What is a Free Zone in UAE and Why Set Up in a Free Zone?

July 19, 2024

The United Arab Emirates has long been a popular destination for entrepreneurs and business people across the map. Investors in Dubai have been looking for alternative company ventures and prospective income options as there has been a clear move away from the oil trade. Kick-starting your business dreams in the UAE will be painless as you go for free zones. The existence of free zones is one of the foremost factors that drive many investors to get started in the UAE. What is a free zone? Why it is different? Why set up in a free zone? You don’t have to ponder over these anymore. Here is a complete guide to free zones. Browse through it.

What is a Free Zone?

In the United Arab Emirates, free zones are commercial areas that allow tax-free trade of goods and services. The UAE#39;s free zones offer a variety of benefits. A free zone has a low incorporation cost and benefits from duty-free import and export. There are 45 free zones in the entire United Arab Emirates, one in each of the Emirates. Each of them has a wide range of commercial endeavors and separate legal authority. Additionally, the majority of them are specialized zones that only permit particular types of commercial activity within the free zone authority. Why Should You Consider a Free Zone? The most favorable environment for setting up industries with cutting-edge infrastructure, duty and tax exemptions, noteworthy business prospects combined with accommodating government regulations, and services make starting a business seem effortless in Dubai’s free zones. In conclusion, business investors profit from free zone advantages in the following ways:    

1. Full foreign ownership of businesses is permitted in free zones, allowing foreign investors to own 100% of their companies.
2. Full profit repatriation: Businesses operating in free zones are permitted to bring 100% of their profits back home.
3. 0% corporate tax: According to UAE law, businesses that are established in free zones are not required to pay corporate tax on their sales, allowing them to keep all of their profits.
4. Import and export taxes are not applicable in free zones, in contrast to the mainland.
5. The free zones allow economical living.
6. Global Connectivity: Due to its multicultural population, Dubai offers the opportunity for you to network with people from around the world.
7. A variety of economic operations are allowed in free zones, allowing you to do so.
8. The entire licensing process is quick and simple, taking very little time.
9. Convenient Registration: You may register in Dubai, free zones from the convenience of your own home. All necessary paperwork can be forwarded to the free zone without your actual presence being required.
10. No currency restrictions are one of the key advantages of operating a free zone business in Dubai.
11. No logistical problems: The UAE’s free zones have plenty of warehouses and office space.
12.  The United Arab Emirates free zones are excellent for SMEs and start-ups. Additionally, establishing a business in a free zone is simple and easy to do.

Get Started With EBS

Do you intend to exert yourself in the UAE free trade zones? With the help of our enticing packages for startups and SMEs, business owners may turn their concepts into reality. Al Arabiya Business set-up will enable you to launch your business with the least amount of effort. Our expert consultants will guide you through all the stages of getting started in Dubai-free zones. From registering your business to obtaining approvals from the authorities, we’ll make everything hassle-free. Contact us within no time!