A career is a path to achieving goals and ambitions. Some people prefer to be employees, whereas some want to have their businesses to achieve their goals. If you want to have a business setup in UAE, then the free zone is the best business option. Free zones attract direct investment and boost international business by providing 100% foreign ownership to expatriates. If you choose a free zone rather than a business setup in Dubai mainland, then you should know the benefits of a free zone.
Full Foreign Ownership
It means that you can operate the business without a Partner. Hence, you control the company solely.
Free Hubs Are Business Centers
Free zones are the business centers. They allow business owners to quickly market their products or services. Often, free zones are specialized in types of products or industries but some are generalized. Hence, generalized markets can accept all types of business activities.
Funds Repatriation
The business owner of the free zone company has all the rights to repatriate the funds to the State of origin such as capital and profits.
No Transaction Restrictions
With no transaction regulations or restrictions by the government, the businesses operating in the free zone can transfer 100% of their funds despite the currency.
No Taxes
In the free zone company, there are no corporate or personal taxes on the earnings or income. A free zone is a tax-free zone. Hence, everything you earn is for yourself.
Import/Export Duties
There are minimal import/export duties on the products in the free zone company. It makes it attractive for foreign investors. Also, the free zone companies can enjoy the 100% tax exemption on all exports to non-GCC countries, but the custom duties may apply to the selling of products in the local and GCC markets. The business may have to pay taxes on the transfer of goods from the free zone to the peninsula.
Configuration Solutions
There is a wide range of configuration solutions in the UAE. Hence, you have to find the right free zone for the business.
Workspaces Readily Available
Workspaces are readily available in the free zones such as a warehouse or office space. Some free zones require a minimum office size, but it has to be a flexible office such as a co-working space.
Mainland Laws Not Applicable
Some mainland laws do not apply to a free zone. For example, employees of free zone companies have a validity of 3 years visa, whereas, it is only valid for 2 years for mainland companies.
Confidentiality
In the free zone, the data of the company is kept confidential by the authorities. Hence, your data can be accessible to anyone.
Simple Procedures
The procedures of free zones companies are easy and simplified such as sponsoring relatives, hiring employees, etc.
Cheaper Company Setup in Free zone
The cost of a free zone company setup is cheaper than the mainland company setup. But there are fair chances that in some free zones, the setup cost might be higher. This is why there are different free zones according to the budget of the business owners.
Support and Assistance
The authorities in free zones are supportive and assistive. One can easily access the authorities for business-related concerns. Hence, there is no excessive bureaucracy to manage.
In Conclusion
Armed with this knowledge, it is time to consider setting up a business in the free zone in the UAE. There are more than 40 free zones across the seven emirates. The rules and regulations regarding the company setup in Dubai in a free zone might vary from one emirate to another. Despite this fact, there are more benefits than mainland companies set up in the UAE. Freezone business setup provides a free and easy environment for foreign investors. Therefore, it provides more opportunities to boost the economy.
“Everyone has to find what is right for them, and it is different for everyone. Eating for me is how you proclaim your beliefs three times a day. That is why all religions have rules about eating. Three times a day, I remind myself that I value life and do not want to cause pain to or kill other living beings. That is why I eat the way I do.” -Natalie Portman
