There are differences between a free zone and a mainland in UAE. The differences lie in the inclusion of UAE nationals, level of liability, as well as nature of ownership.
If you are looking for a Freezone company formation Dubai, you are not alone. Dubai’s free zone is actually what it is - a free zone. You are going to enjoy so many luxuries you have to pay for if you are setting up somewhere else.
What really is a free zone?
Dubai’s Free trade zone gives you the right to have 100% ownership of the business. It is an area where certain restrictions or taxes on trade, employment, or business are not applied in the same way they are applied in other regions.
Generally, a free zone is organized around national frontiers, international airports, and major seaports.
What are the benefits of doing business in Dubai’s free zone?
In a free zone, one can handle, manufacture, reconfigure, or re-export goods without the interference of customs. You are only subject to those taxes when you move the goods to other locations from the free zone.
Some of the benefits of setting up your business in a free trade zone include
- Easy licensing and startup procedures
- No export/import tax
- Exemption from personal income tax
- Exemption from corporate tax
- 100% capital and profits repatriation
- 100% exemptions from import/export tax
Types of businesses possible in free trade zones
There are so many areas of business you can do in the free trade zones. There are fields in media, hospitality, retail, educational, or financial. But before you begin, it will be important to verify with the proper free zone authority. Each of the authorities has its limitations on different types of businesses. So, it is vital to check with them to make sure you are on the right track.
Remember that your type of business license will determine how you operate your business. There are specific activities that are permitted on different types of licenses. Your line of business is the first thing you have to decide before applying for a license. Once you have selected a business model and applied for the license, you can proceed to other things.
Overall, there are many benefits of company setup in Dubai Freezone as seen above. You are given some tax exemptions to help you have a successful startup and operation.