The UAE has become attractive destination for most of the entrepreneurs of the world because they offer low taxes. The strategic location in the heart of the world has emerging market and it supports businesses. The UAE free zones are considered as the essential economic areas where goods are being traded. Originally, these free zones were established to boost international businesses. There are currently 45 free zones across the UAE. With the passage of time, now these have become specific zones to support specific business types as compared to mainland company setup UAE.
Why set up in a free zone?
There are plenty of reasons that will compel you to start your company in Dubai free zones. Some of the reasons are given below.
Easy set up:
A DMCC free zone company setup is easy and straight forward. But still the process of company set up depends on the type of company and the chosen free zone. In some cases, you only require basic documentation such as passport and business paperwork. Sometimes, the whole process takes only one or two weeks. Many free zones also offer flexi desk and virtual packages which will allow you to use packages and facilities on ad-hoc basis.
Tax and duty:
This is one of the most compelling reasons to choose a free zone. It will give you benefit of 0% corporate and exemption from several taxes and your business will also be exempted from VAT. The free zone business will also be free from import and export taxes.
It will also give you advantage of getting ownership in foreign company which is almost impossible in the case of other countries. The persons who start their business in mainland, they have to work with a local partner to do business. But there is different case with free zones where the person can get complete ownership.
Trading within the UAE:
The free zone companies are not allowed to trade locally in Dubai but it can be easily overcome. You can work with locally appointed distributor who can put your services and goods to market in return of fee.
The free zones are particularly popular with privacy conscious entrepreneurs’ ownership as there is no open directory for company partnership. The company’s ownership details are never disclosed with public.