Why Setup Free Zone Business in UAE

Are you starting a business setup in UAE? If yes, then you need to consider setting up a free zone business.

Free Trade Zones (FTZ) or simply free zones are special economic areas in Dubai. There are currently more than 30 free zones in the country and are home to more than 150,000 companies. The free zones were established with the aim to attract more foreign investors and to ensure the continuous growth of Dubai’s economy.

So, the big question now is, “Why should you choose the free zone of Dubai?” Here are some reasons you should know about.

Tax exemption

Perhaps this is among the most attractive feature of the free zone business. Considering the chunk of money that goes to taxes, most businesses now are seeking shelter within the free zone. Selected free zone business enjoys complete income and export and import tax exemption.

100% business ownership

Most countries would require local businesses to be owned by its citizens. For foreigners, they would need sponsors to be able to own their company. However, this is not the case in UAE’s free zones.

If you establish a business in one of the UAE’s free zones, you can own your business completely and there is no need to get a sponsor. According to some business consultants in Dubai, they consider this to be the biggest advantage of a free zone.

Generally, people can only start a company in the UAE if 51 percent of the company’s share is owned by an Emirati national. However, this is not the case in free zones. The company can fully owned by a foreigner or companies outside of the UAE.

Innovative free zone infrastructure

If you have been to one of the free zones in Dubai, you would immediately conclude that the area is designed to help businesses grow and thrive. The infrastructure around and within free zones include innovative buildings, wide roads, communication systems, and other important amenities needed to create the best possible environment for your businesses.

Easier application for residency visas

Outside of the free zone, foreigners have to go through stringent visa. However, shareholders, company owners, and employees within a free trade zone follow a special and unique residency law. For example, if you leave a free zone company before completing two years of your contract, your employee cannot place a six-month ban on you, which is something applicable to employees outside of the free zone.

To get more familiar with the labor laws, you may want to look for professional legal advocates in Dubai.

Starting your free zone business

Now that you know some of the most important reasons why you should choose one of UAE’s free zones, it is time for you to get more familiar with the legalities. Aside from seeking legal services in Dubai, you should also speak to one of the experienced and knowledgeable legal advisors of Motei & Associates. They have the right expertise to guide you through the process of starting a free zone business.