Investors and entrepreneurs still ask what is the best jurisdiction for their business setup in Dubai. While some companies are set up in the Dubai mainland, some are set up in free zones. In certain cases, numerous bodies are formed within the jurisdictions of the continent and the free zone. Companies are searching for the correct sort of profit from their Dubai corporate creation. The proper and optimal establishment in Dubai could serve as a long-term strategic benefit.
What is a free zone company?
Free zone areas were developed within the UAE, and further in Dubai, as a means of growing businesses and commerce by government officials. Simply placed, a free zone is like a minor industry environment in Dubai, which relaxes the government laws. This will encourage the firm to operate with a little more flexibility than continental ones once it has done setting up a free area market. This is the principal reason that a company has been set up in Dubai in the Freezone region. If the main business includes dealing with goods or services, it would definitely prove beneficial to create a free zone business.
Free zones in Dubai present investors with numerous investment options and allow them to choose a corporate agency that suits their specific business requirements and goals. Enterprise rights, large tax savings and a solid infrastructure lead developers and entrepreneurs to develop their activities in free zones in Dubai.
It is very easy to file a Dubai Free Zone corporation and generally takes three weeks to integrate. You will have to settle on your favourite free zone:
- Mark the name of the firm
- Workplace premises rental
- Set up the company records and affiliation papers
- Open a business bank account to obtain a bank statement verification to have the minimum paid-up equity capital
- Allocation of budgets for notarization and due industrious translation
- Get the required business licence from the concerned Free Zone Authority
Why should you set up a business in Dubai free zone?
- Free zones operate as businesses and important points of communication for rapid penetration into the business by legal entrance areas.
- Free zone establishment is comparatively cheaper
- No local sponsorship is needed for your company establishment in Dubai.
- Even without local affiliate, you have the complete 100 % ownership of your business
- You should repatriate all the earnings and money
- Total exemption from both personal and property taxes
- Export/import tariff is very poor, making it a profitable system for business access
- Certain regulations in Dubai mainland do not apply to a free zone. For example, free zone company workers have three-year validity
- Null corporation taxes
- All free zone administration facilities usually provide one window portal access through the licencing agency
- The free zone business set-up procedure is usually faster than Dubai mainland
- Company and trade rules and legislation are generally easy to recognize and can be relaxed further
- In certain cases, the validity of company exchange licences and employee visas can be longer than mainland UAE requirements
Dubai consists of even more than 30 free zones. Thus, you must be conscious of the strengths and benefits of each business in a free area in Dubai. You must consider the Dubai Media City, for instance, if your firm provides its IT operations, or an investment firm, the Dubai Multi-Product Centre. Jebel Ali Free Zone is ideal for shipping firms or where entry to airports and seaports is required.
In the first place, the key justification for the establishment of a company, either in a free zone or in mainland Dubai, is vital to any market set-up in Dubai. Once you have achieved your objectives and your long-term vision, it is convenient to carry out your business training in Dubai. For inquiries about company configuration on the mainland or on the Freezone, contact our training professionals.