Are you are thinking of starting a business in UAE and want to know what are the benefits of forming a free zone company in UAE, then this blog post is just for you. But before jumping to the benefits, it is important to have knowledge about some essential things to form a business in UAE.
What are Free zones in the UAE?
Free Zones are the special places in the UAE where companies are granted special rules and regulations with relaxations and are issued with a special operating license and tax benefits so that they can do their business freely without any hassle. These special zones were established for economic development by growing businesses and to attract more business opportunities. There are more than 40 free zones in seven emirates of UAE. An investor who wants to start a business in the UAE can form 3 types of business entities –
- Free Zone Company (FZC)
- Free Zone Establishment (FZE)
- Branch of a business concern
Benefits of Forming a Free Zone Company in UAE
- Complete Foreign Ownership
A Foreign investor who wants to start a business in a free zone will benefit from complete foreign ownership. They don’t need UAE sponsors to form their company. Investors from all nationalities can start their businesses in free zones.
- Absence of Currency Regulations
Currency regulations are the restrictions set by the government on foreign that can be changed or transferred. But there is a benefit of forming a free zone company that there are no such regulations that need to be followed. Financial transactions become easy this way.
- Import and Export Duty Exemption
In the free zones of the UAE, import and export duties are not applicable. It has proved a great step in promoting international business. You don’t have to pay import and export taxes and the procedure of business is very easy which saves your time and paperwork.
- Tax Benefits
Freezone Company Formation will benefit you in many ways. If you form a company in the free zones you will get lots of tax benefits which means companies don’t have to pay certain taxes such as income taxes and corporate taxes. Other than that they might not have to pay taxes when they bring in materials from other countries, or when they sell products to other countries. It’s a way to encourage businesses to start up and grow in these zones to grow the economy.
- Repatriation Benefits
If you are a foreign investor who has a company in the free zone then you can get the benefit of repatriation. You can easily transfer your profits to your home country without any taxes and restrictions. In this profit and financial assets are included. This easy procedure of transferring your profit encourages foreign investors to form and operate their companies in these free zones.
- Smooth Labour Recruitment
Companies operating in the UAE-free zones can easily conduct recruitment in a very easy way. This cost-effective recruitment includes both local and international people. That way they can build a skilled and diverse team which helps in the success of their company.
- Readily Available Workspaces
The beginners who want to operate in free zones can get the benefit of readily available workplaces. These workplaces are usually equipped with all the essentials and they are easy to rent without any problem or inconvenience. These readily available workplaces in free zones make it easy for companies to start their business without facing any workspace problems.
- Ease of Company Incorporation
The procedure of company incorporation is very easy in free zones. There are less paperwork requirements. Licensing procedures can be accomplished in a few days compared to other places. The easy process of the company incorporation attracts foreigners to establish their business in these free zones which helps in building the economy of the UAE.
- Trouble-Free Immigration Procedures
The immigration procedure in these free zones is very easy and trouble-free.
- Excellent Communication and Infrastructure
In the free zones, they have excellent communication setups and great infrastructure. So everything goes very smoothly in these free zones and it creates a great business environment.
Steps to Form a Free Zone Company in the UAE
Freezone company formation in Dubai is not a very challenging task. You just need to follow some easy steps and your goal will be achieved without any hassle. Here is the list of these easy steps you need to follow to form a free zone company.
- Choose Your Business Activity
The very first step you need to take to form a free zone company is to choose your business activity. It is important to determine your business activity before applying for a business license. It means that you need to make sure the business you are going to start belongs to which industry.
- Select a Free Zone
As we mentioned before there are more than 40 and approximately 50 free zones in 7 emirates of the UAE. Before applying for the free zone license firstly you need to choose a free zone where you want to start your business. Take your time and choose a zone that suits best for your business.
- Pick a Company Name
To apply for the free zone license some conditions need to be fulfilled. It includes the name of your company. So decide the name of your company beforehand so you don’t have to pick one at the very last moment.
- Compile all the Documents and Apply for a Free Zone License
The last step is to apply for your free zone license. The type of your license depends on the type of your business. So you will have to fill out an application form according to your business type. After preparing all the documents compile them and then submit them. The process of getting a license for a free zone company takes a very short time compared to the other places. So you will receive your license within one or two weeks.
Dubai Freezone company formation can help you in many ways if you are a businessman looking for opportunities to enter in Dubai market. So without any delay, get your free zone license and your start any business journey in the Dubai market.
Also Read: Benefits of Hiring the Best Business Setup Consultant in UAE
