Business Set Up in Dubai Free Zone
Business set up in Dubai Free Zone can be a very appealing option for foreign investors. It is relatively easier than on the mainland. Free zones require less time and paperwork. If you are looking to start a business in Dubai, you need to check a zone that best supports the nature of your business.
Free zones are intended to operate in a certain field or region only. They are not licensed to conduct business within the rest of the country. The main idea of business set up in Dubai Free Zone is to serve as a business hub for companies ready to carry out worldwide operations, not only in UAE. The UAE offers many free zones and Dubai alone has more than 20 areas.
Each free zone area in Dubai has its preference, rules and regulations that are formed accordingly. For example, Dubai Media City is for advertising, public relations and broadcasting. Dubai Airport Free Zone and Jebel Ali Free zone are for businesses that include processing, manufacturing, packaging, logistics, import, export, etc.
Dubai Free Zones are specialized economic zones. This type of company formation offers 100% foreign ownership. Such advantage for the free zone makes it an attractive choice for the expats. Having the freedom and flexibility for owning full stakes of the business license, 100% tax exemption and free customs duty.
These free zones have the potential to result in huge profits due to investor-friendly regulations. Also, some of the benefits from this company formation are easy recruitment formalities for the employees. It is ideal for both international and local business opportunities. Foreign investors are allowed to transact in multiple currencies and that makes it easier to conduct international trades.
To start-up a Dubai Freezone company, we should know about the types of business formation.
Free Zone Establishment (FZE). This is where a company is registered with one corporate shareholder or individual.
Free Zone Company (FZCO). This is where a company is registered with two or more shareholders either corporate shareholders or individuals
The above company setups differ only in the number of shareholders. It is whether the shareholder is a natural person or a legal person.
Currently, UAE is growing with different sectors of business organizations. Companies from different parts of the globe are establishing their business in different emirates, especially in Dubai. Dubai Government makes this place an ideal location for local and worldwide operations. They grant free zone companies indemnities which other enterprises do not receive.
Freezones are hubs for companies carrying out their business not only in designated areas in UAE but also in worldwide operations.
Here’s to sum up the things you need to know about Business set up in Dubai Free Zone
Free zone companies are not allowed to trade outside the free zone area. As per the law, a Business set up in Dubai Free Zone is only allowed to trade if you have acquired the needed documentation or license in Dubai to trade outside the free zone. Any violation of this rule will be subjected to a penalty.
You can have full foreign ownership of a business set up in Dubai Free Zone. A 100% ownership will go to foreign investors.
Business set up in Dubai Free Zone takes less than 1 Month.
The UAE free zone companies benefit from 0% corporate tax.
A 3-year-visa is allotted for investors, staff and family members. The number of residence visas that can be issued to a free zone company depends on the office facility type. Each zone has a limited type of visas that can be issued. Again, each zone differs from one another.
A foreign investor should have a registered office space or lease. The good thing about this is that the free zone offers a minimum office facility rental option known as a flexi desk.
You should know the type of activity as each free zone has different guidelines for the business to be performed in each zone.
Business set up in Dubai Free Zone has capital requirements and each zone has a different requirement of minimum shared capital.
Before establishing a free trade zone business setup in UAE, the above things should be considered for a smooth transaction. All necessary requirements should be obtained from free zone authorities. Business activities should be identified first in order to know the zone or area that you will be targeting for your business.