What Are The Benefits Of Business Setup In UAE Free Zones?
- Posted by: admin
- Category: Uncategorized
UAE has been one of the most attractive investment destination for foreign investors and enterprises, due to its amazing business settings, economic freedom and tax structure. However most of these foreign investors come here because of the benefits that are provided by the ‘Free Zones’ of UAE. The Free-Trade Zones of UAE are the special business areas with exceptional import, custom ad tax regimes and are regulated by their distinctive set of regulations. In UAE there are around 45 free zones present across the areas of Abu Dhabi, Dubai, Fujairah, Ajman, Sharjah, Um Al Qwain and Ras al Khaimah.
What Does UAE Free Zones Actually Offer?
The 45 free zones in UAE has now become the home of over 150,000 companies. The very first free zone of the country was the Jebel Ali Free Zone which was set up in Dubai. The success of the Jebel Ali Free Zone established a benchmark, and it later gave economic aspiration to the other 6 states to set up various similar zones, in order to attract the foreign investors from all over the world.
Establishment of these free zones had tremendously helped in the economic development of the country in the past two decades. Today, foreign enterprisers who are targeting the Middle Eastern and GCC markets are frequently choosing one of these free-zones for setting up their business operations. Beside the tremendous economic development; the premium business conditions, economic freedom, market attractiveness and high growth potential are the premium paybacks that you are going to enjoy, if you start-up your business in any of these UAEs free zones.
What are the Major Benefits for Investors?
- UAE Free Zones Are 100% Tax Free
The first and the most foremost benefit that attracts foreign investors is that these free zones are absolutely tax free. While having a business in free zones, you are not obligatory to pay any corporate or personal tax. Although there is no personal tax outside the free zones as well; however in some estates and specific industries you might have to pay the corporate tax. But, what’s amazing here is that you are going to enjoy reduced cost of start-up capital, which is not the case outside the free zones.
- You can Enjoy 100% Control and Foreign Ownership of Your Business
The UAE free zones has solved the protracted dilemma of having your business ownership; and this is probably the second biggest reason that encourage foreign investors coming to the region. While settings up business in UAE free zone, you can really have the complete foreign ownership and control of your business. Initially it sounded a little farfetched, but the world has now accepted this wonderful fact and it’s undoubtedly remarkable.
- You can Enjoy 100% repatriation of Your Profits & Capital and 100% Free Fund Transfers
Another great benefit that you may enjoy is the complete repatriation of you profits and capital back to your home country. This is one of the greatest factor that usually restrict most of investors to expand in any foreign country. But now, UAE free zones has successfully overcome this restriction too. What’s more! All these fund transfers from the free zones are absolutely free too.
- Enterprise Formation is Easier & Quicker
The UAE government has simplified the procedures of corporate formation, licensing, taxation and documentation within the free zones. Thus the business start-up procedures within these free zones are way easier as well as quicker. Additionally, the share capital requirements are as low as only AED 50,000 for an enterprise and AED 10,000 per shareholder. Besides, you also don’t need a proper physical office space to initiate a business in some free zone, however some require the space as small as 25-30 meters. There are also flexi-desk and flexi-office options available at most of the free zones that particularly benefits the investors with the small amount of investment.
- Easy Lease Options
The UAE free zones have also come up with the solution to your last concern too, i.e. having the operational facilities and infrastructures. Now you can easily find out multiple options for production, manufacturing and assembling facilities, warehousing, distribution and retailing at convenient options of 25 years lease.
Undoubtedly, the free UAE zones offer some very attractive benefits for foreign investors, however they are not same across all the zones and also tend to vary. Thus, it is strongly recommended to the investors to start with a healthy amount of research on hand, and select the one that precisely suits their business objectives and needs.
Also Read: How to Start a Business in Dubai