Dubai Free Zone

Dubai has always been an attractive destination for entrepreneurs around the world. In the UAE, there are amazing benefits that motivated professionals can avail. With the marked change in oil trading, investors in Dubai have been looking for alternative business activities and potential revenue opportunities. With low taxes, an ideal location in the heart of the world’s largest emerging markets, and a government committed to promoting business growth, it is understandable why it has such international appeal. But while these may be the factors that make headlines, there is another major reason why so many people are flocking to the UAE’s shores to do business: the free zones.

Dubai Free Zones are designated areas that offer special incentives and privileges to businesses, providing them with a unique environment to operate. These zones facilitate foreign ownership, full repatriation of profits and capital, and exemption from import and export duties. By establishing your business in a Dubai Free Zone, you position yourself strategically for success in the global market. Whether you are a startup or an established enterprise, the free zones in Dubai can play a crucial role in boosting your business to new heights. Discover the unparalleled advantages and opportunities these zones offer for entrepreneurs aiming to thrive in the dynamic business landscape of Dubai.

What is Dubai Free Zone?

Also called free zones or free zone authority, free zones are economic zones where goods and services can be traded. Free trade zones enjoy 0% tax rates, preferential customs duty rates and 100% tax exemption on import and export.

Free zones are especially popular among privacy-conscious entrepreneurs. This is because there is 100% foreign ownership with no open evidence of company details. One advantage of 100% foreign ownership is that sensitive company information, such as shareholder details, is never disclosed to the public.

Each industry offers investors and entrepreneurs excellent access to bustling areas and services across Dubai. Within each free zone authority, several corporate activities can be undertaken.

Why reside in a Dubai Free Zone?

There are many reasons to choose a free zone. Also, it is easy to start a company or create a freelance business in the free zones of the UAE. With the different business sectors it operates through, the economy of Dubai and the UAE is brimming with financial benefits.

Easy step

The establishment process within the free zone authority is very simple. The exact procedure to follow will depend on your business activity and the region chosen. In many cases, the only major requirement is the provision of basic documentation. Typical items required include a passport, work documents, and professional references. The whole process takes a week or two. Many free zones also offer flexible office and virtual packages. This allows freelancers and business people to use the free zone address and facilities on an ad hoc basis.

Taxes and Fees

This is perhaps the most compelling reason to choose a free zone: tax breaks. Established in a free zone and benefiting from 0% tax on companies and individuals, your activity will also be exempt from value added tax, currently at 5%. This applies to any product, good or service in Dubai and the region. In addition, free zone companies are also exempt from import and export taxes and can trade without foreign exchange restrictions.

 Foreign ownership

Another major advantage of incorporating in a free zone is foreign company ownership. Most foreign entrepreneurs who want to establish themselves in the mainland UAE must work with a local partner to implement their activity. In the free zones of the United Arab Emirates, this provision does not apply. Entrepreneurs retain 100% ownership once settled in the free zone enterprise.

 

Read also: Investor residency in the Emirates

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