Business Setup in Dubai Freezone

Posted by Business Incorporation Zone on January 25th, 2023

The mainland and the free zones are the primary alternatives for foreign investors looking to open a business in Dubai. Due to the simplicity of business creation, comparably cheaper costs, and, most crucially, ownership, foreign entrepreneurs and company formation advisors in the UAE choose to set up free zone company in UAE rather than on the mainland.

In order to strengthen and diversify Dubai's economy and provide employment possibilities, free zones are crucial. For international investors looking to start a business in Dubai, free zones are the most appealing option due to their highly effective and independent regulatory system.

What is Freezone?

When Dubai established the Jebel Ali Free Zone (JAFZA) in the early 1980s, it was the first emirate in the UAE to create the national free zone model. Free zones are geographical areas that are especially gated and allow for the handling, production, and modification of commodities.

To facilitate imports and re-exports, which are the most frequent business operations in Dubai-free zones, the majority of free zones are situated close to airports or seaports. For instance, DAFZA is near Dubai International Airport while JAFZA is situated in the port of Jebel Ali. Additionally, free zones are unable to conduct direct business in the UAE market without first appointing a regional distributor.

Characteristics that attract investors to start a business in Dubai Freezone:

Starting a business in Dubai is an appealing alternative, but the need that a local sponsor (a citizen of the UAE) possess at least 51% of the company's shares has been a significant barrier for investors. overseas investors. Due to the extremely alluring aspect of 100% ownership, international business owners with clientele based outside of the United Arab Emirates favor Dubai free zone company formation.

The owner of the business, which runs in a free zone in Dubai, is able to transfer the revenues made to his home nation. Since there is no income or corporate tax in the UAE, businesses can also benefit from large tax benefits. The banking and oil sectors, however, are subject to corporate tax.

Free zones are specifically designated commercial areas that are under the control of the relevant regulatory bodies. In accordance with the policies of the relevant free zone authorities, each free zone has its own set of rules and laws governing the incorporation of businesses.

It is simpler to incorporate a business in the Dubai mainland free zone than on the mainland. Investors just need to abide by the norms and guidelines set forth by the relevant free zone authorities. Before establishing a business in the Dubai Free Zones, investors should be aware of a few things, such as the various legal structures and affordable free zone licenses in Dubai.

Advantages of Choosing Business in Dubai Freezone:

Easy & Cost-Effective:

Due to the numerous external criteria and permits, incorporating a business in mainland Dubai frequently seems overwhelming to overseas investors. Free zones are nevertheless governed by their own authorities, and these agencies' rules are more lenient than those governing business registration in mainland Dubai.

Strong Workforce:

Free zones enable business owners to locate and employ the required labor force at competitive rates. Additionally, there are no limitations on recruiting international workers, which is a huge benefit for foreign investors who decide to establish businesses in Dubai's free zones.

Visa Process:

The investor obtains the visa verifying their residency status in the UAE once they have finished registering the company in Dubai. Entrepreneurs can easily sponsor visas for their family members and domestic staff by establishing a business in one of Dubai's Free Zones.

Want to set up business in Dubai but need help with the planning, licensing, immigration, document clearance, copyrights, and other aspects? Business Incorporation Zone is the one you can choose. To speed up and make the process of forming a corporation simpler, BIZ professionals collaborate closely with you.