, and specialization, which makes it desirable to work in a free zone that supports