Benefits of Setting Up a Business in UAE Dubai Free Zones
What is the UAE Free Zone?
The UAE Free Zone, also known as the Free Trade Zone, is a geographically demarcated economic area where goods and services are traded and dedicated to a specific industry. Products and services are traded at a very low or special tax and customs rate. The government of UAE established free zones to boost the nation’s economy by encouraging investors to come and set up their business here. There are many other benefits in UAE Free Zones for international investors or entrepreneurs. You also get the benefits of 100% foreign ownership in free trade zones.
The UAE has around 45 Free Zones that promote various business operations across an array of industries. These zones have played a pivotal role in writing the story of the UAE’s economic growth. They have also been very instrumental in attracting global investors and amplifying international business. These factors make free trade zones a hot spot for Company Formation in Dubai and the other emirates of UAE.
Business Setup in UAE Free Zone
The United Arab Emirates is widely known for its oil industry. However, today it is more famous as a global business hub and at par with the international standards. Its diversity, world-class infrastructure, easy company formation policies, easy taxation and global business model, are favourable for foreign investors.
The registration formalities are handled by the free zone authority in Dubai and respective emirates. They also issue licenses to foreign investors who are interested in forming a company in the free zone. The ease of forming and doing business in UAE free zones and its tax regime makes it a favourite among enterprises and investors.
Business Setup Benefits in UAE Free Zones
There are plenty of advantages of setting up a business in the UAE Free Zone:
- Simple and quick set up
- 100% foreign ownership permitted
- 100% repatriation of capital and profit permitted
- No corporate or income tax
- No import and export tax
- Many designated Free Zones are VAT-exempt
- No visa restrictions
- Ability to recruit a skilled and diverse workforce
- Single window clearances for administrative work
- Logistical advantages
- Superb plug-and-play infrastructure
Major Free Zones in the UAE
Dubai Freezones
Dubai has over thirty free zones and some of which are the most esteemed in the country.
JAFZA (Jebal Ali Free Zone) JAFZA in Dubai is the largest free trade zone in the Middle East. It is home to more than 8,000 companies, including a hundred Fortune 500 companies. JAFZA houses manufacturing and trading companies primarily.
DMCC (Dubai Multi Commodity Centre) in the centre of Dubai has over 13,000 companies, including many gold refineries. It is famous as a global free trade zone.
DAFZA (Dubai Airport Free Zone Authority) is one of the leading free zones in the world, located very close to the very busy Dubai Airport. It is home to many international companies.
Free Zone Company Setup in the Other Emirates
Sharjah Airport International Free Zone (SAIFZ) is one of the largest and fastest-growing free zones in the UAE. It is also the oldest airport free zone in the region. It has more than 10,000 companies and also world-class warehouse facilities.
Shams (Sharjah Media City) Sharjah Media City is a free zone for the media industry in the UAE. It is a cost-effective solution for companies in the e-commerce sector. It also issues freelance licenses to support independent professionals.
Hamriyah Free Zone (HFZ) is home to over 6000 companies and is a popular jurisdiction for oil-related and manufacturing companies.
KIZAD (Khalifa Industrial Zone) near Khalifa Port is one of the world’s most advanced deep seaports with excellent infrastructure. It offers multimodal connectivity via sea, air, road, and rail. KIZAD is an integrated trade, logistics, and industrial hub in the UAE, focussing mainly on trade, logistics, and manufacturing.
RAKEZ (Ras Al Khaimah Economic Zone) is an industrial hub of the Middle East region. It is home to over 14000 companies across 50 industries, covering start-ups, freelancers, SMEs and industrialists.
IFZA (International Free Zone Authority) IFZA is a new free zone and has relocated to Dubai jurisdiction.
All the above free zones in the UAE offers competitive business setup and company formation packages to support business incorporation in Dubai. If you are looking for a business setup in Dubai Freezone or anywhere else in UAE, hire a professional business setup consultant.
