Dubai is always known as a global business hub. With its prime locations, rich cultural heritage, and innovation, the city has positioned itself as a pioneer in the entrepreneurial revolution. The good thing is that the UAE's friendly policies offer much more -especially for startups -and the Free Zone is one of them. The United Arab Emirates offers various business-designated zones to attract entrepreneurs from around the world. They offer offshore, mainland, and free zones. Researchers and experts say the free zone makes it easier to form a company in Dubai. Want to know more about free zone company formation and its benefits? Let’s follow this blog for clarity.
Dubai Free Zone: An Overview
The hassle of launching a business in the UAE has significantly decreased with the introduction of free zones. However, the Mainland in Dubai is one of the potential places to start a business, but the ease and comfort that free zones provide is unmatchable. There are more than 20 free zones that cater to specific industries, offering tax rebates, 100% foreign ownership, and simplified business setup. Some major free zones include the Jebel Ali Free Zone (JAFZA), Dubai International Financial Centre (DIFC), Dubai Media City, Dubai Internet City, and Dubai Healthcare City. Moreover, free zones offer a cheaper, streamlined business setup process with minimal bureaucracy and administrative procedures.
Benefits of Dubai Free Zones
There are multiple potential benefits of free zone company formation in Dubai. Whether it's tax relief or ease of venture setup, an entrepreneur can achieve their desired business journey in the city of dreams. These benefits encourage economic activity and a greater percentage of successful business operations. Each free zone on the Dubai Mainland has its own free zone authority and is a distinct legal organisation. So entrepreneurs can go directly to the local authority for their business setup requirements. Here are a few major benefits of business formation in the free zones.
Total Ownership of the Company
The capacity to have entire foreign ownership is one of the principal advantages of a freezone company. Unlike companies on the mainland, which often require a local sponsor or partner, free zones allow international investors to hold complete ownership of a company. This provides the corporate management with greater flexibility and control.
Complete Repatriation of Profits
Freezone companies can repatriate profits outside Dubai, allowing them to freely move all their cash back to their home country.
9% Corporate Tax
UAE legislation exempts businesses earning less than AED 375,000 from corporate tax, which is a plus for small businesses. On the other hand, companies with income exceeding AED 375,000 have to pay a 9% corporate tax.
Streamlined Procedures for Import and Export
Free zones offer companies a significant advantage by allowing them to avoid paying customs duties on imported and exported goods, thereby simplifying their import and export processes. Customs duty is a tax imposed on goods brought into a country.
Cost of Free Zone Company Formation
The cost of starting a new venture in a Dubai Free Zone typically ranges from AED 12,000 to AED 50,000, depending on the chosen free zone, business background, license, and office space requirements. Each free zone offers designed packages with its own benefits. While setup fees usually cover registration, licensing, and visa eligibility, additional costs may apply for name reservation, bank account setup, and government approvals.
Key Advantages of Free Zone Companies in Dubai
1- Global connectivity that gives you access to international trade.
2- Opportunity for foreign entrepreneurs as the UAE wholeheartedly focuses on attracting FDI.
3- Multiple business opportunities are one of the finest reasons startup founders choose to launch a business in Dubai.
4- Time-saving and streamlined business processes also contribute as key advantages in the Dubai free zone.
5- Additional benefits for foreign entrepreneurs & investors, and cutting-edge technology, are the icing on the cake.
At Markai Corporate Services, we help entrepreneurs to set up their business in the Dubai free zones and leverage the benefits and growth like never before. Contact us today to take a global leap in the dream city of the UAE, Dubai.
