If you are looking to open a new business, there is no place better than UAE. With rapidly improving infrastructure and the legal stand of the country, growing your business, there is a much easier and straightforward task. Anyone who has been trying to invest in their company there might already know about the difference in jurisdiction here.
There are mainly two zones that you can find your business in, namely the Mainland and the Free Zones. The difference between both Free Zones and Mainlands is quite clear, the former being the better option for business start-ups. The first-ever free zone in the country was the Jebel Ali Free Zone or Jafza, which quickly created a benchmark for incentives and regulations.
Ever since its success, other Emirates also started setting up their own free zones, further attracting more business investment. As of now, all free zones in Dubai combined for hosting more than 150,000 businesses. As far as rules and regulations go, free zones offer some of the most attractive and liberal business-forming conditions.
If you are planning to start your business in a Free Zone in Dubai, you have a lot of options to choose from. Irrespective of your choice, there are many reasons why you should want to open your business in a Free Zone in Dubai.
- Full Foreign Ownership:
Unlike Mainlands, where the government requires any foreign investor to partner with a citizen of the country, Free Zones offer you 100% ownership of your company. In other cases, the partner will have to have 51% ownership of your company’s shares.
- Full Profit Repatriation:
Another well-known benefit of setting up your business in a Dubai Free Zone is that you are allowed to repatriate all the profits from the company to your home country. This allows you to take back all company profits and transfer them to your own country without any prior requirements.
- No Corporate Tax Required:
One of the more common reasons why people often contemplate opening a business in Dubai is the high corporate tax payments. However, this is not true in the case of a Free Zone. Here you will not have to pay any corporate tax out of the business revenue.
- No Export Or Import Tax:
With your business set up in a Dubai Free Zone, you will not have to pay any import or export tax. However, this is not true in the case of a company on the mainland. Custom duty payments are a must in mainland areas.
- Strategic Locations:
All of Dubai’s free zones are set up in well-developed areas of Dubai. They come with ultramodern infrastructure, service sectors, e-governance systems and best-in-class telecommunication. All of these only act as boons for your company and help it grow faster.
These are some of the many advantages you can enjoy with a company in a Dubai Free Zone. There are a number of free zones in Dubai where you can set up your business. However, all of them come with some extra advantages, so make sure you check which one fits your requirements the best.