As a Free zone company in the UAE ushers in a variety of benefits to keep you profitable and progressive, it’s time to take your business to these designated economic zones.
The UAE continues to attract investors and investments from across the world. With business-centric policies, upbeat economic environment, market access and tax reliefs, it’s easy to understand why. The majority of foreign investments are centred in 49 free zones scattered across all 7 constituent emirates. These are special economic zones designated by the government to allow goods and service trade in a supportive environment at preferential taxes. If you are still reluctant to join the bandwagon, here’re 4 reasons to make you think otherwise.
- Easy incorporations:
Freezone company formation is easy to navigate and amazingly quick. No red tape, no onerous requirements and no ambiguous systems, everything here is transparent and streamlined. The application process is variable, depending on the free zone and the intended business activity, but it is accomplishable within just 10 to 14 business days. The documentation is simple – just put together passport copies, business plan, MOA, and other basic documents, and you’re sorted. A single entry point for licensing and registration is there to simplify and fast track the process. Plus, you’re relieved from meeting any minimum share capital requirements.
- Preferential Taxation:
One prime reason why investors prefer Freezone company setup in UAE is the preferential taxation applicable here. The laws of the land not only exempt you from corporate tax, personal tax and value-added tax but also ensure modest Import and Export duty on commodities and raw materials. Such a friendly tax regime translates into high profitability. Additionally, the currency restrictions are also not applicable and 100% repatriation of profits and capital is permissible – a big plus for an overseas investor. It means you can trade in the currency of your choice and send profits back to your native country without a hassle.
- Indirect trading:
The major drawback of a free zone company is its inability to trade directly with the markets in the UAE. This is restricted through legislation. Complicated as it may seem, this loophole is easy to remedy. In fact, it’s legit to appoint a local distributor that can help your products reach the market in return for a certain percentage or specified fee. Another way out is to branch out to different parts of the UAE. There are no restrictions on opening up branches of your free zone company that can put your products directly on the market and carry out other business activities across the UAE mainland, which is otherwise off-limits for Freezone companies.
- Ease of doing business:
Free zones are governed by their respective authorities that support Freezone company setup in UAE. They are happy to offer complete visa assistance, should you need help in obtaining visas for yourself, other shareholders, employees, family members or domestic help. Accessing easy lines of credit is integral to your free zone company’s prospects, and the authorities keep you covered here as well. They not only provide inputs on the right bank and bank account suiting your needs but assist in bank account opening as well. The majority of Free zones also provide virtual packages, flexi-desk and several business services to keep you gainful.