For a few years now, the UAE is not only one of the most spectacular destinations in the world when it comes to its buildings and infrastructure, but also one of the most appealing investment locations. Out of all the seven emirates in UAE, Dubai draws the attention through the many benefits offered to foreign entrepreneurs coming to open companies here.
Dubai is outstanding not only for the simple and quick company registration procedures it offers, but also for its free zones which enhance the benefits offered by the Emirate. Free zones are special designated areas for doing business under very advantageous conditions.
Starting a company in a Dubai free zone implies many advantages, as mentioned above, especially for foreigners looking to develop a business in the UAE. We explain some of these advantages below.
Full foreign ownership
For those who didn’t know, starting a business in Dubai means having a local partner. This requirement is not applicable when choosing a free zone. It is true that each zone has its own authority which decides the conditions under which a business can be established, but full foreign ownership is available in all free zones, according to the national legislation.
Different company registration requirements
Considering the autonomy of each free zone, the authorities here decide what requirements they impose to those setting up companies here. Among the main differences in the requisites for opening a company, there are the licenses which need to be obtained and the share capital for starting a business. These will depend on the activities completed by the company.
Different free zones, various industries to operate in
One of the greatest advantages of Dubai’s free zones is that each one of them covers a specific industry. Multiply that by more than 30 free zones the emirate currently has and you will find out the impressive number of industries you can operate in. You shouldn’t neglect the fact that each industry has several sub-sectors.
As examples, the financial industry which is represented by the International Financial Centre Free Zone allows the opening of both traditional and innovative businesses, such as fintech companies.
Dubai’s free zones also welcome investors interested in exploring the media or the IT industries; therefore, no matter your area of interest, you should have no problem finding a free zone to suit you.
Taxation – one of the greatest benefits of Dubai’s free zones
Dubai is known for having one of the most advantageous taxation systems in the world which implies nearly no taxes at all with the additional perk of not being a tax haven. These tax advantages are further extended to its free zones which do not impose any corporate taxes, stamp duties or import and export levies. The repatriation of profits is also free of levies and this makes any Dubai free zone a great place to start a business in.
Even if the activities of a company established in a free economic zone is limited to that zone, launching a business in Dubai in one of its famous free zones has many benefits and offers many possibilities. Companies here are supported by the local authorities and have extended advantages when it comes to taxation, these being just a few of the reasons why they should be definitely considered by those seeking to operate in the United Arab Emirates.
