When it comes to establishing standards in the economic sector, Dubai has always set the tone by setting the bar high. They developed tax-efficient and simple-to-understand laws and regulations, establishing standards for both online and offline enterprises, whether they are limited liability companies or import/export businesses. Because of this, it is clear that the United Arab Emirates developed the idea of free zones in order to control a greater amount of business reaching the mainland via free zone company established in Dubai.
Let us proceed and get a better understanding of the concept of owning businesses in Dubai’s free zone areas, the advantages of operating a business within a free zone, as well as information on the cost of a Dubai free zone licence for those who are interested in establishing a business in one of the most profitable markets in the world, namely Dubai.
The advantages of forming a business in the Dubai free zone
First and foremost, free zones in Dubai are essentially geographical regions under a country’s jurisdiction. There are no restrictions on the movement of products, services, and commodities in these regions because of the absence of restrictive customs laws. For the vast majority of free zone company setups in Dubai, businesses are subject to low taxation, and in certain cases are completely exempt from taxation. This promotes economic activity and a greater rate of successful company operations without the need to be concerned about taxes and capital revenue that must be given to the government authorities. Dubai Mainland’s free zones are independent entities with their own free zone government, which is distinct from the rest of the country. This authority is in charge of the administration, registration, and issuance of licences inside the confines of the free zone.
Due to the fact that they were not originally granted permission to operate inside the rest of the UAE, the free zone business setup in Dubai was meant to serve as international business centres for firms doing business outside the country. Although most of the free zone businesses were initially engaged in import and re-export activities, the majority of them now do business inside the UAE and the Gulf Cooperation Council (GCC) via local distributors and dealers, as opposed to the first phase. It is the most fertile ground for establishing industries in Dubai, as it provides state-of-the-art infrastructure, duty and tax exemptions, excellent business possibilities combined with flexible government regulations, and amenities that make the experience of operating a company seem smooth.
What are the benefits of investing in a free zone company setup in Dubai?
Exploring the possibility of establishing a free zone company setup in Dubai is an appealing choice for international investors since it expedites commercial operations and attracts firms seeking to spend their money in entrepreneurial ventures in the United Arab Emirates. In addition, how it draws investors, entrepreneurs, and businessmen by offering substantial advantages to businesses that are ready to locate their offices and manufacturing facilities in the free zones that are scattered across the country. The following is a list of business incentives that are highly regarded by businesspeople all around the globe.
Exemption from personal income tax and capital gain tax on the basis of 100 percent ownership of the company without the assistance or need of a local sponsor
Minimum import and export duties are included in the price.
The administration receives zero percent of the corporation tax collected.
For administrative services, a single point of contact is required.
100% of the money and earnings from the company are returned to the country of origin.
The acquisition of a licence in a short period of time and the simplicity with which a company may be established
Laws and regulations that are transparent
There are no restrictions on money transfers between foreign countries.
Availability of world-class infrastructure, as well as a highly effective communication method
Low initial and ongoing operating costs
Foreign nationals may be hired without obtaining a visa, and labour regulations are permissive in most countries.
Unrestricted access to a diverse range of highly trained experts and craftsmen
Access to air, rail, and road transportation networks is simple.
Consumers across the Middle East, North Africa, and Asia are ready to buy.
Every year, the number of free zones increases a little bit more than the previous year. Currently, there are 30 free zones in operation across the United Arab Emirates, which are dispersed among the country’s seven emirates.
One of the most notable advantages is the very cheap cost of starting up a company in the Dubai free zone, which makes it an attractive option for entrepreneurs. Furthermore, despite the fact that the registration costs are relatively cheap, the total worth will not exceed AED 30,000 even after all of the other expenditures are taken into consideration.
It costs between AED 10,000 and AED 20,000 per year to get a licence in the Dubai free zone for the purpose of obtaining trade permits. One’s company model will be determined by the amount of activities or services that one wants to include into it. As a result, these figures are subject to change and are only intended to serve as a demonstration of the low cost of doing business in a Dubai free zone in order to encourage entrepreneurs to establish their businesses in Dubai free zones and leave the headache of dealing with licence costs and obtaining them to professionals who are willing to assist you!