Benefits of Doing Business in UAE Free Zones

What is a Free Zone?

Free Zones (or Free Trade Zones) in the UAE were established to enhance international business by offering companies various incentives, such as 100% foreign ownership and preferential rates and taxes. These zones are designed to attract foreign investment by providing a business-friendly environment.

Benefits of Doing Business in UAE Free Zones

1. 100% Foreign Ownership: No need for a local partner or agent.
2. Economic Substance Compliance: Your free zone company will be compliant with economic substance requirements.
3. No Fund Transfer Limitations: Free movement of funds out of the UAE.
4. No Financial Audit Requirement: Most free zones do not require annual financial audits.
5. Corporate Bank Account: Ability to open a corporate account in UAE government banks.
6. Residency Visas: UAE residency for company owners and employees.
7. Remote Setup: No personal presence required for setup or renewal.

Tax Exemptions in Dubai Free Zones

• Value Added Tax (VAT)
• Income Tax
• Corporate Tax
• Customs Duties

Considerations for Choosing a Free Zone

When selecting a free zone, consider the following:

• Ease of operation within the free zone.
• Ability to open a bank account.
• Advantages versus costs of choosing a specific free zone.
• Potential problems with opting for the cheapest free zone.

Free Zones in the UAE

There are over thirty free zones in Dubai alone, each with different procedures, prices, and requirements. Here’s a brief list of some notable free zones across the UAE:

1. Dubai Multi Commodities Centre (DMCC)
2. Jebel Ali Free Zone (JAFZA)
3. Dubai Airport Free Zone (DAFZA)
4. Dubai Silicon Oasis (DSO)
5. Dubai International Financial Centre (DIFC)
6. Dubai Internet City (DIC)
7. Dubai Media City (DMC)
8. Dubai Healthcare City (DHCC)
9. Dubai Knowledge Park (DKP)
10. Dubai South Free Zone
11. Sharjah Airport International Free Zone (SAIF Zone)
12. Hamriyah Free Zone
13. Ajman Free Zone
14. Fujairah Free Zone
15. Ras Al Khaimah Economic Zone (RAKEZ)
16. twofour54 Abu Dhabi
17. Khalifa Industrial Zone Abu Dhabi (KIZAD)

Business Setup Consulting Services

To navigate the process of setting up a business in Dubai or other UAE free zones, consulting services can be invaluable. These consultants offer:

• Strategic partnerships and tailored services to help you start your business affordably.
• Reliable business information and advice.
• Free Zone consulting services for competitive advantage.

Steps to Setting Up a Business in a Free Zone

1. Determine the Type of Legal Entity: Choose between Free Zone Limited Liability Company (FZ LLC) or Free Zone Establishment (FZE).
2. Choose a Trade Name: Ensure it complies with regulations and is not already registered.
3. Apply for a Business Licence: Select the licence type based on your business activity.
4. Choose an Office Space: Options range from flexi desks to full office suites.
5. Get Pre-Approvals, Register Your Business, and Get Your Licence: Follow the specific steps and document requirements of the chosen free zone.

Conclusion

Setting up a business in a UAE free zone can be a strategic move, offering numerous benefits and incentives. With over thirty free zones to choose from, it’s essential to carefully consider each option and seek professional advice to ensure a smooth setup process.