Top Benefits Of Setting Up A Business In UAE Free Zones
If you’re considering launching a business and are eager to discover the key benefits of establishing a free zone company in the UAE, you’ve arrived at just the right destination. Before diving into the advantages of business setup in UAE Free Zone, it’s essential to consider some key facts about operating a business in the UAE.
For years, the UAE government has diligently focused on attracting businesses from around the globe to the Emirates. The remarkable economic growth of the UAE can be attributed to its forward-thinking government, business-friendly policies, and the entrepreneurial spirit of its citizens. Foreign businesses can benefit from various forms of financial assistance provided by the government, such as tax breaks and additional support to help them save money. The UAE market comprises three distinct business areas: Mainland, Free Zone, and Offshore. When entrepreneurs aim to establish a business in the UAE, selecting the appropriate region is crucial, tailored to their business type, target audience, and objectives. Setting up a business in a UAE free zone comes with its own set of advantages and disadvantages. In this blog, we’ll explore the Free zone jurisdiction and the benefits it offers.
What exactly are the free zones in the UAE?
Free zones are designated economic areas or governmental entities that grant operating licenses to businesses while offering attractive financial incentives and tax benefits. The UAE boasts over 46 free zones in total. The governing body responsible for overseeing free zones is the Free Zone Authority. The Free Zone Authority (FZA) oversees the essential functions related to free zone operations and the issuance of licenses.
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?
The United Arab Emirates boasts approximately 46 free zones. The fees for establishing a business can vary according to the free zone. This relates to the reality that a company can have up to fifty shareholders, each of whom would be eligible to obtain a visa without any issues. Each individual must pay the visa application fees separately, including those for workers for whom work visas are being requested. Additionally, there are costs linked to renting office space, with leasing fees differing from one free zone to another. You can select any location that suits your needs, whether it’s a single desk in a shared office or a spacious, private office. The fees will be adjusted accordingly.
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 standout benefits of establishing a free zone business in the UAE is the opportunity for complete foreign ownership. This indicates that foreign investors can establish their businesses in the UAE without the necessity of securing a local sponsor. Investors from any nationality can engage in foreign ownership opportunities.
Lack Of Currency Restrictions
Currency rules are established when the government imposes restrictions on the exchange of foreign currencies. In the free zones of the UAE, monetary regulations are non-existent. This leads to a simplification of monetary transactions.
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 trust this has provided you with valuable insights into the benefits of setting up a business in a free zone in the United Arab Emirates. With the help of expert business setup consultants in the UAE can guarantee a seamless and efficient company formation process. ExpressPRO offers expert assistance for business setup in UAE Free Zone. The laws and documents associated with establishing a corporation vary across different free zone jurisdictions. If you require assistance with starting a business or any related services, don’t hesitate to reach out to the ExpressPRO team at your earliest convenience.