Fundamentals of Free Zones in Dubai

Free Zone in Dubai

Free Zones are the economic zones that have 100% foreign ownership and are tax free with customs duty benefits to the emigrant’s investors. This makes Dubai the most favourable locations for international operations.

In Dubai and UAE, free zones are not treated as jurisdiction of UAE, they fall under the rules and regulations made for the free zone area. The business setup at the free zone area is not dependent to commercial company’s law.

Dubai has vast business opportunities for shareholders for their Free zone company structure .It has easy free zone company setup procedures.

ADVANTAGES OF FREE ZONE COMPANY SET UP IN DUBAI:

• You don’t need any local partners or sponsors, you can have 100% Ownership
• You have the facility to own the properties
• The renewal fees are limited
• It has easy enrollment process, work allowance and Visas
• You don’t have to pay corporate tax for 50 years; If you want you can renew it for an additional 50 years
• Duty free goods importing into the free zone
• You can indulge in more activities
• The business associations are stringently preserved
• You are allowed to have a bank account in Dubai
• The business associations are stringently preserved
• You Can conclude your business at your consideration

TYPES OF COMPANIES UNDER FREE ZONE:

These are the two types of company registered as Free Zone in Dubai

Free Zone Establishment (FZE): Free Zone Establishment companies are a single shareholder accountability company.

Free Zone Company (FZCO): Free Zone Company is capable to have multiple shareholders and it can have up to 5 shareholders.

FREE ZONE BUSINESS SETUP – TYPES OF LICENSES

These are the 4 types of license available for Dubai’s Free Zone

Trading License: A company with this license can deal with buying and selling of goods and commodities and import- export all of these falls under this category.

General Trading License: A company with this license can deal with trading of all types of goods, except of some banned goods and products that need special approvals.

Service License: A company with this license deals with consultancy, accountancy, etc. services.

Industrial License: This license grants the company to deal with manufacturing, packaging and processing.

These are few tips to remember when thinking about Dubai’s free zone as an option for starting your business in Dubai. It is a big opportunity for the investors, who are thinking to start a business abroad.

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