July 23, 2019
Businesses set up in free zones of UAE have multiple opportunities to benefit from. Free zones are special economic spaces where products and services can be merchandised at favourable customs and tax rates. The idea of free zone was first rolled out to encourage international business in UAE. Over the years, the free zones in UAE have grown subsequently in offering lucrative advantages to businesses operating within them. If you are aspiring to embark your business in UAE, there are plenty of reasons for why we recommend free zone.
The setup procedure in most of the free zones in UAE is impressively straight. The exact procedure depends on the type of business and the free zone chosen. Nevertheless, in majority of the cases, some basic documentations like business paperwork and passport copies will do. The entire process takes a week or 2 weeks in general. Most of the free zones have virtual and flexi-desk packages that enable you to use the free zone facilities and address on an ad-hoc basis.
The exemplary tax regime is perhaps the most persuasive reason to choose a free zone. Setting up your business in the free zone will benefit you with 0% corporate and personal tax. In addition, your business will be exempted from VAT at about 5% currently. Above all, you are free to trade with no currency restrictions and exempted from import and export tax as well.
Foreign company ownership is also a compelling reason to set up business in UAE. In normal case, entrepreneur looking to set up business in UAE mainland must collaborate with local partner to be able to do so. But, setting up business in UAE’s free zone gives you complete ownership (100% ownership) over the business.
Businesses run in free zone areas are not permitted to trade their products/services directly in the local market. This can be got over by working with a locally appointed distributor. The distributor can place the products/services in the market in return for a fee. Alternatively, branch offices of your established free zone business can be opened through Emirates through which you can undertake business within the UAE mainland.
Be it during set up or beyond, free zone authorities are always hands on to extent every support possible. They do extend networking services, business advice and growth initiatives that help new businesses in getting up and running.
You get to experience other benefits as you set up a business in free zone. So what are you waiting for? Get your free space today!