Free zones are known for being special economic zones that are setup with the main objective of offering free customs duty and tax-free benefits to expatriate investors. These zones are formulated for boosting the international business by offering complete ownership to multiple foreign investors. The Free Zones located in UAE and Dubai are usually government according to a special set of rules and regulations. Usually these zones operate outside the laws of the Ministry of Labor or the Federal Laws.
Near about 40 Free Zones are operating presently in the UAE, most of them are under construction. Almost every free zone is designed around one or even more commercial categories and offers licenses to organizations operating within these categories. Today, UAE is considered as one of the major business hubs and the most ideal location for setting up a new business as well as a representative office. With multiple free trade zones operating in UAE, it is really difficult to select the best one for conducting your business in this region.
The major benefits of Free Zone Company set up in UAE
The main advantage which is provided by the Free Zone company setup in UAE to the foreign investors is returning hundred percent of their businesses without any requirement for local partners. Non-UAE residents cannot enjoy a majority business stake outside the Free Zone, provided that the business needs an industrial or commercial license, hence, need to be set up with one of the local partners who can enjoy the minimum ownership of around 51 %.
The other set off benefits enjoyed by UAE Free Zone companies are as follows:
- Quick clearance of documents
- Export and import activities
- No taxes
- 3 years visas for staffs, investors and family members
- Mainland labor rules are not applicable
- Quite easy to employ new staffs
- Following legal forms can be selected – FZC for 2-5 owners, FZE Â for 1 owner, branch of the foreign organization
- Efficient and modern communications
- Logistic efficiencies owing to the effect of business cluster
- Offices and service desks for startups and SMEs
- Inexpensive and abundant energy
- Multiple licensable activities
- No currency restrictions
- Complete repatriation of profits and capitals
- 100% exemption of personal and corporate income tax
- Outstanding support services
What are the factors used to consider while selecting UAE Free Zones?
There are multiple factors that need to be considered when planning for Free Zone company setup in UAE. Some of the essential factors are enlisted below for your convenience:
Licensing process
License can be obtained within just a few days in some of the Free Zones. In other places, it may even take 20- 40 days. Capital requirements are not mandatory, but in some cases, it’s highly applicable.
Location
Some of the Free Zones are situated in close proximity to airports, ports or are even the part of nearest ports, while others have good access to the main transportation areas.
Free Zone prestige
Free Zones located in UAE are not only prestigious but also quite expensive. There are some remote Free Zones that are highly popular too.
Facilities and infrastructure
There are some free zone company set up in UAE that offers outstanding infrastructure for the investors. For instance, one can work and live in the same zone.
If you want to know more about Free Zone company setup in UAE, get in touch with the experts at Arab Business Consultant.
