Advantages of Setting Up Your Business in a Freezone
Free zones in the United Arab Emirates have been set up to attract foreign investment. The UAE has business-friendly policies that translate directly into economic empowerment and progress for both the country as well as investors.
Learn more about the advantages of free zone business setup in the United Arab Emirates
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Get 100% ownership of your company
Free zone companies can be completely owned by a foreign investor, or multiple foreign nationals. They do not require a Local Sponsor for their establishment. Ownership of free zone companies is open to all nationalities.
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Confidentiality
Free zone authorities maintain the utmost confidence when it comes to the information of assets owned by free zone companies.
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No trade barriers
All free zone companies are at liberty to trade with other companies in the respective free zone jurisdiction as well as all over the world with no specific limits on trade or volume of business.
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Free from corporate taxes and import duties
Goods imported by free zone companies are exempt from custom duties. There are also no corporate or income taxes for free zone companies.
Advantages of Setting Up Your Business in a Freezone
If you are a solo entrepreneur (in other words, there is only one business owner), the company has to be incorporated as a Sole Establishment. This is the same as a Proprietorship Firm. If you have a business partner, or more than one, it is recommended that you set up your company as a Limited Liability Company or LLC. The minimum number of owners required for a Limited Liability Company is two and the maximum number is 50. If there are more than 50 shareholders, then you have to register the company as a Private Limited Company.
Only limited liability company structures are allowed in free zones. Not all business activities can be undertaken in free zones, so a consultant specializing in business setup in UAE can help you determine which location – the mainland or a free zone – can be best for your business, as well as advise you on the right company structure for your business. There are quite a number of advantages of free zone business as well as having a company on the mainland. It is important that you be aware of both, so that you can arrive at the right decision.
How much does it cost to set up a company in Dubai freezone?
There are around 30 free zones in Dubai. The costs of setting up a company vary by free zone. This has to do with the fact there can be up to 50 shareholders in a company, and they would all be eligible for a visa. The visa application fees have to be paid separately for each individual, including employees for whom work visas are applied. And then there are the office rental costs – the rental charges are not uniform across free zones. You also have the option to choose anything from single desk in a co-working space to a large enclosed office, so charges apply accordingly.
