Dubai’s zero tax policy, ease of doing business, and overall development have become benchmarks for countries across the globe. One of the most appealing offers to investors is the idea of “free zones”, which is dedicated towards the fostering of global investments and development. Knowing how these zones operate and how they are different from the other agreements on the mainland is beneficial for starting a successful business in the UAE.
What Is a Free Zone?
A Free Zone is a designated area in UAE where a company can enjoy benefits like total foreign ownership, tax exemption, and customs duty privileges. These zones have their governing body and are self-contained. The first free zone, the Jebel Ali Free Zone (JAFZA), was established in 1985. UAE has about 45 free zones, with Dubai hosting famous sites such as Dubai Internet City, Dubai Multi Commodities Centre, and Dubai Healthcare City.
Why Choose a Free Zone Over Mainland?
Entrepreneurs often face the question: Should I set up in a free zone or on the mainland? While both offer business opportunities, free zones present distinct advantages for foreign investors looking to maintain full ownership and operate with fewer restrictions.
Key Benefits of Dubai Free Zones
100% foreign ownership, complete repatriation of capital and profits, zero corporate and income tax, no import/export duties, quick and easy business setup, advantageous location and infrastructure, flexible office solutions, no currency restrictions, logistical difficulties, and industry-specific clusters are just a few advantages that Dubai Free Zones provide to companies. These zones are perfect for companies in many industries because they offer a tax-free environment, strong connectivity, and access to a worldwide market. Dubai’s free zones also provide plenty of storage, transportation, and immigration services, as well as flexible workplace options and no currency limits. Additionally, these zones offer industry-specific clusters for targeted networking and support.
Company Structures in Dubai Free Zones
Dubai offers several business types useful to business owners, such as Limited Liability Company (LLC), Free Zone Establishment FZE, Free Zone Company FZC, or Branch of a Foreign Company BRC. Each structure comes with unique benefits based on the size, goals, and anticipated milestones of the company. The most applicable choice will depend on the specific needs and aims of the business.
How Much Does It Cost to Set Up a Free Zone Business in Dubai?
Setting up a free zone business in Dubai is cost-effective, especially for start-ups and small to medium businesses. The total set-up costs for a business never exceed AED 30,000, which includes a trade license fee, leasing an office space, or even visa and immigration charges, along with administrative and registration fees. Selecting the ideal free zone and navigating the pricing structure that best fits your budget and company plan are tasks that GPA Accounting LLC can assist with.
Paperwork Required for Free Zone Company Formation
A trade name reservation certificate, passport copies of the shareholders, coloured passport-sized photos, a business plan, personal information sheet, lease agreement, a local sponsor’s No Objection Certificate, memorandum and articles of association, and external approvals are among the documents required to form a Free Zone Company. The staff at GPA will assist you with these documents and coordinate with the appropriate authorities.
Free Zones Across the UAE: Not Just in Dubai
Though each emirate has its own set of free zones with benefits unique to each sector, Dubai is the most visited place in the United Arab Emirates. While Sharjah provides reasonably priced choices and excellent logistics connectivity, Abu Dhabi is recognised for its financial, media, and research-focused areas. Ras Al Khaimah is best for manufacturing and industrial enterprises, whereas Fujairah and Ajman are more affordable and easier to set up.
The Role of GPA Accounting LLC in Your Free Zone Journey
Offering comprehensive assistance for company registration, accounting, VAT and corporate tax services, FTA tax audits, visa and PRO services, business consultancy, and ZOHO/Tally ERP integration, GPA Accounting LLC has over 25 years of expertise and is a reliable partner for businesses in the United Arab Emirates. They help freelancers, small and medium-sized enterprises, and foreign companies looking to enter the Middle East navigate the intricacies of forming a UAE corporation.
Establish your business in the UAE free zone
For international investors looking for ownership, freedom, and cheap taxes, Dubai’s free zones present an alluring option. You can make a name for yourself in one of the most vibrant business environments on the planet if you follow the correct advice.
Contact GPA Accounting LLC immediately to speak with one of our knowledgeable advisors. We’ll assist you in selecting the ideal free zone, comprehending your license needs, and making sure your setup goes smoothly.
