Importance of UAE free zones to start your business
As a means of diversifying its economy, the United Arab Emirates has established free zones in order to attract huge amounts of foreign investment. More commercial company initiatives and more foreign direct investment (FDI) are encouraged by free zones in the United Arab Emirates (UAE), which in turn helps to enhance the economy by creating more jobs and fostering the entrepreneurial spirit.
All seven emirates of the UAE, namely Dubai, Sharjah, Ajman, Fujairah, Umm Al Quwain, Abu Dhabi, and Ras Al Khaimah, have established free zones. Free zones such as Zones Crop, Building Material (BMZ), and Heavy Equipment (HETZ) have also been developed in specific sections of the United Arab Emirates. As we all know, the United Arab Emirates is a huge and resourceful country, and practically everyone wants to open a business there one day. One of the reasons why Free Zones in the UAE are becoming increasingly popular is the fact that when you set up a business in a free zone, you pay a lower tax rate and have access to a wide range of human resources. For international investors, the following are some of the most essential reasons to start up a business in the UAE free zones:
In the United Arab Emirates, the establishment of a free zone company gives foreign investors the opportunity to hold a 100 percent stake in the company.
Foreign investors can bring home all of their income if they set up business in one of the UAE’s free zones.
It is also vital to point out that the UAE’s free zones are controlled by their own regulatory authorities.
The most efficient forms of legal structures are accessible in the UAE free zones.
Ample Site Areas
Company formation in the UAE free zone is simple due to the abundance of available facilities, including warehouses, offices, and manufacturing plants. Free zones, and onshore and offshore enterprises can be set up in various sections of Dubai, making this country a popular location for entrepreneurs. Despite this, there is no shortage of conveniences in the United Arab Emirates that allow investors to set up free zone enterprises here.
The number of Free Zones
Free zones located across the seven emirates of the United Arab Emirates provide international investors the opportunity to control 100% of their business, as well as additional benefits such as preferential taxation, entire repatriation of money, and state-of-the-art amenities.
The self-governing regulatory bodies of free zones
It is also vital to point out that the UAE’s free zones are controlled by their own regulatory authorities, which encourages foreign business owners to set up business there. To further entice foreign investors, there are sector-specific free zones including DIFC (DSO), DSO Dubai Media City, DSO Ajman Media City, and Dubai Internet City, among others.
Complete Ownership and Control of the Company
Only when a business owner is able to fully control the company he has founded can the entrepreneurial spirit rise. In the United Arab Emirates, the establishment of a free zone firm gives foreign investors the opportunity to hold a 100 percent stake in the company. There is no requirement for the investor to select a UAE person as a local sponsor who will control at least 51 percent of the company’s shares.
Total profit repatriation plus tax advantages
Foreign investors can bring home all of their income if they set up business in one of the UAE’s free zones. Particularly for UAE branch business establishments, the ability to keep all of one’s earnings is a huge plus. Free zone enterprises are exempt from corporation taxes except for those in the oil and banking industries. However, if the entire value of their taxable supplies reaches AED 375,000, the enterprises must register for Value Added Tax (VAT).
Company Formation in UAE Free Zones is Simple
Investors can take advantage of the UAE’s free zones, which are overseen by a distinct regulatory body, to establish a company in the country with greater ease. Free zone company incorporation in Dubai or any other emirate takes less time than on the mainland. It is imperative that investors have all the necessary paperwork on hand, and that the process of completing the paperwork may be completed quickly if the companies engage company setup experts in Dubai, UAE.
Infrastructure that is up-to-date
The free zones are primarily used for importing and exporting goods, which need a well-developed infrastructure. Access to sea, air, and land ports, international airports, and important trading centers is provided by the free zones in the United Arab Emirates.
Types of Companies Permitted in UAE Free Zones
The most efficient forms of legal structures are accessible in the UAE free zones when a company is formed there. The following types of corporations can be formed in the UAE free zones, depending on the business activity and licenses held by the investors:
1. Free Zone Company
A Free Zone Company (FZCO) normally has between two and five owners.
2. Free Zone Establishment
A single stakeholder can start a Free Zone Establishment.
Branches of local and foreign enterprises can be established in the free zones of the United Arab Emirates (UAE).
Various UAE free zones offer different license types
The free zones of the United Arab Emirates are well-known for offering a wide range of permits to potential investors. It is much easier to register a corporation here because the licenses cover practically all of the UAE’s profitable industries. It is essential for international investors who are considering starting a business in Dubai, United Arab Emirates’ free zones to seek the advice of a top business setup consultant in Dubai. Licenses of this type are available in the United Arab Emirates’ free zones. Free zones in the United Arab Emirates often offer the following types of licenses:
License to engage in general business activities
General Trading License
Service / Consultancy License
Trading / Commercial License
Investors will require assistance in completing tasks such as company formation, license issuance, document preparation, visa processing, and dependent sponsorship, among others. All of these services are provided by WBS Business Consultants, the leading business setup consultants in Dubai. Investors who are unfamiliar with UAE labor rules and immigration requirements may rely on WBS to help them get their businesses up and running in the UAE quickly and easily.