Entrepreneurs around the world have long flocked to the UAE. Considering the Free Zone UAE areas for business setup is a great choice. Working professionals in the UAE have access to incredible benefits. Increasingly, Dubai investors are seeking alternative business activities and potential income streams as the oil trade has shifted away.
There’s no doubt that the country attracts international businesses because of its low taxes and cornerstone location. The government’s commitment to nurturing business growth, especially in Free Zone UAE areas. Looking for a free zone company setup, here you get answers to all of your questions.
What is a free zone?
A free zone, also known as a free trade zone or a free zone authority, is an economic area in which goods and services are exchanged.
Tax rates are 0% in free trade zones, preferential customs duty rates apply, and imports and exports are exempt from 100% taxes.
Many are built with public funds and feature state-of-the-art facilities for supporting strategic transformation in key industries (e.g. finance).
A free zone in Dubai called Dubai Media City, for example, has infrastructure and licenses tailored to the media industry. Another one is Dubai International Financial Center, an attractive destination for companies in the financial services sector.
Each free zone UAE has unique requirements in terms of minimum capital requirement, office or warehouse space, and permitted activities. And every free zone possesses the appropriate licenses and suitable legislation to enable its dedicated industry to flourish.
UAE Mainland vs Free Zone Company:
It is often a big question for all the business owners on the topic of which jurisdiction meets their criteria and what are the differences between Mainland and Free Zone Company Setup.
UAE Mainland Company:
Mainland companies in the UAE are onshore companies that are registered under the government authority of the relevant emirate. Trade licenses are issued by the Department of Economic Development of each emirate. Trading opportunities are mainly restricted-free for the UAE mainland companies. Investors who invest in mainland companies in the UAE are able to trade within and outside the UAE.
Free Zone Company:
The term “free zone company” describes a firm that is incorporated within a special jurisdiction within a particular Emirate. At present, the UAE as a whole has over 50 Free Zones. There is a government regulatory body known as a Free Zone Authority that oversees free zone jurisdictions. Free Zone Authorities issue trade licenses.
Free Zones in the UAE offer tax concessions and 100% foreign ownership. Unlike UAE-based companies, free zone UAE companies are allowed to trade only within the free zone.
There has always been a discussion among business owners on How to Choose the best Free Zone in the UAE. In order to find the most suitable Free Zone in the UAE, one needs to consider various criteria.
Benefits of free zones:
There are more than 50 free zones across the UAE, and many more are in development. Businesses that do business in the free zones UAE enjoy the following benefits:
- The enterprise is owned 100% by foreigners
- Logistics facilities of the highest quality
- Multicultural, skilled professional pool available
- Industrial zones provide economies of concentration
- A one-stop-shop for work visas is available in all free zones, facilitating the recruitment of international employees
- UAE Tax Benefits.
- UAE Tax Residency Certificate eligibility
Some Popular Free Zone Areas in UAE:
- Hamriyah Free Zone
- Ajman Free Zone
- Jebel Ali Free Zone
- Dubai Airport Free Zone
- Dubai Free Zone
- Shams Free Zone
- Ajman Media City Free Zone
- Sharjah Free Zone
Each Free zone in the United Arab Emirates has its own norms’ for owning a business. Learn more about the Free Zones Company Setup in Dubai, UAE.
Are you still confused about Free Zones UAE?
Profit from all the perks that come with trading from a free zone in the United Arab Emirates. We’re here to help you get started if you’re planning on starting your own business.
In a Dubai-free zone or free Zone UAE, you can pursue your entrepreneurial dream or embark on a large-scale project right now.
Your chances of starting your own business have never been better. With Clever Corp, you can take care of all your corporate activities with one comprehensive professional service.