If you are thinking about starting a business and want to know the top advantages of founding a free zone company in the UAE, you have come to the perfect place. Before you read about the benefits of Business setup in UAE Free Zone, let’s look at some important facts about running a business in the UAE.
Over a long period, the UAE government has worked hard to bring business from all over the world to the Emirates. The UAE’s economic growth is mostly due to its innovative government, policies that are good for business, and the drive of its people to start their own businesses. The government helps foreign businesses save money in many ways, including through tax breaks and other financial aid. There are three types of business areas in the UAE market: Mainland, Free Zone, and Offshore. When owners want to set up a business in the UAE, they should choose one of the three regions based on their business type, users, and goals. There are pros and cons to business setup in UAE free Zone. We will take a quick look at the Free zone jurisdiction and the perks that come with it in this blog.
What exactly are the free zones in the UAE?
Free zones are economic areas or governments that offer operating licenses to businesses and provide financial and tax breaks. In all, the UAE has more than 46 free zones. The Free Zone Authority is the government entity in charge of free zones. The Free Zone Authority (FZA) is the governing organization in charge of the key tasks associated with free zone operations and license issuing.
An investor may establish three kinds of firms in a UAE free zone, which are described below.
- Free zone company (FZC)
- Free zone establishment (FZE)
- Branch of a business concern
How Much Does It Cost To Establish A Business In A Free Zone?
In the United Arab Emirates, there are around 46 free zones. According to the free zone, the fees of establishing a business might vary. This has to do with the fact that a firm may have as many as fifty shareholders, and everyone of those shareholders would be qualified to get a visa without any problems. The costs for applying for a visa must be paid individually for each person, including workers for whom work visas are being requested for. In addition, there are the expenses associated with renting an office space; the leasing fees will vary from one free zone to another. Additionally, you have the ability to choose whatever location you like, ranging from a single desk in a shared office space to a huge office that is enclosed, and the fees will be determined appropriately.
The Advantages of Establishing a Company in a Free Zone
Let us now get to the real subject of the matter. The advantages of business setup in UAE Free Zone are stated below.
Complete Foreign Ownership
One of the most obvious advantages of founding a free zone business in the UAE is that full foreign ownership is available. This implies that overseas investors do not need to obtain a UAE native sponsor for business establishment. Foreign ownership is possible, regardless of the investor’s nationality.
Lack Of Currency Restrictions
It is referred to as currency rules when the government places limits on the exchange of foreign currencies. Within the UAE’s free zones, there are zero monetary regulations. Because of this, monetary transactions are simplified.
Import And Export Duty Exemptions
The free zone authorities in the United Arab Emirates are exempt from the imposition of import and export tariffs. Because of this, worldwide commerce continues to be promoted.
Tax Benefits
Business setup in UAE Free Zone are eligible for a tax relief of 100%. Income tax and corporation tax are also included in this. If the yearly net profit of a business exceeds 375,000 AED, the business owner will be eligible to pay 9% Corporate Tax.
Repatriation Benefits
This means that the firms are qualified to receive full repatriation advantages. In addition, this includes both financial assets and earnings.
Smooth Labor Recruitment
The procedures involved in labor recruiting may be carried out by free zone enterprises in an easy and cost-effective manner. Recruiting individuals from other countries is permitted for companies.
Readily Available Workspaces
Warehouses and office spaces are readily accessible in the jurisdictions that are considered to be free zones. UAE free zones are perfect for small and medium-sized businesses as well as new businesses.
Ease Of Business Incorporation
The free zone firm establishment processes are easy and straightforward. You may complete the license requirements in less days than other jurisdictions.
Immigration Processes Are Trouble-Free
Immigration facilities related to UAE Free Zones are efficient, saving time.
Excellent Communication And Infrastructure
UAE free zones contain the most up-to-date communication equipment and flawless infrastructure. Free zones benefit from cheap and abundant energy.
Major Free Zones in UAE
- Ras Al Khaimah Economic Zone (RAKEZ)
- Sharjah Research Technology And Innovation Park (SRTIP)
- Fujairah Creative City Free Zone (FCC)
- Dubai Multi Commodities Centre (DMCC)
- International Free-zone Authority Dubai (IFZA)
- Meydan Free Zone (MFZ)
- Dubai International Financial Centre (DIFC)
- Sharjah Media City Free-zone (SHAMS)
- Sharjah Publishing City (SPC)
- Jebel Ali Free Zone Authority (JAFZA)
Conclusion
We really hope that this has helped you obtain some understanding on the advantages of establishing a business in a free zone in the United Arab Emirates. Through the assistance of free zone business setup consultants in UAE such as ExpressPRO, you can ensure that the process of forming your company is both smooth and expedient. In all of the main free zones in the UAE, ExpressPRO is able to provide assistance with business setup in uae free zone. In different free zone jurisdictions, the laws and documents that are related with the creation of a corporation are different. Please get in contact with the ExpressPRO team as soon as possible if you need any help linked with the establishment of a business or any of the services associated with it.