Ease of Doing Business Enhanced By the Free Zones Available For Entrepreneurs in Dubai
A free zone is an area in which goods may be received and stored without giving payment for duty. A free zone is also an area at a port where certain custom restrictions are not implemented.
- Benefits of Free Zones:
There are a lot of benefits of using a free zone for doing business. Some of the benefits of free zones are mentioned below:
- Opportunity to benefit from Tax Advantages for Manufacturer users.
- Opportunity for Medium and Long term Planning.
- Opportunity to transfer Profits.
- Facilitation of Foreign Trade.
- Trade facility free from Customs Duty Procedure.
- Easy access to Many Countries.
- Equal Treatment.
- No time Limitation on Products.
- Managing Trade Activities According to Market Demands & Conditions.
- Inflation Accounting Opportunity.
- Access to Domestic & Foreign Markets.
- Reduced Bureaucratic Procedures & Dynamic Management.
- Strategic Location.
- Competitive Infrastructure Standards.
- Supply Chain Management.
The above mentioned benefits help the manufacturers to setup their business in Dubai free zone.
- How to Setup Business in Free Zone?
Incorporating a business in Dubai free zone is going to be a very lucrative and profitable option for business houses. There are many free zones in Dubai that have a specific purpose and it caters to a specific industry. The following steps need to be followed before you think of a business setup in Dubai Free Zone.
First, you have to determine the type of legal entity of your business. Whether it is going to be a Free Zone Limited Liability Company (FZLLC) or Free Zone Company (FZ Co.); or it is going to be a Free Zone Establishment (FZE).
Second, after determining the legal entity of your business you have to choose a trade name for your business after checking with the Free zone authority or the Department of Economic Development about the permitted trade names.
Third, apply for a business license. After selecting the trade name of your business you have to apply for a business license whose type is going to depend on the primary activity of your business.
Fourth, choose an office space for your business. After obtaining your business license, you have to either buy or lease office spaces in free zones. There are flexi desks of 20-30 sq. m., flexi offices of 200-265 sq. m., or offices running through multiple floors up to 2,000 sq. m. each that you can choose from depending on the nature of your business.
Fifth, get pre-approvals for your business. You have to register your business and obtain the license. The companies that are established in free zones are governed by the rules of the respective free zones. If you need to get the required approvals then you need to apply with the proper documents. The list of documents varies from business to business.
To conclude we can say that setting up a business in a free zone is very easy. The documents that are required to setup a business in a free zone in Dubai are passport copies of all shareholders; Visa Status copy/ Entry stamp copy; Passport size photo; other documents depending on the business activities.