Dubai Free Zones Rules and Regulations
Dubai free zones are specifically formed with the intent to offer tax concessions such as VAT, Income Tax, Corporate Tax and customs duty to businesses. These benefits encourage and attract foreign investments and facilitate economic activity in the city. A free trade zone in Dubai permits 100% ownership and complete exemption of tax. This serves an extremely encouraging and lucrative opportunity for business owners. Dubai is the first country to initiate free zones in Dubai, UAE. In order to successfully register and set up a business in the free zone, there is a list of procedures to be followed such as choosing a trading name, deciding the type of legal entity, applying for a business license and others.
The free zones in Dubai include:
- Dubai Silicon Oasis
- Dubai Airport Free Zone
- Dubai Design District
- Dubai Healthcare City
- Dubai International Academic City
- Dubai Internet City
- Dubai International Financial Centre
- Dubai Knowledge Village
- Dubai Media City
- Dubai Gold and Diamond Park
- Dubai Multi Commodities Centre (DMCC)
- International Media Production Zone
- Jebel Ali Free Zone
- Dubai Production City
- Dubai World Central (Dubai South)
- Dubai Studio City
- Dubai World Trade Centre Free Zone
There is a set of rules and regulations that needs to be followed by all entities under the Free Trade Zones.
- All businesses undertaking commercial operations in a free Zone need to have a valid freehold interest or lease. They should be registered and hold a license that needs to be renewed periodically on or before expiry as per the prescribed procedure.
- All the business organization must carry out only those activities for which they are licensed or registered in the Free Zone. Licenses are to be renewed before the date of expiry for the ongoing of the business dealings.
- Manufacturing and marketing any item which is banned by the laws of UAE is rigidly restricted.
- Administration fees for all free zones in Dubai are payable in advance as per the charges and rates put up as tariff in force from time to time.
- All those living, working, visiting, operating or doing business in a free zone need to acknowledge that they could be liable for fees, levies and charges arising from any other law/ regulation or contractual obligation. This shall be applicable notwithstanding rules and regulations set by the authorities or their individual obligations for payment.
- The authority can at its sole discretion waive of any requirements stated in the free zone rules for one or more permit holders or licensees, subject to such terms and conditions as it may deem fit.