FREEZONE
COMPANY SETUP
Free zones are also commonly known as free trade zones. These jurisdictions are essentially economic zones where goods and services can be traded, usually at favourable tax and customs rates.
One of the common misconceptions is that free zones and offshore companies are the same. However, this is far from the truth. Free zone companies are onshore entities that can carry out business in Dubai while meeting certain conditions. On the other hand, offshore companies are solely set up with the aim of operating outside its registered jurisdiction or the location of its primary ownership.
There are about 67 free zones in the UAE with new ones being introduced every year. Free zones are also home to over 150,000 companies in the country. Moreover, this number is on the rise with progressing time.
The cost of setting up a business in Dubai would cost approximately AED 11,900. Although, the cost would vary depending on the free zone you opt for and as per your visa requirements.
It is also worth noting that free zone companies are now permitted to open their branch companies on mainland. In order to accomplish this, the investor needs to register his branch using the same trade name with the Department of Economic Development (DED) and Ministry of Economy. The branch company can be solely owned by the free zone entity unlike the former rule where it was a requirement to have a local partner.
Advantages of free zone business setup in Dubai
- Complete ownership of business: Free zones enable foreign investors to attain 100% ownership of their company.
- Full profit repatriation: Free zone companies can repatriate all their profits outside the UAE. This gives them the rights to transfer 100% of their capital to their place of origin without any requirements.
- 0% corporate tax: The UAE laws state that companies do not require to pay corporate tax out of their business revenue, thereby allowing you to keep all your profits.
- Simplified import and export process: Unlike the mainland, free zones are exempt from all customs duties.
- Strategic location: Free zones are strategically located near sea ports, airports and national borders. This would inevitably maximize trading advantages.
- Global connectivity: Dubai has major sea ports and airports that enable you to trade locally and internationally with ease. The location provides you easy access to distributors and manufacturers in the MENA region as well as South Asia.
- Thriving expat entrepreneurs: As one of the world’s most popular transit destinations, Dubai attracts millions of tourists and investors alike. The city is home to a multi-national community and provides opportunities for you to connect with a global business community.
- Range of business activities: Free zones give you the freedom to undertake a range of business activities.
- Time-saving and simple registration process: The entire process of obtaining a license is fairly swift and easy. As an investor, you can get easy access to free zone business formation and convenient administrative services.