The United Arab Emirates (UAE), with its strategic location and first-class infrastructure, as well as business-friendly policies, has become the bustling hub for numerous international firms. In specific, special economic zones have arisen to become vibrant arenas for the companies aiming to internationalise.
Every year investors from different parts of the world wish to establish their company in the UAE, but many of them face challenges due to the lack of research and abundance of myths. There is a common misconception that starting a company in the UAE involves complicated procedures and is usually not cost-efficient. However, that’s not the case when you have a trustworthy partner by your side and the right guidance. The blog will discuss the wide range of benefits of setting up a business in any of the vibrant economic zones in the UAE.
What is a Free Zone in the UAE?
Within each emirate, there are designated areas known as a free zone that allow for total foreign ownership and levies no taxes (except some activities). A free zone usually aims to cater a certain industry and provide high-end infrastructure that is dedicated to it.
Top 10 Benefits of Starting a Company in The UAE Free Zone
While emphasising the fact that there are countless benefits of starting a company in the UAE, some of them include but are not limited to:
1. Foreign ownership
A foreign investor can own 100% of the business in the UAE free zones without needing a local sponsor. However, for certain business activities relating to oil and gas, a local sponsor is still required.
2. No to Low Corporate Tax
According to the UAE legislation, businesses established in the UAE free zones are exempt from paying corporate tax on their income on qualifying income. However, a company will be taxed a rate of 9% on its non-qualifying income.
3. 0% tax on import and export
An added advantage is that free zone businesses are exempt from custom duties. Thus, free zones can support and enhance the advancement of international trade.
4. Ideal location
The UAE offers cutting-edge financial services, industrial infrastructure, an e-governance system, and top-notch telecommunication services. All the facts make free zones’ position extremely efficient for living.
5. Full repatriation on profit
Free zone companies are eligible for repatriation benefits. This means that the foreign owner may obtain the company’s profits. This also includes dividends, and other financial assets.
6. International access
With its rich culture, the UAE offers the chance to network with like-minded people in a world-class business community. Situated at the crossroads of Europe, Asia, and Africa, the UAE free zones offer unparalleled connectivity to global markets.
7. Diverse spectrum for business activities
The 50+ free zones in the UAE offer a broad spectrum of opportunities where you can choose a business activity from a diverse range.
8. Easy corporate bank account opening
The corporate bank account process in the UAE is streamlined, efficient and quick. In most cases, the bank account is approved and activated in a matter of a few days.
9. Multiple currencies can be used
Unlike other countries where there are regulations on business currencies, for instance, the business can either utilise dollars, euros, or the local currency for its transactions. However, the UAE allows to trade in any currency.
10. Hassle-free registration procedure
Establishing a business in a free zone is a simple and uncomplicated process. It can be easily and swiftly completed while you sit at the comfort of your home. Additionally, the UAE-free zone’s immigration procedures are incredibly quick.
Free Zone Company Formation Process Made Easy with Gatestone Group
Companies in the UAE can be granted access to unlimited opportunities if they choose to set up a company in a free zone. There are numerous benefits, which include tax advantages, simplified strategies, global market access, etc. Nevertheless, the free zone regulations are not straightforward and can be challenging. Gatestone Group stands by you to unlock tremendous potential for your business within the UAE free zone ecosystem.
Contact Gatestone Group for more expert advice on your business venture, obtaining a business license, and learning about the formalities and procedures in Dubai and the UAE. Our experienced business setup experts will answer all your inquiries about starting a business in the UAE. For a free consultation with one of our experts, email at [email protected] or call +971 52 410 0849 or +971 4 450 1023.
FAQs
A UAE free zone company offers the following benefits:
- 100% foreign ownership
- Complete repatriation of earnings and capital
- Quick and simple business organisation
- Developed businesses and communities
- Diverse options and competitive costs
Complete exemption from income taxes and - corporate taxes (except some business activities)
- Exemption from customs duty
The suitable UAE free zone for your business depends on your business type and specific needs. Factors like industry focus, budget, location, and tax implications should guide your decision. For a detailed discussion, contact us via email at [email protected] or call +971 52 410 0849 or +971 4 450 1023.
Yes, a free zone company is eligible to open a corporate bank account in the UAE with any of the national and international banks available in the UAE.
Yes, trading is allowed within the free zone and internationally, subject to the rules and regulations set by the free zone authority.
The timeline for setting up a free zone company depends on the chosen free zone, business activity, and the legal structure of the business. Many free zones offer expedited services for faster setup.
