Among the most favorable business hubs that you can find in the world, there is the UAE and its business locations. Besides being an excellent location to do business, the UAE can also bring you a lot of benefits and advantages. And setting up a freezone company in UAE is one of your best options to obtain those benefits for your business.
In this article, you will learn everything you need to know about the benefits of setting up in the UAE. More precisely, here you can find information about the most outstanding advantages of setting up a free zone company. Furthermore, we’ll provide you with useful information about the business setup process in these UAE jurisdictions known as free zones. Let’s observe:
Why is Setting Up a Free Zone Company in UAE Beneficial?
When starting a business in the UAE, you will be able to choose different jurisdictions to set up your company. And the main jurisdictions that you can select in this country are mainland areas, offshore areas, and free zones. Although all of them offer incredible benefits, the most popular option among foreign investors is free zones.
Free Zones in the UAE are certain locations where investors can trade and exchange different products, services, and commodities. But there are certain regulations and rules that they must follow in order to avoid legal issues. However, all regulations are very flexible, which is one of the many benefits that free zones can offer.
When setting up a freezone company in UAE, you’ll be able to get those benefits to boost your business exponentially. In fact, those advantages are the main reason why investors from everywhere decide to set up in those UAE locations. Now, let’s take a look at the many benefits that UAE free zones can provide you with and discover some reasons why becoming an entrepreneur in the UAE can be a favorable business idea for professionals like you.
Tax Benefits that Free Zones Offer.
One of the major reasons why investors from many different countries choose free zones over other options is this benefit. In the UAE, free zones are popular for offering tax exemptions to all companies that operate within these special areas. And some of the taxes that free zone companies and businesses are exempted from are personal and corporate income taxes.
And in some cases, companies can even get exempted from other relevant taxes, such as the VAT. Although the VAT is low, setting up a freezone company in UAE allows your business to get an exemption from it. In case you need to obtain more accurate information, Connect Free Zone can provide you with the guidance you require and If you desire to set up a facility management company in Dubai, here you can learn how to do it.
Exemption From Import and Export Duties.
Besides enjoying tax exemptions, you can also enjoy exemptions from import/export duties when setting up a freezone company in UAE. All free zones in the country provide companies with this benefit, which helps them to grow exponentially as stable businesses. And both the country and the investors can obtain other advantages with this import and export duties exemption.
Due to the import and export duties exemptions, free zones can contribute to the promotion of international trade within these jurisdictions. As a result, free zones are now attractions for foreign businesspeople and invite them to create their many businesses there. However, it is important to learn about the procedures related to import and export activities in free zones.
Complete Foreign Ownership of Your Company.
Another outstanding benefit that makes free zones successful business hubs for investors is the foreign ownership of companies or businesses. If you’re looking forward to setting up a freezone company in UAE, you’ll be able to enjoy 100% of ownership. In other words, you will not need to appoint a local sponsor to hold 51% of your company.
Unlike free zones, companies located in the mainland jurisdiction must find a UAE national who holds that percentage of their companies. In the meantime, business owners can only have the remaining 49%. However, that does not apply to free zones since business owners can hold 100% of the ownership.
Repatriation of Profits and Capital.
Apart from getting 100% of the foreign ownership of your company, you can also get full repatriation of capital and profits. All companies that operate in any of the available UAE-free zones will be able to get full repatriation benefits. And of course, it includes profits and financial assets as well, which is also an advantage for all companies and businesses.
In other words, by setting up a freezone company in UAE, you can send your earned profits back to your home country. And besides your company’s profits, you can also transfer your capital invested to your home country.
Access to a Variety of Facilities and Workspaces.
Another advantage that you can get by setting up a freezone company in UAE is access to multiple facilities. For example, you can rent or lease warehouses in excellent conditions, fully equipped office spaces, and many other available options. And since these facilities and spaces are easy to find, free zones became quite popular among SMEs and startups.
Besides, you can find plenty of alternatives, from the cheapest to the most expensive options. And you are also free to choose between leasing and renting your ideal workspace. However, that will mostly depend on your needs and available budget.
Access to World-Class Infrastructure.
You can also get access to the most efficient and modern infrastructure and other elements, including communication systems and more. Also, you can use excellent transportation systems to transport your goods and products by air, sea, and land. Besides, there is easy access to famous airports and seaports, which makes it easier for your business.
Hassle-Free Immigration Process.
During the process of setting up a freezone company in UAE, you will probably have to complete the immigration process. However, you do not need to worry about it since this process is very simple and easy. And it can be even easier if you have Connect Free Zone by your side during the process.
With our help, you will be able to complete this important process in a matter of time. And this way, you will be able to save both your time and effort. Therefore, you should contact our specialists before starting this procedure.
Straight Forward Process to Recruit Employees.
Another benefit of setting up a freezone company in UAE is that you can easily find the workers you need. And you can hire them without going through tedious procedures in order to achieve your goals.
On the other hand, companies located in free zones can also hire foreign nationals if they so desire it. However, it is important that both the companies and the foreign professionals meet all requirements before starting the hiring process.
No Currency Restrictions.
If you’re a foreign professional and decide to establish your company in a free zone, you don’t need to worry about currencies. Free Zones in the UAE allow all companies to use any currency for carrying out transactions.
In other words, you will find no currency regulations in any of the free zones in the country. Due to the absence of currency restrictions, companies that use foreign currencies will be able to make financial transactions easily and also find why Umm Al Quwain can be one of your best options for starting your business.
Easy Company Formation Process.
And lastly, you will find it easy to set up your company in any of the available free zones. And the main reason for this is that the business setup process is very straightforward and simple. All you must do is complete certain steps that we will mention below.
And in case you desire to make this process simpler, you can always get in touch with Connect Free Zone. We will provide you with the services and advice that you need.
Steps to Complete the Company Formation Process in a Free Zone.
Setting up a freezone company in UAE is one of the easiest processes that you can complete in this country. And all you need to do is to follow certain steps in order to officially open your free zone company. Therefore, you should know about the stages of this process, so you can start building your company in the UAE:
- Firstly, you’ll need to choose your ideal free zone, which will be the place where you will operate your business.
- Secondly, it’s important to select a trade name that suits your company and follows the rules related to this matter.
- Thirdly, you’ll be required to apply for a free zone license that covers all of your company’s activities and needs.
- Next, you must register your company by submitting the necessary documents and getting all required approvals from the pertinent authorities.
- Once you get the necessary approvals and your issued license, you will be able to start operating your free zone company.
Set Up a Freezone Company in the UAE with Connect Free Zone
You can get all the benefits that free zones offer when setting up a freezone company in UAE. However, you can obtain even more benefits if you set up your company with Connect Free Zone by your side. In fact, you can make the company formation process easier with our services and professional advice for guidance.
Besides, we can help you make core decisions during the setup process of your company in a UAE free zone. For example, our specialists will help you choose the most convenient location for your business and the facilities it needs. Also, we can help you get the license you need to operate your business legally in your chosen free zone.
On the other hand, you can get more services to help you boost your company. For instance, you can get recruitment and staff outsourcing services to hire the employees you need. Other available services are banking services, tax advisory, and many more. Feel free to contact us and request our many services to improve your company.
Would you like to contact Connect Free Zone to obtain more information about the benefits that you can obtain by setting up a free zone company in the UAE? If you have any questions, call us on +97143316688. Or you can also email us at info@connectfz.ae, and you will talk to one of our representatives who will gladly answer all of your questions.
Kane BernardHe is a dynamic Enterprise Development Manager with a proven track record in driving business growth and innovation. With a strategic mindset and a passion for fostering enterprise success, he excels in identifying new market opportunities, developing strategic partnerships, and enhancing operational efficiencies. His expertise includes market analysis, business planning, and project management, enabling her to guide enterprises through complex development stages.
