Many transnational corporations are switching their headquarters to the UAE – despite the 9% corporate tax introduced in June 2023. What makes the country so attractive? Well, the local government has worked a lot to achieve such results by investing in infrastructure, amending laws and regulations to make them more convenient, efficient, and business-friendly, and providing incentives and initiatives for entrepreneurs from all over the world.
One opportunity not to miss is company registration in one of the numerous free economic zones created all over the country. The most affordable offers are concentrated in Dubai, one of the most prospering emirates. If you are interested in saving costs, we invite you to our portal to read an article on UAE free zones and find the cheapest freezone in Dubai.
Do you want to work your way into international business hassle-free? We have a team of specialists on our portal who can provide different services to you, from business consulting to opening companies and accounts in different countries of the world. If you need an expert on asset protection, economic citizenship, or tax optimization, you will find what you need here. We are just a click away!
UAE Free Zones: Benefits for Businesses
Let’s look at what free zones in the Emirates have to offer and whether these aspects match your priorities:
- 100% foreign ownership. There is no need to engage a UAE national sponsor to set up your company: it can be owned by an entrepreneur with a passport of any country.
- No currency regulations. Business usually involves financial transactions, and these are much easier if the government does not impose any limitations on dealing with foreign currency. And this is something you can benefit from in the UAE free zones.
- No import or export duties. You can freely import raw materials to the free zones, process them, and export ready-made products to any destination. You will not be liable for any customs duties, which stimulates international trade to a large extent.
- Tax exemption. Free zones still offer tax exemption, so you will not be liable for income or corporate tax.
- Non-restricted repatriation. Do you need to repatriate profit, capital, or any other assets? You will not face any limitations in the UAE free zones.
- Employ foreigners. If you need to hire any foreign staff, you can get work visas for them, and all the formalities will be easily completed.
- Premises available. If you need offices, warehouses, or any other spaces, they are available in UAE free zones.
- Easy setup. Do you hate paperwork and waiting? Most entrepreneurs do, so you will quickly incorporate a company and get a license for it in the UAE without wasting too much time on documents.
- Top-notch infrastructure. The local authorities understand the importance of proper infrastructure for business, so they invested heavily in up-to-date communication facilities and excellent infrastructural objects.
As you see, the opportunities are quite wide, and the UAE is a jurisdiction that wants you to start a real business as soon as possible rather than remain entangled in formalities for a long time.
UAE Free Zones: Drawbacks
We want you to make an informed decision, so we would also like to share certain disadvantages you may encounter when dealing with UAE free zones:
- No mainland trade. If your company is registered in the UAE free zone, you will not be able to trade on the local markets. Well, at least you cannot do so directly: you will need a local distributor.
- Stick to the assigned business activity. Each UAE free zone is focused on a certain kind of business activity. If the company was formed in it and declared it would engage in a particular kind of business, it cannot switch to an absolutely different activity all of a sudden.
- Work visa limitations. If an employee has a work visa that allows employment within the free zone, he or she can under no circumstances work outside the free zone.
- High cost of notarization and translation. The same services cost less on the mainland, so we mention this aspect for you to be aware of everything.
We hope these disadvantages are not critical and the benefits of UAE free zones still look attractive. If you have any questions, do not hesitate to contact a specialist by following the above link.
Meydan Free Zone, Dubai
Meydan Free Zone (MFZ) is a place where you can save on office rent: you are not limited in your choice by the options within the free zone. In fact, you can rent an office anywhere in Dubai if you find a lower price.
You can obtain the following licenses here:
- Media License for companies that provide media and communication services, or any other media-related services.
- Consultancy License if the company provides business management or consulting services.
- Commercial License if you are going to engage in import and export activities and trade in different products.
The cheapest license will cost you AED 12,500.
Dubai Silicon Oasis (DSO)
This development and technology hub is one of the most popular and cost-effective free zones in Dubai. Here is what it offers:
- Industrial plots ready for development
- Warehouses and manufacturing facilities
- A professional business environment for regional offices and R&D centers
- Tax exemption
- Top-notch infrastructure for living and working
The companies that operate here are not limited to technology: they also provide legal services and consultancy and engage in other activities. The cheapest license will cost you AED 15,000.
These were just two examples to give you an idea of Dubai’s free zones, and you can find more information by following the above link.
Let us Support You in Business Setup
A free zone company is associated with numerous benefits for those who want to make real business. However, applicable regulations will vary depending on your situation and the area where you want to set up your company. It would be a good idea to rely on the support of experienced specialists who will help you resolve any issue.
Visit the International Wealth portal by clicking on the above link. We help entrepreneurs from all over the world go global in no time and without much effort!