Free zones are economic areas that allow the trading of goods and services by companies registered with a free zone to increase foreign ownership and international businesses in the UAE.
Business setup consultants in Dubai can assist in business registration of a new company, foreign or local branch in the Dubai Free Zone or Dubai mainland as per the requirement of the company.
There are various benefits for companies that consider to set up a business in the Dubai Free zones; few of these are:
1. Streamlined Procedure for Licensing and Business Setup
The Dubai free zones are designed to provide an easy setup procedure for all businesses that seek to register in the UAE.
The application process varies between different free zones and depending on the nature of the business. However, basic documentation such as passport copies and documents related to the business and business owner remains the same.
According to Free Safety Training, "It is beneficial to hire a business consultant to assist in the process of business setup and fasten the procedure by completing it within the estimated time."
2. Absence of the Requirement to have a Local Partner in the Business
It is beneficial for companies to consider setting up a business in Dubai free zones as there is no requirement for a UAE national or local to be a shareholder in the business. This is contrary to a company registered in the Dubai mainland as it requires a local partner in the business.
3. May Allow for Full Foreign Ownership
Another benefit of setting up a business in the Dubai free zones is that most of the free zones allow for a full 100% foreign ownership. This is one of the most influential factors for foreign investors wanting to start a business in Dubaifreezone.
Foreign investors may find it difficult to setup a business in the Dubai mainland as they will not receive 100% ownership in the business, and the majority share will remain with the local partner. The Dubai free zones do not have such restrictions and allow business owners to acquire 100% ownership in the business.
4. May be Exempted from VAT in UAE
The Federal Tax Authority (FTA) allows most of the Dubai free zones to be exempted from the payment of VAT in UAE. This influences new businesses to start a business in these Dubai free zones.
5. Exemption From Other Tax and Duties to Be Paid
There may be various other taxes businesses may be subject to payment in the UAE. However most free zones allow businesses to benefit from 0% corporate and personal tax along with minimal import and export duty with no currency restrictions in Dubai.
6. Well Maintained and Suitable Infrastructure
Dubai free zones offer a well maintained any fully equipped free zone that facilitates efficient communication system within businesses registered with the free zone. Their infrastructure also includes latest and modern technology that allows businesses to flourish in various sectors including the IT and data protection sector.
7. Simple Visa Facilities
The Dubai free zones seek to offer the best visa facilities to businesses that register with the respective free zone. The governing body offers flexible and cost-efficient visa facilities including visit visa and residency visa to the registered companies.
8. May Allow the Existence of a Virtual Desk instead of a Physical Office
It is beneficial to register and setup a business with the Dubai Free zones if the business owner does not want to invest in a physical office space. Many free zones offer businesses Flexi desk and virtual facilities that can allow a business to be registered with the respective free zone without requiring a physical office desk.
9. Wide Range of Free Zones are Available as per the Requirement of the Business
There is a wide range of free zones in Dubai pertaining to specific business activities, this allows businesses specializing in a particular activity to register their business with the corresponding free zone to acquire benefits offered for that particular business. Few of the Dubai free zones are:
Dubai Airport Free Zone Authority (DAFZA)
Dubai Design District (D3)
Dubai Health Care City (DHCC)
Dubai International Academic City (DIAC)
Dubai International Financial Centre (DIFC)
Dubai Internet City (DIC)
Dubai Knowledge Park (DKP)
Jebal Ali Free Zone Authority (JAFZA)
10. Protection of Confidential Information of the Business
The Dubai free zones provide businesses with a professional environment wherein confidential information such as company and shareholder details are securely protected from the public. This provides businesses the freedom to operate in the free zone while having their privacy intact.