If you’d like to create a business and want to learn about the top advantages of setting up a Free Zone company in the UAE, we’re here to help!
In this blog, above all, we will discuss what a Free Zone company is, what its advantages are, and lastly, what steps you need to follow to set up a Free Zone company in Dubai.
What Is A Free Zone?
Free zones are preferential trade zones or governments that offer operating licenses to companies, as well as financial and tax exemptions. In total, the seven Emirates have almost 40 Free Zones. The Free Zones Authority, or FZA, is the lead organization in charge of key tasks related to Free Zone operations and the issuance of licences.
An entrepreneur can create two types of business companies in a UAE Free Zone outlined below.
- Free Zone Company (FZCO)
- Branch office of an existing business that is registered outside the UAE
Advantages of Forming A Free Zone Company In Dubai
You now know what a free zone company is, so let’s discuss its benefits. Some of the most prominent benefits are mentioned below:
● Full foreign ownership – One of the most obvious advantages of creating a Free Zone business in the UAE is the possibility of entire foreign ownership. This implies that the international investor does not need to relocate to Dubai to start a firm.
● No currency restrictions – Currency restrictions are government-imposed limitations on the exchange of foreign currencies. There have been no currency restrictions in UAE Free Zones. This simplifies banking transactions.
● Exports and imports duty exemption – Import and export tariffs are not levied in the UAE’s Free Zone territories. This aids in the promotion of international trade.
● Advantages of repatriation – The firms are eligible to obtain repatriation benefits. Income and capital assets are included.
● Smooth labour recruitment — Free Zone firms may execute labour recruiting procedures simply and affordably. Companies are permitted to hire foreign nationals.
● Workplaces are readily accessible — Warehouses and office spaces are easily obtainable in Free Zone jurisdictions. UAE Free Zones are suitable for small and medium-sized enterprises (SMEs) and start-ups.
● Ease of business incorporation – The processes for incorporating a company in a Free Zone is easy and uncomplicated. In comparison to other countries, you may be able to complete the license requirements in fewer days.
● Immigration processes that are trouble-free — Immigration facilities associated with UAE Free Zones are effective and hence save time.
● Effective communications plus infrastructure — The UAE Free Zones feature the most up-to-date communication infrastructure and services.
How to Establish a Business in Dubai Free Zones
A Dubai Free Zone corporation can be formed in a matter of days or weeks. After deciding on your Free Zone of choice, one must:
- Register the company name
- Prepare the documents of incorporation and the articles of incorporation
- Obtain the necessary business license from the local Free Zone Authority
- Apply for residence visas for the management and staff
- Set up a physical office, if required
- Open a business bank account
It’s clear that Dubai’s Free Zones offer many benefits to a business owner, however, it’s crucial to choose the right location to start your business. So, if you’re looking for a Free Zone company set up in Dubai, contact IFZA today. This company is strategically located in Dubai, which allows it to provide world-class access to global markets.
- Strategically located in Dubai, which provides world-class access to global markets.
- Convenient access to Free Zone business formation and administration services.
- An expert, multinational team who can advise on the perfect fit for you from over 2,000 business activities.
- Business Licenses are available through the incorporation of FZCOs or the registration of branch offices.
- Professional, Commercial and Industrial activities can be combined under one IFZA License.
- Competitive General Trading License available.
- Transparent and competitive pricing.
- Fast and efficient company incorporation processes.
- There is no requirement for paid-up capital.
- No NOC is required from current visa sponsor.
- Physical and digital IFZA Licenses issued with every incorporation.
- No mandatory office space required for basic license packages.
- State of the art and flexible office solutions for a wide variety of business requirements.
- Full flexibility for IFZA License upgrades and downgrades.
- No deposit requirements for visa applications.
- IFZA Licenses can accommodate a flexible number of visas, subject to Authority approval.
- Residency visas available to shareholders and employees.
- Visas for residency are valid for three years.
- 100% ownership of commercial enterprises.
- Import and export taxes are exempt 100%.
- Capital and profits are repatriated 100%.
- No personal income taxes.
- A safe and business-friendly legal framework for licensees.
- Culturally diverse Client Engagement Managers who speak a wide variety of languages.
- Accurate and timely information throughout all processes.
- A gateway to the most reliable industry knowledge, skills and experience through the dedicated IFZA Academy.
- A rapidly growing business network of registered companies from all over the world.