The UAE has long been a beautiful destination for entrepreneurs the planet over who are looking for free zone business setup. Within the UAE, there’s incredible benefits that keen working professionals can benefit.
With a clear shift far from oil trade, investors in Dubai are trying to find alternative business activities and potential income opportunities.
With low tax, ideally location within the heart of the world’s largest emerging markets, and a government committed to nurturing business growth – it’s clear why there’s such immense international appeal.
But while these is also the factors that get the headlines. There’s another major reason why numerous flocks to the UAE’s shores to conduct business – free zones.
What is a Free Zone?
Also referred to as trade zones or a area authority, free zones are economic areas where goods and services is traded. trade zones attract 0% tax rates, preferential custom rates and 100% import and export tax exemption.
Free zones are particularly popular privacy-conscious entrepreneurs. this can be because there’s 100% foreign ownership with no open directory of company details.
Every industry gives business people as well as investors that have great access to services and bustling areas and services in the region of Dubai.
History of the Free port
Free zones were originally unrolled to spice up international business within the emirate’s region. By offering benefits like 100% foreign company ownership, both travelers and locals seized a profitable opportunity to create a reputation for themselves. Currently, there are approximately 45 free zones that are in the United Arab Emirates. Included are the favored emirates Umm Al Quwain and Ras Al Khaimah. Over the years, the UAE’s free zones have evolved to supply ever-increasing advantages to the companies within them.
Many free zones or authorities cater to specific industries or business types. Also, free zones all have different and specialized offerings. for instance, Dubai Healthcare City serves those within the healthcare industry. Comparatively, the JAFZA area Authority is directly linked to the most important port within the region and is therefore favored by those within the international trade.
The Dubai International Financial Centre (DIFC) is within the center of Dubai and may be a unique country. The DIFC has its own jurisdictions governed by English Common Law.
So why is area company setup such a horny option, and what could it mean for your business?
Why founded during a free zone?
There’s lots of reasons to settle on a area. Furthermore, fixing a corporation or or freelancing within the UAE free zones is done. With various trade sectors to work from, the Dubai and UAE economy is streaming with financial benefits.
Easy Setup
The founded process within a country authority is incredibly straightforward. The precise way forward will depend upon your enterprise and chosen zone. In many cases, the sole main requirement is to supply some basic documentation. Many free zones also offer flexi-desk and virtual packages. this enables freelancers and entrepreneurs to create use of the area address and facilities on an ad-hoc basis.
Tax and Duty
This is perhaps the foremost compelling reason to decide on a free zone: tax exemptions. founded in an exceedingly free port and in addition as making the most of 0% corporate and private tax, your occupation will be exempt from VAT, currently at 5%. this is applicable to any product, goods or services in Dubai and therefore the region. Further to the present, country businesses are exempt from import and export tax too and might trade with no currency restrictions.
Foreign Ownership
Another major plus to putting in in an exceedingly free port is foreign company ownership. Most entrepreneurs from overseas eager to founded within the UAE mainland must work with an area partner to conduct their line of labor. within the UAE’s free zones, this does ruling not apply. Business holders retain 100% ownership once founded in an exceedingly free port establishment.
Trading within the UAE
Free zone businesses don’t seem to be permitted to trade directly with the local market within the UAE. Fortunately, this hurdle is readily overcome, once meaningful networks are created with investors in your industry. a good option is to access and collaborate with a locally appointed distributor. They’ll offer your goods and services to plug reciprocally for a fee. Alternatively, it’s possible to determine your business, then open branch offices of your free port company throughout the Dubai and therefore the Emirates later. These satellite offices will be wont to market the offerings within the United Arab Emirates mainland.
Ongoing Support
Free zone authorities are available to supply support services during the founded procedure and beyond. Most free zones offer assistance with applying for visas for both shareholders and any applicable dependents, including spouses or domestic staff. Many also assist with opening corporate bank accounts, advising on the most effective institutions to fit your needs. In terms of ongoing support, it’s common for a personal trade zone to supply professional advice and networking services. Additionally, several zones offer access to startup hubs and growth initiatives to assist new businesses rise and running.
What is a free port and the way to induce set up?
If you’re fascinated by the advantages of doing business in a very area, there’s more excellent news, the method couldn’t be simpler. Here’s five easy steps to urge occurring your professional enterprise:
Choose your endeavor
There are many business activities to decide on from in Dubai and therefore the entire UAE. In fact, it’s possible to pick out multiple activities under one license. Your business activities will help to see both the price of your license and therefore the country that most accurately fits your needs.
Finalize your name
Deciding on a corporation name will be a challenge anywhere within the world. Naming your company, therefore, may be a task to check off as early as possible. There are some things to stay in mind with relation to choosing an organization name:
Avoid using offensive language
Other references to any known organizations (i.e. ‘FBI’ or ‘Mafia’) are prohibited
To ensure proper compliance and following the required naming requirements, it’s wise engage the correct help. Working with knowledgeable Dubai company can help choose a compliant name, check its availability and iron out the other related issues. It’s worthwhile meeting the required regulations, to curb any problems shortly.
Apply and submit your documents
Setting up business within a UAE area usually only requires some standard documents. Among the same old required documents are a completed form, shareholder passport copies and speak to information including an email address. Some free zones might also require a business plan. Again, engaging with a business specialist could be a good idea at this stage. Ensuring everything is so as before making your application will avoid any unnecessary delays. Once you’ve provided all the mandatory documents and knowledge, you’ll proceed with submission.
License notification and opening checking account
With these documents in hand, you’ll be able to open your corporate checking account and begin operations. The chosen free port can usually help with finding suitable banks that meet your individual requirements. Alternatively, it’s perfectly fine to approach any establishment on your own.
Visa processing
The final step within the business setup process is immigration and visa processing. A free port authority or a corporation setup specialist can manage this process on your behalf. a corporation specialist can provide professional services which take the strain out of the whole process. Conveniently, they will help with the appliance process and liaise with the proper government departments and authorities.
