Dubai has set standards for the business world with its policy of no taxes and simplified regulations. This has created a safe and strong environment for both online and offline businesses, including LLCs and import/export companies. The free zones in the UAE promote business activity because of their favorable setups for companies in Dubai.
Now is an excellent time for starting a Freezone Company Setup In Dubai since the UAE has become a prime venue for entrepreneurs looking to expand their businesses. The nation continuously ranks as one of the best countries globally for a business setup.
The IMD World Competitiveness Ranking 2021 ranked UAE 9th out of the 64 economies around the world and 6th in Europe, the Middle East, and North Africa. Our blogs discuss everything related to the benefits of setting up a company in the UAE Freezone.
What is a Free Zone?
A free zone is a distinct territory inside each emirate that allows total foreign ownership and has 0% tax. The goal and purpose is to create a certain industry and provide specialized high-end infrastructure. However, to determine whether the free zone is eligible for 0% tax, company owners must contact the free zone authorities.
The UAE is an emerging regional hub with over 40 free zones developed across the region. Every free zone is intended for specific industries and business types and is hence useful to companies wishing to set up operations in the UAE. These free zones cover various sectors such as technology, logistics, media, and healthcare among others, thereby offering several opportunities for different forms of businesses.
There are several advantages that the rules governing the free zone firms in Dubai offer. Companies operating in free zone zones are allowed 100% foreign ownership of companies, full transfer of profits to their home countries, exemption from personal income tax, and easy official procedures. These characteristics make freezone company formation very suitable for expats who would like to start their own company in the UAE.
Dubai Free Zone Company Benefits
Business owners in Dubai can enjoy the following free zone benefits:
1. 100% foreign ownership of the business
Foreign investors in free zones can own 100% of their businesses.
2. 100% repatriation of capital and profits
Companies operating in free zones can return all of their revenues to their native nation. This allows them to transfer 100% of their capital to their nation of origin without any conditions.
3. 0% Corporate Tax
According to UAE legislation, firms who establish a business in the UAE are not required to pay corporation tax on their business earnings, allowing you to keep 100% of your revenues.
4. 0% import and export tax
In the Free zone, you can enjoy 0% customs duties.
5. Strategic Location:
Dubai offers world-class telecommunications, groundbreaking financial transactions, ultramodern industrial infrastructure, and e-governance.
6. Global connectivity
Dubai provides a multicultural culture and allows an opportunity to interact with a global business community.
7. The Scope of Business Activities
Free zones give you the opportunity to engage in a number of commercial operations.
8. Time-efficient procedure:
The entire procedure of getting a license is very quick and simple.
Company structures in the UAE:
- Free Zone Establishment (FZE)
- Free Zone Company (FZC)
- Branch of a foreign company
- Limited Liability Company (LLC)
How Much Does It Cost to Set Up a Free Zone Company in Dubai?
One of the most notable benefits is the ability to start a business in the Dubai-free zone for a very cheap cost. And, while the registration costs are very inexpensive, the total cost will not exceed AED 30,000 even when all other charges are factored in.
Acquiring a trade license in the Dubai free zone costs between AED 10,000 and AED 20,000 per year. However, this is determined by the number of activities or services that one intends to incorporate into their company plan. Reach out to our experts to learn more about Freezone License in Dubai.
Five Simple Steps To Setup Your Dubai Free Zone Company Setup
1. Select your business activity.
Selecting what kind of business activity you will engage in is the first step toward creating a free zone firm in Dubai. Before you can apply for a company license, you must first decide what you\’re going to do.
2. Choose a Free Zone.
After figuring out your company type, you must select the appropriate type of Free Zone. Dubai has more than 20 free zones. IT, healthcare, trade, and other sectors all have their own zones.
3. Choose a business name.
Next, you have to choose a name for your business venture. Keep in mind that it must meet certain criteria to get the name approved. Also, you must avoid linking any political parties, religious institutions, or profane language.
4. Gather all required paperwork and apply for a free zone license.
The next step is to apply for your business license. The type of license required depends on the selected business activity. You must complete the application form, gather all relevant papers, and submit them all. Your license will arrive in around 1-2 weeks. Following this, you may also apply for your visa.
The Documents Need For A Company Formation in the UAE Free Zone
- Registration certificate and contract of association
- Passport copies of all business partners
- Business plan and personal information sheet
- Lease agreement document
- Other Approvals ( based on your business’s nature and legal structure)
- Trade name reservation document
- Colored photographs of the applicant
- NOC from the local service agent
Connect with Damaar Business Setup
At Damaar Business Setup, we ensure that your business setup process in the UAE is as convenient as possible. Our expert professionals will guide you through the process of choosing the right business structure right down to the paperwork. With years of experience in the industry, we know the trends and the pulse of the UAE business market. We make certain that the entire process is run smoothly. You can rely on our services to be friendly and helpful while you get the assistance of professional personnel to manage your business. Contact us today and make your business vision come true!
Admin