There are several reputable free economic zone in Dubai where companies can take advantage of benefits. These include no income tax, customs fees, and no local partner for 100% foreign ownership.
In addition, companies operating in free zones are permitted to transact with other businesses in their free zone internationally, but not with the Dubai mainland companies, making an excellent choice for investors and entrepreneurs for many reasons.
However, there are other reasons as well. What are they?
Check out the blog to find out.
Why is Dubai Special Economic Zone the Best for the Entrepreneurs?
There are numerous benefits to establishing a business in a Dubai financial-free zone. These consist of the following:
1. No Income Tax
You can benefit from a range of tax advantages by operating a company in Dubai special economic zone, allowing you to keep more of your profits. Except for import goods supplied to the mainland, business owners can benefit from zero percent income tax and no customs taxes.
However, VAT also applies to company owners who seek to conduct business with a gated free zone but are located in a non-gated free zone, such as Meydan free zone company incorporation.
2. Profit Repatriation
You will benefit from repatriating 100% of cash and profits as a company operating in Dubai special economic zone. This may be fine for you if your company was started in the free zone and only works there. Still, this flexibility might be very advantageous if you established a presence there as a company branch that already has operations in other nations.
3. 100% Foreign Ownership
Suppose the issue business requires a commercial or industrial license, which is the case for most of them. In that case, foreign investors in the UAE who are outside the free zones are needed to have a local partner. Furthermore, that UAE-based partner must own at least 51% of the company.
That's awful for the entrepreneurial mindset and simply for the day-to-day business control because it means you can only hold a small portion of your own company. Contrarily, in free zones, one of the significant benefits is that you, as a foreign investor, get to keep 100% of your business and are not required to have a local partner.
4. Duty-free Imports and Exports
Generally, there is no tax payable on imports or exports; however, standard customs duties apply when selling in the local and GCC markets. Free zone enterprises receive a 100% duty exemption on all exports to non-GCC nations. There is typically a 5% tax associated with shipping products from free zones to the mainland.
This less complicated approach to paperwork and bureaucracy signifies that starting and operating a business from the free zones often requires less documentation, much of which is available in English.
5. Low Share Capital Amount
The necessary share capital can differ significantly depending on the free zone in the issue. The minimum share capital required to establish a new business at the Dubai Multi Commodities Centre (DMCC), for instance, is AED 50,000 for each firm and AED 10,000 for each shareholder.
However, there is no requirement for share capital if you are opening a branch of an established business.
Even though the standards are much more significant in other free zones, there are hopeful signals that make starting a business here even more appealing.
6. Physical Office is not Mandatory
Free zones permit 100 percent foreign ownership; most demand that you live in the UAE and typically call for an actual office presence there. But this is only sometimes the case. For example, while some free zones in Dubai special economic zone, like JAFZA, have a minimum office space need (in this case, 26.88 meters), other free zones, like Ras Al Khaimah Free Zone (RAK FTZ), may only require a "flexi-office" or even a "flex-desk," which is a shared, managed workplace, depending on your business activity.
How Can We Help?
Business Setup Worldwide has assisted numerous business owners in establishing operations worldwide. Our business experts can help you at every stage because they know the creation procedure.
Before providing the appropriate response, the expert's team makes an effort to understand the client's business needs. To speak with one of our specialists, contact us immediately. We'd be happy to help.
Which is the cheapest free zone in Dubai?
SRTIP (Sharjah Research Technology and Innovation Park).
How long does opening a company in Dubai free zone take?
6-7 working days.
Is physical presence mandatory for company incorporation in Dubai free zone?
No, physical presence is not mandatory.