The UAE has been a popular destination for global entrepreneurs. Investors in Dubai are looking for other businesses to engage in and prospective sources of income as there has been a precise movement away from the oil trade. Fortunately, free zones are a significant factor in why so many people conduct business along the coasts of Dubai and the UAE.
Free zones are commercial locations where products and services can be exchanged. A free zone authority or a free trade zone is another name for these areas. Starting a business in a free zone in Dubai or a multi-commodities center in Dubai can be lucrative in the South Asian market. IFZA company formation is one of the companies that can help to set up your business in the free zone with ease. Let’s learn more about the advantages of Dubai’s free zones to set up a business.
Setup is Simple
Within the jurisdiction of a free zone, setting up a business is a breeze. The specific next steps will be determined by the nature of your business and the area in which you operate. Commonly, just submitting the necessary paperwork is expected. Typical necessities include a valid passport, relevant business papers, and appropriate credentials.
The whole thing usually takes a couple of weeks. Flexi-desk and virtual packages are available in many free zones. That makes the free zone address and amenities available as needed to self-employed people and small business owners. A Dubai free zone is an excellent resource for launching a company in Dubai Internet City.
Ongoing Assistance
Throughout the initial setup and beyond, authorities in a free zone can provide helpful services. The free zone typically handles visa applications for shareholders and their dependents, such as spouses and housekeepers.
Many also assist in establishing corporate banking relationships and recommending relevant financial institutions. It is common practice for individual free trade zones to provide access to consultants and other resources on an ongoing basis. In addition, new businesses can take advantage of several zones’ proximity to established startup hubs and expansion programs.
Duties and Taxes
The lack of taxation is arguably the most attractive aspect of a free zone. If you establish your operation in a free zone, not only will your company and its employees pay no taxes, but your line of work will also be exempt from value-added tax.
All goods and services in Dubai and the surrounding region are subject to a VAT of 5% as of this writing. Profits and investments can be taken home tax-free from a free zone. In addition, there are no limits on currency exchange for free zone businesses because they do not have to pay import or export taxes.
Ownership by Foreigners
Having foreign company ownership is a significant benefit of setting up a business in a free zone. Most foreign businesspeople who want to operate within the UAE proper must collaborate with a UAE national. This regulation is not enforced in the UAE’s free zones. When a company moves into a free zone, the owners keep all of the company’s equity.
UAE trade
By law, companies based in UAE-free zones must refrain from engaging in “direct trade” within the UAE’s domestic market. Once substantial connections have been made with industry investors, however, this barrier will prove to be relatively easy to surmount.
A local authorized distributor is an excellent resource for this purpose. In exchange for a commission, they can promote your offerings to consumers. You can also establish your company in a free zone and later expand into other locations in Dubai and the Emirates. Use these branch offices to promote your wares throughout the mainland United Arab Emirates.
