The number of business-minded people is growing exponentially this year; that’s why it only makes sense to think of various business opportunities that will provide you with the most benefit.
For the past years, the UAE government has been proactive about providing roles for foreigners and bringing in foreign investments to the Emirates. This is why the UAE government is seen as a visionary government with business-friendly policies and the entrepreneurial zeal for residents, providing major economic progress for the UAE.
Not to mention, the UAE government also provides amazing tax-related policies and financial benefits for foreign investors, making them a very generous country to start business relationships with.
If you’re interested to learn more about the business setup in UAE and you’re considering forming a Free zone company there, it’s best to understand the Free Zone jurisdiction and benefits associated with it. Let’s take a look!
What are the Different Free Zones in the UAE?
Free Zones are considered special economic regions that issue operating licenses for business establishments with financial and tax exclusions. And today, there are about 40 Free Zones in the seven Emirates.
The Free Zone Authority or FZA is the government body in charge of all Free Zones. They control pivotal activities in connection to any Free Zone operations and license issuance. With that, you can form different types of business entities in the UAE Free Zone, including a Free Zone company, a Free Zone establishment, and a branch of a business concern.
What are the Benefits of Forming a Free Zone Company?
- Complete Foreign Ownership: You can get complete foreign ownership when you form a Free Zone company in the UAE. This means you don’t need to find a UAE national sponsor to form a company.
- No Currency Regulations: When you form a Free Zone company, you don’t have to deal with currency regulations, making it much easier for financial transactions.
- Import and Export Duty Exemption: When you have a company in a Free Zone jurisdiction, you are exempt from import and export duties, allowing you to promote international trade.
- Tax Benefits: You get 100 percent tax exclusion when you build a Free Zone company, including income tax and corporate tax.
- Labour Recruitment: You can easily conduct labour recruitment formalities in a time-efficient and cost-effective manner. With that, you can also hire foreign nationals for your company.
- Easy Incorporation Procedure: Free Zone companies have a straightforward incorporation procedure and can accomplish the licensing procedures in a few days.
- Simple Immigration Procedures: Immigration-related concerns connected with UAE Free Zone companies are efficient and have minimal delays.
What are the Major Free Zones in Dubai?
If you’re interested in the business setup in UAE and considering forming a Free Zone company, it’s best to know the major Free Zones you can consider.
Today, Dubai has more than 30 Free Zones, and there are some new Free Zone jurisdictions that are currently under construction. Below are the five major Free Zones in Dubai:
- Dubai Airport Free Zone
- Dubai South Free Zone
- Dubai Media City
- Jebel Ali Free Zone / JAFZA
- Dubai Gold and Diamond Park
The Bottom Line: Proper Business Counseling Can Help You Form an Efficient Free Zone Company in the UAE
Understanding the business setup in UAE is crucial if you want to start running a business in one of their Free Zones. With that, it’s best to get professional counselling to ensure you’re taking the right steps in forming a free zone company.
Seeing forming a free zone company can be incredibly beneficial; it’s best to consider this business move, especially if you want to go global.
How Can We Help You?
Vigor Business Center is a team of business setup and company formation experts in Dubai, UAE. We streamline the formation of your business by offering professional counselling and advice. Want to learn more about the business setup in UAE? Reach out to us today!