For the past two decades, the United Arab Emirates has been the top destination for entrepreneurs across the globe.
As there has been a clear move away from the oil trade, investors in Dubai have been looking for alternative company ventures and potential income options.
The economy of the United Arab Emirates is booming, offering more opportunities than ever for investment and income streams.
It is not surprising that this location has such a strong attraction on a global scale.
Fortunately, free zones are a significant factor for investors who want to run a business in Dubai.
What exactly a free zone is, and what are the advantages of doing business in a free zone?
Keep reading this article to learn about a free zone and its advantages.
What is a free zone?
Free zones are commercial hubs for the trading of goods and services.
These areas are additionally referred to as free trade zones or free zone authorities.
Free trade zones offer zero percent tax rates, favorable customs duty rates, and a complete exemption from import and export taxes.
Free zones are especially well-liked by entrepreneurs who value their privacy.
Sensitive corporate information, such as shareholder information, is never made public when a company has 100% foreign ownership.
There are numerous corporate activities that can be carried out within each free zone and its authority.
For instance, some businesses that can be set up within free zones include infrastructure, media, education, construction, and retail.
Thus, using the free zones in Dubai for your business needs is unquestionably profitable.
What are the benefits of setting up a business in Dubai’s free zone?
Why operating a business in Dubai’s free zones is important? Continue reading to learn more about the benefits of Dubai-free zones.
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Tax exemptions
Tax exemptions are the strongest argument in favor of choosing a free zone.
Establish your business in a free zone to enjoy 0% corporation and personal tax as well as VAT exemption for your line of work.
VAT is now fixed at 5% and applies to all products and services in Dubai and the surrounding area. Profits and money can be fully repatriated in free zones as well.
Additionally, as firms operating in free zones are not subject to import or export taxes, they are free to transact in any currency.
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Complete foreign ownership
Foreign company ownership is a significant benefit of opening up an office in a free zone.
Most foreign business owners who want to establish themselves on the UAE’s mainland must collaborate with a local partner to carry out their line of activity.
This regulation does not apply to the free zones in the UAE. Once a business is established in a free zone, the proprietor retains full ownership.
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Straightforward procedure
The procedure for setting up a free zone business is simple.
In many instances, providing some basic documentation is the sole important need. A passport, official business paperwork, and credentials are frequently required.
Typically, the entire process takes a couple of weeks.
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Trading across the UAE
The ban on direct trading within the UAE’s domestic market is one of the rules that enterprises operating in the free zone must follow.
Fortunately, this situation can be easily tackled once significant networks have been established with investors in your business.
Accessing and working with a locally appointed distributor is a fantastic choice. For a price, they will be able to sell your products and services.
As an alternative, you might start your firm and then open branch offices of your free zone corporation all throughout Dubai and the Emirates.
These satellite offices can be utilized to promote the products in the mainland of the United Arab Emirates.
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Ongoing assistance
Authorities for the free zone are on hand to provide assistance both during and after setup.
The majority of free zones assist shareholders and any applicable dependents, like spouses or domestic workers, with visa applications.
Many offer advice on the finest banks to meet your needs and help set up corporate bank accounts.
It is common for a specific free trade zone to provide networking opportunities and expert advice as part of continuous assistance.
Several zones also provide access to startup incubators and growth programs to aid new enterprises in getting off the ground.
Establish Your Business with Bizstart!
If you are thinking about forming a business in Dubai’s free zone and do not know where to start, look no further than Bizstart, a professional business consulting company in Dubai that has helped a huge number of entrepreneurs establish their businesses in free zones.
We will guide you throughout the entire process.
Contact us right now!