Free Zone Incentives For Company Formation In Dubai

David Baker
Aug 22, 2017 · 2 min read

Business setup in a free zone in UAE is the most attractive opportunity for foreign investors. Facilitating operational activities is the main purpose of free zones establishment. Additionally, business formation in a free zone is comparatively quick and easy for outsiders.

Free zones are geographically known areas. They are subject to noticeably different rules and regulation as compared to local companies in UAE. Generally, all of the operating businesses in free zones are officially treated as foreign companies.

Every free zone has a different authority of administration. For company formation in Dubai, every free zone has difference in registration procedures and assignment of operating licenses. Beside such dissimilarity, their main principles stay the same.

company formation in Dubai

Free Economic Zone Incentives For Investors:

A free zone is often called free economic, duty free, tax free or free trade zone. Investment in a free economic zone has a lot of advantages. Some of the major incentives that economic zones offer to a foreign investor include:

Ownership:

Having 100% ownership is the main goal of every investor. To setup a company in any of the free economic zone, investors get 100% ownership to fully control his business activities.

Capital Repatriation:

Most of investors usually face limitations on capital repatriation. A free zone setup normally allows investors for 100% repatriation of their capital and income.

Duty Free Chances:

Most of the local companies are subject to import and export duties. In an economic zone, investors get a chance of full freedom from both the import and export duties.

Tax Free Opportunity:

Companies are usually subject to tax on corporate gain and incomes. This is an exception for businesses operating in the free zones. In most circumstances, they do not have to pay any tax.

No Currency Limitations:

Outsiders often highly restricted to operating more than a single currency. However, this is not a case in free zone company establishment. Investors stay free from limitations in this regard.

Lasting Support:

Starting a business in Dubai requires lasting support of relevant authorities. A free zone offers an on-going assistance in workforce recruitment to investors. Additionally, they get full support for sponsorship and housing within the site.

Free-Build Spaces:

Every free economic zone is established for separate business activity. They have well-furnished offices, workshops and storerooms ready for operations that reduces the early setup costs.

Fast-Track Setup:

Delays in licensing procedures are the main problems for speedy business arrangement. In case of economic zones, licensing procedures delay is not a case. The whole setup is performed quickly.

Low-Cost Procedures:

Free zones offer plenty of energy on a cheap price. This reduces the cost of alternative energy sources for on-going operation. They also offer outstanding working arrangement at a low-cost.

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