Dubai: Due to their exemption from both corporate Zone and personal taxes, free zones are attractive business locations for investors and entrepreneurs. You get additional benefits, like import duty exemption, once you set up a company in a free zone.
Every Free Zone offers first-rate facilities and infrastructure for experiencing luxury in both life and business. So, if you want to know how to start up a Free Zone firm in Dubai, then I have given you a detailed guide.
What is a free zone company?
It’s a corporation located in the Free Zone in Dubai. Free Zones are basically a kind of economic jurisdiction in the UAE. Each Free Zone offers specific benefits to certain kinds of businesses.
For example, if you are planning to set up an IT Company in Dubai, Dubai Internet City offers tons of benefits to tech companies. On the flip side, when you plan to run a logistics company in Dubai, the most suitable area is Dubai Airport Free Zone.
What are the benefits of setting up a company in a Free Zone?
Here are some benefits that Dubai Free Zone companies can obtain:
- Whether you are a local or a foreigner, you will get 100% ownership of your business. The best part is you won’t have to organize a local sponsor or agent.
- If you wish to perform transactions using foreign currency, there won’t be any restrictions.
- Import/export and logistic businesses can get exemptions from import/export tariffs.
- No matter what kind of business you run in the Free Zone, you are eligible for 100% exemptions from taxes on corporate and personal income.
- There are 100% repatriation benefits of profits and all financial assets.
- Tons of workspace possibilities are options such as coworking spaces, virtual locations, etc.
- When it comes to hiring staff, you can find tons of skilled labor. Besides, the recruitment process is simple and easy.
I highlighted all the benefits of starting a business in the Dubai Free Zone. You must realize that there are some benefits for startups, investors, freelancers, entrepreneurs, and investors in each Free Zone.
How to set up a Free Zone company?
Here are some processes you need to follow for company formation in the Free Zone.
Step #1 Select a Free Zone
Every Free Zone gives specific benefits to a particular business. In the first phase, you will pick where you want to start a business. The UAE’s free zones are listed below:
- Jebel Ali Free Zone
- Dubai Multi Commodities Centre
- Dubai Airport Free Zone
- Dubai International Financial Centre
- Dubai Media City
- Dubai Production City
- Dubai Design District
- Dubai Internet City
- Dubai Science Park
- Dubai Silicon Oasis
- Dubai Healthcare City
- Dubai South
- Dubai Academic City
- Dubai Outsource City
- Dubai Studio City
- Dubai Knowledge Park
- International Humanitarian City
- Sharjah Airport International Free Zone
- Fujairah
- Gold & Diamond Park
- Hamriyah Free Zone
- Free Zone
- Dubai World Trade Centre
- Masdar City
- Dubai Auto Zone
- Dubai Flower Centre
- Dubai Wholesale City
- Dubai Logistics City
- Dubai Textile City
- Dubai car and auto zone
It will be tough to read and comprehend the benefits and jurisdiction of each Free Zone as you will need to investigate a lot of them. Therefore, getting in touch with Prospr, one of the top business consultants in Dubai, is always an excellent idea. You can choose the ideal Free Zone for your business needs with the assistance of our specialists. Selecting a Free Zone where you may reap the most significant benefits from setting up a company is the goal of involving specialists in this process.
Step#2 Choose a business structure and trade licence
In Dubai, there are various kinds of trade licences. Depending on your economic operations, you will choose a business licence in the following phase. Prospr will aid the UAE company registration process.
Additionally, you must choose a specific business structure, such as setting up a corporation, partnership, sole proprietorship, or S corporation. The trade licence requirements differ amongst Free Zones. Seeking guidance from a Prospr specialist to select the appropriate trade licence is a smart move.
Step#3 Open a Free Zone business account
There are standards and a specific business registration process for each Free Zone. Get assistance from our business advisers if you wish to enjoy a hassle-free UAE company registration process. We will handle the rest of the process; all you need to do is organize the specific paperwork. A particular trade name for your business must also be selected. Upon submission of the required documents, the application process starts. Documents pertaining to incorporation must be signed following initial business approval.
Step #4: Establish the location of the business
Selecting the ideal location for your business is essential before you obtain a trade license and launch your enterprise. When setting up a company in the UAE, Prospr helps you choose the most advantageous location. You can count on our business consultants to support you all the way from the trade license application process to the license’s ultimate approval.
Can free zone businesses operate in Dubai?
You can take advantage of certain benefits when conducting business in this specific zone when you set up a business in free zone. However, conducting business outside of the Free Zone is prohibited. Contrarily, if you open company in Dubai’s mainland, you can conduct business there as well as in the Free Zone of Dubai. A Free Zone company must speak with a local agent before conducting business in a non-Free Zone.
What is an employment visa for a free zone?
You can continue conducting business in a specific Free Zone you choose to work in thanks to this visa. You have the option to extend this visa after its initial three-year period. Those who work in the United Arab Emirates are eligible for this visa. It will be of no value as a kind of residency authorization.
Which UAE free zone is the least expensive?
Sharjah Media City (SHAMS) is the least expensive free zone in the United Arab Emirates if you’re looking to start a business there. In this zone, a basic trade license costs AED 8000.
