The term “Freezone” refers to a special economic zone in which business owners can retain 100 percent ownership while benefiting from tax breaks. As a business owner, you get to keep all of your profits and reinvest them in your company. Freezone offers you various benefits like – tax exemption, foreign ownership, absence of currency regulations, and much more. Freezone in Dubai is governed by its own Freezone Authority, which also handles registration and provides licenses. Although the Freezones differ across the Emirates, the fundamental principles remain the same.
Key features of Freezone business in Dubai
There are plenty of reasons to start a Freezone business in Dubai and some of them are listed below:-
One of the best benefits of forming a Freezone business in Dubai is complete foreign ownership. It clearly means that there is no need to find a local sponsor to start a business in Dubai/UAE and foreign ownership is possible regardless of the investor’s nationality.
Setup with ease
The setup process in Freezone is extremely straightforward. The application process will be determined by your business operations, although in many situations, you will only be asked to provide basic evidence such as passport copies and business paperwork. The entire procedure usually takes about a week or two. Many Freezone offers you flexible packages to facilitate business activities, which allows investors to start business easily and quickly.
The most convincing reason to choose Freezone is 100% tax exclusion. If you establish your business in a free zone, it includes 0% corporate and personal tax, and you will also receive an exemption on value-added tax. Businesses in Freezones also offer the exemption in import and export taxes with no currency restrictions.
Trading within UAE
Although free zone enterprises are not permitted to trade directly with the UAE’s domestic market. But you can work with a local distributor to sell your goods and services in exchange for a cost. However, the rules and regulations that regulate Freezones are quite similar to each other, and there will be distinctions in the business environment and the services provided.
Absence of currency regulations
Currency regulations are restrictions made by the government on the exchange of foreign currencies. There are no currency restrictions in UAE Freezones. This simplifies financial transactions.
Some other main benefits of Freezone business
- No need for a capital deposit.
- Easy access to transport systems
- Set-up and operational costs are less expensive.
- Exemption in import and export duties
- Attractive infrastructure with efficient communication system
- 100% ownership without the assistance of a UAE sponsor
- Stable and transparent rules and regulations
- Faster licensing and business establishment
- Easy labor recruitment
- Business support services
- Pre-built structures
- Modern IT infrastructure
- Pre-built structures
- Access to skilled professionals
Setting up your own business is a difficult task to perform but a proper and reputed business consultant like Vault Bucks can help you in setting up a company in any of the major Freezones in Dubai. Our consultant will take care of the legalities and documentation associated with company formation.